AVS College of Arts & Science

(Recognized under Section 2(f) & 2 (B) of UGC Act 1956 and Accredited by NAAC)
(Affiliated to Periyar University, Salem & Approved by AICTE, New Delhi)

Attur Main Road, Ramalingapuram, SALEM – 636106

DEPARTMENT OF MANAGEMENT AND RESEARCH

ORGANISATIONAL BEHAVIOUR
STUDY MATERIAL

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 Organisational Behaviour
UNIT-I
Organizational Behaviour- Meaning - Importance – Evolution - Disciplines contributing to
Organizational Behaviour- Models of Organizational Behaviour-relevance of OB in modern
management.

MEANING & DEFINITION

Define organization:
Organization is defined as the group of people working together to attain a common
objective. Organization is something that enables the ordinary people does extraordinary things.
“An organization is a consciously co-coordinated social unit, composed of two or more people
that functions on a relatively continuous basis to achieve a common goal” - StephenP.Robbins

“Organization is the form of every human association for the attainment of a common purpose” -
Mooney and Reiley

Define Organizational psychology

“It is the field of study that investigates the impact that individuals, groups and structure have on
behavior with in an organizations, for the purpose of applying such knowledge toward improving
an organization’s effectiveness” -Stephen Robins

“Organisationalbehaviour is the study and application of knowledge about human

behaviour related to other element of the organization such as structure, technology and
social systems" - Keith Davis

"Organizational behaviour concerned with understanding, prediction and control of

human behaviour in organization" - Luthans

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"The study of what people think, feel and do in and around organization"
Teven.l.Mcshane& Mary Glinow

OBJECTIVES OF ORGANIZATIONAL BEHAVIOR:

1. Communication
It is one of the key aspects of studying organizational behavior. Gaining knowledge regarding
communication helps managers to interact with employees in a common language as different
people react differently to different conditions at the work place.
2. The Behavior of Employees
This study helps to understand the behavior of employees as it is often seen sometimes managers
get frustrated regarding the behavior of an employee but they fail to understand the reason
behind it.
3. Predicting Employees Behavior
Managers gain the power to predict the behavior of employees and take preventive measures
whether he is productive and sincere towards his task and to detect which employee can cause
problems by giving lame excuses or by absenting himself from office.
4. Impact on Employee Behavior
This study aids to achieve the goals as it controls and develops human activity at work. The
managers are responsible for the productivity. They need to make an impact on the employee
behavior, develop their skills, motivate them to work in a team collectively for better
productivity and thus, ultimately achieve their targets.
5. Different Personalities
No person on this earth is same. Everyone has their own individuality and potentialities. The
organizational behavior studies manage to study the psychology of the employee and deal with
them accordingly. Each and every person has his own pros and cons regarding abilities and
drawbacks. Organizational studies help to understand these qualities of the person and promote
him in that very context to enhance more productivity.
6. Motivational Factor
To enrich the quality of work in the organisation, motivation is the key tool, employees have so
many needs to be fulfilled, for which he toils, but if his work is appreciated he is motivated to
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perform better, this studies helps to patch up the differences with the employees, giving
preference to their needs and motivating them accordingly to perform better.
7. Meaningful Involvement
It is another aspect that tells us about mutual benefit by meaningful involvement.  It is an ardent
desire of an employee to be involved in decision-making problems. They should be able to
present their skills and knowledge and what they have gained through their work experience.
Organizations should give a chance to its employees by involving their participation for
decision-making problems which will be beneficial for both the parties.
8. Codes of Ethics
It is an era where it is very important to retain valuable employees for the organization to foster
productivity. The objective of such studies is to treat the employees in an ethical manner.
Employees should be rewarded, given due respect, ethical training and publicize ethical values to
be a major part of the organizations.
It can be concluded, that every organization has its own objectives to be successful in achieving
their targets. And to do so, it is in the hands of the management to handle their employees in the
best possible manner. Apart from shedding light on the behavioral aspect of the organizations,
organizational behavior studies also deal with the philosophical foundation of the basic concepts
which are very crucial for the organizations to enhance productivity.

NATURE AND SCOPE (FEATURES) OF ORGANIZATIONAL BEHAVIOUR

Organizational behaviour has emerged as a separate field of study. The nature it has acquired is
identified as follows :
1. A Separate Field of Study and not a Discipline Only
By definition, a discipline is an accepted science that is based on a theoretical foundation. But,
O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical
background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a
discipline only.
2. An Interdisciplinary Approach
Organizational behaviour is essentially an interdisciplinary approach to study human behaviour
at work. It tries to integrate the relevant knowledge drawn from related disciplines like

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psychology, sociology and anthropology to make them applicable for studying and analysing
organizational behaviour.
3. An Applied Science
The very nature of O.B. is applied. What O.B. basically does is the application of various
researches to solve the organizational problems related to human behaviour. The basic line of
difference between pure science and O.B. is that while the former concentrates of fundamental
researches, the latter concentrates on applied researches. O.B. involves both applied research and
its application in organizational analysis. Hence, O.B. can be called both science as well as art.
4. A Normative Science
Organizational Behaviour is a normative science also. While the positive science discusses only
cause effect relationship, O.B. prescribes how the findings of applied researches can be applied
to socially accepted organizational goals. Thus, O.B. deals with what is accepted by individuals
and society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact,
O.B. is normative as well that is well underscored by the proliferation of management theories.
5. A Humanistic and Optimistic Approach
Organizational Behaviour applies humanistic approach towards people working in the
organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief
that people have an innate desire to be independent, creative and productive. It also realizes that
people working in the organization can and will actualize these potentials if they are given
proper conditions and environment. Environment affects performance or workers working in an
organization.
6. A Total System Approach
The system approach is one that integrates all the variables, affecting organizational functioning.
The systems approach has been developed by the behavioural scientists to analyse human
behaviour in view of his/her socio-psychological framework. Man's socio-psychological
framework makes man a complex one and the systems approach tries to study his/her complexity
and find solution to it.
SCOPE OF ORGANIZATIONAL BEHAVIOUR :
The three internal organizational elements viz., people, technology and structure and the fourth
element, i.e., external social systems may be taken as the scope of O.B.

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1. People
The people constitute the internal social system of the organization. They consist of individuals
and groups. Groups may be large or small, formal or informal, official or unofficial. They are
dynamic. They form, change and disband. Human organization changes everyday. Today, it is
not the same as it was yesterday. It may change further in the coming days. People are living,
thinking and feeling being who created the organization and try to achieve the objectives and
goals. Thus, organizations exist to serve the people and not the people exist to serve the
organization.
2. Structure
Structure defines the sole relationship of people in an organization. Different people in an
organization are given different roles and they have certain relationship with others. It leads to
division of labour so that people can perform their duties or work to accomplish the
organizational goal. Thus, everybody cannot be an accountant or a clerk. Work is complex and
different duties are to be performed by different people. Some may be accountant, others may be
managers, clerks, peons or workers. All are so related to each other to accomplish the goal in a
co-ordinated manner. Thus, structure relates to power and duties. One has the authority and
others have a duty to obey him.
3. Technology
Technology imparts the physical and economic conditions within which people work. With their
bare hands people can do nothing so they are given assistance of buildings, machines, tools,
processes and resources. The nature of technology depends very much on the nature of the
organization and influences the work or working conditions. Thus, technology brings
effectiveness and at the same restricts people in various ways.
4. Social System
Social system provides external environment which the organization operates. A single
organization cannot exist also. It is a part of the whole. One organization cannot give everything
and therefore, there are many other organizations. All these organizations influence each other. It
influences the attitudes of people, their working conditions and above all provides competition
for resources and power.

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O.B. is the study of human behaviour at work in organizations. Accordingly, the scope of O.B.
includes the study of individuals, groups and organization/structure. Let us briefly reflect on
what aspects each of these three cover.
5. Individuals
Organizations are the associations of individuals. Individuals differ in many respects. The study
of individuals, therefore, includes aspects such as personality, perception, attitudes, values, job
satisfaction, learning and motivation.
6. Groups of Individuals
Groups include aspects such as group dynamics, group conflicts, communication, leadership,
power and politics and the like.
CONTRIBUTING DISCIPLINES TO THE ORGANISATIONAL BEHAVOUR

Organizational behavior is an applied behavioral science that is built upon contributions from a
number of behavioral disciplines. The main areas are psychology, sociology, social psychology,
anthropology, and political science.

1. Psychology

Psychology is the science that attempts to measure, explain, and at times change the behavior of
humans and other animals. Early industrial/organizational psychologists were concerned with
problems of fatigue, boredom, and other factors relevant to working conditions that could
disrupt/ impede efficient work performance. More recently, their contributions have been
expanded to include learning, perception, personality, emotions, training, leadership
effectiveness, needs and motivational forces, job satisfaction, decision making processes,
performance appraisals, attitude measurement, employee selection techniques, work design, and
job stress.

2. Sociology

Sociologists study the social system in which individuals fill their roles; that is, sociology studies
people in relation to their fellow human beings. Their significant contribution to OB is through
their study of group behavior in organizations, particularly formal and complex organizations.

3. Social Psychology

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Social psychology blends the concepts of psychology and sociology. It focuses on the influence
of people on one another. The major challenge deals with the issue of how to implement it and
how to reduce barriers to its acceptance.

4. Anthropology

Anthropology is the study of societies to learn about human beings and their activities.
Anthropologists work on cultures and environments; for example, they have aided in
understanding differences in fundamental values, attitudes, and behavior among people in
different countries and within different organizations.

5. Political Science

Political science studies the behavior of individuals and groups within a political environment. It
focuses on areas, such as, conflict, intra-organizational politics and power.

Importance of OB

OB is so important due to the following reasons

1. Individual Differences in Organization
People differ not only in their physical attributes but in their psychological qualities as well. For
example, there are differences in the capacity of different individuals to understand, learn,
memorize, judge, predict, conclude and so on. Knowledge of such individual differences is
important for the manager to get the best out of every employee. While assigning work to
different employees, these differences will have to be taken into account.
2. Perception of employees
‘One man’s food is another man’s poison’ is a famous quotation. The way a person sees,
understands and interprets things is what is called perception. While one employee may welcome
a particular policy of the organization, another may oppose it on the ground that it is detrimental
to the interests of the employees.
3. The concept of Whole Person in Organization

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By this we mean that it is not the skill or the intelligence of the employee alone that is important
for the growth of the organization. The personal life of the employee, his emotions, feelings etc.
are equally important to get the best out of him.
The manager cannot separate or isolate the home life of employees from his official life. It,
therefore, goes without saying that unless steps are taken to satisfy the total individual, it is not
possible to benefit fully from his potentials.
4. Motivation of employees
People have different kinds of needs for the satisfaction of which they strive hard. Maslow, for
example, has pointed out five different kinds of human needs — Physiological, Safety, Social,
Esteem and Selfactualisation needs.
The extent to which the efforts of a person have helped him to fulfill his needs determines
behaviour. For example, if, in spite of the hard work done, an employee is unable to get his
promotion, he may feel frustrated and the same will be reflected in his behaviour.
5. Involvement/Empowerment of employees
People in the workplace cannot be handled in the manner machines are handled. An employee
must be able to fully involve himself in the work he does for best results. In other words, he
should not do his work mechanically. The manager, should, therefore, empower the employee by
giving him all that is reasonably essential for the effective performance of his tasks. It may be
mentioned here that in an organization only human beings can be empowered.
Empowerment gives the employee a sense of belonging and he is able to do his work with
involvement.
6. Dignity of Labour in an organization
The employees must be treated with respect and dignity. In a workplace, where the management
treats labour as a commodity that can be purchased for a price, human relationships are bound to
be poor.
Payment of fair wages, provision of good working environment and job security, creation of
facilities for training, encouraging employees’ participation in decision-making etc., indicate that
the management respects the dignity of labour.
7. Social System

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An organization is a conglomeration of individuals who work for a common goal. The activity of
each individual affects and is affected by the activities of others. Two types of social systems
exist in any organization — one is ‘formal’ and the other one is ‘informal’.
The formal system is developed using the authority — responsibility relationships. It is
deliberately and consciously created. The informal system, on the other hand, develops naturally
and spontaneously due to such factors as friendship, language, personal likes and dislikes of
individuals.
8. Mutuality of Interest in organization
Just like how the organizations need people, people also need organizations. It is only the people
who work for the attainment of the organizational objectives. Similarly, it is only the
organization that satisfies the needs of the people. Thus, there is mutuality of interest without
which the conglomerati

Evolution

Though both scientific management and classical organization theory contribute to management,
the theories concentrates on rationality, efficiency, and standardization. The roles of individuals
and groups in organizations were either ignored altogether of given only minimal attention. A
few early writers and managers, however, recognized the importance of individual and social
processes in organizations. Organizational behavior studies have its’ roots since from the neo
classical theories of management.
In the early nineteenth century, Robert Owen, a British industrialist, attempted to improve the
condition of industrial workers. He improved working conditions, raised minimum wages for
hiring children, introduced meals for employees, and shortened working hours. In the early
twentieth century, the noted German psychologist Hugo Munsterberg argued that the field of
psychology could provide important insights into areas such as motivation and the hiring of new
employees. Another writer in the early 1900s, Mary Parker Follett, believed that management
should become more democratic in its dealings with employees. An expert in vocational
guidance, Follett argued that organizations should strive harder to accommodate their
employees’ human needs.
The views of Owen, Mansterberg, and Follett, however, were not widely shared by practicing
managers. Not until the 1930s did notable change occur in management’s perception of the

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relationship between the individual and the workplace. At that time, a series of now classic
research studies led to the emergence of organizational behavior as a field of study.

The Hawthorne Studies

The Hawthorne studies were conducted between 1927 and 1932 at Western Electric’s Hawthorne
plant near Chicago. (General Electric initially sponsored the research but withdrew its support
after the first study was finished.) Several researchers were involved, the best known being Elton
Mayo and Fritz Roethlisberger, Harvard faculty members and consultants, and William Dickson,
chief of Hawthorne’s Employee Relations Research Department.
The first major experiment at Hawthorne studied the effects of different levels of lighting on
productivity. The researchers systematically manipulated the lighting in the area in which a
group of women worked. The group’s productivity was measured and compared with that of
another group (the control group) whose lighting was left unchanged. As lighting was increased
for the experimental group, productivity went up—but, interestingly, so did the productivity of
the control group. Even when lighting was subsequently reduced, the productivity of both groups
continued to increase. Not until the lighting had become almost as dim as moonlight did
productivity start to decline. This led the researchers to conclude that lighting had no relationship
to productivity—and at this point General Electric withdrew its sponsorship of the project!

In another major experiment, a piecework incentive system was established for a nineman group
that assembled terminal banks for telephone exchanges. Proponents of scientific management
expected each man to work as hard as he could to maximize his personal income. But the
Hawthorne researchers found instead that the group as a whole established an acceptable lel of
output of its members. Individuals who failed to meet this level were dubbed “chiselers” and
those who exceeded it by too much were branded “rate busters.” A worker who wanted to be
accepted by the group could not produce at too high or too low a level. Thus, as a worker
approached the accepted level each day, he slowed down to avoid overproducing. After a
follow-up interview program with several thousand workers, the Hawthorne researchers
concluded that the human element in the workplace was considerably more important that
previously believed. The lighting experiment, for example, suggested that productivity mght
increase simply because workers were singled out for special treatment and thus perhaps felt

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more valued or more pressured to perform well. In the incentive system experiment, being
accepted as a part of the group evidently meant more to the workers than earning extra money.
Several other studies supported the general conclusion that individual and social processes are
too important to ignore.
Like the work of Taylor, the Hawthorne studies have recently been called into question. Critics
cite deficiencies in research methods and offer alternative explanations of the findings.Again,
however, these studies were a major factor in the advancement of organizational behavior and
are still among its most frequently cited works.

Human Relations Movement

The Hawthorne studies created quite a stir among managers, providing the foundation for an
entirely new school of management thought that came to be known as the human relations
movement. The basic premises underlying the human relations movement are that people
respond primarily to their social environment, that motivation depends more on social needs than
on economic needs, and that satisfied employees work harder than unsatisfied employees. This
perspective represented a fundamental shift away form the philosophy and values of scientific
management and classical organization theory.
The behavioral theory of management holds that all people (including employees) have complex
needs, desires, and attitudes. The fulfillment of needs is the goal toward which employees are
motivated. Effective leadership matches need-fulfillment rewards with desired behaviors (tasks)
that accomplish organizational goals. The values of the human relationists are perhaps best
exemplified by the works of Douglas McGregor and Abraham Maslow. McGregor is best known
for his classic book The Human Side of Enterprise, in which he identified two opposing
perspectives that he believed typified managerial views of employees. He labeled Theory X and
theory Y. Theory X takes a pessimistic view of human nature and employee behavior, is in many
ways consistent with the tenets of scientific management. A much more optimistic and positive
view of employees is found in Theory Y.

OB has evoluted through the various theories listed below

 Classical theory
 Neo classical theory

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  Modern theory
CLASSICAL THEORY
F.W.Taylor and Henry Fayol has given the classical theory mainly based on the internal
organizational structure. It tells the delegation of authority, responsibilities, structure,
span of control, etc. which are all inter dependent parts and it has not the external behaviour of
works. Assumption of Classical theory:
1. In classical theory the relationship between the management and the workers is found
very formal.
2. In this theory workers work is treated as economic man and motivates by giving
economic rewards
3. The management were considered to be rational, kind headed and intelligent.
4. The organsation was treated as a machine and the workers as its components.
5. It tells only about the internal organization.
Features of classical theory:
1 . Classical organization is built on an accounting model (input -cost, output and revenue).
2. It maximizes neatness and control. It gains important to error and its correctness.
3. Minimizing employee turnover and it reveals the employees stability.
4. It is centralized.
Two streams of Classical theory:
There are two streams of classical theory. They are as follows:
• Scientific Management stream
• Administrative stream
1) Scientific Management stream:
F.W.Taylor invented scientific management. It provides the real basis for the theory of
organization. It provides solutions to the engineering and organization problems.
2) Administrative stream:
The Administrative streams concentrated on the managerial and organizational problems.
It concentrated on the operational problems at the work place.
PILLARS OF CLASSICAL THEORY:
The classical theory is based on four pillars in an organization which explains the internal
organizational behaviour of the workers.

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 DIVISION OF WORK

SPAN OF CONTROL PILLARS SCALAR CHAIN

STRUCTURE

T
hese are the four pillars of classical theory. They are given below briefly.
1 ) Structure:
Structure refers to the proper communication between the workers and supervisors. It
implies relationship among person, functions, individuals, materials and machines in order to
perform the operation and to accomplish the goals
2) Scalar chain:
Scalar chain refers to the formal flow of information that is line of authority from top to
bottom and accountability from bottom to top.
3) Division of labour/work:
It refers to dividing the work and allotting them to individuals. Doing a specific work,
they will become specialize and expert in particular field which will help in attaining the
objectives effectively.
4) Span of control:
Span of control refers to the numbers of subordinates a superior can manage or control
effectively. The superior must be effective enough to manage his subordinates

CRITICISMS IN CLASSICAL THEORY:

1) Static view of organization:
In the organization all the workers and management both are treated as machines and its
components. They do not interact with external environment. The organization must meet its
internal and external requirements which are dynamic and ever changing.

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2) Unrealistic assumption of classical theory:
In classical theory there are many assumptions which are unproved such as managers are
hard hearted etc. But it implies organization as machines and workers as its components.
3) Closed system assumption:
Classical theory is based on the internal environment. It completely ignores the impact of
external environment.
Thus these are the various concepts of classical theory of organizations.
NEO CLASSICAL THEORY:
Neo classical theory is the modernized part of classical theory. This theory is developed
to overcome the deficiencies of classical theory. It is based on the external environment and the
bahaviour of workers with the external environment.
Neo classical theory emphasized on
1) Social terms in addition to economic and technical factors.
2) The social process of group behaviour can be understood by clinical method
like the diagnosis of human organs by a doctor.
Assumptions in Neo-Classical theory:
1) Organisation interacts with the external environment.
2) There is a conflict between the individual and the organizational goals.
3) Social environment or system affects the workers.
4) Money is the only motivator.
5) Both way of communication is done.
6) Team work is the essential factor.
Criticisms of Neo Classical theory:
1) Limited applications: Principles developed by New-classical theory are
not universally applicable. They have only limited applications. There is no
proper structure applicable to the company.
2) Invalid assumptions: In this theory certain assumptions are not true like
every problem has a solution which is not true.
3) Lack of unified approach: In this theory all the aspects are not specified.
It does not have unified and total approach. It is only a modification and
improvement of classical theory.

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 4) Concentrates more on human aspects: This theory concentrates more on
human behaviour and ignores structural, mechanical, environmental and
formal aspects. Thus these are the various criticisms for Neo classical theory.
MODERN THEORY: Modern theory was developed in 1960s. It combines social
and psychological issues with the concept of classical model.
This theory suggests two approaches.
 System approach
 Contingency approach
S Y S T E M A P P R O A C H : A system is a set or assembling of things that are
interconnected, interrelated and interdependent so as to form a complex whole.
A system is defined as an organized on complex whole, a combination of
thinks or parts forming a complex as a whole.
Parts of systems are known as subsystems. The various sub systems are inter
related. A system has a boundary which maintains proper relationship between
the systems and the environment.
FEATURES OF A SYSTEM:
1) Systems are independent parts consisting of various subsystems.
2) Every system has its own norms.
3) Systems are processors.
4) Systems have boundaries which are to maintain through proper relationship
with the environment.
5) Systems are probabilities which cannot be predicted.
6) Every system is a part of supra system (environment).
TYPES OF SYSTEM:
1) Open system: An open system influence and are being influenced by other
systems. It continuously interacts with its environment.
2) Closed system: A closed system do not influence other systems. It has no
interaction with the outside world.
Difference between Open system and Closed system
OPEN SYSTEM CLOSED SYSTEM

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 1) Interact with environment and other
Do not interact with environment system freely
and other system freely
2) Depends on the environment Self confined and self maintained
3) Flexible and Dynamic Rigid and static
4) It is humanistic It is mechanical
5) Have feedback Do not have feedback
Valuation of System approach:
1) System approach is a integrating approach which shares management in its
totality.
2) It points out the complex, multi dimentional and multi disciplinary character
of management.
3) It helps in understanding the inter relationship between difference parts of
the organization and its interface with environment.
4) It gives a wider and overall perspective.
5) It helps in understanding of organizational functions in complex
environment.
6) It is dynamic and adoptive.
7) This approach posses a higher conceptual frame work than any other
approach.
Limitations of System approach:
1) System approach does not offer a unified body of thought.
2) System concepts are very abstract and too many inter-relations and inter -
dependence makes it complicated.
3) It is not really a modern theory, as it consists of the concept of earlier
contibutions.
4) It does not provide a frame work applicable for all types of organisation.

Models of OB and its relevance to modern management

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Fuedal Model: Feudal Model treats employees inferior. The concept is based upon Theory X
where actions, polices and procedures are considered superior to human beings. In fuedal model
employees are treated sternly and hire and fire principle is applicable in the organization. A fear
psychosis is created among the employees. These models have been practiced world over by
various organizations where people have been laid off for cost cutting. Employee desires, value,
emotions are not considered pragmatically by the organizers. People are treated as another
resource for all purposes.
Autocratic Model: Autocratic model is based on the concept that managers are superior. They
have power to hire and fire any employees. Managers words are considered final. Autocratic
model believes in power and authority of the manager. Employee have to obey the orders of the
boss. Autocratic model proposes that minimum employee needs are met. It believes that higher
salaries given to employees is sheer waste of resources as they spend money for unproductive
needs. Individuals are controlled by the managers based on official authority and power attached
to it. Employees are driven to work as this model assumes that nobody wants to work unless he
is forced to do so. Managers are considered neutral born leaders who are obeyed and respected in
all areas. The autocratic model is very commonly used in Indian organizations like, railways,
defence organization, police organization, banks etc. Autocratic model has however proved to be
partly in-effective because of introduction of human rights commission. This has reduced the
scope to abiding by rules regulations and written instructions of an organization.
Custodial Model: Custodial model imply that owners are custodian of resources in the
organization and they are bound to look after the welfare of employees. It considers that assets of
organization belong to industrialist, managers and employees in equal measures and that nobody
has monopoly rights. Employees are given opportunities to bring their problems to the notice of
the employer and it is the duty of the latter to solve the same. Redressal of grievance procedure
exists in the organization. Employees depend on the organization for security and their welfare.
The organizations provide wages and salary while employees are in service. They also provide
pensionary benefits to the employees so that they can sustain their post retirement life
comfortably. While in service employees get fair wages rather than subsistence wages. They
depend on the organization rather than the boss. Employees devote themselves for the
organizational development because they feel that the organization look after the employee
welfare not only during service but also post service periods. Employees are interested in

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economic rewards and benefits. The model proposes passive involvement of employees and
money as the only motivating factor. Direct cooperation of employees is not sought. Employee
value, preferences, attitude, emotions and psychological motivational factors are not considered
for organizational effectiveness. The model however is useful for organizational growth.
Supportive Model: Employees are considered active workers who have their value, attitude,
desire, and preferences. Leaders use attitude and value system of employees to motivate them.
Supportive model believes that employees are active and with ideal environment and support,
they can use their energies and skill for higher productivity of the organization. If employees are
given oppourtunities they can increase their capacity to do a particular work. Owner has to
provide and support various activities for individual, group and organizations. The employees
should develop sense of belonging and feeling of participation in over all organizational growth.
The model does not support the custodial model concept where money is considered as
motivating factor. Employees get oppourtunities for recognition. They develop positive outlook
towards work culture. Managers and workers participate together in the development of
organization while achieving development of their own skills. Many organizations have
developed as a result of adopting the supportive model. The model helps in the development of
individuals, groups and organizations. It is more effective in developed countries. It has not been
proved very effective in developing nations because of restrictive social and cultural
environment. Supportive model is used in many organizations with modifications.
Collegial Model: Collegial model refers to body of persons having common objective. The basis
of the model is the partnership of the employees with owners. The emphasis is on team
management between workers and owners. Employees are given responsible and trustworthy
jobs. They are self-disciplined and self-motivated. Managers and workers have similar activities,
work environment and understanding. Managerial cadre is not considered superior to the
employees. They contribute jointly rather than bosses or leaders. They have to develop as a team
with employees and impress upon quality and performance. Combined efforts contribute to the
growth and performance of the organization.
Human Value Model: The natural process of behaviour is Stimulus, Organism, Behaviour
and Consequence. It is generally known as SOBC. Every organization should provide enough
incentives in the form of intrinsic and extrinsic stimuli. Intrinsic stimulus is achieved by
encouraging individuals by recognition, empowerment, delegation of authority, better inter-

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 personal relations and cognitive behaviour in general. Extrinsic stimuli refers to economic
incentives in the form of reward for the job done. It is monetary in nature and are exercised for
influencing organism of employees. The aim of these incentives are to stimuli the employees in
the desired direction so that productivity and growth is achieved. Organizations should identify
best social, cultural, physical and tecnological stimuli so that positive consequences in the form
of behaviour is achieved. It must be understood that people work in the organization for
achieving psychological satisfaction. They want to belong to a social group so that they are
mentally at peace and that would lead to desired behaviour in the organization. Enviornment of

UNIT I QUESTION BANK

SECTION A (1 MARKS) Multiple Choice Questions

1. OB is directly concerned with the understanding, prediction and control of

inorganization.
A. Methods. B. Human behavior C.Machines D. Policies.

2. Elton Mayo and followers sought to increase production through behavioral experiment
popularly known as
A. Hawthorne experiment. B.Richard experiment. C. Fayol experiment. D .Stephen
experiment.
3. Are learned predispositions towards aspects of our environment.
A. Emotion. B.Attitudes. C .Value. D. Perception.

4. Heredity,environment, are the determinants ofpersonality.

A. Structure. B.Situation. C .Personality. D. Perception.

5. Persons who are quiet and who enjoys solitude are said to be .Personality.
A. Extrovert. B. Perceptive. C. Judging. D. Introvert
6. is the source of psychic energy.
A. Ego. B.Super ego. C. ID. D.Super ego.
7. By nature, every person has certain beliefs about what or who he/she is . Which factor
tells us this definition?

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 A. Self image. B.Ideal self. C. Looking glass self. D. realself.
8. Which factor says that one is what one actually is .
A. Ideal self. B, Realself. C.Looking glass self. D.selfimage.
9. Explaining human behavior in terms of cause and effectiscalled .
A. Attribution. B.Situation. C.Ideal self. D. self image.
10. Who is mainly credited with self theory?
A. Erickson. B.Carl Rogers. C.Fraud. D. Argyris.
11. According to Fraud's four stages of personality in which stage do sexual gratification
shifts from anal to sexualorgans?
A. Latency stage. B.The phallic stage. C.The anal stage. D. the genital stage.

12. According to Fraud's four stage of personality the stage occurring in adult and adolescence
is .
A. The anal stage. B.The phallic stage. C.The genital stage. D the latency stage.

13. The Four key elements of OB are people, structure,

A. Science. B.Education. C.Technology. D. History.

14. The study which focuses on the individual behaviour is called
A. History. B.Anthropology. C.Political science. D. Psychology.
ANSWER: D
15. is called the father of scientific management.
A. Elton Mayo. B.Fredrick w.Taylor. C.Fayol. D. White head.
16. The concept of Fudal model depends on

A.Fudal Model

B.Human Value model

C. Collegial Model

D.Supportive Model

SECTION B (5 MARKS)

1. Write down Classical organization theory of Henry Fayol?(MAY15,NOV 15)

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 2. Nature and Scope of Organizational psychology?(MAY14)
3. Explain the systems approach to management? (NOV15)
4. Explain the level of organizational behavior(NOV 2017)
5. Describe the modern theories?(NOV 2016, MAY 2016)
6. Expain any two experiments conducted by Elden Mayo at Hawthorns
SECTION C (10 MARKS)

 Explain Classical and Neo Classical theories?(MAY14,MAY15, MAY 16)

 Explain the concept of theories of organization?( NOV 2016)
 Bring out the Nature and scope of OB.(NOV 2017)
 Explain evolution of OB in detail

UNIT-II

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Individual behavior: Factors affecting individual behavior – personal – biography- environmental
– socio-cultural – political - organizational factors. Personality – Meaning-Determinants of
personality - Theories of Personality -Type theory, Trait theory, Psychoanalytical theory, social
learning theory, Self theory

INDIVIDUAL BEHAVIOUR

Behaviour is what a person is does and individual persons behaviour is effected by

many factors.

All organization is composed of individuals. The organizational performance is

largely affected by the way individuals behave at work. The individuals with different
characteristics behave differently in the similar and different situations. The factors
which influences the behaviour of an individuals are
Individual Behaviour
 Perception
 Personality
 Values
 Attitudes
 Learning
 Motivation
 Job satisfaction

Factors affecting Individual Behavior

The various personal factors influencing individual behavior have been classified as shown in the
following chart.Personal factors and Psychological factors influencing individual behavior
Personal and Biographic factors
1. Age of an Individual influence behavior
Among the personal factors influencing behavior the most important is a person’s age. Generally
speaking as an employee grows older his level of enthusiasm for work may decline. This
happens either because the employee feels saturated or because he lacks physical fitness. It is for
this reason that for certain jobs as those of sales representatives youngsters are always preferred.

23
Another point worth mentioning here is that the older members of the organization may not be
prepared to adapt themselves to the changing environment. They are generally conservatives
who prefer to work in the conventional manner. The rate of absenteeism is likely to be higher in
the case of older employees. The number of people opting for voluntary retirement is also higher
among elders.
2. Sex of an Individual Influence Behavior
Men in the workplace generally show greater interest in union activities. Women employees, on
the other hand, may be reluctant to even join trade unions. Employers, generally feel that women
employees are more sincere and will show greater commitment towards the job. Many
organization prefer women employee for this reason.
But due to domestic obligations and unavoidable circumstances, women employees may avail
leave frequently which cannot be denied. Say for example, a pregnant employee may avail
maternity leave which cannot be neglected as per law. So, sexual differences here influence
individual behavior.
3. Education of an Individual Influence Behavior
The level of education of an individual does influence behavior. The general belief is that
education disciplines a person. An educated employee knows how to get things done in the
workplace without incurring anyone’s displeasure. He does not lose temper but quietly achieves
his goals.
The influence of level of education on a person’s behavior may also be explained from another
angle. A highly qualified person when offered with lower level job, may not show enthusiasm in
his job. Such a person deserves a better placement. On the other hand, if a person with lower
qualification is placed in a higher level job he cannot perform well in his duties. Thus, Selection
and placement of the right person for the right job is very much important.
4. Marital Status of an Individual Influence Behavior
The need for a secured job and stable income is greater in case of married employees. A married
employee has greater domestic commitments and therefore adapts himself to the needs of the
organization. He cannot resign his job in case he derives less or no job satisfaction or finds the
work environment not conducive.

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On the other hand, an unmarried employee without much domestic commitments may find a
better job if the present job does not give him satisfaction. So, marital status of an employee
influences behavior.
Social and Cultural Factors

People’s behavior can directly or indirectly be influenced by the available resources in their
community as well as by the norms placed upon them by society. Race and culture also influence
an individuals behaviour in organisations. Race is a group of people sharing similar physical
features. It is used to define types of persons according to perceived traits. For example − Indian,
African. On the other hand, culture can be defined as the traits, ideas, customs and traditions one
follows either as a person or in a group. For example − Celebrating a festival.Race & culture
have always exerted an important influence both at the workplace as well as in the society. The
common mistakes such as attributing behavior and stereotyping according to individual’s race &
culture basically influences an individual’s behavior.In today’s diverse work culture, the
management as well as staff should learn and accept different cultures, values, and common
protocols to create more comfortable corporate culture.

Organisational factors
There are factors that relate to the rules, regulations, and informal structures that exist within an
organization or community that the client works or lives. Institutional factors can influence a
person’s behavior through the rules and expectations placed on them such as how to dress, how
to interact with others, and expectations related to appropriate habits and behaviors. Rule-
governed behavior as well as behavior that is impacted by direct consequences may be
influenced by institutional factors.

Enviormental factors
On the behavior of a person, the external environment plays a significant role.
1. Economic Factors – In an economic environment, the behavior of an individual is largely
affected due to certain factors including:
(a)Employment Level – The employment opportunities available to an individual directly
influence the behavior of an individual. Even after the lack of job satisfaction, the individual
have to stick to the same job as there are less job opportunities for him/her. In such cases, it is
25
important that they may be loyal to the company in providing better productivity; they are only
remaining in the same organization due to the monetary benefits offered to them.
(b)Wage Rates – Every employee is majorly concern with the wages offered to them by the
company or the organization. The decision of a worker or an employee is directly affected by the
monetary terms from the side of the company.
(c)General Economic Environment – There are various employees that do not have any effect
of economic cycle whether in a public sector undertakings or government offices. Regardless of
their economic position within the organization, they will receive their salaries. Employees in the
private sectors are greatly affected by the stable income and job security but the former
employees can be motivated from other factors.

Job related environement factors affect the individuuals behaviour to a larger extent. Such factors
are
 illogical design of equipment and instruments
 constant disturbances and interruptions
 missing or unclear instructions
 poorly maintained equipment
 high workload
 noisy and unpleasant working conditions

Psychological Factors influencing Individual Behavior

Various psychological factors influencing individual behavior are briefly explained as follows.
1. Personality of an Individual influence behavior
The personality of a person, as misunderstood by many, is not just determined by his physical
appearance alone. The physical characteristics of a person, no doubt, are important but these get
noticed only if accompanied by certain intellectual qualities as stated below:
i. Communication ability
ii. Inquisitiveness
iii. Perseverance
iv. Reasoning power
v. Leadership capacity and so on.

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An individual, who possesses the attributes mentioned above, can certainly command respect
wherever he is. Such a person is always able to achieve what he wants to achieve.
2. Perception of an Individual Influence Behavior
Perception is the process of knowing or understanding. A given situation is perceived differently
by different people. If the perception of a person is correct he/his organization stands to benefit.
If it turns out to be incorrect he/his organization loses.
Every organization requires people who are in a position to perceive things right. A person
without the capacity to make correct perceptions has to listen to those who possess such a
capacity. So perception of individuals greatly influence their behavior.
3. Attitudes of Individuals Influence Behavior
In the context of the workplace, attitude is the feeling of an employee about his job, his superiors
and fellow-employees. Attitude may be positive or negative. An employee with a positive
attitude likes his job, carries out the tasks assigned by his superior and maintains friendly
relationships with the fellow-employees.
Employees with a negative attitude, on the other hand, are insincere in their work. They quarrel
frequently with their superiors and fellow-workmen.
4. Values of an Individual Influence Behavior
The ‘values’ of a person indicate to him as to what is good and what is bad. Different people
have different values. For example, some people are spendthrifts while others consciously save.
Some contribute to charity while others do not.
In the workplace the values of an individual do influence his behavior. For example, if an
employee’s value system tells him that he should not strike work to express his grievances to the
employer, he will not take part in strikes. Likewise, an employee, who wants to be sincere in his
work, will not be whiling away his time.
5. Learning Influence Behavior
Learning is the process of bringing about changes in an individual’s behavior. Employee
absenteeism, for example, may be a problem faced in many organizations. As employees are
eligible for certain types of leave, e.g., casual leave, sick leave, earned leave etc., they may be
willing to avail the same. But this affects employee attendance.

27
 To secure better employee attendance certain measures may be adopted. For example, casual
leave and sick leave can be made encashable. Such a measure would encourage good attendance.
PERSONALITY
The world personality is derived from the latin word 'per sona' which mean (to speak
through).Personality can be explained as an organized behaviour, set of stable
characteristics which is exhibited are displayed. According to Ruch, a personality is
 External appearance and behaviours
 Inter awareness of self
 Particular pattern of traits
Definitions:
"Personality is the dynamic organization within the individual of those
psychological systems that determine his unique adjustments to his environment"
GORDAN ALLPORT
Personality means "how people affect other and how they understand view
themselves, as well as their pattern of inner and outer measurable traits and the person
situation intervensions"-FRED LUTHANS
TYPES OF PERSONALITY :
1. The Duty Fulfiller - Such individuals take their roles and responsibilities seriously and
perform whatever tasks are assigned to them. Duty fulfillers are serious individuals and believe
in honesty and a peaceful living. They never do anything which is not good for themselves, their
job, families or for the society. Such individuals are actually good and responsible citizens who
abide by the legal system and can’t even dream of breaking the law. People with such a personality
type are extremely hard working and often find it difficult to say NO to others, eventually becoming
overburdened at the end of the day. Such individuals adopt an organized approach towards work
and are extremely loyal and faithful. They also show a strong inclination towards creativity and
aesthetics.
2. The Mechanic - As the name suggests such individuals are inclined towards machinery like
aeroplane, motorcycling, cars, races and so on. They are interested to know why and how certain
things function. Theories do not interest them. You would not be able to convince them unless and

28
until they see the practical application themselves. Such individuals are extremely adventurous and
have a strong power of logical reasoning.
3. The Nurturer - Nurturers are individuals with a large heart. For them, the happiness of others is
more important than their own interests. Such individuals actually live for others. They do not look
at the darker sides of life and believe in extracting the best out of people around. They have a
positive approach in life and want to believe only the best of people.
4. The Artist - Artists have an eye for natural beauty and creativity. Rather than worrying about
future, they believe in living for the moment. Such individuals are extremely cool headed and do not
get into unnecessary fights and troubles. They do not blindly copy others and aspire to create a style
of their own.
5. The Protector - You would find such a personality type in very few people, making it a very rare
personality type. Protectors are systematic individuals who want the best system to get things done.
They often think irrationally. They are pessimists who find a problem in every situation. Such
individuals do not trust others and only believe in themselves.
6. The Idealist - Such people have strong set of values and ethics. They find happiness in helping
others. They consider themselves lucky if they get an opportunity to help others.
7. The Scientist - Such individuals believe in careful and strategic planning. They are good
observers who believe in constantly gathering information and upgrade their existing knowledge.
Scientists are extremely intelligent people who have a very sharp analytical mind.
8. The Doer - Individuals with such a personality type are the ones who believe in quick actions and
immediate results. They enjoy taking risks in life and fulfill tasks assigned to them in the shortest
span possible.
9. The Guardian - Such individuals are perfectionists who ensure that everything everywhere is
going on smoothly. They are mature individuals who have a clear set of standards.
10. The Performer - Performers strive hard to grab attention of others and love being the centre of
attention. They are fun loving individuals who enjoy fun and excitement in life.
11. The Inspirer - Inspirers are talented individuals and often act as a role model for others. They
have great people skills.
12. The Giver - Individuals with “The Giver” personality type enjoy the company of others and do
not prefer staying alone.

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13. The Executive - Such individuals are born to lead and make very good leaders. They love
taking charge and are good decision makers.
Determinants of Personality

Determinants of Personalities

Heredity Environment
• culture
• family
• social
• situations
Biological factors (Heredity, brain and physical features):
Heredity:
Heredity is the transmission of the qualities from ancestor to descendant. The
individual's personality is influenced by the molecular structure of the jeens located in
the chromosomes.
Certain physical and psychological characteristics like:
 Facial attractiveness
 Temperament
 Gender
 Muscle compositions
 Energy level
 Traits like shines, fear, height, etc.
These are either substancially or partly inherited from one's parents.
Environment:
Environmental factors are those factors which encircle as which influence our
behaviour.
1. Culture is the major determinant of the personality as it determines what and
how an individual learn.Culture is the complex of beliefs, values, norms,
opinions and attitudes which shared by individuals of contemporary period and

30
 transmitted from generation to generation. Culture is learnt from the family,
friends, social groups, teachers, etc.
2. Parents and family members have strong influence on the personality
development of the child. They have more effect on the personality, attitude etc. than
any other person.
3. Social groups are other important influences arising from the social placement of
the family as the person is exposed to agencies outside the home particularly the school,
friendship and other work groups.
4. Situational factors also determine personality development. An individual person
reacts differently in different circumstances. This aspect is very important for
organizational behaviour because the manager has to control over the organizational
situations.
Types of personality:
1. Introvert and entrovert personalities.
2. Type A& Type B personalities.
3. Judging & perceptive personalities.
1) Introvert and extrovert personalities:
Introvert is one who is very reserve and silent. Introvert personalities avoid
social contact and have less interaction with the other group members. People with
introvert personalities are found more inclined to achieve the task that recur thought
and analytical skill.
Extroverts are just opposite to introverts. They are friendly, sociable, lively,
aggressive and expressing their feelings, ideas openly. They are more suitable and
successful for the positions that require interaction with others. Ex. Sales activities,
publicity department, etc.,
2) Type A & Type B personalities:
Type A people refers as hard working highly achievement oriented, impatient,
aggressive, with competitive drive etc. Such people are very productive and work very
hard.

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 Type B personalities are easy going, sociable, free from urgency of time, non -
competitive. Such people do better on task involve in judgements, accuracy rather than
speed and team work.
3) Judging & perceptive personalities:
People with judging personality types like to follow a plan, make decisions and
need only that what is essential for their work.
Perceptive personalities are the people who adopt well to change, want to know
all about a job and at times may get over committed.

Theories of Personality -Trait theory,

Personality traits are the characteristics of an individual when exhibited in large number of
situations. More predominant the traits in an individual are, more consistence the individual is
and more frequent occurrences in diverse situations. There are thousands of traits that have been
identified. Cattell isolated 171 traits but concluded that they were superficial and lacking in
descriptive power. What he sought was a reduced set of traits that would identify underlying
pattern. The result was the identification of 16 personality factors, which he called the source, or
primary traits. These and their opposites are given below :-
1 Reserved vs Outgoing
2 Less intelligent vs More intelligent
3 Affected by feelings vs. Emotionally stable
4 Submissive vs. Dominant
5 Serious vs. Happy go lucky
6 Timid vs. Venturesome
7 Expedient vs. Conscientious
8 Tough minded vs. Sensitive
9 Trusting vs. Suspicious
10 Practical vs. Imaginative
11 Forthright vs. Shrewd
12 Self assured vs. Apprehensive
13 Conservative vs. Experimenting
14 Group dependent vs. Self-sufficient

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 15 Uncontrolled vs. Controlled
16 Relaxed vs. Tense

Big Personality Traits

There are five Big Personality Traits which have a significant impact in individual’s life. They
are as follows:
a) Extroversion: Extroverts are sociable, lively, and gregarious and seek outward interaction.
Such individuals are likely to be most successful working in marketing division, public relations
etc. where they can interact face to face with others. Introverts are quite, reflective, introspective
and intellectual people, preferring to interact with a small intimate circle of friends. Introverts are
more likely to be successful when they can work on highly abstract ideas (accountant, R&D
work etc) in a relatively quite atmosphere.
b) Agreeableness: This refers to the extent to which individuals agreeing and cooperating with
others. Highly agreeable people are cooperative, warm and trusting. People who score low on
agreeableness are cold, disagreeable and antagonistic. This characteristic is very important and
critical in attaining a successful achievement in their life.
c) Conscientiousness: This refers to the extent to which people are responsible and dependable
in their work and life. A highly conscientiousness person is responsible, organized, dependable
and persistent. They are likely to move upward direction very quickly and attain remarkable
achievement in their life. Those who score low on this dimension are easily distracted,
disorganized and unreliable.
d) Emotional Stability: This refers to the extent to which people have the ability to withstand
stress. People with positive emotional stability tend to be calm, self confident and secure. Those
with highly low level of emotional stability tend to be nervous, anxious, depressed and insecure.
e) Openness to experience: This refers to the extent to which people are more imaginative,
artistic sensitivity and intellectualism. Individuals tend to vary widely ranging from conservative
to creative or artistic. Extremely open people are creative, and artistically sensitive. Where as not
so open category personnel are very conservative and find comfort in the familiar or routine
activities.
Social Traits

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Social traits are surface-level traits that reflect the way a person appears to others when
interacting in various social settings. Problem-solving style, based on the work of Carl Jung, a
noted psychologist, is one measure representing social traits. It reflects the way a person goes
about gathering and evaluating information in solving problems and making decisions.
Information gathering involves getting and organizing data for use. Styles of information
gathering vary from sensation to intuitive. Sensation-type individuals prefer routine and order
and emphasize well-defined details in gathering information; they would rather work with known
facts than look for possibilities. By contrast, intuitive- type individuals prefer the “big picture.”
They like solving new problems, dislike routine, and would rather look for possibilities than
work with facts.
The second component of problem solving, evaluation, involves making judgments about how to
deal with information once it has been collected. Styles of information evaluation vary from an
emphasis on feeling to an emphasis on thinking. Feeling-type individuals are oriented toward
conformity and try to accommodate themselves to other people. They try to avoid problems that
may result in disagreements. Thinking-type individuals use reason and intellect to deal with
problems and downplay emotions.
When these two dimensions (information gathering and evaluation) are combined, four basic
problem-solving styles result: sensation-feeling (SF), intuitive- feeling (IF), sensation-thinking
(ST), and intuitive-thinking (IT), together with summary descriptions

Psychoanalytical theory
Sigmund Freud - Psychoanalytical theory

According to Sigmund Freud, human personality is complex and has more than a single
component. In his famous psychoanalytic theory, Freud states that personality is composed of
three elements known as the id, the ego, and the superego. These elements work together to
create complex human behaviors. Each component adds its own unique contribution to
personality and the three interact in ways that have a powerful influence on an individual. Each
element of personality emerges at different points in life.

The Id

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  According to Freud, the id is the source of all psychic energy, making it the primary
component of personality.
 The id is the only component of personality that is present from birth.
 This aspect of personality is entirely unconscious and includes instinctive and primitive
behaviors.
The id is driven by the pleasure principle, which strives for immediate gratification of all desires,
wants, and needs.1 If these needs are not satisfied immediately, the result is a state anxiety or
tension. For example, an increase in hunger or thirst should produce an immediate attempt to eat
or drink.
The id is very important early in life because it ensures that an infant's needs are met. If the
infant is hungry or uncomfortable, they will cry until the demands of the id are satisfied. Young
infants are ruled entirely by the id, there is no reasoning with them when these needs demand
satisfaction.
Imagine trying to convince a baby to wait until lunchtime to eat their meal. The id requires
immediate satisfaction, and because the other components of personality are not yet present, the
infant will cry until these needs are fulfilled.
However, immediately fulfilling these needs is not always realistic or even possible. If we were
ruled entirely by the pleasure principle, we might find ourselves grabbing the things that we want
out of other people's hands to satisfy our own cravings.
This behavior would be both disruptive and socially unacceptable. According to Freud, the id
tries to resolve the tension created by the pleasure principle through the use of primary process
thinking, which involves forming a mental image of the desired object as a way of satisfying the
need.1
Although people eventually learn to control the id, this part of personality remains the same
infantile, primal force throughout life. It is the development of the ego and the superego that
allows people to control the id's basic instincts and act in ways that are both realistic and socially
acceptable.
The Ego
According to Freud, The ego develops from the id and ensures that the impulses of the id can be
expressed in a manner acceptable in the real world.The ego functions in

35
the conscious, preconscious, and unconscious mind.The ego is the component of personality that
is responsible for dealing with reality
The ego operates based on the reality principle, which strives to satisfy the id's desires in realistic
and socially appropriate ways. The reality principle weighs the costs and benefits of an action
before deciding to act upon or abandon impulses.
In many cases, the id's impulses can be satisfied through a process of delayed gratification—the
ego will eventually allow the behavior, but only in the appropriate time and place.1
Freud compared the id to a horse and the ego to the horse's rider. The horse provides the power
and motion, while the rider provides direction and guidance. Without its rider, the horse may
simply wander wherever it wished and do whatever it pleased. The rider gives the horse
directions and commands to get it to go where the rider wants it to go.
The ego also discharges tension created by unmet impulses through secondary process thinking,
in which the ego tries to find an object in the real world that matches the mental image created
by the id's primary process.
Imagine that you are stuck in a long meeting at work. You find yourself growing increasingly
hungry as the meeting drags on. While the id might compel you to jump up from your seat and
rush to the break room for a snack, the ego guides you to sit quietly and wait for the meeting to
end.
Instead of acting upon the primal urges of the id, you spend the rest of the meeting imagining
yourself eating a cheeseburger. Once the meeting is finally over, you can seek out the object you
were imagining and satisfy the demands of the id in a realistic and appropriate manner.
The Superego
The last component of personality to develop is the superego.
 According to Freud, the superego begins to emerge at around age five.
 The superego holds the internalized moral standards and ideals that we acquire from our
parents and society (our sense of right and wrong).1
 The superego provides guidelines for making judgments.
The superego has two parts:
1. The conscience includes information about things that are viewed as bad by parents and
society. These behaviors are often forbidden and lead to bad consequences, punishments, or
feelings of guilt and remorse.

36
2. The ego ideal includes the rules and standards for behaviors that the ego aspires to.
The superego tries to perfect and civilize our behavior. It works to suppress all unacceptable
urges of the id and struggles to make the ego act upon idealistic standards rather that upon
realistic principles. The superego is present in the conscious, preconscious, and unconscious.
The Interaction of the Id, Ego, and Superego
When talking about the id, the ego, and the superego, it is important to remember that these are
not three separate entities with clearly defined boundaries. These aspects are dynamic and always
interacting to influence an individual's overall personality and behavior.
With many competing forces, it is easy to see how conflict might arise between the id, ego, and
superego. Freud used the term ego strength to refer to the ego's ability to function despite these
dueling forces

Social learning theory

Social learning theory is the philosophy that people can learn from each other through
observation, imitation and modeling. The concept was theorized by psychologist Albert Bandura
and combined ideas behind behaviorist and cognitive learning approaches. Social learning theory
endeavors to study socialization and how it affects human behavior
Stages of social learning theory
The basis behind social learning theory is that people observe the behavior, attitudes and
consequences of others and then use that information to form their own actions.
The key concepts behind this process include four basic learning requirements. These four
concrete stages of social learning within social learning theory include attention, retention and
memory, initiation and motor behavior, and motivation.

1. Attention. For a lesson or experience to have an impact on an observer, the observer must be
actively observing their surroundings. It helps if the observer identifies well with the model or
feels positive feelings about them. In addition, it helps if the observer is invested in the process
of observing or feels strong feelings about the experience that they are observing. Factors that
might affect attention include complexity, distinctiveness and functional value.
2. Retention and memory. For any learned experience to make a lasting impact, the observer
needs to be able to remember it later. Once the observer can recall the experience, it also helps if

37
they go over the experience, either revisiting it cognitively in their mind or even acting it out
physically. For example, a toddler may learn from an adult not to throw things and later they
may be observed teaching one of their stuffed animals that it's not okay to throw.
3.Initiation and motor capability. In order to carry out the lesson learned, the observer needs to
be able to actually reenact it. Learning the necessary skills is an important part of the process
before a behavior can be modeled. When a person has effectively paid attention to modeled
behavior and repeats or demonstrates it, they have achieved the necessary skills.
4. Motivation. Even if an observer has focused on a lesson, remembered all the details and
learned the necessary skills to do it, they still need to have the motivation to make it happen. The
source of motivation could include anything from external rewards and bribes, observations that
similar behavior is rewarded, desire to be like the model who demonstrated the behavior or
internal motivation to improve or learn. Other factors that impact motivation include personal
characteristics, past experiences, promised incentives, positive reinforcement and punishments.
Personality development and social learning theory
Personality development is the establishment of a set of patterns involving the behavior,
temperament and character that a person displays on a regular basis. Social learning theory
postulates that a large amount of the features of people's personalities may come from observing
others in their family or society.
People's temperaments may be determined by their genetics as well as their environment. This
includes how they approach and view the world, and how they interact with others. If a person
spends a lot of time witnessing others who have a negative temperament, he or she is more likely
to model those behaviors. The environment, often described as nurture, has a large impact on a
child's personality. Even as a baby, a person who is loved and cared for is more likely to develop
trust and optimism than an infant who is neglected or abused.
One of the richest ages for social learning is the preschool years, when a child is likely to see and
observe many behaviors that will shape the way they behave adults. Play, imagination and
cooperation are all important parts of this stage of development. If children are not taught how to
integrate into groups at this early age, they may have a hard time joining groups when they are
older.
Self theory of Personality

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Famed psychologist, theorist, and clinician Carl Rogers posited a theory of how self-concept
influences and, indeed, acts as the framework for, one’s personality.The self is composed of
concepts unique to ourselves. The self-concept includes three components: Self-worth, Self
Image and Ideal Self

Self-worth
Self-worth (or self-esteem) comprises what we think about ourselves. Rogers believed feelings
of self-worth developed in early childhood and were formed from the interaction of the child
with the mother and father.
Self-image
How we see ourselves, which is important to good psychological health. Self-image includes the
influence of our body image on inner personality.
At a simple level, we might perceive ourselves as a good or bad person, beautiful or ugly. Self-
image affects how a person thinks, feels and behaves in the world.
Ideal-self
This is the person who we would like to be. It consists of our goals and ambitions in life, and is
dynamic – i.e., forever changing.The ideal self in childhood is not the ideal self in our teens or
late twenties etc.
Five characteristics of the fully functioning person

1. Open to experience: both positive and negative emotions accepted. Negative feelings are not
denied, but worked through (rather than resorting to ego defense mechanisms).

2. Existential living: in touch with different experiences as they occur in life, avoiding
prejudging and preconceptions. Being able to live and fully appreciate the present, not always
looking back to the past or forward to the future (i.e., living for the moment).

3. Trust feelings: feeling, instincts, and gut-reactions are paid attention to and trusted. People’s
own decisions are the right ones, and we should trust ourselves to make the right choices.

4. Creativity: creative thinking and risk-taking are features of a person’s life. A person does not
play safe all the time. This involves the ability to adjust and change and seek new experiences.

39
5. Fulfilled life: a person is happy and satisfied with life, and always looking for new challenges
and experiences.
UNIT II QUESTION BANK

SECTION A (1 MARKS)

1. All the unique traits and patterns of adjustment of the individual is known as
(A)Personality (B)Responsibility (C) Creativity (D) Authority

2. One of the contributors of psycho analytic theory

(A)Peter Drucker (B)Henry Fayol (C) Mary Parker (D) Sigmen Fruad

3. The transmission of the qualities from ancestor to descendant is ________

(A)Perception (B)Heridity (C) Personality (D) attribution

4. Which one of the factor below does not influence the behaviour of an individual in on
organisation?
(A)Perception (B) Heridity (C) Personality (D) None

5. The theory posited by Carl Rogers is _______

(A)BIG five (B) Self concept (C) Big eight (D) Personality

6. Albert Bandura is contrbutor of

(A)BIG Five perosnality model (B) Self concept theory (C) Social learning Theory
(D) Hierarchy of needs theory

7. Factors related to the rules, regulations, and informal structures that exist within an
organization or community that a client works or lives is called as
(A)Economic Factors (B) Social Factors (C) OrganisationalFactors (D)None

8. The psychic energy that makes it the primary component of personality is classified as
(A)Id (B) Ego (C) Super ego (D)All

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9. Which of the following statement(s) are not correct ?
a. Different people have different values
b. The component of personality that is present from birth is known as super ego
c. Accepting both positive and negative emotions is openness
d. Social traits are surface-level traits that reflect the way a person appears to others when
interacting in various social settings

10. Which of the following statements are correct?

a. Cattell isolated 671 traits initially
b. The ego operates based on the reality principle
c. Extroverts are not sociable
d. A given situation is perceived in the same way by different people

SECTION B (5 MARKS)
1. What is personality? Explian Type A and type B personality
2. What is personlity trait? State and explain any five personlity traits
3. Id. Ego and Super Ego Substantially differentiate
4. Explain how social and cultural factors influence once behaviour in an organisation
5. Explain Sigmen fraud,s contribution to psychoanalytical theory of personality.

SECTION C (10 MARKS)

1. Explain Traits theories of personlaities in detail

2. Describe the factors influencing on the indiviuals’ behaviour in an organisation
3. Explainn id ago and super ego model of personlity
4. Write short notes on the followinf
a. Self concept b.Personality trait
c.Big five model d.environmental influence on inndividuals behaviour

UNIT – III

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Perception – Importance – Perceptual - Process selectivity – Developing perceptual skills
Attitude and Behaviour - Factors in Attitude Formation – Relevant for Organisation – Effects of
Employee Attitude – Developing positive attitude.

Perceptions

Perception is like beauty that lies in the eyes of beholder. Individual differs in the way he sees,
interprets and understands a particular event. A manager may perceive nonattendance of duty by
the subordinate in a different way. Individuals may also differ in their opinion though the event
or situation may be the same. For example, in an organization where lunch is served in a
subsidised manner may be interpreted by the employees in a different way. An employee may
perceive it as “right” to get a subsidized lunch, the other may feel that it is being given out of
surplus of profits achieved by the organization while the third individual may state that it is
mandatory for the management to provide lunch free of cost and that the management is not
doing any favour to them by providing the lunch.

Definition
Perception is defined as “a process by which individuals organise and interpret their sensory
impressions in order to give meaning to their environment (Robbins)”.
(a) What one perceives may be different from objective reality. A person coming late on duty
may be perceived as casual and tardy while there may be social problems faced by him.
(b) There is often disagreement among the individuals in the organization in relation to pay and
allowances, administrative back up, policies and procedures and the place of work itself. An
individual who displays a positive attitude may perceive above factors as good and conducive to
work environment while the others may consider them inadequate. Employees also compare
themselves on job assignment. If a job is assigned to one individual who may consider the
assignment in excess to his job entitlement on the contrary if he is not given the job, he may
consider it as neglecting him in allocation of responsibilities.
(c) It would often be observed that the manager is rated differently by his subordinates because
of the different perception of the individual about the manager. The study of perception is very
important in the organization because it is necessary for the manager to perceive individuals

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correctly irrespective of their status and perceive each of the situation as close to the real fact or
as it exists by interpreting the sensory reflects in correct way. Sensation and perception are
complex phenomenon. Perception is outcome of sensation and is much broader in its nature.
Perception involves observing data, selecting, and organizing the data based on sensory reflects
and interpreting the same as per personality attributes of the perceiver. That is why no two
individuals can perceive an employee in the same manner, for one he may be efficient while for
the other he may be perceived as useless.

Factors Influencing Perception:

Following three factors influence the perception

Fig : Influencing factors of perception

Perceiver: When an individual looks at the object and attempts to interpret the same, what he or
she sees it is largely influenced by the personal characteristics. Perception is a matter of attitude
that can be positive or negative. Some workers would feel and perceive that the prevailing
working conditions in the organizations are congenial for work and it contributes positively
while for others, it would be inadequate and demand improvement. This is indicative of positive
and negative attitude patterns. Motive is another factor that plays an important role in perception.
Motive is nothing but unsatisfied needs. This exerts considerable influence on perception. Boss
who is insecure perceives subordinate who does well as threat to his position. Personal insecurity
is a threat to personal survival in a job especially if one is frequently transferred. Interest is
persons liking for a particular thing in an individual. May be some people get attracted to eyes of
a girl because he has interest in the eyes while other person may be interested in hair style,
therefore different person (perceiver) will perceive a girl based on perceivers’ interest. It has also
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been observed in the work places that workers would display interest as per their liking. Students
in the class when preoccupied are not attentive in the class. Past experience also plays an
important role in perception. Just as interest narrows down one’s perception so does past
experience. In contrast past experience nullifies an object interest. For example second or
subsequent visit to a historic place. Object or events that have not been experienced before are
more noticeable and creates an interest. For example a female manager. Expectations can distort
one’s perception in what one sees and what one expects to see. For example power hungry police
officer to be strict regardless of his actual traits.
The Target: Objects, events that are similar to each other tend to group together and have a
tendency of perceiving them as common group for example. Blacks, Whites or Indians etc
irrespective of their different characteristics. Physical and time proximity also leads us to
perceiving a situation in a different form than actual reality. Increase in the sales volume may be
attributed to newly posted sales manager. In actuality the increase in sales may have been the
outcome of hard work done in the past by sales representatives and public contact. Soldiers in
identical uniform and their uprightness is perceived as being strict, ruthless and tough, on the
contrary they are sober, soft and very delicate at heart. It is therefore important to analyse the
event, situation, or an object in its correct perspective and be led by similarity, physical and time
proximity.
The Situation: Change in situation leads to incorrect perception about a person. Time is one
factor, which influences the perception. Time is related to work setting and social setting. A
person decked up for party may not be noticeable but the same dress in office would be noticed
distinctly, though the person has not changed. You would have very frequently heard people say
that their manager is different during working hours and opposite while in social setting. Infact
person is the same but the perceiver perceives the manager as per business like setup while on
work, while the person is observed on a private or a personal platform when meeting him in the
club or at home. What is important to remember is the perception should be done in a correct
manner not to be led due to work setting or social setting and that the situation is not allowed to
perceive wrongly. An object can be identified by its size, shade, shape, sound it makes and
background. It can be distinguished based on its movement. In darkness it may be identified by
its silhouette, for example caravan moving on skyline at the dawn.

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Perceptual Process
Let us look at the perceptual process. The stages involved in processing the information that
ultimately determines a person’s perception and reaction, as shown in Figure

Fig:Perceptual Process

The information-processing stages are divided into information attention and selection;
organization of information; information interpretation; and information retrieval.
Attention and Selection Our senses are constantly bombarded with so much information that if
we don’t screen it, we quickly become incapacitated with information overload. Selective
screening lets in only a tiny proportion of all of the information available. Some of the selectivity
comes from controlled processing consciously deciding what information to pay attention to and
what to ignore.
In this case, the perceivers are aware that they are processing information. Think about the last
time you were at a noisy restaurant and screened out all the sounds but those of the person with
whom you were talking. In contrast to controlled processing, screening can also take place
without the perceiver’s conscious awareness. For example, you may drive a car without
consciously thinking about the process of driving; you may be thinking about a problem you are
having with your course work instead. In driving the car, you are affected by information from
the world around you, such as traffic lights and other cars, but you don’t pay conscious attention
to that information. Such selectivity of attention and automatic information processing works
well most of the time when you drive, but if a nonroutine event occurs, such as an animal darting
into the road, you may have an accident unless you quickly shift to controlled processing.

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Organization Even though selective screening takes place in the attention stage, it is still
necessary to find ways to organize the information efficiently. Schemas help us do this. Schemas
are cognitive frameworks that represent organized knowledge about a given concept or stimulus
developed through experience. 102 A self schema contains information about a person’s own
appearance, behavior, and personality. For instance, a person with a decisiveness schema tends
to perceive himself or herself in terms of that aspect, especially in circumstances calling for
leadership.
Person schemas refer to the way individuals sort others into categories, such as types or groups,
in terms of similar perceived features. The term prototype, or stereotype, is often used to
represent these categories; it is an abstract set of features commonly associated with members of
that category. Once the prototype is formed, it is stored in long-term memory; it is retrieved
when it is needed for a comparison of how well a person matches the prototype’s features. For
instance, you may have a “good worker” prototype in mind, which includes hard work, Intelligen
ce, punctuality, articulateness, and decisiveness; that prototype is used as a measure against
which to compare a given worker. Stereotypes may be regarded as prototypes based on such
demographic characteristics as gender, age, able-bodiedness, and racial and ethnic groups.
A script schema is defined as a knowledge framework that describes the appropriate sequence of
events in a given situation. For example, an experienced manager would use a script schema to
think about the appropriate steps involved in running a meeting. Finally, person-in-situation
schemas combine schemas built around persons (self and person schemas) and events (script
schemas). Thus, a manager might organize his or her perceived information in a meeting around
a decisiveness schema for both himself and herself and a key participant in the meeting. Here, a
script schema would provide the steps and their sequence in the meeting; the manager would
push through the steps decisively and would call on the selected participants periodically
throughout the meeting to respond decisively. Note that, although this approach might facilitate
organization of important information, the perceptions of those attending might not be
completely accurate because decisiveness of the person-in-situation schema did not allow the
attendees enough time for open discussion.
As you can see in Figure, schemas are not important just in the organizing stage; they also affect
other stages in the perception process. Furthermore, schemas rely heavily on automatic
processing to free people up to use controlled processing as necessary. Finally, as we will show,

46
the perceptual factors described earlier, as well as the distortions, to be discussed shortly,
influence schemas in various ways.
Interpretation Once your attention has been drawn to certain stimuli and you have grouped or
organized this information, the next step is to uncover the reasons behind the actions. That is,
even if your attention is called to the same information and you organize it in the same way your
friend does, you may interpret it differently or make different attributions about the reasons
behind what you have perceived. For example, as a manager, you might attribute compliments
from a friendly subordinate to his being an eager worker, whereas your friend might interpret the
behavior as insincere flattery.
Retrieval So far, we have discussed the stages of the perceptual process as if they all occurred at
the same time. However, to do so ignores the important component of memory. Each of the
previous stages forms part of that memory and contributes to the stimuli or information stored
there. The information stored in our memory must be retrieved if it is to be used. This leads us to
the retrieval stage of the perceptual process summarized in Figure
All of us at times can’t retrieve information stored in our memory. More commonly, our memory
decays, so that only some of the information is retrieved. Schemas play an important role in this
area. They make it difficult for people to remember things not included in them. For example,
based on your prototype about the traits comprising a “high performing employee” (hard work,
punctuality, intelligence, articulateness, and decisiveness), you may overestimate these traits and
underestimate others when you are evaluating the performance of a subordinate whom you
generally consider good. Thus, you may overestimate the person’s decisiveness since it is a key
part of your high performance prototype.
Indeed, people are as likely to recall nonexistent traits as they are to recall those that are really
there. Furthermore, once formed, prototypes may be difficult to change and tend to last a long
time. Obviously, this distortion can cause major problems in terms of performance appraisals and
promotions, not to mention numerous other interactions on and off the job. By the same token,
such prototypes allow you to “chunk” information and reduce overload. Thus, prototypes are a
double-edged sword.
Attribution Theory of Perception: In day-to-day life, we come across people with whom we
interact. Motives, intentions, belief and attitude of people have an impact as to how they behave.
It has been seen that our perception about the people is greatly influenced by the assumption we

47
make about a person and not by reality. There are two factors, which has an impact on human
behaviour. First is internally caused behaviour – refers to internal factors on which individual has
a full control, secondly the externally caused behavior refers to the behaviour which has been
caused due to external factors and that the individual has no control over it. Attribution theory
suggest that when we evaluate human behaviour, it is either internally caused or it is caused due
to external factors as explained above. The determination however depends on the following
three factors
(a) Distinctiveness: Let us for evaluation purposes take an example of X worker coming late for
duty. When we carry out interpretation there are two factors, one whether arriving late is usual or
unusual behaviour. If it is usual, it is attributed to internal factor on which X has full control.
When the behaviour is unusual then it can be attributed to external factors. In the former
situation individual could be counselled appropriately in the later situation, the external factors
cannot be corrected. If the external factors are high, then late coming should not be attributed to
the individual behaviour.
(b) Consensus: This factor refers to group behaviour. If the entire group taking the same route
came late on duty, the causation is attributed to external factors. But by some chance if X only
was late then the causation would be internal.
(c) Consistency: If the behaviour of Mr. X is consistence, that is if he is consistently coming late
then attribution should be to internal factors. In such cases there is a high internal causation. If X
came late once in a while the causation would be low and attributed to external factors. More
consistence the behaviour, the more the observer is inclined to attribute it to internal causes. It
has been seen that we have the tendency to under estimate the influence of external factors and
over estimate the influence of internal factors or personal factors while carrying out perception.
This phenomenon is called the fundamental attribution error. Fall in sales of a commodity is
generally attributed to inefficiency of sales force rather than market trend, recession or
innovative product launched by the competitor. There is also a self-serving bias error caused by
the individuals who tend to attribute their own success to internal causation like ability, hard
work and self-worth and the failure, to external factors like Luck. This phenomenon is called a
self-serving bias displayed by the individuals. There are bias, which distorts attribution
universally across culture. During World War II it was considered by Allies that Japanese are
invincible, but the attribution proved to be false at later date when tide took the turn and Japanese

48
had to suffer total annihilation. Self-serving bias does not apply to all organizations, where
cultural identity has been established like Defense Services of India. Where the leader takes the
responsibility for the failure of group task and attributes success to collective efforts. This is the
main reason that soldiers have great faith in their leader and his ability and that is how the
soldiers are led in war and they follow the leader blindly because they have a correct perception
of their leader.

Perceptual Selectivity / Distortions

Some common kinds of distortions can make the perceptual process in accurate and affect the
response. These are stereotypes and prototypes, halo effects, selective perception, projection,
contrast effects, and self-fulfilling prophecy.
1. Stereotypes or Prototypes
Earlier, when discussing person schemas, we described stereotypes, or prototypes, as useful
ways of combining information in order to deal with information overload. At the same time, we
pointed out how stereotypes can cause inaccuracies in retrieving information, along with some
further problems. In particular, stereotypes obscure individual differences; that is, they can
prevent managers from getting to know people as individuals and from accurately assessing their
needs, preferences, and abilities. We compared these stereotypes with research results and
showed the errors that can occur when stereotypes are relied on for decision making.
Nevertheless, stereotypes continue to exist at the board of directors level in organizations.

A recent survey from 133 Fortune 500 firms showed that female directors were favored for
membership on only the relatively peripheral public affairs committee in these organizations.
Males were favored for membership on the more important compensation, executive, and finance
committee, even when the females were equally or more experienced than their male
counterparts. Here, we reiterate our previous message: Both managers and employees need to be
sensitive to stereotypes; they also must attempt to overcome them and recognize that an
increasingly diverse workforce can be a truly competitive advantage
2. Halo Effects
A halo effect occurs when one attribute of a person or situation is used to develop an overall
impression of the individual or situation. Like stereotypes, these distortions are more likely to

49
occur in the organization stage of perception. Halo effects are common in our everyday lives.
When meeting a new person, for example, a pleasant smile can lead to a positive first impression
of an overall “warm” and “honest” person. The result of a halo effect is the same as that
associated with a stereotype, however: Individual differences are obscured. Halo effects are
particularly important in the performance appraisal process because they can influence a
manager’s evaluations of subordinates’ work performance. For example, people with good
attendance records tend to be viewed as intelligent and responsible; those with poor attendance
records are considered poor performers. Such conclusions may or may not be valid. It is the
manager’s job to try to get true impressions rather than allowing halo effects to result in biased
and erroneous evaluations.
3. Selective Perception
Selective perception is the tendency to single out those aspects of a situation, person, or object
that are consistent with one’s needs, values, or attitudes. Its strongest impact occurs in the
attention stage of the perceptual process. This perceptual distortion is identified in a classic
research study involving executives in a manufacturing company.When asked to identify the key
problem in a comprehensive business policy case, each executive selected problems consistent
with his or her functional area work assignments. For example, most marketing executives
iewed the key problem area as sales, whereas production people tended to see the problem as one
of production and organization. These differing viewpoints would affect how the executive
would approach the problem; they might also create difficulties once these people tried to work
together to improve things. More recently, 121 middle- and upper-level managers attending an
executive development program expressed broader views in conjunction with an emphasis on
their own function. For example, a chief financial officer indicated an awareness of the
importance of manufacturing, and an assistant marketing manager recognized the importance of
accounting and finance along with their own functions.hus, this more current research
demonstrated very little perceptual selectivity. The researchers were not, however, able to state
definitively what accounted for the differing results. These results suggest that selective
perception is more important at some times than at others. Managers should be aware of this
characteristic and test whether or not situations, events, or individuals are being selectively
perceived. The easiest way to do this is to gather additional opinions from other people. When

50
these opinions contradict a manager’s own, an effort should be made to check the original
impression.
4. Projection
Projection is the assignment of one’s personal attributes to other individuals; it is especially
likely to occur in the interpretation stage of perception. A classic projection error is illustrated by
managers who assume that the needs of their subordinates and their own coincide. Suppose, for
example, that you enjoy responsibility and achievement in your work. Suppose, too, that you are
the newly appointed manager of a group whose jobs seem dull and routine. You may move
quickly to expand these jobs to help the workers achieve increased satisfaction from more
challenging tasks because you want them to experience things that you, personally, value in
work. But this may not be a good decision. If you project your needs onto the subordinates,
individual differences are lost. Instead of designing the subordinates’ jobs to fit their needs best,
you have designed their jobs to fit your needs. The problem is that the subordinates may be quite
satisfied and productive doing jobs that seem dull and routine to you. Projection can be
controlled through a high degree of self-awareness and empathy—the ability to view a situation
as others see it. In contrast with the usual negative effects of projection just described, there
sometimes can be a positive ethical impact.
5. Contrast Effects
Earlier, when discussing the perceived, we mentioned how a red sports car would stand out from
others because of its contrast. Here, we show the perceptual distortion that can occur when, say,
a person gives a talk following a strong speaker or is interviewed for a job following a series of
mediocre applicants. We can expect a contrast effect to occur when an individual’s
characteristics are contrasted with those of others recently encountered who rank higher or lower
on the same characteristics. Clearly, both managers and employees need to be aware of the
possible perceptual distortion the contrast effect may create in many work settings.
6. Self-Fulfilling Prophecy
A final perceptual distortion that we consider is the self-fulfilling prophecy the tendency to
create or find in another situation or individual that which you expected to find in the first place.
Self-fulfilling prophecy is sometimes referred to as the “Pygmalion effect,” named for a mythical
Greek sculptor who created a statue of his ideal mate and then made her come to life. His
prophecy came true! Through self-fulfilling prophecy, you also may create in the work situation

51
that which you expect to find. Self-fulfilling prophecy can have both positive and negative
results for you as a manager. Suppose you assume that your subordinates prefer to satisfy most
of their needs outside the work setting and want only minimal involvement with their jobs.
Consequently, you are likely to provide simple, highly structured jobs designed to require little
involvement. Can you predict what response the subordinates would have to this situation? Their
most likely response would be to show the lack of commitment you assumed they would have in
the first place. Thus, your initial expectations are confirmed as a self-fulfilling prophecy. Self-
fulfilling prophecy can have a positive side, However Students introduced to their teachers as
“intellectual bloomers” do better on achievement tests than do their counterparts who lack such a
positive introduction. A particularly interesting example of the self-fulfilling prophecy is that of
Israeli tank crews. One set of tank commanders was told that according to test data some
members of their assigned crews had exceptional abilities but others were only average. In
reality, the crew members were assigned randomly, so that the two test groups were equal in
ability. Later, the commanders reported that the so-called exceptional crew members performed
better than the “average” members. As the study revealed, however, the commanders had paid
more attention to and praised the crew members for whom they had the higher expectancies. The
self-fulfilling effects in these cases argue strongly for managers to adopt positive and optimistic
approaches to people at work.

Attitudes

According to G.W. Allport, “Attitude is a mental and neutral state of readiness organized
through experience, exerting a directive or dynamic influence upon individual’s response to all
objects and situations with which it is related.” Krech and Crutchfield defined “attitude as an
enduring organization of motivational, emotional, perceptual and cognitive processes with
respect to some aspect of the individual’s world” According to Katz and Scotland, “Attitude is a
tendency or predisposition to evaluate an object or symbol of that object in a certain way”. In
effect attitude is used in a generic sense, as to what people perceive, feel and express their views
about a situation, object or other people. Attitude cannot be seen, but the behaviour can be seen
as an expression of attitude.

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Attitudes can be defined as an individual’s feelings about or inclinations towards other persons,
objects, events, or activities. Attitudes encompass such affective feelings as likes and dislikes,
and satisfactions and dissatisfactions. Our needs, past experiences, self-concept, and personality
shape the beliefs, feelings, and opinion we hold towards the perceived world. Once we have
formed our likes and dislikes, we generally cling on to them and find it difficult to change our
attitudes, unless we make a conscious and determined effort to do so. An interesting
phenomenon is that our values shape our attitudes. Traditionally, behavioral scientists have
divided attitudes into two major groups:
i) those that are cognitive (for example, beliefs or expectations about cause-effect
relationships between events) and
ii) those that are evaluative (for example, liking or disliking for event). An example of a
cognitive attitude would be an employee’s belief that superior job performance would
be rewarded by praise from a superior. An example of an evaluative attitude would be
the degree to which he or she would like or value such praise.

Characteristics of Attitude
Attitudes can be distinguished in terms of (characterized by) their valence, multiplexity, relation
to needs, and centrality.

Valence: It refers to the magnitude or degree of favourableness or unfavourableness towards the

object / event. If a person is relatively indifferent towards an object then his attitude has low
valence. On the contrary, if a person is extremely favourable or unfavorable towardss an attitude
object, then his attitude will have a high valence.
Multiplexity: It refers to the number of elements constituting the attitude. For example, one
student may show interest in studies, but another shows interest, in addition works hard, sincere
and serious. Similarly, an employee may feel simply loyal to an organisation. But another may
feel loyal, respectful, fearful and dependent.
Relation to needs: Attitudes can also vary in relation to the needs they serve. For instance,
attitudes of an individual towards the pictures may serve only entertainment needs. On the other
hand, attitudes of an individual towards task may serve strong needs for security, achievement,
recognition and satisfaction.

53
Centrality: It refers to the importance of the attitude object to the individual. The attitudes
which have high centrality for an individual will be less succeptible to change.

1.Affective component: The affective component refers to the emotions and feelings associated
with an attitude object. This component is often expressed as like or dislike, good or bad,
pleasing or displeasing, favourable or unfavourable.

In work organisations, the examples of affective components of a person x attitude towards Y

may be:

X dislikes Y on personal grounds

X dislikes Y because he is liked by employer
X dislikes Y because he makes more money than X
X dislikes Y because he takes good decisions despite the lack
of experience and training.

2. Cognitive component: Cognitive component represents the beliefs perceptions and

opinions of a person about an attitude object. The beliefs may be based on a variety of learning
experiences, rumours, misunderstandings, or any other information. You may believe that the
manager is intelligent, or stupid, ethical or unethical, good or bad, or autocrat or democrat.

3. Overt component: It is also know as “behavioural” component or “conative” component.

This component is concerned with the way one intends to behave a particular attitude object.
Both the affective and cognitive components (feelings and beliefs) influence the way a person
intends to behave towards an attitude object. For instance, if a person has a negative feeling or
belief towards an object, he will be likely to behave negatively towards the object.

Attitudes and Behaviour

The relationship between attitudes and behaviour is highly controversial. On one side, cognitive
theorists believe that changes in attitudes affect the behaviour of individuals. In other words,

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change in behaviour calls for a change in attitudes of individuals. On the other side of argument,
some theorists like Bem and others believe that changes in behaviour affect the attitude of
individuals.

Perhaps the most famous research on this topic “behaviour and attitudes” was conducted by
Richard La piere. Long back (from 1930 to 1932) La piere and a Chinese couple traveled around
the entire USA by car. These people visited 251 restaurants and received warm welcome and
were treated magnificently well. But after six months when La piere sent letters to the
restaurants asking whether Chinese clientele would be accommodated, surprisingly over 93% of
the respondents said “no” – i.e. Chinese would not be accommodated.

The essence of La Piere’s work is that people acted in one way i.e. friendly and hospitably,
whereas they responded to Chinese in a different way i.e. negative aspects and beliefs about
Chinese. In other words, clearly there was a discrepancy between the actual behaviour and
reported attitude. The results of this research created an uproar among behavioural scientists
who then attempted to define, redefine, measure and develop new theories of attitudes., Out of
the refinement came some generalizations about attitudes and behaviour.

1. First of all, the more specific the measurement of attitude, the more it is to be related to
the behaviour. La piere obtained extremely discrepant information about the prejudice
towards Chinese people in America. He simply asked about Chinese people in general.
He did not actually measure the attitude.
2. Attitudes are related to behaviour. There is no doubt about it, but they are influenced by
situational factors such as pressures by union, top management etc.

Attitude Formation- Sources of Attitude

The question often arises “where do attitudes comefrom”? Attitudes are basically learned.
People are not born with specific attitudes, rather they acquire them through the “process of
learning”. The determinants of a person’s attitudes are as follows:

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 1. Experience: Individuals learn attitudes through job experiences. They develop attitudes
about such factors as salary, performance reviews, job design, work group affiliation and
managerial capabilities.
2. Association: The major groups, associations, geographic region, religion, educational
background, race, sex, age and income – class strongly influence our attitudes.
3. Family: Individuals develop certain attitudes from their family members – parents,
brothers, sisters, etc.
4. Peer groups: As people approach their adulthood, they increasingly rely on their peer
groups for approval, attitude. We often seek out others who share attitudes similar to our
own, or else we change our attitudes to confirm to the attitudes of those in the group
whose approval is important to us.
5. Society: Social class, religious affiliation, culture, languages and the structure of society
influence the formation of attitudes. For ex., the attitudes of Russians towards
communism are radically different from those held by an average American.
6. Personality factors: Personality factors such as individuality, self – confidence,
independence, creativity, innovation, defensiveness etc., also determine the formation of
attitudes.

Relevance of Attitudes in Organisation

There are three types of job-related attitudes such as job satisfaction, job involvement, and
organizational commitment.
i) Job Satisfaction:
The term job satisfaction refers to an individual’s general attitudes towards their job. The
likingness or dislikingness differ from individual to individual with respect to job contextual
factors or job content factors. Some people give much importance to job contextual factors like
salary, security, supervision, supportive colleagues, company policy, working conditions,
perquisites, promotions, equitable rewards etc. Whereas others may show much interest in job
content factors such as advancement, challenging assignments, career progress, appreciation and
recognition, work itself. Research results revealed that the job satisfaction had a tremendous
impact on improving productivity, enhancing quality requirements, reduced absenteeism rate and
employee turnover. The employees expressed their dissatisfaction through so many ways such as

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leaving the organization, raising their voice to demand to improve the working conditions, be
patient by passively waiting for the conditions to improve and neglecting everything in work.

The study of Job satisfaction is one of most important factors in the study of human behaviour in
the organization. Job satisfaction focuses on employee attitude towards his job. It has three
important dimensions:
(a) Job satisfaction can be measured by the emotional response to a job situation hence it cannot
be seen, and it can only be inferred.
(b) Job satisfaction is related to what you actually get as reward and what you expect to get. If
the difference between the actual reward and expectation is minimum or negligible them a
person will display a positive attitude and if there is wide difference between the two, a person
will display a negative attitude towards his job and therefore the satisfaction level will be low.
(c) Job satisfaction is related to job dimensions. These can be expressed in terms of job content,
remuneration, attitude of co-workers, and opportunity of growth that job is able to provide in
terms of promotion and last but not the least the expert loyal and experienced leadership is
available in terms of supervision.
Factors determining job Satisfaction
There are number of dimensions which effect job satisfaction. Value system possessed be an
individual and the culture supporting the value system in the organization can be called as an
important and basic for job satisfaction. However some of the important factors that determine
job satisfaction of the employees in the organization is as under: -
1. Work Content: Content of the work itself is a major source of satisfaction. The work
must be challenging. It should lend itself opportunities to use employee skills, ability and
experience. The content of the work should be encouraging and interesting and have
variety inbuilt in it so that it is not boring. Positive feedback from the job and autonomy
has been considered to be important for motivation of employees. Too tough or job
having two little challenge brings frustration and feeling of failure hence the job should
be moderately tough so that the individual has to stretch his ability, imagination and
skills. Once such job is completed successfully, the workers get a great sense of
satisfaction.

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2. Pay and promotion policy: Salary and wages play decisive part in the study of job
satisfaction. Equitable rewards is multidimensional in nature. The benefits are of varied nature
namely pay, perks and rewards are associated with motivation of employees. Pay system and
promotion policy of the organization must be just, unambiguous and in line with the prevalent
industry norms and employee expectations. Employee wages and salary must ensure him the
social status and should be able to fulfill the expectations. Individual must perceive salary
administration and promotion policy as being fair. Organization should ensure that their polices
are growth oriented and incremental in nature so that employees take on an additional
responsibility voluntarily. Apart from financial benefits, organization must provide adequate
perks and non-financial benefits so that they are motivated and display high level of satisfaction.
3. Supportive working condition: Working conditions have a modest but lasting effect on job
satisfaction. Due to fast development of technology, it is necessary that the organizations are
operating on upgraded technology, latest systems and procedures. The layout of work place must
be ideally suited from operational point of view and the employees should display great degree
of satisfaction. The place should be neat and clean with necessary facilities as per Factories Act.
Light, ventilation, cleanliness, enough space for work, immediate availability of supervision,
adequate latest tools and generally good surrounding will definitely add to job satisfaction. If the
work place were closer to home, it would add to employee retention.
4. Work group: The concept of work group and work teams is more prevalent to day. Work
group of multi skilled persons with one goal will be able to function effectively if they are
friendly and co-operative. The work group serves as a source of support, comfort, advice and
assistance to individual worker. A good work group makes the job more enjoyable. The factor of
work group support is essential for job satisfaction. If the reverse conditions prevail, the people
may not be able to get along with each other and the level of job satisfaction will be reduced.
5. Supervision: Supervision is one of the moderate factors, which affect job satisfaction.
Qualified supervisors should be available for advice, guidance and problem solving. Supervisors
should be placed close to the place of work and should be available. They should take personal
interest in the affairs of employees both on personal and official level. Supervision is related to
leadership. In Defence Services the leadership is so proactive that the leader carry on him details
of each soldier under his command. The details include dependants of soldier’s family, their
economic position, details of children, the class they study, home address and other demographic

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details, soldier take his boss as guide and philosopher who is always available to him for advice.
Such supervision improves the morale and job satisfaction of employees. The concept of
supervision has changed. What is in vogue and in practice to day is self-serviced teams and work
group. The group prefer moren freedom of work in relation to work hours, time management,
frequent breaks between work hours and autonomy as long as job is completed in time. Flater
organizational structure therefore has come into practice. Steps in command structure has
reduced. There is a participative management and work has to meet the established standards in
terms of quality and quantity. The levels might have been reduced but not the value of
supervision as a factor of job satisfaction.
6. Personality job fit: Individuals should be assigned the job, that suit their interest. Recently it
has been seen that MBA graduates are satisfied with their job if they get the job related to the
“specialisation” they have chosen during the MBA degree. Persons having analytical approach
should be assigned job in R&D department so that their level of job satisfaction increases.

Effect of Employees Attitude

1. Satisfaction and productivity

Based on research carried out in Hawthorne studies, further research to prove that “happy
workers are productive” was carried out, which has been proved negative. Based on the
conclusion of Hawthorne studies, managers began their efforts to make their employees happier
by improving work conditions, providing Laissez-faire type of leadership, expanding various
facilities to the workers, but it has been found that there is no direct relationship between
happiness and productivity. Robins concluded that productive workers are likely to be happy
workers. Further research on the subject suggests that organization having happy workers might
have increased productivity. On individual level it may not be true due to complexity of
environment, work processes, various systems and sub systems having impact on the individual
employee. But it can be said from organizational point of view that organization that are able to
evolve such policies that make employees happy bound to have improved productivity.
Productivity is considered as reward for hard work which is due to high level of satisfaction.
However globalisation, speed of machines and knowledge explosion, impact of media on

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workers, social awareness and high expectations of employees to meet social obligations are
important factors to ensure high satisfaction level of employees.
2. Satisfaction and absenteeism
There is an inverse relationship between satisfaction and absenteeism. When workers are more
satisfied the absenteeism is low. When satisfaction level is low absenteeism tends to be high.
There are certain moderating variables like sick leave and degree to which people feel that their
jobs are important. Where there is a provision for sick leave, employees would take the benefit
and absent themselves. As far as the importance of work is concerned, it has been observed that
people attend to their work when it is important to accomplish. Employees having high
satisfaction would not necessarily result in to low absenteeism but those having low satisfaction
level would definately have high absenteeism.
3. Satisfaction and turnover
It has been found that employees who are not satisfied with their jobs will have high turnover.
Employees who are satisfied will not have high turnover. Satisfaction is also negatively related
to turnover but the co-relation is stronger than what we found in absenteeism. Employee
performance is a moderating factor of the satisfaction—Turnover relationship. In recent times a
phenomenon amongst the software engineers whose performance is high, their turnover has been
noticed as high because of competition for personal growth. Organization lures the competent
person for their organizational growth. Organization cares for such high performers and their
retention. Poor performers do not leave the organization for fear of lack of job opportunity
outside.
A person with a positive attitude is likely to have more job satisfaction, while a person with
negative attitude is likely to have job dissatisfaction towards his or her job. Job satisfaction is
one of the major determinants of an employee’s organizational citizenship behavior. Satisfied
employee would seem more likely to take positively about the organization, help others and go
beyond the normal expectation in their job. Moreover, satisfied employees normally are more
prone to go beyond the call of duty because they were to reciprocate their positive experiences.
The following are some of the major determinants of job satisfaction – mentally challenging
work, equitable rewards, supportive working conditions, supportive fellow employees,
personality-job fit, company policies and programs
. ii) Job Involvement:

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This refers to the extent to which a person identifies psychologically with her or his job. The
person feels that the job is more meaningful and it utilizes one’s talent and skills to the fullest
extent. There is a perfect harmony between the types of skills a person possesses and the work
content. The individual experiences as if the whole work is being carried out by him having full
control over everything related to the work. Due to this perception, performance level will be
increasing significantly and enhance the overall self worth. Employees with a high level of job
involvement strongly identify with and really care about the kind of work they do in their job.
Job involvement measures the degree to which a person identifies psychologically with her or his
job and considers her or his perceived performance level important to her or his self-worth.
Employees with a high level of job involvement strongly identify with and really care about the
kind of work they do in their job. There is high level of relationship between job involvement
and fewer absences and lower resignation rates of an individual.
iii) Organizational Commitment:
It is refers to the extent to which an employee identifies with a particular organization and its
goals, and wishes to maintain membership in the organization. The person shows much of
association and loyalty to their organization. Organizational commitment has gained a great deal
of interest in recent years because of the changing nature of the workplace. People, who feel a
perfect congruence between his values, beliefs, attitudes, and the organizational policies,
practices, programs and its overall work culture, are likely to have more commitment than those
who have incongruence. In order to elicit a high level of commitment from the employees, a due
care must be taken at every stages right from the recruitment to retirement. Administering
suitable screening tests such as aptitude tests, personality tests, interest’s tests etc will help
significantly placing a right person to do a right type of job. With fewer workers, managers want
workers who identify with the organization’s purpose and will work hard to achieve its goals.
Organizational commitment can also be enhanced through organizational communication
process, team briefing, supportive leadership etc. A good fit between the personality and the job,
an internal locus of control, positive realistic expectations, opportunities for career advancement
etc are the good predictors of organizational commitment. A well designed formal mentoring
program has also been shown to increase organizational commitment. Promotional opportunity,
providing employees with more information, supervisor’s support etc are likely to improve
organizational commitment.

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Developing Positive attitude in Organisations
Defeloping positive attitude among employees in organisations have various manageriual
implications and benefits which are dealt below
Benefits of positive Attitude in the workplace
Having a positive attitude can proviAttitude many benefits to your personal and professional life.
It can even affect those around you in a positive way. By having a positive attitude at work, you:
 Create a positive environment
 Reduce stress
 Increase productivity levels
 Produce more energy
 Improve customer relations
 Demonstrate leadership capabilities
 Improve decision-making
 Motivate others
Develop and maintain a positive attitude at work
Having a positive attitude takes practice. Here are ten ways to start adopting and maintaining a
more positive attitude at work (and in life):
Developing a positive attitude
Here are a few ways you can begin to develop a more positive attitude in your day-to-day work.
1. Avoid gossip
Gossip can dismantle teamwork and impact morale in a negative way. To keep positive and
productive, avoid gossip and gossipers.
2. Reduce complaints
Complaining is the antithesis of positivity and also, counter productive. Plus, it often makes you
feel worse about the situation, not better. Try to become more conscious of when and why you
complain. Doing so will help you reduce the negative behavior as well as find more positive and
productive ways to talk about these issues at work.
3. Use a positive vocabulary
Positive vocabulary can improve your overall attitude. Try to replace negative words with
positive ones when they come up in conversation.

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4. Smile
Smiling can have mood-boosting effects. Other people are also more likely to smile around you
and change their attitudes based on your facial expression. 
5. Put others first
Try doing nice things for others in your office without expecting anything in return. Selfless acts
of kindness most often result in appreciation from your colleagues, which, in turn, makes you
both feel good and more positive.
Maintaining a positive attitude
Here are some ways you can maintain that attitude.
1. Get enough rest
You’re more likely to be in a good mood and have a clear mind if you get enough sleep, period. 
2. Take breaks
Taking breaks during the day will help you reduce potential stress and negativity while
refreshing your mindset. Go for a short walk or do some light stretches. 
3. Practice gratitude
Be mindful of all the things you’re thankful for. Focusing on the good in both your work and
personal spheres will make you react more patiently and positively to stressful situations. It can
be helpful to write down a list of the things you are most thankful for on a daily or weekly basis.
4. Keep visual reminders
Visual reminders to stay positive can help you maintain a good outlook even during stressful
events at work. Tape small notes to your computer or around your workspace with a positive
affirmation to keep perspective throughout the day.
5. Interact with positive people
Positivity is contagious. Being around positive people will help you maintain a positive mindset.

UNIT III QUESTION BANK

SECTION A (1 MARKS) Multiple Choice Questions

1. What do we call it when we judge someone on the basis of our perception?

a. Stereotyping b. Categorizing c. Halo effect d. Prototyping

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2. The cognitive process through which an individual selects, organizes but misinterprets
environmental stimuli is known as_________
a. Perception b. Projection c. Selective Perception d. Mis-Perception
3. ----------is an attitude reflects the extent to which an individual is gratified or fulfilled by his
work
a. Motivation b. Job satisfaction c. Contribution d.Cognitive dissonance
4. ---------------- is “the reactions of individuals to new or threatening factors in their work
environments”
a.Attitude b.Stress c.Dissonance d.Disappointment
5. A learned pre-disposition to respond in a consistently favourable or unfavourable manner with
respect to a given object
a. Perception b. Attitude c. Behavior d. personality
6. When one attribute of a person or situation is used to develop an overall impression of the
individual or situation such eimpact is called as
a.Stereo type effect b. Halo effect c.Mono effect d. Contrast effect
7. …………..is the process of screening out information that we are uncomfortable with or that
contradict to our beliefs
a. Perceptual context b. Selective perception c. Halo effect d. Stereotyping
8. Mr.Sajeev rated Mr. Rajiv high in his job evaluation because both belong to same area and
graduated from the same University. It is an example of:
a. Central Tendency b. Halo effect c. Similar-to-me effect d. Misperception
9. Self-fulfilling prophecy is also known as
a. Pygmalion effect b. Central Tendency c. Halo effect d.None
10. Which of the follwowing statement is not correct?
a. Visual reminders to stay positive can help us to maintain a good outlook even during stressful
events at work
b. Complaining is a kind of positivity and also productive
c. Perception is a matter of attitude that can be positive or negative
d. All the above

SECTION B (5 MARKS)

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 7. Explain Perceptual process with a schematic diaram
8. Define Perception and explain atleast three perceptual distortions in organisations
9. What is attitude? Explain atleast two different job related attitudes
10. How do you develop and maintain a positive attitude at work?
11. Describe the effect of Employees Attitude in organisations
12. What factors do determine Job satisfaction? Explain

SECTION C (10 MARKS)

 Describe how percption does play a critical role in employees behaviour in organisational
perspectives
 Defien Perception. Explain perceptual process and distortions. How will you minimise
the distorions?
 Detail any two job related attitudes of employees in organisations and their effcts on the
organisational performance
 What is attitude and how is it formed among individuals in organsations? ( Explain in
detail)

UNIT – IV
Group- meaning – types – stages in group formation-group norms - group cohesiveness-factors
affecting cohesiveness- group decision making – advantages – disadvantages. Conflict – Types
of conflict – Conflict Resolution.
Group – Meaning
A work group is collection of two or more individuals, working for a common goal and is
interdependent. They interact significantly to achieve a group objective. Group dynamics is
concerned with interaction and forces between group members in a social situation. Concept of

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group dynamics was first evolved by Kurt Lewin in 1930s who viewed the concept from the
perspective of internal nature of group, why they form, how they form, the structure of group,
how they function and its effect on other group members, other groups and the organization. For
a manager, it is to understand group member behavior and deal effectively with the group
because of the synergy they provide. Then the managers should be able to achieve not only
group objective but should be able to fulfill individual objectives within the overall
organizational frame work.
Group members should be able to achieve greater (volume and quality) than the sum total of
individual contribution. This is achieved by joint idea generation, finding out various courses
open, and selecting and implementing the best course of action. Because of the joint efforts of
the group, it possible to use skill, knowledge and experience of group members to achieve
quality decisions and achieve group goals. Fred Luthans states that if a group exists in an
organization, its members :-
– are motivated to join
– perceive a group as unified unit of interacting people
– contribute to various amounts to the group processes
– reach agreement and disagreements through various forms of interaction.
Types of Groups
1. Formal group
Formal group is designated work group defined by the organizational structure. It is collection of
employees who work together to contribute towards achievement of organizational objective. For
example aircrew. Formal groups are formed based on the work and human resources required by
skill, knowledge and experience to achieve organizational task. In a manufacturing unit, the
organizational task is sub divided into groups and teams. Each group is composed of various
members based on the human resource requirement. The members of the group report to a
designated leader. They interact with each other on official level.
2. Command Group
It is formed to carry out a specific task. There is a leader in a group who is also designated by the
organization. He receives orders from his superior and reports to him about group activities and
performance. A task group is made up of individuals from across the functional areas. They work
together to complete a job/task. Task group boundaries are not limited to its hierarchical

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superior. Once the task is complete the group members fall back to theirrespective parent
groups/units.

Fig15: Types of Groups

3. Committee
The other form of formal group is committee. It can be of permanent or temporary nature.
Planning committee, finance committees are of permanent nature, they keep working all along
and have a designated authority to control the work. There are temporary committees, which are
formed to accomplish a one-time works like committees formed at district levels to issue identity
cards to citizens. They are formed for specific work and disbanded once they have completed
their work
Informal Groups
Informal groups are groups that are not formally organized in the work system to get the job
done but develop on their own randomly at workplaces because of common interest and mutual
liking of the group members. For example members of production department, body
manufacturing department, HR department members and few individual from finance dept may
form a friendship group. This development takes place because of the interaction they have with
each other during the official work. Members from within one group or members from different
departments or even an organization can form an informal group. The features of such groups are
as under:
(a) Informal groups are formed by various members themselves, it has no official sanctity.
(b) These groups are formed based on commonality of culture, religious function, liking for each
other and common interests.

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(c) Their contribution for success of formal group is immense if properly handled by official
authority.
(d) These groups evolve their own structure, elect their own leaders and have followers. They
work based on group norms, social norms and code of conduct.
(e) They represent the human side of an organization. (f) The group exist without any rigid rules.
Their common interest is bond for existence.
Psychological Groups
We had earlier discussed ‘emergent’ behaviour that is related to behaviour of group members in
informal group and involving themselves in various activities, interactions and sentiments based
on common interests, value system and social bondage they develop. When such informal group
members develop highest level of sentiments or affinity among themselves and become aware of
each-others needs and potential contribution to further group objectives. these groups are called
psychological groups. The distinct feature of such informal group is that the members become
close knit, develops strong feeling of togetherness and get identified by the group. A feeling that
‘we’ belong to a particular group sets in deep into the behaviour pattern of all group members. At
times the strength of informal group identity becomes so strong that the members are more loyal
to their friendship group as compared to their normal group. The managers restructuring the task
activities and using appropriate group processes should channel the emergent behaviours in such
a way that will help organizations to achieve its goal. This phenomenon can be used effectively
for the betterment of organizations.
Stages in group formation
i) Forming:
At this stage, group members try to comprehend where they stand in the group and how they are
being perceived by others in the group. The members are very cautious in their interactions with
each other and the relationships among the group members are very superficial. Members’
seldom express their feelings in the group and the individual members who are trying to
understand who they are in the group have concerns about how they will fit in the group as
permanent group members. This is characterized by much uncertainty about group’s purpose,
structure and leadership. Members are ‘testing the waters’ to determine what types of behavior
are acceptable. This stage is complete when members have begun to think of themselves as part
of a group.

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ii) Storming:
At this stage, disagreement tends to get expressed among the group members, and feelings of
anxiety and resentment are also expressed. Some power struggle may ensure at this stage to
determine who should assume the informal leadership role in the group. This storming stage is
also known as the sub-grouping and confrontation. This group is characterized by intra-group
conflict. Members accept the existence of the group, but there is resistance to the control the
group imposes on individuality. There is sometimes conflict over who will control the group.
When this stage is complete, there will be a relatively clear hierarchy of leadership within the
group.
iii) Norming:
This stage is characterized by close relationships and cohesiveness. The group sets norms, tries
to attain some degree of cohesiveness, understands the goals of the group, starts making good
decision, expresses feelings openly and makes attempts to resolve problems and attain group
effectiveness. At this stage, members’ roles get defined, and task and maintenance roles are
assumed by group members. Group members’ also begin to express satisfaction and confidence
about being members of the group.
iv) Performing:
This stage is characterized by collaboration and integration. The group members evaluate their
performance so that the members develop and grow. The group relationships and structures are
set and accepted. Group energy has moved from getting to know and understand each other, to
performing the task at hand. Feelings are expressed at this stage without fear, leadership roles
shared among the members, and the group members’ activities are highly co-coordinated. The
task and maintenance roles are played very effectively. The task performance levels are high and
member satisfaction, pride and commitment to the group also high. Both performance and
members’ satisfaction are sustained indefinitely.
v) Adjourning:
This stage is characterized by concern with wrapping up activities rather than task performance.
The group prepares for its disbandment. High task performance is no longer the group’s top
priority. Instead, attention is directed towards finalizing activities. As the group approaches the
terminal phase, members break off their bonds of affection and stop interaction with each other.

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Responses of group members vary in this state. Some feel pride in what the group has
accomplished. Others may be negative and critical of the way the organization has treated the
group and others may be sad over the loss of friendship gained during the life of the work
groups.
These five stages of group development are only a suggestive and not prescriptive. Sometimes,
groups do not always proceed clearly from one stage to the next. Some times, several stages go
on simultaneously as when groups are storming and performing at the same time. Under some
conditions, high levels of conflict are conducive to high group performance

Group norms
“Group Norms are set of beliefs, feelings, and attitude commonly shared by group members.
These are also referred to as rules of standards of behaviour that members. These are also
referred to as rules of standards of behaviour that apply to group members”. These are
prescriptions of behabiour accepted and determined by the group. As per the Handbook of
Industrial and Organizational Psychology, the Norm is defined as “acceptable standards of
behaviour that are shared by the group members.” All groups have established norms, that is -
norms tell members what they ‘ought’ and ‘ought not’ to do a thing under certain circumstances.
From an individual stand point, they tell what is expected of them in certain situations. When
agreed to and accepted by the group, norms act as a means of influencing the behaviour of group
members with a minimum of external control. Norms differ among groups, communities and
societies, but they all have them.
Types of Norms
Norms may differ from organization to organization, nature of work and the location. Following
norms are generally found and practiced by all the organizations.
(a) Performance Norms: Performance standard is set by the individual worker and approved by
the superiors. These are general norms, industry standards prevailing in a particular type of
industry and restricted to geographical limits. All the individuals are expected to fulfill their task
within the stipulated time. If some worker is slow and can not cope up with the work load, is
assisted by other group members. On the contrary if some worker produces more than what is

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required to do is reprimanded by the group members and discouraged to produce more than
upper limits set by the organization so that management does not raise their expectations.
(b) Appearance Norms: Appearance norms is related to dress code and code of conduct in the
organization. In good organization dress while on work, dress for sports function or for dinner
are laid down. In defence services such norms are inbuilt in the organizational culture. As
regards to code of conduct, an individual is expected to be loyal and display total dedication to
the organization he serves. Workers are not expected to report about fellow workers to the
superiors. In the same way members are not expected to divulge company secrets to any other
organization, no matter how much tension prevails between workers and management. Group
norms is a very powerful tool for high productivity and maintenance of peaceful relationship
among the fellow workers.
(c) Behaviour Norms: Guidelines for general behaviour are issued by the management so that all
the employees display behaviour in an identical manner. These guidelines may cover various
aspects relating to the work. This may include time management, punctuality, salutation,
showing respect to the views of other members behavior while on shop floor and level of
professionalism that an individual should possess. These norms eventually take the form of
organization culture and are very useful for bringing down the conflict or stress level among the
group members
Establishing Norms
Norms are developed based on the following four ways:
i) Explicit statements made by a group member: Ensuring that no personal telephone calls will be
entertained during the office hours and getting acceptance from all the employees will help to
create an order
ii) Critical events in the group’s history: The accident occurred to a visitor of factory premises
due to his negligence will help to enforce certain guidelines and become s norms to every one.
iii) Primacy: The initial behavior pattern exhibited by the group will become a norm and difficult
to change.
iv) Carry-over behavior from the past situations: New members expectations, experiences will
help reformulate or revise certain norms to meet the current requirements.
Group cohesiveness and factors affecting cohesiveness

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Cohesion refers to the extent of unity in the group and is reflected in the members’ conformity to
the norms of the group, feelings of attraction for each other, and wanting to be co-members of
the group. Attraction, cohesion and conforming to norms are all intertwined. The more the
members feel attracted to the group, the greater will be the group cohesion. The greater the
cohesion, the greater the influence of group members to persuade one another to conform to the
group norms. The greater the conformity, the greater the identification of the members with the
group, and the greater the group cohesion. Cohesive groups work together to achieve the group
goals. They can be considered as valuable assets to the organization if the group’s goals coincide
with the organization’s goals.
Factors affecting cohesiveness: The following factors can facilitate to increase the cohesiveness
of the work group.
i) Agreement on Group Goals: If the group agrees on the purpose and direction of its activities,
this will serve to bind the group together and structure interaction patterns towards successful
goal accomplishment
ii) Frequency of Interaction: When group member have the opportunity to interact frequently
with each other, the probability for closeness to develop will increase. Managers can provide
opportunities for increased group interaction by calling frequent formal and informal meetings,
providing a common meetings place or physically designing the facilities so that group members
are within sight of one another
iii) Personal Attractiveness: Cohesiveness is enhanced when members are attractive to one
another if mutual trust and support already exists. Personal attraction also helps group members
to overcome obstacles to goal accomplishment and personal growth and development.
iv) Inter-group Competition: Competition with other groups, both written and external to the
organization is a mechanism that acts to bring groups closer together for attaining a common
purpose.
v) Favorable Evaluation: If a group has performed in an outstanding manner, some recognition
for its performance by management serves to elevate the prestige of the group in the eyes of the
group members and other members of the group. Favorable evaluation helps make group
members feel proud about being members of the group.

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vi) Group Size: As the size of the group increases, the frequency of interaction each member has
with other group members decreases, thus decreasing the probability that cohesiveness will
develop. Past studies have shown the groups of four to six members provide the best opportunity
for interaction.
vii) Pleasant experiences with the group: When group members are attracted to each other or
there is a full trust and cooperation, interaction may become a pleasant experience resulting in
high level of cohesiveness in the group.
viii) Lack of Domination: When one or few members dominate the group, cohesiveness cannot
adequately develop. Such behavior can create smaller “cliques” within the group or identify
individual members as isolates or deviates.
ix) Gender of Members: It is reported that women tend to have greater cohesion than men. A
possible reason is that women are more likely to be feeling types than thinking types.
x) Previous Success: If a group has a history of success, it builds an espirit de corps that attracts
and unites members. Successful organizations find it easier to attract and hire new employees
than unsuccessful ones.
xi) Humor: Humor has been linked to increased cohesion in several studies. It is reported that
the greater the cohesion, the greater the influence of the group over the behavior of members and
subsequently group performance. As groups are composed of individuals who are attracted to the
goals of the group and to each other, one would expect to find a strong relationship between
cohesiveness and group performance. The major difference between highly cohesive and low
cohesive groups would be how closely members conformed to the group norms. Further, the
group performance would be influenced not only by cohesion, but by the level of group norms.
Group Decision Making
Groups offer excellent techniques for performing many of the steps in the decision making
process. They are a source of both breath and depth of input for information gathering. If the
group is composed of individuals with diverse backgrounds, the alternatives generated should be
more extensive and the analysis will be more critical.
Advantages of Group Decision-making:

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The following aspects identified the main advantages that groups offer over individuals in the
making of decisions. i) More information and knowledge: By aggregating the resources of
several individuals, the group brings more input into the decision process.
ii) Increased diversity of views: Group brings heterogeneity to the decision making process and
this opens up the opportunity for more approaches and alternatives to be considered iii) Increased
acceptance of a solution: The group acceptance facilitates higher satisfaction among those
employees required to implement it. iv) Increased legitimacy: The group decision making
process is consistent with demographic ideals and therefore may be perceived as being more
legitimate than decisions made by an individual.
Disadvantages of group decision making:
Some of the main disadvantages are:
i) Time-consuming: It takes time to assemble a group.
ii) Pressures to conform: The desire by group members to be accepted and considered as an asset
to the group can result in squashing any overt disagreement, thus encouraging conformity among
viewpoints.
iii) Domination by the few: Few people will try to dominate the group discussion. If such people
are happened to be mediocre, the group overall effectiveness will suffer.
iv) Ambiguous responsibility: In group decision, the responsibility of any single member is
reduced.
Group Effectiveness and Efficiency Whether groups are more effective than individuals
depends on how you define effectiveness. Group decisions are generally more accurate than the
decisions of the average individual in a group, but less accurate than the judgments of the most
accurate. 69 In terms of speed, individuals are superior. If creativity is important, groups tend to
be more effective. And if effectiveness means the degree of acceptance the final solution
achieves, the nod again goes to the group. But we cannot consider effectiveness without also
assessing efficiency. With few exceptions, group decision making consumes more work hours
than an individual tackling the same problem alone. The exceptions tend to be the instances in
which, to achieve comparable quantities of diverse input, the single decision maker must spend a
great deal of time reviewing files and talking to other people. In deciding whether to use groups,
then, managers must assess whether increases in effectiveness are more than enough to offset the
reductions in efficiency.
Conflict

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Conflict can be defined (Thomas K.A.)1 as the “process that begins when one party perceives
that another party has negatively affected something that the first party cares about1.” Conflict
must be perceived by either of the parties. Stiff opposition due to incompatibility of
organizational goals characterizes it. Conflict can also be caused due to difference about
interpretation of facts or issues involved. Conflict takes an ugly turn and takes a form of violence
due to disagreement based on behavioral expectations. It could be covert or overt and can be
seen when one observes violent acts of individual in organizations. Austin et al2 defines conflict
“as a disagreement between two or more individuals or groups, with each individual or group
trying to gain acceptance of its views or objective over others.”
Types of conflict
There are two braoder classifications when we classify conflicts such as functional and
dysfunctional conflicts which are below detailed
Functional and Dysfunctional Conflict
Conflict that supports the individual and group goals, which leads to higher performance is
called functional conflict while the conflicts that hinders individual or group performance is
called dysfunctional conflict. The latter generally takes destructive form. There is thin margin
between the two types of conflicts mentioned above. While evaluating the impact of conflict on
goal achievement, individual perception and effect of group performance should be evaluated. If
the conflict contributes towards higher performance then the conflict should be called functional
or otherwise dysfunctional. Conflict can be broadly classified in three types i.e. task oriented
conflict, behavioural conflict and structural conflict or process conflict. Task conflict relates
to the group goals or objectives to be achieved by the group while behavioral conflict relates to
individual’s value system, approach, attitude, ego state, skill and norms being followed by him.
Studies reveal that most of the dysfunctional conflict fall under this category. Process conflict is
related to how a task is being accomplished in the organization. It is related with various
processes, procedures, drills and instructions that are being followed on a particular job. When
individual differs in this regard, conflict arises. This type of conflict can be eliminated to a large
extent by following strict discipline in the work procedure and adhering to the rules and
regulations. Positive points of functional conflict are as under:
Functional Conflict

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1. Conflict develops cohesiveness within the group members. A group goal therefore becomes a
priority. Individual goals are then relegated to secondary position.
2. Conflict leads to innovation and creativity, as there is competing sprit among various groups.
3. Conflict provides challenging work environment and enhances opportunities for self-
development of group that leads to formation of group norms.
4. Enhance work culture leads to upgradation of various systems within the organization and
therefore growth is achieved.

Dysfunctional Conflict
Conflict may turn out to be detrimental and disastrous and having deleterious effects.
Dysfunctional nature of conflict can be identified in the following circumstances:
1. When conflict does not lead to solution.
2. When basic goals of the organization are neglected.
3. People should be treated with due respect. If it is violated and a climate of distrust and
suspicion is created people feel defeated and demeaned which develops antagonism and leads to
conflict.
4. Conflict may lead to absenteeism and subsequently to increased turn over if not controlled in
time.
5. Dual management style may create hatred and lead to dysfunctional conflict.
6. Disagreement with management may be considered as disloyalty, if this environment prevails,
an opportunity for creativity would be lost and employees would lose interest in their job. This
would lead to increased conflicting situations.
Conflict are further classified as intra-personal, inter-personal, intra-group, inter-group or intra-
organizational in nature. These are discussed below.
Intra-personal Conflict: Intra personal conflict is also called the conflict within the individual.
This type of conflict can be of two types
(a) Value conflict: Every individual has to play certain roles, which conforms to his value
system. However, there are certain situations when an individual may have to compromise on
value system and beliefs. For example, finance manager of an organization, while submitting tax

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returns to the government may conceal some facts, which may go against his belief and value
system. This situation may cause tension and conflict within the individual.
(b) Decision-making: Problem solving is one of the important jobs every individual has to
undertake in work environment. Every problem has various courses open. At times it is difficult
for a person to select an appropriate course of action. This situation causes conflict within the
individual. He therefore will have to take decisions based on the past experience and the
knowledge. It may be noted that decision-making has become simpler these days due to firstly;
information technology where required data is available and secondly, group decision is the
norm in most of the organizations.
Inter-personal Conflict
Inter-personal conflict relates to conflict between two or more individuals and is probably the
most common and recognized form of conflict. Interpersonal conflict is caused due to
disagreement over goals and objectives of the organization. These are heightened due to
difference of opinion of individuals and when issues are not based on facts. Every organization is
full of unresolved issues, problems and differing situations that leads to conflict. Conflict can
also take place between one person of a group with another person of the same group or another
group on issues relating to decision-making. Individuals may have a difference of opinion on
selection of a particular course of action that will lead to disagreement and often result in the
conflict. It is the merit of the issue, and willingness of members of the organization to accept the
others point of view that will avoid the conflict situation.
Intra-Group Conflict
Intra-group conflict relates to values, status and roles played by an individual in the group and
the group norms. Individual may want to remain in the group for social needs but may disagree
with the methods and procedures followed by the group. The conflict may arise when social
changes are incorporated in the group. When group faces new problems and when values are
changed due to change in social environment. Intra-group conflict is like Inter-personal conflict
except that the people involved in the conflict episode belong to a common group.
Inter-Group Conflict
Conflicts between different groups, sections and departments are called inter-group conflict. For
example, conflict between production and sales departments over the quality being produced and

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the customer requirements. Inter-group conflict causes due to factors inherent to the
organizational structure like independence, inconsistency in various policy matter, variance on
promotion criteria, reward system and different standards being adopted for different sub-units
and departments. Organizational objectives can only be achieved when all departments work
towards attainment of organizational goals. This is possible when interactions between
departments are smooth and cordial. Conflict can be avoided by better communication between
departments, joint decision making, removing disparity in group goals and paying due respect
and displaying concern for other group’s views.
Sources of inter-group conflict:
There are three basic sources of inter-group conflict: i) goal incompatibility, ii)
decisionmaking requirements and iii) performance expectations.
Goal incompatibility:
It is defined as the lack of agreement concerning the direction of group activity and the
criteria for evaluating task accomplishment, is the most frequently identified source for inter-
group conflict. Two critical elements which contribute to goal incompatibility are: i) time and
goal orientation and ii) barriers to goal accomplishment. Different time (short versus long term)
and goal (techno-economic, market and scientific) orientation crate a state of differentiation
between two or more interacting groups. When two widely differing groups, such as
manufacturing (short-term and techno-economic orientation) and research (long-term and
scientific orientation) interacts, this state of time and goals orientation differentiating can act as a
sources of conflict. If goal attainment by one group is seen as preventing other groups from
achieving their goals, barriers to goal accomplishment arise.
Decision-making requirements:
This concerns the particular requirements for decision-making used by each of the
interacting groups. Two aspects that are related to decision-making requirements are i) degree of
task uncertainty and ii) the availability of resources. Degree of task uncertainty: It refers to one
of the basic characteristics of inter-group behavior. The nature of the particular task being
performed by each of the interacting groups may require different amounts of information flow
before a decision can be reached. The greater the task uncertainty inherent in each task, the
greater the need for additional information.

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Availability of Resources: This causes conflict when there is a struggle between interacting
groups for limited resources needed to accomplish their goals. An organization must divide
limited financial, equipment and manpower resources among different groups in what they
believe is the most efficient and equitable manner. This conflict situation can result in such
negative consequences as withholding information, disruptive behavior, and similar
dysfunctional activities that can adversely affect the organization’s overall performance.
Performance Expectations:
The third source of inter-group conflict concerns the situation in which the activities or
performance of one group affects the subsequent performance of other groups. For xample, in
hospitals, surgeons perform their function after the anesthesiologists have successfully
performed their role; on assembly lines, tires are placed on automobiles after workers have
installed the brakes etc. Performance expectations in inter-group behavior are directly related to
the type of interdependence existing between groups. The nature of the three types of
interdependence are pooled, sequential, reciprocal pose a respectively potential for conflict
between interacting groups. That is, as inter-group relations progress from pooled to reciprocal
interdependence, there is an increasing dependence of one group on another to perform their
particular task. When one group acts improperly or fails to meet the performance expectation of
the other group, a potential conflict situation can arise. The potential for conflict is greatest with
reciprocal interdependence due to the intensity of the interactions between groups.
Inter-Organizational Conflict
Inter-organizational conflict takes place between two dependent organizations. Conflict can take
place between government organization, unions and the operating industry. Government
organizations function to ensure that minimum standards are followed by the organizations.
Managers must try and reduce inter-organizational conflicts by adopting positive approach and
by following strictly, the rules and regulations laid down by the government agencies. Conflict
can also take place between seller and buyer organizations.
Intra-Organizational Conflicts
Intra organizational conflict encompasses horizontal, vertical, line–staff and role based conflicts.
Let us briefly study these situations.
Horizontal Conflict

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Horizontal Conflict is caused due to incompatibility of goals, sharing limited resources and
difference in time orientation. It leads to tension, misunderstanding and frustration on the part of
both the parties. Horizontal conflict relates to employees or group at the same level.
Organizational goal at implementation level vary from department to department. Finance
department may not be able to spare additional amount as may be required by research and
development department for new product development, that may cause tension,
misunderstanding between two individuals or departments. Individuals may not be able to meet
the targets of production in given time due to variety of reason that may cause conflict with sales
department as the latter would like to flood the market with their product to make the presence
felt. It has been seen that due to increased interdependence of individuals or groups to carry out
various functions, situations do arise where there is difference of opinion on issues that cause
conflict between individuals or groups.
Vertical Conflict
Vertical conflict refers to conflicts that might take place between different levels of hierarchy.
Conflicts between subordinates and superior occur due to incompatibility. It is generally caused
because of differences in perception, value system, goals that may be assigned, cognition and
difference in individual behaviour. Conflict is also caused due to inappropriate communication
between individuals at two different levels.
Line and Staff Conflict
Line and staff conflict has been traditional. Line authority creates product and services and
contributes directly towards the revenue generation. While staff authority assists line authority
and acts in advisory capacity. Staff and line authority have a different predispositions and goals.
They have different skills and expertise. Since staff authority (managers) are in the chain of
command and have a day to day assess to the top boss, have a tendency to dictate terms to the
line authority and usually disregard the working knowledge of the line authority. They have
tendency to dominate and disregard the efforts put in by line authority managers. On the contrary
staff managers have a technical know how and they are able to advice the line authority to cut
down cost of production and save on wastage etc. Line authority does not like their advice at
times. Staff managers get frustrated when their suggestions and ideas are not implemented by
line managers and hence the cause for conflict. In the process the organizational goals are not
achieved as per plans.

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Role Conflict
A person in an organization has to perform various roles. Conflict arises when roles assigned to
him have different expectation. ‘Time’ management may cause conflict. A person may be asked
to take care of an additional section in the absence of section head. Value system in an
organization is also a cause for conflict. Supervisor is asked to be honest while he is dealing with
sale of the product while the same person may be asked to pay commision to an official from
whom a sanction is required to be obtained, thereby causing a conflict situation in the ethical
value system of an individual. When an individual is line or a staff employee and also a union
representative, has to perform duties of conflicting nature hence a role conflict.
Conflict Resolution
Conflict between parties can be resolved by five different modes. Parties involved may adopt any
strategies for minimizing and resolving conflicts can be classified into five categories: i)
Avoidance, ii) Accommodating, iii) Compromise, iv) Competition and v) Collaboration.

Fig 17 Conflict Resolution Model

Avoidance:
This strategy involves a general disregard for the causes of the conflict and the person might
diplomatically sidestep a conflicting issue, postpone addressing it till later, or withdraw hysically
or psychologically from a threatening situation. Avoiding mode is used when the individual is
both unassertive and uncooperative – that is, the person has a very low concern for his own and
his opponent’s needs. The individual follows the following three methods i) Non-attention: The
manager totally avoids or ignores the dysfunctional situation. Individuals tend to “look the other
way” or disregard hostile action in hopes that the situation will resolve itself in time ii) Physical
separation: It involves moving conflicting groups physically apart from each other. The rationale
is that if the groups cannot interact, conflict will diminish. iii) Limited interaction: Groups are

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allowed to interact only on formal situations. Avoidance style can be very beneficial under the
following conditions:
- When the issue involved in the conflict is trivial,
- When more pressing issues are to be handled by the individual with a limited time
frame.
- When one’s power is very low and there is no chance of satisfying one’s concern
- When more information is needed to make a good decision
- When someone else can resolve the conflict more effectively
- When you require time to regain more strength and look into different perspective

Accommodation:
Accommodation is a negotiation style where one party is willing to oblige or adapt to meet the
needs of the other party. That party that accommodates loses and the other party wins.
Accommodation is useful for negotiation on minor matters. The negotiation parties may not look
for creative, new solutions. Accommodation might take the form of selfless generosity, or
obeying another’s order rather unwillingly or giving in to another person’s point of view. In all
these cases, the individual neglects his or her own concern to satisfy the concerns of their other
party. There is an element of self-sacrifice. Accommodating is useful in the following situations:
- Where the individual realizes that he or she is wrong
- By yielding, the person indicates to the other conflicting person that he is reasonable
- When an issue is much more important to the other person than to the individual
- By being accommodating, the person maintains good will and a cooperative relationship
and also build social credits so that the other person gives in when a later issue becomes
important to this individual.
- When preserving harmony and avoiding disruption are especially more important
-When continued competition would only damage one’s cause because one is
outmatched and is losing.
Competition:
Competition occurs when one party negotiates to maximize its results at he expense of the other
party’s needs. Competition leads to one party gaining the advantage over the other. One party
wins while the other party loses. Although it is quick and can be used as counter against another
person, this option usually produces a win-lose result. Competing is a power oriented mode of
resolving tensions and one uses whatever power one has or can muster such skills, knowledge,
abilities, rank being well-connected etc to win. Competing is useful in the following situations:
- When the resources are limited and the system has to be pruned
- When quick and decisive action has to be taken during emergencies
- When one has to take unpopular decision such as enforcing discipline, unpopular rules,
cost cutting measures
- When issues are vital to the survival of the company where one is aware of the right
solutions.
Thus, while competing mode is useful in certain situations, people have to be careful not
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 to surround themselves with yes-men and not to foster ignorance and duplicity in the
system. People low on this mode can learn to use their power more and enhance their
own as well as their organization’s effectiveness.
Compromising:
Compromise is the settlement of differences through concessions of one or both parties. In
compromising, the party tries to find some expedient, mutually acceptable solutions with
partially satisfies both parties, though neither is fully satisfied. A compromising stance addresses
the issue without avoiding it, but does not explore the alternative in a way that would be
completely satisfying to both parties as in the case of collaboration. Compromising involves
“splitting the difference”, exchanging concessions and seeking quick middle-ground solutions.
Compromising is a useful mode in the following situations:
- When the goals pursued are important, but not so important that it is worth potential
disruptions by taking very assertive or unyielding positions.
- When two parties with equal power are strongly committed to mutually exclusive
goals such as in labor-management bargaining situations
- When interim solutions are required till a more thorough and permanent solutions
to the problem can be found.
- When solutions have to be arrived at under extreme time pressures
- When both collaboration and competition fail to work effectively in resolving conflicts.

Thus, compromise as a conflict resolution mode might offer an easy way out, but is also likely to
produce adverse overall effects for the organization if that is the main or only approach to
conflict resolutions taken by managers in the organization.
Collaboration:
Collaboration occurs when people cooperate to produce a solution satisfactory to both.
Collaborating involves an attempt to work with the other person to find solutions that would be
satisfying to both parties. Here, the underlying concerns of both parties are explored in depth, the
disagreements examine in detail and resolutions arrived at by combining the insights of both the
parties. A creative solution usually emerges because of the joint efforts of both the parties who
are keen on both gaining from the situation without hurting the other. Collaboration is useful in
the following situations:
- When two goals of the two parties are both too important to be compromised
- When the commitment of both parties is essential for important projects to succeed
- When the objectives of the parties are i) to learn ii) to merge insights that different
people bring to a problem because of their backgrounds, training, discipline or
orientations iii) to work through hard feelings which are interfering with a desired
interpersonal relationship
Thus, in collaborating, the intention of the parties is to solve the problem by clarifying
differences rather than by accommodating various points of view. Examples include attempting
to find win-win solutions that allow both parties’ goal to be completely achieved and seeking a

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conclusion that incorporates the valid insights of both parties goal to be completely achieved and
seeking a conclusion that incorporates the valid insights of both parties.

UNIT IV QUESTION BANK

SECTION A (1 MARKS) Multiple Choice Questions

1. Which factor in scope of OB consists of group dynamics, group conflicts, and

communication act?
A. Individuals B. group of individuals C. organisations D. structure

2. ___________ occurs when two or more groups depend on each other to accomplish
their existence.
A. Specialisation B. Interdependence C. Goal difference D. Perception

3. Conflicts between two or more people is called ___________

A. inter personal conflicts B. inter group conflicts.
C. intra personal conflicts D. inter organisational conflicts.

4. Conflicts that support the goals of the group and improve its performance are known as
___________ conflicts.
A. functional B. organisational C. intra personal D. inter personal

5. The destructive forms of conflict that hinder group performance are called
______________ conflicts.
A. destructive B. dys functional C. functional D. dys destructive

6. ----------is the attractiveness of the members towards the group or resistance to leave it
A. Group norms B. Group behavior C. Group cohesiveness D. Group structure

7. The group formed by an organization to accomplish narrow range of purposes within a

specified time
A. Formal Group B. Task Group C. Interest Group D. Functional Group
8. The managers of a multinational company are located in France, India, Brazil, and the
United States. Which decision-making technique seems most reasonable for this
organization?
A. A postal service interaction B. A brainstorming session
C. A nominal discussion D. An electronic meeting
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9. Temporary committees are formed to accomplish ---------
A. Specified Tasks B. Routine Tasks
C.Day to day activities D. Unspecified tasks
10. Feelings of anxiety and disagreement tends to get expressed among the group
members in _________ stage of group formation
a. Forming B. Norming C. Storming D.Warming
11. Believes, attitudes, traditions and expectations which are shared by group members is
called
A. Group norms B. Group communication
C. Group cohesiveness D. Group structure
12. In which stage of the conflict process does conflict become visible?
a. Forming B. Norming C. Warming D. Storming

SECTION B (5 MARKS)

1. Define Groups. Differentiate formal and informal groups

2. What are group norms and how will you establish it
3. Explain the factors affecting group cohesiveness
4. Is group desion making good or bad? Jusitify your answer
5. At times in organisations fonflicts are functional too. How? Explain

SECTION C (10 MARKS)

1. Describe the various types of groups in detail with suitable practical examples
2. Explain nthe stages of group formation
3. Describe the conflict process and its resolution models
4. What is group cohesiveness? Descibe the factors of group cohesion
5. What is attitude and how is it formed among individuals in organsations? ( Explain in
detail)

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Unit V
- Organizational change- meaning-reasons- types of change - managing planned change –
planning, assessing and implementing the change-causes of resistance to change- overcoming
resistance to change.

Leadership – Meaning,
The leadership is defined as the ability to influence a group toward the achievement of a vision
or set of goals. The source of this influence may be formal, such as a person's managerial rank in

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the organization, or an informal (non-sanctioned) ability to influence that arises outside the
formal structure of the organization. Organizations need both strong leadership and strong
management for optimal effectiveness. While a good leader may tell the organization where to
go, it still takes good managers to ensure they get there in one piece. The leadership can also
have its own influence on the behavior in the organization.
Leadership has been defined in various ways. Stogdill has rightly remarked that there are almost
as many definitions of leadership as there are people who have tried to define it.
The definitions given by some famous authors and management experts are given below:
1. Koontz and O’Donnell, Leadership is the ability of a manager to induce subordinates to work
with confidence and zeal.
2. Dubin, R.Leadership is the exercise of authority and making of decisions.
3. Allford and Beaty, Leadership is the ability to secure desirable actions from a group of
followers voluntarily, without the use of coercion.
4. George R. Terry, Leadership is the activity of influencing people to strive willingly for group
objectives.
5. Hemphill, J.K., Leadership is the initiation of acts which result in a consistent pattern of group
interaction directed towards the solution of a mutual problem.
6. Jame J.Cribbin, Leadership is a process of influence on a group in a particular situation at a
given point of time, and in a specific set of circumstances that stimulates people to strive
willingly to attain organisational objectives and satisfaction with the type of leadership provided.
7. Peter Drucker, Leadership is not making friends and influencing people, i.e., salesmanship it is
the lifting of man’s visions to higher sights, the raising of man’s personality beyond its normal
limitations.
In the various definitions of leadership the emphasis is on the capacity of an individual to
influence and direct group effort towards the achievement of organizational goals. Thus, ‘ we can
say that leadership is the practice of influence that stimulates subordinates or followers to do
their best towards the achievement of desired goals.

Functions and Qualities of a leader

Functions of a leader
1. Setting Goals:
A leader is expected to perform creative function of laying out goals and policies to persuade the
subordinates to work with zeal and confidence.
2. Organizing:
The second function of a leader is to create and shape the organization on scientific lines by
assigning roles appropriate to individual abilities with the view to make its various components
to operate sensitively towards the achievement of enterprise goals.
3. Initiating Action:

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The next function of a leader is to take the initiative in all matters of interest to the group. He
should not depend upon others for decision and judgment. He should float new ideas and his
decisions should reflect original thinking.
4. Co-Ordination:
A leader has to reconcile the interests of the individual members of the group with that of the
organization. He has to ensure voluntary co-operation from the group in realizing the common
objectives.
5. Direction and Motivation:
It is the primary function of a leader to guide and direct his group and motivate people to do their
best in the achievement of desired goals, he should build up confidence and zeal in the work
group.
6. Link between Management and Workers:
A leader works as a necessary link between the management and the workers. He interprets the
policies and programmes of the management to his subordinates and represents the subordinates’
interests before the management. He can prove effective only when he can act as the true
guardian of the interests of his subordinates.
Qualities of a Good Leader:
A successful leader secures desired behaviour from his followers. It depends upon the quality of
leadership he is able to provide. A leader to be effective must possess certain basic qualities. A
number of authors have mentioned different qualities which a person should possess to be a good
leader.
Qualities of a good leader are as follows:
1. Good personality.
2. Emotional stability.
3. Sound education and professional competence.
4. Initiatives and creative thinking.
5. Sense of purpose and responsibility.
6. Ability to guide and teach.
7. Good understanding and sound judgment.
8. Communicating skill.
9. Sociable.
10. Objective and flexible approach.
11. Honesty and integrity of character.
12. Self confidence, diligence and industry.
13. Courage to accept responsibility

Leader vs Manager
The success of an organization depends upon the efficiency of the leader. It is the attributes,
positive approach and the ability to solve problems that make a person leader. Leader should be
able to turn the hopeless situation in favour. In the environment of tough competition in the
market where it is undergoing financial recession, lay offs is the order of the day, market is
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facing poor demand for product because every body has enough and poor or no growth situation
persists. In this situation leader should not loose his balance but turn the situation in his favour.
He should be able to evolve techniques and lead the organization to win-win strategy. Leader
should be able to motivate employees. All leaders are not managers as they have to work in non-
organized sectors while the managers work in the organized sectors. All managers should be
leaders so that they are able to work efficiently. Warren and Benin have identified certain criteria
between manager and a leader. The same is given table.

Manager characteristics Leader characteristics

Administers Innovates
Copy An original
Maintains Develops
Focuses on systems and structure Focuses on people
Short-range view Long-range view
Relies on controls Inspires trust
Asks how and when Asks what and why
Eyes on the bottom line Eye on the horizon
Imitates Originates
Accepts the status quo Challenges
Classic Own person
Does a thing right Does right things

Leadership styles
Autocratic leadership: This type of leadership is practiced by the managers concentrating on
power and authority within themselves. Leader expects high degree of compliance by
subordinates. he is dogmatic and positive in his approach. Manager exhibiting this type of style
has the ability and enforces decision by use of rewards and fear of punishment. Communication
tends to be primarily in one direction from manager to follower. Some autocratic leaders are seen
as “benevolent autocrat.” Though they listen considerably to their followers’ opinion before
making any decision, the decision remains to be their own. They seemingly consider their
subordinate’s ideas but when it comes to decision making they are more autocratic than
benevolent. An advantage of autocratic leadership is the speed of decision-making, as the leader
does not have to obtain group members approval.
However there appears to be a low morale syndrome on the group members because their views
are not given due consideration and may resent the decision and support the same as little as
possible. The pattern of communication with subordinates and influence exercised over them in
various leadership styles is given in Figure

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Democratic or Participative Leadership
In contrast to autocratic leadership, democratic or participative leader consults subordinates,
encourages participation in decision-making. In the process of interaction with subordinates,
democratic leader suggest actions or decisions and obtains views of those under him. He has
respect for subordinates views and does not act without their concurrence. The leader is
supportive. This style of leadership has various advantages, which include high morale and
support of subordinates, smooth implementation due to subordinates being party to decision
making. Because of the participation of subordinates, the quality of decisions is better as
compared to the autocratic leader. Disadvantages include slower decision, lack of accountability
for decisions per se and possible compromise in the process of trying to please majority of the
people involved in decision-making.

Laissez-faire Leadership
A leader who practices laissez-faire leadership is also called “free rein” leader who uses his
power very little giving subordinates full freedom of action and independence for setting their
goals and means of achieving them. This type of leaders depends heavily on subordinates and
sees their role as one of aiding the operation of followers by furnishing required information
when asked for and acts only as contact between various departments and outside agencies

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(external environment). Here the leader attempts to exercise very little control or influence over
the group members. Such type of leadership style promotes individual growth and freedom of
action for goal setting. However, the loose control by the leader over the group may lead to lack
of group cohesiveness and unity of purposes toward organizational objective.

Which leadership style is best? Mc Murry argued for what he called “Benevolent autocracy” by
managers towards their employees. This compassionate but dictatorial approach was based on
the following premises:
Benevolent Autocracy
1. Most top managers have hard driving, autocratic personalities. Therefore they find
participative management difficult to accept.
2. Significant decisions affecting firm must be made by top management because of the potential
damage that could result from a poor decision.
3. Many members of large bureaucracies are in reality security seekers who do not wish to share
in the decision-making process.
4. Participation may be interpreted by employees as their right to veto managerial decisions and
to generally become lax in their work behaviour.

The use of any style will depend on the situation. Managers may be highly autocratic in
emergency or when they are custodian of a particular solution. The same leader may be
participative when he wishes to find alternative solutions to the problem. Model discussions are
carried out in the Defense Services to arrive at a solution to operational problems by involving as
many subordinates as possible. In Research and Development organization the leadership style
may even be of free-rein where problem has been defined and subordinates are left to themselves
to arrive at a solution and minimum involvement of a manager is expected. Deference between
autocratic, democratic and laissez-faire leadership styles is given below in a diagrammatic form
below:

Table 3 : Types of leaders

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Organisational Change

The term change refers to an alteration in a system whether physical, biological or social. Thus
organizational change is the alteration of work environment in organization.
Organizational change implies planned alteration in the existing organizational system. It is
made by an organization to achieve something desirable viz. profitability, employee satisfaction,
social well being, etc.
Nature of Organizational change:Organizational change means alteration of structural
relationships and role of people in organization. It is highly structural in nature. The main
features of organizational change are:
1. Organizational change is planned change, because it is conscious attempt to modify or
change certain operations, functions or processes.
2. Organizational change influences the existing equilibrium of the enterprise and leads to a
new equilibrium.
3. Change takes place in all organization but at varying speeds and degrees.
4. Organizational changes may be made in its structure, its technology, its people or in other
elements.
5. The main objective of organizational change is to achieve the objectives of the
organization in the best possible manner.
6. Planned change can be of two types
 proactive change (change initiated by the organization)
 reactive change (changes implemented by an organization due to pressure by external
factors)
Causes for Organizational change: Organisational changes are required to maintain
equilibrium between various external and internal forces to achieve organizational goals.

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The pressure for change arises from both within and outside the organization. The causes for
change can be categorized under internal and external forces:
External forces:
Every organization exists and operates in an environment. Changes occur frequently in the
environment. Eg. economic, social, political changes, etc. An organization must change in order
to adapt itself to the new environment. Some of the external pressures are:
1) Market situations:
With modernization and growing competition, the needs and habits of consumers also change.
Organisation must change to survive and grow in such markets.
2) Technology:
Rapid technological changes make the existing plants and machineries obsolete. This evokes
changes. Computerization and automation is a major example.
3) Population Dynamics:
Population dynamics shows social changes. It reflects in terms of people's aspiration, their needs
and their way of working.
4)Political and legal system:
Relations between business and government are improving. Any changes in the legal and
political factors may affect the organizational operation.
Internal Forces:
Pressure for changes also originates within an organization. These are as follows:
1) Deficiencies in the existing system:
Changes are necessary when the present structure or processes are not capable of achieving
organizational objectives. These deficiencies may be:
 Unmanageable span of control
 Lack of co-ordination between various departments
 Obstacles in communication
 Narrow specialization
 Multiplicity of committees, etc.
2) Changes in Managerial personnel:
New managers replace the earlier ones due to retirement, resignation, transfer and promotion.
Each new manager brings his own ideas and way of working in the organization. The result is
that an organization has to change accordingly.
3) Other changes:-Need for improving productivity and quality of working life, scarcity of
certain resources e.g. power, etc. are other internal sources of change.
Thus these are the various forces, internally and externally which affects the organizational
change.
PLANNED CHANGE
Planned change aims to prepare the total organization or a major portion of it to adapt to
significant changes in the organization goal and direction.Bringing change in a planned manner
is the prime responsibility of all managers who are forward looking.

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"Planned change is the deliberate design and implementation of a structural innovation, a new
policy or goal, or a change in operating philosophy, climate or style."
Factors in planned change

Structure

Technology Task

People

Task, people, technology and structure are the four main factors involved in organizational
change. These factors are interrelated and interdependent, so that a change in one produces
changes in other factors.
1. Technology related changes:
Technology refers to the sum total of knowledge providing ways to do things.
Technology related changes may include
 Changing problem - solving and decision - making procedures
 Introduction of new technology
 Change in methods of production.
1) Task related changes:
Technology related changes determine the type of task that may be required to complete an
operation. Task related changes must focus on
 high internal work motivation
 high quality work performance
2) Structure related changes:
Structural changes redefine nature of relationships among various organizational positions and
may include
 Changing the number of hierarchical levels
 Changing form of organization
 Changing span of management
 Changing line-staff and functional authority, etc.
3) People related change:
Changes of any type require changes in people in an organization. These changes may be of two
types - skill and behaviour
Objectives of planned change:
The planned change is needed to meet the overall objectives of the organization. The various of
planned change are as follows:
1) Environmental adaptation:
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 Every organization has a tendency to maintain balance and equilibrium. Because of changes
in the environment the organizational equilibrium is affected. Every organization has
adaptive sub-system which has to work in an environment which is marked by dynamic
characteristics.
2) Individual adaptation:
The second objective of planned change is to achieve individual adaptation. The
organization cannot reach to the objective of its environmental adaptation unless some
basic internal adaptation is achieved. These internal factors may be individuals,
organizational structure, technology and task.
3) Structural adaptation:
Structural adaptation involves changing the internal structure of the organization. This
change may be in the whole set of relationships, work assignment and authority structure.
4) Technological adaptation:
The organization has to incorporate new technology. Thus, this technological adaptation
forces directly the organization to change its task.
The Change process:
According to Kurt Lewin, the process of planned change consists of three
stages which are UNFREEZING -----MOVING/CHANGING------REFREEZING
1. Unfreezing:
It implies breaking down the existing ways of doing things so that the people are ready to accept
new alternatives. The process of unfreezing involves the following steps.
a) Identify the need for change:
The first step towards organizational change involves recognizing major changes in the
environment and problems within the organization.
b) Increase the dividing force:
Once the need for change is identified it needs to be communicated to the people concerned.
c) Managing the resisting forces:
People resist change because they perceive it to be harmful to them. It is therefore essential that
they arte made aware of its benefits.
2. Changing / Moving:
This is the stage at which the individuals being changed, learn new behaviour, method, thinking
etc. The moving phase consists of the following:
 Recognize that the primary purpose of change is to improve performance results.
 Make individual responsibilities for their own change.
 Encourage improvisation, team performance and co-ordinated initiatives.
 Use positive energy, meaningful language and courages leadership to drive change
1) Refreezing:
During this phase, change is made a permanent part of organization's life. The individuals
internalize the new beliefs, feelings and behaviours learned during the changing phase. The
manager as a change agent has to see that the new behaviour is effectively carried out.
In short, the various steps involved in planned change are
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1) Identifying need for change
2) Elements to be changed
3) Planning for change
4) Assessing change forces
5) Change action
6)Feedback

Resistance to Change:
Resistance to change refers to oppose the changes in an organization. In an organization manager
face the problem of resistance to change. Individuals may respond to change in three ways viz.
 Acceptance
 Difference
 Resistance
The response depends upon how the individual perceive the change. Resistance to change may
come from individuals as well as from the organization.

Reasons for Resistance to change:

Individual Resistance:
1)Economic factors:
a)Fear of economic loss:
People resist change when they perceive that they will lose some economic benefits. Some
examples are:
 fear of technological unemployment
 fear of reduced work house and consequently reduced monetary benefits
 fear of demotion and consequently less pay
 fear of incentive wages etc.
b) Obsolescence of skills:
A change is generally meant for better methods of working which may involve new technic,
technology etc. When people feel that new technology is threat of replacing or degrading them,
they resist to changes.
2) Personal Reasons:
a)Status quo:
People attach great importance to the status quo. Change may disturb their convenience and
comforts. Individuals also resist change due to habit or custom.

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b) Fear of unknown:
Changes cause uncertainty and risk during the transition period. People resist to changes because
the change impact is unknown to them. eg. transfer to a remote branch.
c)Ego defensiveness:
Sometimes people resist change because it hast their ego. Eg: Ego defensive managers may resist
change or a good suggestion from the salesman.
3) Social factors:
a)Social displacement:
Introduction of change often causes displacement of people of breaking informal groups and
relationships. People resist change because of breaking up of present social relationships,
reduced social satisfaction, etc.
b) Peer pressure:People resist change because the group to which they belong oppose the
change. Eg. A factory worker may feel the proposed change in techniques of production is
desirable but he resist to change because his trader union is opposed to it.
Organisational Resistance:
1) Organizational structure:
Some organizational structures have in-built mechanism for resisting change. In such a
organization making changes or innovations are difficult task.
2) Resources constraints:
Some organization resists change due to scarcity of resources. An organization may resist change
because it requires huge investment.
3) Threat to power & Influence:
When people at the top consider change as a potential threat to their position and influence they
resist it.
4)Sunk cost:
Most of the organizations have sunk cost involved in various assets.
Overcoming Resistance to Change:
One of the basic problems is managing change is to overcome people's resistance to change
successfully. Unless this problem is overcome properly, the effect of the change may not be as
functional as planned by the management.
Problem of overcoming resistance to change can be handled to two levels:
 at the level of individual
 at the level of group
Overcoming Resistance to Change

Effort at Individual level Effort at group level

Involvement Group contact
Obtaining commitment Participation
Leadership Group dynamics training for change
Training and psychological counseling

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1) Involvement:
Involvement is a process through which those who are affected by the change are brought to
understand the change. Understanding of change increases and personal involvement in the
changes increases.
2) Obtaining commitment:
Commitment is an agreement to take an active part in the actual mechanics of the change. It
helps the person voluntarily and publicly giving his commitment to an idea of change. The
decision to commit oneself is a dynamic process.
3) Leadership:
The role of leadership in getting acceptance for a change is very important. An effective leader
tries to time a change to fit the psychological needs of his followers.
4)Training and psychological counseling:
The management can change the basic values of the people by training and psychological
counseling. People should be educated to become familiar with change, its process and working.

Efforts at Group level:

1)Group contact:
Any effort to change is likely to succeed if the group accepts that change. Group contact offers
some specific advantages.
 Through group on can communicate with more people per unit of time
 For group there may be some person who may support the idea for change Through group
contact many things about change can be made clear and free flow of information helps
people to understand the real picture of the change and many misunderstanding may be
avoided.
2) Participation:
Participation helps to give people involved in the organizational change a feeling of importance.
Those people who are directly affected by the change should be given opportunity to participate
in that change. It will make them to understand change.
3) Group Dynamics training for change:
Group dynamics also helps in providing various training programmes for accepting and
implementing change.
Such training techniques provide understanding of behaviour, there by the people can built up
the climate based on mutual trust and understanding essential for bringing organizational
changes successfully.

UNIT V QUESTION BANK

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 SECTION A (MCQs) 1 MARK

1. When managers have the mental ability to analyze and diagnose complex situations, they
possess _____________ skills.
a. Technical b. Leadership
c. Problem-solving d. Conceptual

2. Basis of “Autocratic Model of OB is

a. Economic resources b. Power
c. Leadership d. Partnership
3. Free rein leadership is also known as
a. Democratic b. Autocratic
c. Laissez-faire d. Bureaucratic
4. -----------leadership emphasize on rules and regulation in an organization
a. Democratic b. Autocratic
c. Laissez-faire d. Bureaucratic
5. Which of the following statements is not correct?
a. Manager maintains and admisters in organisation where leaders innovate
b. Leaders inspires trust among employees
c. All leaders are not managers
d. All managers are leaders
6. Why might individuals resist organisational change?
i) Lack of interest. ii) Pessimism. iii) Anxiety. iv) Irritation. v) Opposing strategy proposals.
vi) Personal ambitions
A. All of the above B.i), ii), and iv)
C. ii), iii), v) and vi) D. ii), iv), v) and vi)

7. Which of the following is not a way of overcoming resistance to change?

A. Communication and discussion
B. Involving those who resist in the change process
C. Bullying and harassing people into towing the line
D. Using symbols to signify a new era
E. Incentives

8. One of the Disadvantages of democratic leadership style is

A. Slower decision making B.Participation of employees

C.High Morale D. None

9. Why do top level people resisit changes in organisations?

a. Thinking that they may loose their power
b.Top level people will not resist changes
c.Fear over employees

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a. all the above

10. The cost related to organisational resistance is

a. Sunk cost b. Zero cost c. Budget d.none

11. The resiatnce arised against change in the group is _________

a. Co Resistance b.Consistence c. Peer Pressure a. All these

SECTION B (5 MARKS)

13. Narrate organization change?(MAY14,MAY15)

14. Explain about overcoming the resistance?
15. What are the causes for organisational resistance
16. Write short note on nfree rein leadership
17. What are the advantages of democratic leadership style
18. Diffrentiate leaders from Managers

SECTION C (10 MARKS)

19. What is change?(NOV12,MAY13,MAY15) Why do people resist to change? (NOV 15).

How an organisation can overcome such resistances in the organisations?
20. Explain the different leadership styles with its advantages and disadvantages
21. Expalin planned changes and the process of implemeting such changes in the
organisation

******

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