Organisational Behaviour

ORGANIZATIONAL
BEHAVIOUR
(FOR PRIVATE CIRCULATION ONLY)

2022
PROGRAMME COORDINATOR
Prof. Vijay Masarkar
COURSE DESIGN AND REVIEW COMMITTEE

Prof. Vijay Masarkar Prof. Arvind M Joshi
Dr. Ashish Tavkar Dr. Sayalee Gankar
Prof. Vishwanath Joshi Dr. Rupali Khaire
COURSE WRITER
Prof. Vishwanath Joshi Prof. Vijay Masarkar
EDITORS
Mr. Yogesh Bhosle
Published by Symbiosis Centre for Distance Learning (SCDL), Pune

2001 (Revision 03, 2022)
Copyright © 2022 Symbiosis Open Education Society

All rights reserved. No part of this book may be reproduced, transmitted or utilised in any form or by any
means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval
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Acknowledgement
Every attempt has been made to trace the copyright holders of materials reproduced in this book. Should any
infringement have occurred, SCDL apologises for the same and will be pleased to make necessary corrections
in future editions of this book.
PREFACE
We are delighted to present to you this renewed edition of the SLM on Organisational Behaviour.
We present this to you with a firm conviction that managing businesses today is more about managing
people and less about anything else. Understanding the human side of business, the relationship
dynamics at work place and channelizing the talent towards the achievement of business objectives
is a challenge every manager faces today. Often, as students of business management or as practicing
professionals, we get so narrow in our thinking and doing process that we fail to realise this significant
connection between people and business goals. Experience proves that this is the beginning of the
end for any organisation.
This the SLM is an attempt to get you started on this exciting learning journey about how people,
their behaviours and their inter relationships affect and get affected by the organisational culture and
goals.
Our request to all of you is not to limit your reading on this subject to this the SLM only. Like
most fields in modern businesses, OB is also being constantly enriched by new research, theoretical
frameworks and practical insights. We encourage you to keep yourself updated and enjoy your
learnings of OB.
Prof. Vishwanath Joshi

Prof. Vijay Masarkar
iii
ABOUT THE AUTHOR
Prof. Vishwanath Joshi is a Post Graduate in Human Resource Management from Pune University.
Spanning his career of more than 8 years, he has worked with IT consulting organizations like
Mahindra Consulting, Patni and KPIT Cummins Infosystems Ltd., Pune. Before taking up the role
of Head – Training with Brainvisa Technologies, an e-learning solutions company, he was heading
HR with UBICS, a UB group IT consulting and products company in Pune.
He has also consulted with Infosys Technologies Ltd., one of the largest and reputed IT consulting
organizations in India, as a Certified Trainer on behavioural skills for their software professionals.
He is also associated with Corporate Learning Centres like National Insurance Academy, a training
institution for all insurance organizations in the country as a trainer-faculty in various HR as well as
behavioural areas.
His current role at Brainvisa, Pune is largely focused on designing and executing organization wide
training processes and interventions in Managerial and behavioural areas.
Overall, he has more than five years experience in designing and delivering value based programs
like High Impact Communication skills, Customer Orientation and Management, Telephone
Communication, Managing Relationships, Mentoring and Coaching etc. for a variety of participant
profile.
He is also involved in designing and delivering high end Executive Education programs at Wipro,
Mphasis, Infosys, Intel, Reliance Infostream, EXL Services, Cognizant Technology Solutions etc. in
areas of People Management processes and skills.
Prof. Vijay Masarkar (ADCSSAA, MBA, MIRPM, and MLS) has total 21 years of experience in
the field of Management and Management Education in India and abroad. He has studied at Asian
Institute of Management, Manila, Philippines. He has qualified SET (Management) and UGC-NET
(HR) in 2001. He is also a registered Welfare Officer under Factories Act, 1948. And a Research
Scholar at Bharti Vidyapeeth, Pune.
He was associated with Liquor (Shaw Wallace), Textile industry (Indo-Rama Synthetics (I) Ltd.),
Apparel industry (Lords Wear Pvt. Ltd. & Lords Academy of Fashion Technology) and Infrastructure
and Project Management Organisation (Artefact Projects Pvt. Ltd.) before coming into academics.
Since 2008, he has been working in ODL environment at Post Graduate level and was formerly
associated with YCMOU and Tilak Maharashtra Vidyapeeth, Pune.
Prof. Vijay Masarkar is presently associated with Symbiosis Centre for Distance Learning since 2011
and also taught at Symbiosis Skills and Professional University, Pune and Symbiosis University
of Applied Sciences, Indore. He is also a program coordinator for Insurance Management, Project
Management and Law Programs at SCDL
iv
CONTENTS
Unit Page
TITLE
No. No.
1 Historical Evolution of Organisational Behaviour 1-18
1.1 Introduction
1.2 Historical Development of Organisational Behaviour
1.3 Events Instrumental in the Development of Organisational Behaviour
1.3.1 The Great Depression
1.3.2 The Rise of Trade Unionism
1.3.3 Hawthorne Experiments
1.4 Impact of Organisational Behaviour on Organisational Environment
1.5 Emerging Concerns in Organisational Behaviour
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
2 Understanding Organisational Behaviour 19-30

2.1 Introduction
2.2 Fundamental Concepts of Organisational Behaviour
2.3 Models of Organisational Behaviour
Summary
Key Words
Suggested Reading
3 Perception 31-48
3.1 Introduction
3.2 Significance of Perception
3.3 Principles of Perceptual Selection
3.3.1 External Attention Factors
3.3.2 Internal Set Factors
3.4 Perceptual Set in Organisational Settings
3.5 Characteristics of Perceiver and Perceived
Summary
Key Words
Suggested Reading
v
Unit Page
TITLE
No. No.
4 Personality 49-74
4.1 Introduction
4.2 Definition of Personality
4.3 Determinants of Personality
4.4 Personality Theories
4.4.1 Intrapsychic Theory
4.4.2 Type Theories
4.4.3 Trait Theories
4.4.4 Social Learning Theory
4.4.5 Self Theory
4.5 Personality and Organisation
4.6 Personality Structure
4.7 Personality and Behaviour
Case Study
Summary
Key words
Suggested Reading
5 Attitudes 75-96
5.1 Introduction
5.2 Nature of Attitude
5.3 Arousal of Attitude
5.4 Attitudes and Values
5.5 Attitudes and Opinions
5.6 Attitudes, Beliefs and Ideology
5.7 Attitudes and Prejudices
5.8 Characteristics of Attitude
5.9 Attitude Formation
5.10 Measurement of Attitude
5.10.1 Problems in Attitude Measurement
5.11 Changing Attitudes
5.12 Attitudes and Behaviour
5.12.1 Sources of Job Satisfaction
5.12.2 Job Satisfaction and Employee Performance
5.12.3 Commitment to Organisation
Summary
Key Words
Suggested Reading
vi
Unit Page
TITLE
No. No.
6 Motivation: The Driving Forces of Human Behaviour 97-108
6.1 Introduction
6.2 Characteristics and Classification of Motives
6.3 Intrapersonal Conflicts
6.3.1 Defence Mechanism
6.4 Money as a Motivator
Summary
Keywords
Suggested Reading
7 Work Motivation Theories 109-132
7.1 Introduction
7.2 Abraham Maslow’s Theory of Need Hierarchy
7.2.1 Criticism of Maslow’s Theory
7.3 Herzberg’s Two-Factor Theory of Motivation
7.3.1 Criticism of Herzberg’s Theory
7.4 Alderfer’s ERG Theory
7.5 Vroom’s Expectancy Theory of Motivation
7.5.1 Criticism
7.6 The Porter-Lawler Model
7.7 Equity Theory of Work Motivation
7.8 Attribution Theory
7.9 Theory X and Theory Y
7.10 Pygmalion in Management
Case Study
Summary
Keywords
Suggested Reading
8 Morale and Work & Conditions of Work 133-158
8.1 Introduction
8.2 Indicators of Morale
8.3 Various Aspects of Morale
8.4 Improving Employee Morale
8.5 Work and Conditions of Work
8.6 Relationship among Job Characteristics, Working Conditions and Job
Performance
8.7 Characteristics of Work
8.8 Creating a Favourable Work Environment
Summary
Keywords
Suggested Reading
vii
Unit Page
TITLE
No. No.
9 Maximising human Potential through EQ’ 159-176
9.1 Introduction
9.2 Principles of Emotional Intelligence
9.3 Daniel Goleman on EI in the Workplace
9.4 Significance of EQ at the Workplace?
9.5 Examples of High and Low EQ at Work
9.6 EQ Impacts Communication in the Workplace
9.7 Leading with Emotional Intelligence in Management
9.8 Emotional Intelligence for Project Managers
9.9 Using EI in HR (Human Resources)
9.10 Emotional Intelligence Interview Questions
9.11 Improving Your Emotional Quotient
Summary
Key Words
Suggested Reading
10 Conflict Management 177-194

10.1 Introduction
10.2 Levels of Conflict in Organisational Behaviour
10.3 Types of Conflict
10.4 Interpersonal Conflict Handling Styles
10.5 Intrapersonal Conflict and ways to Manage Intrapersonal conflicts
10.6 Negotiations in Conflict Management
10.6.1 Intra Personal Conflict
10.7 Mediation
Summary
Keywords
Suggested Reading
viii
Unit Page
TITLE
No. No.
11 Group Dynamics 195-216
11.1 Introduction
11.2 Classification of Groups
11.3 Teams and Types of Teams
11.4 Developmental Stages of Groups
11.5 Influences on Team Effectiveness
11.6 Team Diversity
11.7 Groupthink and Remedies to Overcome Groupthink
11.8 Group Maturity
11.9 Groups: A Sociological View
11.10 Effective Team Working
Case Study
Summary
Keywords
Suggested Reading
12 Stress Management 217-230
12.1 Introduction
12.2 Types of Stress and Stressors
12.3 Management of Stress
12.4 Ways to Overcome Stress
Case Study
Summary
Key Words
Suggested Reading
13 Leadership and Business Ethics 231-258
13.1 Introduction
13.2 Classic Studies on Leadership
13.3 Leadership Skills
13.4 Leadership Styles
13.4.1 Managerial Grid
13.4.2 Rensis Likert’s Four Systems Management
13.4.3 Leadership Behaviour Continum
13.5 Theories of Leadership
13.6 Business Ethics
Summary
Key Words
Suggested Reading
ix
Unit Page
TITLE
No. No.
14 Management of Organisational Change 259-282
14.1 Introduction
14.2 Forces for Change
14.3 Organisational Resistance to Change
14.4 Planning to overcome Change
Case Study
Summary
Keywords
Self-assessment Questions
Suggested Reading
15 Organisational Culture 283-298

15.1 Introduction
15.2 Development and Levels of Organisational Culture
15.3 Types of Organisational Culture
15.3.1 Performance and Organisational Culture
15.3.2 Benefits of a Strong Organisational Culture
15.4 Managing Cultural Diversity
15.5 How Employees Absorb an Organisational Culture
15.6 Matching People with Cultures
15.7 Concept of Organisational Socialisation
Summary
Key Words
Suggested Reading
16 Workplace Psychology: Understanding human Behaviour at the Workplace 299-314

16.1 Introduction
16.2 The Origins of Work Psychology
16.3 Areas of Workplace Psychology
16.4 Incorporating Psychology at Work
16.5 Impact of Good Psychology at Work
16.6 2022 Onwards Workplace Trends: Organizational Experimentation
16.7 What Managers Can Do?
Summary
Key Words
Suggested Reading
x
Unit Page
TITLE
No. No.
17 Organisational Power and Politics 315-330
17.1 Introduction
17.2 Dependency Theory of Power
17.3 Dependency, Power and Bargaining Outcomes
17.4 Bases and Sources of Power
17.5 Effective use of Power
17.6 Political Behaviour and Organisational Politics
17.7 Personality and Political Behaviour
Case Study
Summary
Key Words
Suggested Reading
xi
xii
Historical Evolution of Organisational Behaviour
UNIT
Structure:
1
1.1 Introduction
1.2 Historical Development of Organisational Behaviour
1.3 Events Instrumental in the Development of Organisational Behaviour
1.3.1 The Great Depression
1.4 Impact of Organisational Behaviour on Organisational Environment
1.5 Emerging Concerns in Organisational Behaviour
Summary
Key Words
Suggested Reading
Historical Evolution of Organisational Behaviour 1

Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
• Identify the historical roots of organisational behaviour
----------------------
• Analyse how various phases contributed to the development of the
---------------------- discipline of organisational behaviour
• Discuss the facets of Hawthorne experiments and their implications
----------------------
on the study of organisational behaviour
---------------------- • Explain the importance of cultural diversity, ethical management
---------------------- and corporate social responsibility
---------------------- 1.1 INTRODUCTION

---------------------- In this unit, you will know about the significance of human behaviour in the
---------------------- organisational context. The more you read about the topic, the more interesting
it becomes as it has practical applications in day-to-day life. The following
---------------------- paragraphs will give you more insight into human behaviour at work.
---------------------- Organisations are created to bring order to a concerted effort for the
achievement of certain objectives and goals. Since these objectives cannot be
---------------------- achieved by an individual or by a small group of individuals, the concepts of
division of labour, hierarchy of authority, etc. within an organization come into
---------------------- play. Since an individual cannot achieve the objectives of an organisation, it
---------------------- is necessary that many people come together in pursuit of the objectives of an
organisation. However, in order that their efforts are consequential, they need
---------------------- to be tied in a meaningful relationship. This is achieved by creating a structure,
where people work using technology. In a typical organisation, therefore, there
---------------------- is a constant interaction among people, structure and technology. In order that
---------------------- this relationship bears fruits, every organisation contains a blueprint of human
behaviour at work.
---------------------- There can be a definite ratio of input to output when it comes to other
---------------------- inanimate factors of production but in the case of human beings, there cannot be
any such fixed ratio. If the manager handles this human element properly, two
---------------------- plus two can equal five, or else it can be three. It is, therefore, necessary for the
manager not only to understand human behavior properly but also to channelise
---------------------- that understanding towards the betterment of the organisation. It is a fact that
---------------------- no manager can be much more efficient than the sum of the efficiencies of the
people working with him. It, therefore, becomes necessary for him to study
---------------------- human behaviour within the context of an organisation, understand it, try to
predict human behaviour and, having predicted it, try to control it.
----------------------
The industrial scene in modern India has undergone tremendous changes.
---------------------- The Government of India, until the last decade of the last century, protected
the Indian industry from foreign competition. The Government which drove
----------------------
out Coca Cola in the 70s, threw open the economy to the multinationals in
2 Organisational Behaviour
1992. The multinationals, which entered the Indian market, enjoyed superior Notes
resources in terms of money, technology as well as market network. With a view
to facing the challenges posed by the multinationals, a sea change in the attitude ----------------------
of the workforce of organisations was necessary. The responsibility to do this
fell squarely on the shoulders of every manager. It called for knowledge of the ----------------------
human behaviour at work. ----------------------
The composition of the workforce has undergone a huge change. The
----------------------
industrial worker of today is more educated than his counterpart some ten
or fifteen years before. The mix of the skills has also changed. If a manager ----------------------
desires to be effective, he must understand the behavioural angularities of the
employees. In a nutshell, to be efficient as well to be effective, a manager cannot ----------------------
remain content with having the knowledge of his area of work only. Typically,
----------------------
the discipline of Organisational Behaviour (OB) attempts to accumulate the
knowledge about human behaviour at work from which the manager can draw ----------------------
insights for understanding, predicting and controlling human behaviour at work.
----------------------
Modern managers cannot afford to have hits and misses. It is expected that they
hit the bull’s eye in the first attempt. Therefore, every manager, irrespective of ----------------------
his specialty or the functional area, should study the discipline of Organisational
Behaviour. ----------------------
----------------------
1.2 HISTORICAL DEVELOPMENT OF
ORGANISATIONAL BEHAVIOUR ----------------------
The field of Organisational Behaviour has developed from the studies ----------------------
conducted by behavioural scientists such as industrial psychologists, psychologists ----------------------
and sociologists. The focus of these studies lies in the understanding of human
behaviour in the organisations. The levels at which these studies have been carried ----------------------
out relate to individuals, small groups, intergroups and the total organisation as
a socio-economic and technical system. Some studies have also examined the ----------------------
interaction of the organisation with its environment. ----------------------
The discipline of Organisational Behaviour is based on empirical studies
of human behaviour at the work settings. On the other hand, human relations ----------------------
is the study of behavioural knowledge at work to develop human motivation ----------------------
towards the attainment of organisational goals. Human relations is an action-
oriented and a goal-directed approach. According to Keith Davis, the difference ----------------------
between the two is that of between a pathologist and the physician. While the
pathologist attempts to understand human illness, the physician tends to employ ----------------------
that knowledge to gain results. Thus, organisational behaviour and human ----------------------
relations are complimentary to each other.
Behavioural scientists focus their attention on organisational theory, ----------------------
especially organisational adaptability, the relationship of organisational structure ----------------------
to human behaviour and decision-making. The study of managerial behaviour
includes not only the tasks of getting things done through others but also the ----------------------
whys and hows of individual behaviour. Questions that form the subject matter
of Organisational Behaviour are related to individual, interpersonal, small group ----------------------

Notes and intergroup behaviour, interaction of formal organisation and the informal
groups and organisation as a system, etc.
---------------------- The predecessors of Organisational Behaviour are:
---------------------- 1. Industrial psychology: Psychology is the “science of human (and also
animal) behaviour because it collects facts about behaviour by utilizing
---------------------- methods of science.” Industrial psychology is simply the application
---------------------- or extension of psychological facts and principles concerning human
beings operating within the context of business and industry. Industrial
---------------------- psychology draws upon the facts, generalizations and principles of
psychology. It uses the methods from the parent discipline. Since it applies
---------------------- the techniques of psychology to the industrial scene and the problems
confronting it, industrial psychology formulates and modifies procedures
----------------------
to meet the conditions found in the industry rather than in the laboratory.
---------------------- Among the early names is Walter Dill Scot who ushered in the beginning
of industrial psychology in America by showing how psychology could
----------------------
be applied to advertising and selling. Edward K. Strong Jr. introduced
---------------------- the branch of industrial psychology dealing with guidance on vocational
interests. Hugo Munsterberg with his researches on industrial accidents
---------------------- and his book Psychology and Industrial Efficiency, published in 1913, put
industrial psychology in to the study of the worker.
----------------------
During World War I, psychologists were quite active in the war effort,
---------------------- developing group tests for army recruits and aiding in the development
of procedures for the selection of personnel. In fact, many of the post-
---------------------- war developmental areas of industrial psychology, such as group testing,
---------------------- trade testing, rating scales, and personality inventory had their roots in the
activities of the psychologists in the World War I efforts.
---------------------- During the post-World War I era, industry first began to show an interest
---------------------- in the discipline of industrial psychology. Certain firms, such as Proctor &
Gamble, the Philadelphia Company and the Hawthorne plant of Western
---------------------- Electric Co. formed their own personnel research programmes. In fact, it
was at the Hawthorne Western Electric Plant that the famous Hawthorne
---------------------- studies began in 1924. These studies provided the foundation and impetus
for the expansion of industrial psychology beyond the realm of selection,
----------------------
placement and working conditions to the study of motivation, morale and
---------------------- human relations.
2. Scientific management movement: Frederick W. Taylor with his ideas,
---------------------- which he called “scientific management”, created the interest in the
---------------------- worker and the supervisor. He advocated parity of wages − internal as
well as external parity. He developed various wage payment plans and
---------------------- insisted on supervisory training in order to make supervisors a strong
link between non-management and the management group. F. W. Taylor
---------------------- also recognized the need for giving financial incentives to workers
and therefore, developed incentive payment plans too. The changes he
----------------------
brought to management thought paved the way for the later development
---------------------- of Organisational Behaviour.
3. Human relations movement: According to Fred Luthans, three events Notes
cumulatively ushered in the era of human relations movement. They are:
----------------------
a) The Great Depression
b) The Hawthorne experiments ----------------------
c) Rise of trade unionism ----------------------
These events have been described in detail in the next section. ----------------------
Check your Progress 1 ----------------------
----------------------
Multiple Choice Single Response.
----------------------
1. The application of psychological facts concerning human beings
within the context of business and industry is known as: ----------------------
i. Sociology
----------------------
ii. Psychology
iii. Industrial Psychology ----------------------
iv. Organisational Behaviour ----------------------
2. The principles of scientific management were given by:
----------------------
i. Abraham Maslow
ii. Elton Mayo ----------------------
iii. Frederick W. Taylor ----------------------
iv. Frederick Irving Herzberg
----------------------
Activity 1 ----------------------
----------------------
Arrange the following in the correct order of emergence:
1. Organisational behaviour 2. Scientific management movement ----------------------
3. Human relations movement 4. Industrial psychology ----------------------
----------------------
1.3 EVENTS INSTRUMENTAL IN THE DEVELOPMENT OF
----------------------
ORGANISATIONAL BEHAVIOUR
----------------------
We have seen the historical development of OB in the previous section.
Various socio-economic changes and events were taking place in the society ----------------------
simultaneously, and together they ushered in the discipline of organisational
behaviour. ----------------------
1.3.1 The Great Depression ----------------------
The economy was operating in high gear just before the thundering financial ----------------------
crash of 1929. The production and organisational specialists had achieved great
results prior to the crash. After the crash, the management began to realise that ----------------------

Notes production could no longer be the only major responsibility of management.
Marketing, finance and more importantly personnel, were also required in order
---------------------- for a business to survive and grow. The aftermath of the depression, such as
unemployment, discontent and insecurity brought to the surface the “human”
---------------------- problems that managers were now forced to recognize and cope with. Personnel
---------------------- departments were either created or given more importance and most managers
now began to develop a new awakened view of the human aspects of their jobs.
---------------------- Thus, human relations took an added significance in some cases directly and in
some others indirectly.
----------------------
The depression itself had considerable effect on the development of
---------------------- industrial psychology. While it may have slowed growth in some directions,
it nevertheless opened many additional areas for study. After the depression,
----------------------
the importance of employee attitudes began to be recognized; consequently,
---------------------- there has been much development since that time in this area. World War II
was also a major factor in the growth of industrial psychology. Although the
---------------------- American Association for Applied Psychology was formed in 1937 as the official
organisation of industrial psychology, it was the contribution of the psychologists
----------------------
to the war effort that proved to industry and others alike that applied psychology
---------------------- had important contributions to offer.
----------------------
Another important factor that contributed to the rise of human relations role
---------------------- of management was the organized labour movement. Although labour unions
were in existence in America as early as 1792, it was not until the passing of
----------------------
the Wagner Act in 1935 that the organized labour movement made an impact
---------------------- on management.
---------------------- In India, though workers’ unions existed since the latter half of the 19th
century, they functioned under terrible legal constraints. It was only in 1926,
---------------------- with the passing of the Trade Union Act, that the managers began realising that
the trade unions had come to stay in spite of the wishes of the managers, or for
---------------------- that matter, management. The only option to avoid any probable friction with
---------------------- the trade union was to understand the human relations role of the management.
----------------------
Western Electric Co. conducted at its factory called the Hawthorne Works,
---------------------- a research programme or a series of experiments on the factors in the work
situations, which affect the morale and productive efficiency of workers. The first
---------------------- of these, the Illumination Experiments, was conducted in cooperation with the
---------------------- National Research Council of the National Academy of Sciences. In the remainder
of the studies, the company was aided and guided by Prof. Elton Mayo and his
---------------------- associates from Harvard University. As Harvard played a significant role in the
project, it is often referred to as the Hawthorne-Harvard experiments or studies.
----------------------
As Milton L. Blum, Jack C. Naylor in their treatise Industrial Psychology
---------------------- observed, “The Hawthorne studies are of utmost significance as they form an
honest and concerted attempt to understand the human factor rarely understood
----------------------
in industry, recognizing the employee attitudes, his social situation on the job
and his personal history and background”. The Hawthorne studies represent the Notes
pioneer attempts to make a systematic and intensive study of the human factor
and to demonstrate the utmost complexity in work setting where people interact ----------------------
in small groups under varied organisational conditions. The studies point out that
the needs for recognition, security and sense of belonging exert greater impact ----------------------
on workers’ productivity than the physical working conditions; that attitudes and ----------------------
effectiveness of workers are determined by the social requirements inside and
outside the factory environment. ----------------------
The Hawthorne Works of the Western Electric Co., Chicago, manufactured ----------------------
equipment for the Bell Telephone System and employed 30,000 workers at
the time of the experiments. Although, in all material aspects, this was the ----------------------
most progressive company with pension and sickness schemes and numerous
recreational and other facilities, there had been a great deal of discontent and ----------------------
dissatisfaction among its employees. After a failure of investigation conducted by
----------------------
efficiency experts of the company in 1924, the company asked for the assistance
of the National Academy of Sciences, which initiated its experiments with a view ----------------------
to examining the relationship between the workers’ efficiency and illumination
in the workshop. ----------------------
Segments of Hawthorne experiments ----------------------
Like any experimental design, the researchers manipulated the independent
----------------------
variable (illumination) to observe its effects on the dependent variable
(productivity) and attempted to hold other factors under control. The following ----------------------
are the broad segments of the study:
----------------------
1. Illumination experiments (1924−1927): To study the effects of changed
illuminations on work, two groups of employees were formed. In one ----------------------
group (control group) the illumination remained unchanged throughout
the experiments whereas in other group (experimental group) the ----------------------
illumination was enhanced in intensity. As anticipated, the productivity in
experimental group showed an improvement. But strangely enough, the ----------------------
output of the control group also went up. The researchers then proceeded ----------------------
to decrease the illumination for the experimental group. The output
went up once more. This showed that some factor was operating which ----------------------
increased productivity (dependent variable) regardless of higher or lower
intensity of light. Obviously, there was something much more important ----------------------
than wages, hours of work, working conditions, etc. which influenced
----------------------
productivity. Despite their negative results, the illumination experiments
did not end up in the wastepaper basket but provided a momentum to the ----------------------
relay room phase of the studies.
2. Relay room experiments (1927−1932): The relay room experiments that ----------------------
were initiated in 1927 represent the actual beginning of the Hawthorne ----------------------
studies conducted by Elton Mayo and his Harvard colleagues. Taking a cue
from the preceding illumination experiments the researchers attempted to ----------------------
set up the test room and selected two girls for the experiments. These girls
were asked to choose other four girls, thus making a small group of six. ----------------------
The group was employed in assembling telephone relays.
----------------------

Notes Throughout the series of experiments that lasted over a period of five
years, an active observer was sitting with the girls in the workshop. He
---------------------- recorded all that went on in the room, kept the girls informed about the
experiments, asked for advice and listened to their complaints.
----------------------
The experiment started by introducing numerous changes each of which
---------------------- continued for a test period ranging from four to twelve weeks. Under
normal working conditions with a 48-hour week and no rest pauses,
---------------------- each girl produced 2,400 relays a week. These girls were then placed on
---------------------- piecework basis for eight weeks and productivity increased.
Next, two five-minute rest pauses were introduced, which were later
----------------------
increased to ten minutes; productivity increased sharply. After this,
---------------------- six five-minute breaks were introduced. There was a slight fall in the
productivity as the girls complained that their work rhythm was broken
---------------------- because of these breaks. Therefore, again two five-minute pauses
were introduced. The company provided a hot meal free of charge, the
----------------------
productivity increased.
---------------------- The girls dispersed at 4:30 p.m. instead of 5:00 p.m. and productivity
increased. Subsequently, they were allowed to disperse at 4: 0 0 p.m.
----------------------
and productivity still remained the same. After that, all amenities were
---------------------- withdrawn and the girls returned to their normal working conditions with
a 48-hour week, including Saturdays, no rest breaks, no piecework and no
---------------------- free meals. This remained for a period of 12 weeks and the productivity
was the highest ever achieved. These results imply that productivity
----------------------
increased basically because of a change in the girls’ attitudes towards
---------------------- their work and their work groups. They were made to feel important
by soliciting assistance and cooperation. They were no longer cogs in a
---------------------- machine but formed congenial groups attempting to assist the company
to solve a problem. A feeling of stability and a sense of belonging grew.
----------------------
Therefore, they worked faster and better than before. Medical examination
---------------------- conducted regularly revealed no symptoms of cumulative fatigue.
Absenteeism also decreased by 8 0 %. It was also observed that girls
---------------------- employed their own techniques of assembling the parts of relays together
to avoid monotony. The girls were also given freedom of movement.
----------------------
Under these circumstances, the group developed a sense of responsibility
---------------------- and self-discipline. It was concluded that the independent variables, i.e.,
rest, etc. were not by themselves causing the variations in the dependent
---------------------- variable, i.e. productivity.
---------------------- 3. Second relay room and mica splitting test room experiments: These
studies were conducted as a follow-up measure. The researchers set up
---------------------- the second relay assembly group to assess the effects of wage incentives
---------------------- on productivity. A group of five workers, with adequate experience,
were shifted to similar positions in the regular department; the nature of
---------------------- supervision, general working conditions and the work setting were similar
to those of other workers in the regular department. The difference was
---------------------- that the assemblers in the second relay group were engaged on a different,
small-group piece-rate scheme. This arrangement led to a 12% rise in Notes
productivity of the experimental group.
----------------------
In the mica splitting study, although the isolated test room conditions
of the original relay study were reproduced, the workers were engaged ----------------------
under their normal individual piece rate plan rather than small group
incentive schemes employed with the relay room experimental subjects. ----------------------
The results revealed an average increase of 15% productivity during a
----------------------
period of 14 months. The outcome of these two studies was quite vague.
As Fritz J. Roethlisberger & William J. Dickson in their studies observed, ----------------------
“there was no evidence to support the hypothesis that the constant rise in
the productivity in the relay assembly test room could be attributed to the ----------------------
wage incentives variable alone.” It was concluded that the efficacy of a
----------------------
wage incentive scheme was dependent on other variables as well that it
could not be considered as the sole factor to affect the worker. ----------------------
4. Mass interviewing programme (1928−1930): Another major aspect of
----------------------
the Hawthorne studies consisted of 21,000 interviews carried out during
1928 to 1930. The original objective was to gather information, which ----------------------
could be used to improve supervisory training. Initially, these interviews
were conducted by means of direct questioning. However, this method had ----------------------
the disadvantages of either stimulating antagonism or the over simplified
----------------------
yes or no responses, which could not get to the root of the problems.
Therefore, the method was changed to “non-directive” interviewing where ----------------------
the interviewer was to listen instead of talk, argue or advice, and take on
the role of a confidant. On the basis of this interviewing programme, the ----------------------
following inferences were drawn:
----------------------
a) Only giving a person an opportunity to talk and air his grievances
had a positive impact on his morale. ----------------------
b) Complaints were no longer necessarily objective statements of job ----------------------
facts. Rather, they were symptoms of more deep-rooted disturbances.
----------------------
c) Workers were governed by the experiences obtained, both inside
and outside the company, in respect of their demands. ----------------------
d) The worker is satisfied or dissatisfied depending upon how he ----------------------
regarded his social status in the company and what he felt he was
entitled to rather than in terms of any objective reference. ----------------------
5. Bank wiring room study (November 1931−May 1932): The chief ----------------------
objective of this study was to conduct an observational analysis of the
work group. ----------------------
There were 14 men employed on bank wiring. This was the process where ----------------------
two lose wire ends were soldered. This group of 14 employees included
nine wiremen, three soldermen and two inspectors. The job involved ----------------------
attaching wires to switches for certain parts of telephone equipment. For
----------------------
some practical difficulties, the study was conducted in a separate test
room. However, the study involved no experimental changes once it had ----------------------

Notes started; it was carried out by two persons – an observer and an interviewer.
The observer sat in the wiring room; he was friendly but appeared non-
---------------------- committal. Thus, he won the confidence of the group and was accepted as
a regular member.
----------------------
The interviewer, however, remained an outsider and his task was to gather
---------------------- as much information as possible by interviewing the individual worker
about his thought and feeling, his values and attitudes, etc. He carried out
---------------------- his work under strict confidence, privately and in a different part of the
factory. Although he never entered the wiring room, he was in constant
----------------------
touch with the observer. Besides these arrangements, other conditions
---------------------- were identical with the bank wiring department itself in so far as that
even the department’s regular supervisors used the bank wiring room to
---------------------- maintain order and control.
---------------------- The result of the bank wiring room, which is markedly opposite to those
obtained from the relay room, revealed that this small group of workers emerged
---------------------- as a team with informal leaders who had come up spontaneously.
The group was indifferent towards the financial incentives of the factory
----------------------
because despite the incentive scheme, the output was neither more nor less than
---------------------- 6,000 units although the optimum capacity was 7,000 units per day. It was noted
that whenever any worker attempted to produce more than this group-determined
---------------------- quota, he was soon compelled to return to his original output. To do this, the
group invented a game known as “binging”.
----------------------
The group norms were more important to the group members than any
---------------------- financial incentive. There prevailed an unwritten code of conduct, which
determined a fair day’s work and had influence over the group members. Thus,
---------------------- there existed a highly integrated group in the bank wiring room, which possessed
its own social system contradictory to the objectives of the factory.
----------------------
This implied that it would be irrational to break up these groups. Rather,
---------------------- attempts should be made to see that the interests of the management and workers
are identical to such an extent that these informal groups facilitate the achievement
---------------------- of the organisation’s objectives rather than obstructing them.
---------------------- 1.3.4 Implications of the Hawthorne studies
---------------------- Why were such contradictory results obtained in the relay room and the
bank wiring room? As pointed out earlier, in the relay room production constantly
---------------------- increased throughout the test periods and relay assemblers were greatly motivated
and equipped with positive attitudes whereas, in the bank wiring room there
---------------------- prevailed a restriction of production among dissatisfied workers who displayed
negative attitudes towards the objective of the factory. The question that arises
----------------------
is why. The answer to this question can be found in the reactions of the girls to
---------------------- the relay test room. They unanimously showed marked preference for working
in the test room rather than in the regular department, because of small group,
---------------------- nature of supervision, earnings, novelty of situation, interest in the experiment
and attention received in the test room.
----------------------
It may be noted that the last three reasons are related to the well-known
---------------------- “Hawthorne effect”, the psychological phenomenon, which leads to improved
employee performance due to positive change in the internal and external work Notes
environment. Numerous behavioural scientists tend to overlook the significance
of the first three reasons and are of the opinion that the phenomenal increase in ----------------------
the productivity in the relay room can be attributed primarily to this effect.
----------------------
It may be noted that the relay room and the bank wiring room studies
differed in the supervisory aspects. Although in the relay room there were no ----------------------
regular supervisors engaged, the girls assigned second priority to the nature of
supervision, which prompted them to increase production and made them feel ----------------------
happier. They regarded the friendly, attentive and genuinely interested observer
----------------------
as their supervisor. However, in the bank wiring room where regular departmental
supervisors were directed to maintain order and control, this arrangement caused ----------------------
inhibitions. Even the observer, who acted as the disinterested and detached
spectator, was accepted as a member of the group rather than as a supervisor. ----------------------
Therefore, it could be inferred that the quality of supervision played a vital role
in determining productivity along with the Hawthorne effect. ----------------------
A specific conclusion drawn from these studies is that in informal groups ----------------------
operating within the work settings, the group exerts strong social control over
the work habits and performances of the individual workers. Last but not the ----------------------
least, the studies revealed that supervision has a great impact on the behaviour
----------------------
of the work groups in determining as to whether they will react positively or
negatively while working towards the organisational objectives. ----------------------
The discipline of Organisational Behaviour came to be recognized as a field
of study around 1950, though no exact date can be stated. It is seen that while ----------------------
industrial psychology, scientific management, human relations have defined ----------------------
their areas of studies and research, the field of Organisational Behaviour is still
growing. OB studies not only the human behaviour within the parameters of the ----------------------
organisation but also the group dynamics. This is because the study of the human
behaviour within the organisation would be incomplete unless interpersonal ----------------------
relations and intergroup relations are studied. OB also recognizes that the external
----------------------
environment influences the internal organisational environment. The fruits of
any organisational effort are dependent upon the external environment. There ----------------------
are many factors in the external environment that influence the ultimate outcome
of the internal organisational effort. ----------------------
----------------------
Activity 2
----------------------
1. We all are aware of the fact that working in call centres may be stressful
at times and may even lead to serious disorders. After having read about ----------------------
the Hawthorne’s experiments, presume yourself as a manager of one
of India’s leading BPO. What steps would you take to ensure that your ----------------------
employees are highly productive and at the same time enjoy working in ----------------------
your company? Give five suggestions.
2. Presume that you are the manager of a company manufacturing ----------------------
precision instruments, and have about 500 blue-collar workers and 50
white-collar employees. In such an organisation, how would you see to ----------------------
it that all your employees are happy and that there is no problem arising
----------------------
from trade unionism? Mention at least five key points in this regard.

Notes 1.4 IMPACT OF ORGANISATIONAL BEHAVIOUR ON
ORGANISATIONAL ENVIRONMENT
----------------------
Organisational Behaviour studies the external environment, which influences
---------------------- human behaviour within an organisation. That is why OB takes cognizance of
---------------------- Total Quality Management (TQM), Total Productivity Management (TPM) or
for that matter, any new concepts originating in the external environment.
----------------------
With a rapidly changing external environment, especially in the light of
---------------------- globalization led by multinational companies, HR professionals, people who
manage people at the workplace, are facing a whole new set of challenges to
---------------------- fulfill the organisational objectives. Table 1.1 shows the differences between the
traditional and modern methods of organisational management.
----------------------
Table 1.1 Old and New Methods of Organisational Management
----------------------
Sr. No. Criteria Traditional Method Modern Method
----------------------
1 Work Quality in work flows Define the outcomes
---------------------- expectation from unambiguous you want from your
directions. Give clear people and insist that
---------------------- instructions at every they find their own
stage. way.
----------------------
2 Resource Build a superb Let each individual
---------------------- infrastructure, decide what
requirements
---------------------- accessible to equipment he / she
everybody. needs so long as it
---------------------- helps him/ her and the
customer.
----------------------
3 Autonomy and Hire intelligent, They can be taught the
---------------------- opportunity hardworking people rest. You cannot teach
with the right skills people new abilities.
---------------------- for the job. Find every person the
---------------------- job that needs his /her
strongest abilities.
---------------------- 4 Need for The formal Provide continuous
---------------------- recognition assessment is the response, as quickly
ideal platform for as possible, whether
---------------------- feedback, ensuring negative or positive
it is structured and (The Hot Stove Rule).
---------------------- comprehensive.
---------------------- 5 Identity as a Work, work, work! Treat every employee
person Focus on managing as a distinctive
---------------------- people only in individual, with
---------------------- professional terms. specific needs that
he/she is seeking to
---------------------- fulfill.
6 Participation in Introduce suggestion Prove through actions Notes
decision- making schemes to give that the employee
----------------------
everyone a voice. makes a better
performer. ----------------------
7 Mission-based Mission tells everyone Translate the
----------------------
organisation and where the company company mission into
its relation to and the employees are individual goals and ----------------------
each job headed. objectives.
----------------------
8 Relationships at Encourage Allow friendships to
work relationships to flower. They help in ----------------------
remain professional. greater productivity &
Friendships lead to stronger teams. ----------------------
long coffee breaks.
----------------------
9 Quality Set strict norms. Get teams to generate
Everyone quality management ----------------------
automatically shares processes. “People
----------------------
the standards. support what they
help create.” ----------------------
10 Need for Show the star Forget about
----------------------
encouragement performers the path to promotions. Help
and support the top, using that as every individual ----------------------
a carrot for improved realise his/her
output. potential, and to find ----------------------
the role that best suits
----------------------
him/her.
11 Progress review Whatever progress a Use progress to ----------------------
person has made only measure how well an ----------------------
brings him rewards. individual has used
His future lies in his talents, and how ----------------------
charting out a new well the company has
allowed him to do so. ----------------------
territory.
12 Growth and Provide people ample Encourage long- ----------------------
learning opportunities for term and sustainable ----------------------
training so that they learning through
can upgrade their innovation, ----------------------
skills. experimentation and
initiative. Fear of ----------------------
mistakes has no place ----------------------
here.
----------------------
The above table helps you to appreciate the paradigm shift – a totally new way
of looking at people management in business organisations. ----------------------
----------------------

Notes
Check your Progress 2
----------------------
---------------------- Multiple Choice Single Response.

1. In ____________ group, illumination remained unchanged throughout
----------------------
the illumination experiment.
---------------------- i. Complimentary
ii. Experimental
----------------------
iii. Control
---------------------- iv. Supplementary
---------------------- Multiple Choice Multiple Response.
1. The Hawthorne experiments heralded the following:
----------------------
i. Management approach
---------------------- ii. Group work approach
---------------------- iii. Human relations approach
iv. Organisational behaviour approach
----------------------
State True/False.
---------------------- 1. In informal groups operating within the work settings, group exerts
strong social controls over the work habits and individual worker’s
----------------------
performance.
---------------------- 2. The fruits of any organisational effort are independent of the external
---------------------- environment.
Fill in the blanks.
----------------------
1. ___________________ showed that some factor was operating which
---------------------- increased productivity (dependent variable) regardless of higher or
lower intensity of light.
----------------------
2. ___________________ involved attaching wires to switches for
---------------------- certain parts of telephone equipment, comprising a group of 14
employees including nine wiremen, three soldermen and two
---------------------- inspectors. ___________________ performed by a group of girls
---------------------- show that independent variables, i.e., rest, were not themselves
causing the variations in the dependent variable, i.e., productivity.
---------------------- 3. The original objective of ______________ was to gather information,
---------------------- which could be used to improve supervisory training.
---------------------- 1.5 EMERGING CONCERNS IN ORGANISATIONAL

----------------------
BEHAVIOUR
---------------------- You have studied how the Hawthorne studies have contributed to the
growth and development of Organisational Behaviour. You have also understood
---------------------- the paradigm shift – a totally new way of looking at people management in
business organisations. In this section, you will learn about the key concerns in Notes
Organisational Behaviour.
----------------------
Cultural Diversity and Teamwork
The practice of working in teams is becoming more prevalent in all types ----------------------
of organisations. Interdepartmental teams are formed to engage workers in
----------------------
collaborative efforts to resolve problems, integrate new programmes and/or
processes, and engage in long-range planning. Interdisciplinary, cross-functional ----------------------
teams are formed to bring together all stakeholders in an organisation to improve
communication, increase involvement, improve quality and efficiency, and ----------------------
increase productivity.
----------------------
Merely putting people in teams, however, does not guarantee that the teams
will be effective. Getting people to work together – to listen to every member, to ----------------------
consider all viewpoints, and to exercise courtesy and respect for each other – has
----------------------
always been a challenge. In today’s society, when cultural diversity is common
in workplaces, good communication and cultural sensitivity has become an even ----------------------
greater challenge. It is commonplace today to have an Indian IT professional
reporting to an American manager and working with a Belgian colleague, all ----------------------
of who are separated by thousands of miles. Information Technology connects
----------------------
them to each other, but understanding diversity is what helps them become an
effective and truly multinational team. ----------------------
Ethical Management and Corporate Social Responsibility ----------------------
What is business ethics? The concept has come to mean various things
to various people, but generally it is coming to know what is right or wrong in ----------------------
the workplace and doing what is right − this is in regard to effects of products/ ----------------------
services and in relationships with stakeholders.
Business ethics has come to be considered a management discipline, ----------------------
especially since the birth of the corporate social responsibility movement in ----------------------
the 1960s. In that decade, social awareness movements raised expectations of
businesses to use their massive financial and social influence to address social ----------------------
problems, such as poverty, crime, environmental protection, equal rights, public
health and improving education. An increasing number of people asserted that ----------------------
because businesses were making a profit from using our country’s resources, these ----------------------
businesses owed it to our country to work to improve society. Many researchers,
business schools and managers have recognized this broader constituency, and ----------------------
in their planning and operations have replaced the word “stockholder” with
“stakeholder,” meaning to include employees, customers, suppliers and the ----------------------
community. ----------------------
The emergence of business ethics and corporate social responsibility is
----------------------
similar to other management disciplines. Organisations, for example, realized
that they needed to project a more positive image to the public and so the recent ----------------------
discipline of public relations was born. Organisations realized they needed to
manage their human resources better and so the discipline of human resources ----------------------
was born. As commerce became more complicated and dynamic, organisations
----------------------
realized they needed more guidance to ensure their dealings supported the

Notes common good and did not harm others, and so the discipline of business ethics
was born.
----------------------
Many business schools now provide some form of training in corporate
---------------------- social responsibility and business ethics. Today, ethics in the workplace can be
managed through the use of codes of ethics, codes of conduct, ethics committees,
---------------------- policies and procedures, procedures to resolve ethical dilemmas, ethics training,
etc.
----------------------
Thus, the discipline of Organisational Behaviour is coping with new
---------------------- challenges in the new age of economic and social development and responding
with innovative measures to make businesses more effective, because the
----------------------
environment is changing at an ever-fast pace.
----------------------
Summary
----------------------
• The major contributors to the development of Organisational Behaviour
----------------------
are industrial psychology, the scientific management movement, and the
---------------------- human relations movement.
• Industrial psychology focused its attention on the development of tests
----------------------
for the recruitment of employees etc.
---------------------- • The scientific management movement sought to improve productivity by
rationalising the work, by introducing various wage and incentive plans.
----------------------
• Three factors cumulatively contributed to the rise of human relations
---------------------- movement. They are the Great Depression, rise of trade unionism and
---------------------- the Hawthorne experiments. The discipline of Organisational Behaviour
tries to synchronise internal organisational environment with the external
---------------------- social environment. Therefore, Organisational Behaviour is still a growing
discipline encompassing more and more new concepts emerging in the
---------------------- external social environment.
----------------------
Keywords
----------------------
• Scientific management: A theory of management that analyses and
----------------------
synthesises workflows.
---------------------- • Trade union: An organization of workers who have banded together
to achieve common goals, such as protecting the integrity of its trade,
----------------------
achieving higher pay, increasing the number of employees and employer
---------------------- hires, and better working conditions.
• Multinational company: A corporation or enterprise that manages
----------------------
production or delivers services in more than one country.
---------------------- • Ethical management: The application of ethical values to business
---------------------- behaviour, which applies to any and all aspects of business conduct, from
boardroom strategies and how companies treat their suppliers to sales
---------------------- techniques and accounting practice, etc.
• Corporate social responsibility: A form of corporate self-regulation Notes
integrated into a business model. CSR policy functions as a built-in, self-
regulating mechanism whereby a business monitors and ensures its active ----------------------
compliance with the spirit of the law, ethical standards, and international
norms. ----------------------
----------------------
----------------------
1. Describe the historical development of Organisational Behaviour. ----------------------
2. What do you mean by trade unionism? Name few companies that have
been largely affected by trade unionism recently. ----------------------
3. Which experiments were carried out at the Western Electric Co.? Explain ----------------------
the experiments in detail.
----------------------
4. Discuss the various implications of the Hawthorne experiments.
----------------------
5. Write short notes on:
i) The impact of the Great Depression ----------------------
ii) Industrial psychology ----------------------
----------------------
Answers to Check Your Progress
----------------------
Multiple Choice Single Response. ----------------------
1. The application of psychological facts concerning human beings within ----------------------

the context of business and industry is known as:
----------------------
iii. Industrial Psychology
----------------------
2. The principles of scientific management were given by:
iii. Frederick W. Taylor ----------------------
1. In ____________ group, illumination remained unchanged throughout
the illumination experiment. ----------------------
iii. Control ----------------------

Multiple Choice Multiple Response. ----------------------
1. The Hawthorne experiments heralded the following:
----------------------
ii. Group work approach
----------------------
iii. Human relations approach
----------------------
----------------------

Notes State True/False.
1. True
----------------------
2. False
----------------------
Fill in the blanks.
---------------------- 1. Illumination experiment showed that some factor was operating which
---------------------- increased productivity (dependent variable) regardless of higher or lower
intensity of light.
---------------------- 2. Bank wiring room study involved attaching wires to switches for certain
---------------------- parts of telephone equipment, comprising a group of 14 employees
including nine wiremen, three soldermen and two inspectors. Illumination
---------------------- experiment performed by a group of girls show that independent variables,
i.e., rest, were not themselves causing the variations in the dependent
---------------------- variable, i.e., productivity.
---------------------- 3. The original objective of mass interview programme was to gather
information, which could be used to improve supervisory training.
----------------------
---------------------- Suggested Reading

---------------------- 1. Davis, Keith and J. W. Newstrom. 1989. Human Behaviour at Work. New
---------------------- York: McGraw Hill.
2. Luthans, Fred. 1973. Organisational Behaviour. New York: McGraw
---------------------- Hill.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Understanding Organisational Behaviour
UNIT
Structure:
2
2.1 Introduction
2.2 Fundamental Concepts of Organisational Behaviour
2.3 Models of Organisational Behaviour
2.3.1 SOBC Model
Summary
Key Words
Suggested Reading
Understanding Organisational Behaviour 19

Notes
Objectives
----------------------
----------------------
• Define Organisational Behaviour
----------------------
• Analyse the fundamental concepts governing Organisational
---------------------- Behaviour
• Classify the different organisational models
----------------------
----------------------
---------------------- 2.1 INTRODUCTION

---------------------- In the first unit, you have learned about the historical evolution of
Organisational Behaviour (OB). Human behaviour in an organisation is
---------------------- determined partly by the requirements of the formal organisation and partly by
the personal systems of the individuals forming the organisation. The behaviour
----------------------
that emerges from this interaction defines the field of Organisational Behaviour.
---------------------- The study of Organisational Behaviour has certain basic assumptions. They are:
---------------------- i. An industrial enterprise is an organisation of people.
---------------------- ii. The people in an organisation must be motivated to work effectively.

iii. The goals of the employee and the employer may not necessarily coincide.
----------------------
iv. The policies and procedures adopted in an enterprise may influence
---------------------- people in directions not always foreseen by the policy makers.
---------------------- According to Keith Davis, “Organisational Behaviour is the study and
application of knowledge about how people act within organisations. It is a
---------------------- human tool for human benefit. It applies broadly to the behaviour of people in
all types of organizations, such as business, government, schools, etc. It helps
----------------------
people, structure, technology, and the external environment blend together into
---------------------- an effective operative system.”
---------------------- Fred Luthans defines organisational behaviour as “understanding, predicting

and controlling human behaviour at work”.
---------------------- Stephen Robins defines Organisational Behaviour as a “field of study that
---------------------- investigates the impact that individuals, groups, and structure have on behaviour
in organisations for the purpose of applying such knowledge towards improving
---------------------- an organisation’s effectiveness.”
----------------------
----------------------
----------------------
----------------------
Organistional Change Management, Notes
Process Culture ----------------------
----------------------
Teams, Conflict, Leadership, ----------------------

Group Processes
Power & Politics ----------------------
----------------------
Individual Perception, Personality, ----------------------

Processes Attitudes, Motivation
----------------------
Fig. 2.1 Levels of Organisational Behaviour ----------------------
People occupy pride of place everywhere, be it management, organisation
or management functions. People generally possess physical strengths, skills ----------------------
of some kind, administration or executive skills and organizing abilities. These ----------------------
qualities must be harnessed and used if managerial tasks were to be accomplished
and organisational goals were to be realized. It is here that the importance of ----------------------
OB comes into picture.
----------------------
2.2 FUNDAMENTAL CONCEPTS OF ----------------------
ORGANISATIONAL BEHAVIOUR
----------------------
Every discipline of study has certain set of fundamental concepts. They do
----------------------
not lend themselves to the question ‘why so?.’ They are something, which have
to be accepted and not questioned. They are the foundation stones on which the ----------------------
entire edifice of the discipline is developed. In the discipline of Accountancy,
the fundamental concept is “for every debit entry there will be a credit entry.” ----------------------
In the natural sciences, the fundamental concept is the concept of uniformity of
----------------------
nature. The concept states that if a certain phenomenon takes place under certain
situations in Pune it should take place under the same situations anywhere in ----------------------
the world.
----------------------
The discipline of Organisational Behaviour has fundamental concepts
revolving around the nature of people and the nature of the organisation. ----------------------
There are four concepts dealing with the nature of individual:
----------------------
1. Individual differences: In spite of the fact that all human beings are
similar, everyone is different. Everyone has a different nature, different ----------------------
quality of intelligence, different perception and different ways of behaving. ----------------------
The concept tells that every person is an entity in himself. When it
comes to human behaviour there cannot be a prescriptive solution. Every ----------------------
individual is to be treated differently even though two persons may have
the same behavioural problems. The concept also tells the manager that ----------------------
he had better be aware of his own stereotypes. A stereotype is a tendency ----------------------
to attribute the traits of a group to an individual because he belongs to

Notes the said group. The Jew genocide can be attributed to this stereotyping.
Unfortunately, one is not aware as to how these stereotypes influence his
---------------------- behaviour. This concept, therefore, not only tells that a manager should
treat every person as an entity in himself but he should also examine his
---------------------- own stereotypes.
---------------------- 2. Whole person: In the past employees were referred to as ‘hands’,
implying that the organisation hires only the hands of a man. Nothing can
----------------------
be farther from the truth. An organisation hires not only the hands of an
---------------------- employee but hires a complete man with all his pluses and minuses. Since
a person performs many roles at the same time, the happenings in one role
---------------------- are bound to affect the behaviour in other roles of the person. The concept
tells the manager that when it comes to behavioural problems, he must
----------------------
also take into account the other roles of the person. If the whole person
---------------------- is developed, then the benefits will extend beyond the organisation to the
entire society in which the employee lives.
----------------------
3. Motivation: The concept reminds the manager of the law enunciated by
---------------------- Newton, that every action has an equal and opposite reaction. This means
the manager, by his own behaviour, can cause an employee to behave in
---------------------- a particular way. If he is respectful to his employees, they are bound to be
respectful to him, not otherwise.
----------------------
4. Human dignity: This concept is of a different order from the other three
---------------------- because it is more an ethical philosophy than a scientific conclusion. It
confirms that people are to be treated differently from other factors of
----------------------
production. As they are of a higher order, they want to be treated with
---------------------- respect and dignity. Everyone, including the employee, the manager as
well as the CEO of an organisation is engaged in the same pursuit, the
---------------------- pursuit of enabling their organisation to achieve the objectives for which
it has come into existence. Thus, they are on an equal footing. The concept
----------------------
tells that every person should be respected simply because he happens to
---------------------- be an employee just as anyone else is.
---------------------- Table 2.1 Goals of Organisational Behaviour
---------------------- Individual Motivation, performance, retention

Group Team performance, information sharing, minimising politics,
---------------------- direction and support from leadership, cross-functional
partnerships
----------------------
Organisational Financial performance, customer satisfaction and etention,
---------------------- product and service quality, flexibility and readiness for
change, achievement of strategic plan
----------------------
----------------------
----------------------
----------------------
Notes
----------------------
State True or False. ----------------------
1. In spite of the fact that all human beings are similar, everyone is different.
----------------------
2. Organisations are concerned with only hands and heads of the
employees. ----------------------
3. A stereotype is a tendency to attribute the traits of a group to an individual ----------------------
because he belongs to the said group.
----------------------
4. The concept of human dignity confirms that people are to be treated
differently from other factors of production. ----------------------
----------------------
Activity 1 ----------------------
As a team leader, you have experienced that an extremely competent and ----------------------
intelligent employee is a great individual performer but his work style and ----------------------
personality alienate all of his teammates at workplace. Give reasons to
support your views. ----------------------
----------------------
2.3 MODELS OF ORGANISATIONAL BEHAVIOUR ----------------------
With regard to the nature of the organisation, the key assumptions are that ----------------------
they are the social systems and they based on mutual interests of the employees
and the management, meaning thereby that there is a mutuality of interests. ----------------------
All the employees comprising organisations are the members of the society ----------------------
from which they come. Thus, the organisation becomes a social system, in which
the value systems, customs, etc. conform to those of the society at large. Any ----------------------
organisation that has an inconsistent value system with the external society,
----------------------
does not last long. That an organisation is a social system also implies that the
organisational environment is not static. All parts of the organisational system ----------------------
are interdependent and are subject to influence by other parts of the organisation
as well the society at large. ----------------------
Organisations have a human purpose. They are formed and maintained on ----------------------
the basis of some mutuality of interests among the participants. Organisations
help people achieve their own personal objectives and at the same time, people ----------------------
help organisations achieve their objectives. It is a symbiotic relation. Everybody
----------------------
must bear in mind that the organisational and employee interests are intertwined
in such a way that if the interests of one suffers, the interests of another also ----------------------
suffers. Both the employees and the organisation can prosper if they help each
other to prosper. ----------------------
----------------------

Notes Keith Davis recognises four models of Organisational Behaviour. These
models show the evolution of the thinking and behaviour on the part of the
---------------------- management and managers alike. These models also denote the responses of the
employees to the various orientations of the managers and the general behavioural
---------------------- climate prevailing in the manager-employee relationship. In terms of the evolution
of Organisational Behaviour, these models are: autocratic, custodial, supportive
----------------------
and collegial.
---------------------- 1. Autocratic model: This model was very much in existence at the time
of the industrial revolution and sometime after. These are, one may easily
----------------------
notice, the assumptions of the Theory X in their darkest colour. Theory X
---------------------- and Theory Y are theories of human motivation created and developed by
Douglas McGregor. They describe two contrasting models of workforce
---------------------- motivation. In theory X, management assumes employees are inherently
lazy and will avoid work if they can and that they inherently dislike
---------------------- work. With the passage of the time the autocratic model, as well as the
---------------------- assumptions of Theory X, have become diluted.
2. Custodial model: As a result of the changes in the thinking of the
---------------------- industrialists and the managers, the custodial model of Organisational
---------------------- Behaviour evolved. The custodial model emphasises in giving some sops,
concessions or economic privileges to the employees to keep them happy.
---------------------- In due course of time, the custodial model degenerated into what was
known as paternalistic attitude. Actually, there is no basic behavioural
---------------------- difference between the autocratic and the custodial model. In both these
models, managers did not bother to create an atmosphere, which would
----------------------
be conducive to the development of the employees. The question of
---------------------- motivating, guiding and developing the employees did not arise.
3. Supportive model: The supportive model emerged as a sequel to the
----------------------
human relations era. The change in managerial orientation can be
---------------------- perceived when we study this model. While the managerial behaviour
in the autocratic model is based on the assumptions of Theory X, the
---------------------- supportive or participative model is based on the assumptions of Theory
Y. According to the theory, management assumes employees may be
---------------------- ambitious and self-motivated and exercise self-control. It is believed that
---------------------- employees enjoy their mental and physical work duties. According to
them work is as natural as play. This theory assumes that the employees
---------------------- have the skill and the will to contribute to the organisational efforts. It
came to be recognized that a manager is not the boss but a leader of the
---------------------- team of employees entrusted to him. As such, it is his responsibility to
create an environment where the skills and the wills of the employees to
----------------------
contribute to the organisational effort are supported.
---------------------- 4. Collegial model: The collegial model has a limited application, in as
much as it is useful when one is dealing with technical employees. The
----------------------
manager’s role is changed from that of a leader to that of a partner. The
---------------------- employees and the manager are the partners in the pursuit of the same
objectives. Whatever the work, it is to be done as a team where the lines
---------------------- between the manager and the employee are obliterated.
Table 2.2 Organisational Models and their Facets Notes
Criterion Autocratic Custodial Supportive Collegial
----------------------
Basis of Power Economic Leadership Partnership
model resources ----------------------
Managerial Authority Money Support Teamwork
----------------------
orientation
Employee Obedience Security Job Responsibility ----------------------
orientation performance
----------------------
Employee Dependence Dependence Participation Self-discipline
psychological on boss on organisation ----------------------
results
Employee Subsistence Maintenance Higher-order Self- ----------------------
needs met actualization ----------------------
Performance Minimum Passive Awakened Moderate
result cooperation drives enthusiasm ----------------------
----------------------
----------------------
Match the following: ----------------------
----------------------
1. Models of organisational behaviour are developed by:
i. F.W.Taylor ----------------------
ii. Stephen Robbins
iii. Fred Luthans ----------------------
iv. Keith Davis
----------------------
2. Supportive model is based on the assumptions of:
i. Theory X ----------------------
ii. Theory Y
----------------------
iii. Theory XY
iv. Theory YY ----------------------
3. The model which is useful when one deals with scientific and
professional employees is: ----------------------
i. Autocratic model ----------------------
ii. Collegial model
iii. Participative model ----------------------
iv. Supportive model
----------------------
4. Of all the management skills, which skill is considered the most
important? ----------------------
i. Professional skill
----------------------
ii. Conceptual skill
iii. Technical skill ----------------------
iv. Human skill ----------------------

Notes
Activity 2
----------------------
---------------------- 1. You are empowering your employees to give them more say in how
they perform their jobs. Although you thought this would motivate
---------------------- them, they are more frustrated and less motivated to perform their
jobs as a result. Which organisational model would you use to tackle
----------------------
this situation?
---------------------- 2. You are the newly appointed manager of a group of employees
who are older and more experienced than you, and you have “zero
----------------------
credibility” in their eyes. How will you lead them? Justify your
---------------------- choice.
---------------------- 2.3.1 SOBC MODEL

---------------------- Humanistic approaches emphasize that each individual has great freedom
in directing his/her future, a large capacity for personal growth, a considerable
---------------------- amount of intrinsic worth & enormous potential for self-fulfilment and people
---------------------- behave in ways that make them attain this personal growth.
S-O-B Model: some of the early psychologists explained behaviour
---------------------- based on three premises- stimulus (S), organism (O) and behaviour (B). It was
---------------------- believed that any stimulus presented to the organism would invariably lead to
some kind of behaviour. The S-O-B model can be seen much like the classical
---------------------- conditioning where stimuli and responses affect behaviour without any role of
the environment in determining this link. Kurt Lewin has postulated that human
---------------------- behaviour is a function of the person and the environment: B = f (P, E).
---------------------- The SOBC model amplifies this simple idea and provides us with a
mechanism for systematically considering human behaviour in S-O-B-C Model
----------------------
(SOBC). SOBC is an acronym where S represents the stimulus situation which
---------------------- includes such things as light, sounds, job demands, supervisors, co-workers’
characteristics and equipment. O (organism) refers to the characteristics of
---------------------- the person including personality, needs, attitudes, values and intentions. B
refers to the person’s behavioural responses or actions in the situation under
----------------------
consideration. Finally, C represents the consequences or outcomes associated
---------------------- with the behavioural responses. The action sequence is illustrated in the
following Figure. The Organizational Behaviour model based on the social
---------------------- learning approach is termed as the SOBC model, where S stands for stimulus,
O for organism, B for behaviour, and C for consequence. The S-O-B-C model
----------------------
gives the basic framework rather than a complete explanation of behaviour in
---------------------- work place.
----------------------
----------------------
----------------------
Now we summarize SOBC model as: S-Stimulus is an environmental Notes
variable that depicts the environmental situation, both contextual and
organizational. In work place behaviour these include all features of the ----------------------
work environment which activate employee behaviour. O-Organism is a
cognitive variable that understands organizational participants which link ----------------------
the environmental situation and the resulting organizational behaviour. The ----------------------
finite capacities are governed by heredity, maturity and biological needs of
an individual. These capacities can be acquired knowledge, skills, attitudes, ----------------------
intentions, sentiments and values. B-Behaviour, overt behaviours and actions
like individual performance or emotional responses and conceptual activities. ----------------------
And C-Consequence is an environmental variable that depicts organizational ----------------------
and group dynamics and the consequences of previous interactions between
environmental, personal and behavioural variables. The outcomes represent the ----------------------
activity triggered in the environment by the behaviours under study. The SOBC
model is a ‘micro’ model in that it specifies a sequence for understanding the ----------------------
behaviour of individuals. It does suggest that differences in performance are ----------------------
a function of numerous factors. Managers are concerned with an employee’s
performance (behaviour). They try to influence performance through direction ----------------------
and guidance.
----------------------
Example:
----------------------
●● Stimulus: is any event that happens in the environment, it can be a sound
(like someone shouting) a scene (a car accident, a fight. etc...), events ----------------------
(like receiving a pay check).
----------------------
●● Organism: is a person, nothing more can be said about this, so in OB you
can consider that to be an employee or an employer. ----------------------
●● Behaviour: the organism behaviour and response in regards to the stimulus
----------------------
(for example a child (Organism) may hit (Behaviour) his brother after
seeing a violent movie (Stimulus). ----------------------
●● Consequence: is the outcome that comes after the behaviour, it either
reinforces (thus repeated) the behaviour or punished (thus not repeated). In ----------------------
the child example, his mother can reprimand (Consequence: punishment) ----------------------
him for doing what he did.
Though SOBC model tries to explain the process of human behaviour, it presents ----------------------
only a bare bone sketch of the behaviour. ----------------------
Summary ----------------------
• The various definitions of Organisational Behaviour attempt to describe ----------------------

the field of Organisational Behaviour. OB is mainly concerned with ----------------------
the study of human behaviour at work. It studies behaviour within the
parameters of an organisation. ----------------------
• Fundamental concepts revolve around the nature of the human being ----------------------
and the nature of the organisation. These fundamental concepts help the
manager understand some basics of human behaviour at work. ----------------------

Notes • The fundamental concepts relating to the nature of human being are:
individual differences, whole person, motivation and human dignity.
----------------------
• The concept of individual differences tells us that when it comes to
---------------------- understanding and solving the behavioural problems there cannot be a
standard solution.
----------------------
• The concept of whole person tells that the happenings in the life beyond
---------------------- the organisational life affect the work behaviour of an employee.
• The concept of caused behaviour tells that a manager makes employees
----------------------
behave in a particular way by his own behaviour. A manager should,
---------------------- therefore, be a role model.
---------------------- • The Organisational Behaviour models express the shift in the outlook of
the managers towards their employees and the resultant organisational
---------------------- environment.
----------------------
Keywords
----------------------
• Organisational behaviour: The study of individual behavior in an
---------------------- organizational setting. This includes the study of how individuals behave
alone, as well as how individuals behave in groups.
----------------------
• Individual differences: The variations from one person to another on
---------------------- variables, such as self-esteem, rate of cognitive development or degree of
agreeableness, etc.
----------------------
• Organizational model: Also called an organizational structure, it defines
---------------------- an organisation through its framework, including lines of authority,
communications, duties and resource allocations.
----------------------
---------------------- Self-Assessment Questions

----------------------
1. Define Organisational Behaviour. What are the basic assumptions in the
---------------------- study of Organisational Behaviour?
2. Discuss the basic concepts of Organisational Behaviour.
----------------------
3. Explain the various organisational models.
----------------------
---------------------- Answers to Check your Progress
---------------------- Check your Progress 1

State True or False.
----------------------
1. True
----------------------
2. False
---------------------- 3. True
---------------------- 4. True
Check your Progress 2 Notes
----------------------
1. Models of organisational behaviour are developed by:
----------------------
iv. Keith Davis
2. Supportive model is based on the assumptions of: ----------------------
ii. Theory Y ----------------------
3. The model which is useful when one deals with scientific and professional ----------------------
employees is:
ii. Collegial Model ----------------------
4. Of all the management skills, which skill is considered the most important? ----------------------
iv. Human skill ----------------------
----------------------
Suggested Reading
----------------------
1. Davis, Keith and J. W. Newstrom. 1989. Human Behaviour at Work. New
York: McGraw Hill. ----------------------
2. Luthans, Fred. 1973. Organisational Behaviour. New York: McGraw
----------------------
Hill.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Perception
UNIT
Structure:
3
3.1 Introduction
3.2 Significance of Perception
3.3 Principles of Perceptual Selection
3.4 Perceptual Set in Organisational Settings
3.5 Characteristics of Perceiver and Perceived
Summary
Key Words
Suggested Reading
Perception 31
Notes
Objectives
----------------------
----------------------
• Define perception
----------------------
• Explain the significance of perception
---------------------- • Differentiate between perception and sensation
---------------------- • Identify various factors influencing perception
----------------------
---------------------- 3.1 INTRODUCTION

---------------------- Perceptual process is of utmost significance in understanding human
behaviour. It is a unique interpretation instead of a precise recording of the
----------------------
situation. The individual, while perceiving the world, sees a picture, which
---------------------- expresses his own view of reality. This picture is unique and may largely differ
from the reality.
----------------------
The study of divergence, between the perceptual world and the real world,
---------------------- is of great significance for human relations and organisational behaviour. As
frequently observed, managers assume that subordinates are always keen for
---------------------- promotions even though factually subordinates may really feel psychologically
---------------------- compelled to accept their promotions. The perceptual worlds of the managers
and of the subordinates may differ markedly from each other as well as both
---------------------- of them may diverge substantially from reality. To get the desired results from
promotion, the management should have the proper assessment of the perceptual
---------------------- world of its subordinates.
---------------------- In an interview for the selection of a candidate, the interviewers’ judgment
about the suitability or otherwise of a candidate depends on the candidate’s
---------------------- behaviour perceived by interviewers. A rejected applicant might feel that the
---------------------- interviewer wronged him though he deserved selection. However, the fact is that
interviewers generally form an early impression that becomes quickly entrenched.
---------------------- If the inadequacies of the candidate are exposed early, they weigh against him
in the final selection.
----------------------
Performance appraisal is another area where perception is significant.
---------------------- Assessment of an employee’s performance depends on the perception of the
person who evaluates, while evaluation can be objective as in a salesman’s job
---------------------- where assessment is quantifiable. Many jobs are evaluated in subjective terms.
---------------------- Subjective measures are easier to implement, they provide managers with greater
discretion, and many jobs do not readily lend themselves to objective measures.
---------------------- Subjective measures are, by definition, judgmental. To the extent the evaluator
depends on subjective measures for assessing an employee’s performance,
---------------------- performance of who is a “good” or “bad” employee, greatly influences the
---------------------- appraisal outcome.
Another important judgment that the managers make about the employee Notes
is whether or not he is loyal to the organisation. The issue is not whether
organisations are right in demanding an employee’s loyalty is irrelevant here, but ----------------------
the fact is that many employers do, and the assessment of loyalty or commitment
is highly personal. What is perceived as loyalty by one decision-maker may ----------------------
be seen as excessive conformity by another. An employee who questions a top ----------------------
management decision may be seen as disloyal by some, yet caring and concerned
by others. When evaluating a person’s attitude, as in loyalty assessment, we must ----------------------
recognise that we are again involved with perception.
----------------------
This necessitates that the management understands the basic perceptual
processes involved in organisational settings and recognise its significance. ----------------------
As a great deal of the industrial conflict stem from the divergence between the
----------------------
perceptual world of the parties involved, attempts can be made to minimise the
magnitude of such conflicts by properly assessing perceptions of various aspects ----------------------
in the work settings. This implies that a better understanding of the perceptual
process should be developed. Direct applications and techniques aimed at the ----------------------
solution of the problem would automatically follow proper understanding.
----------------------
3.2 SIGNIFICANCE OF PERCEPTION ----------------------
Perception is much more complex and much broader than sensation. The ----------------------
perceptual process can be defined as “a complicated interaction of selection,
organisation and interpretation of stimuli”. Although perception depends ----------------------
largely upon the senses for raw data, the cognitive process may filter, modify or ----------------------
completely change the data. A simple illustration may be seen by looking at one
side of a stationary object, for example, a statue or a tree. By slowly turning the ----------------------
eyes to the other side of the object, the person probably senses that the object is
moving. Yet the person perceives the object as stationary. The perceptual process ----------------------
overcomes the sensual process and the person “sees” the object as stationary. ----------------------
In other words, the perceptual process adds to, and subtracts from, the “real”
sensory world. ----------------------
Sensation is concerned with the initial contact between organisms and ----------------------
their physical environment. Sensation is the first step in the perceptual process.
----------------------
A few definitions of perception are given below.
●● It is the process of receiving, selecting, organising, interpreting, checking ----------------------
and reacting to sensory stimuli or data.
----------------------
●● Perception is a process by which individuals organise and interpret their
sensory impressions in order to give meaning to their environments. ----------------------
●● Perception includes all those processes by which an individual receives ----------------------
information about his environment – seeing, hearing, feeling, testing and
smelling. ----------------------
●● Blair J.Kolasa defines perception as the “selection and organisation of ----------------------
material which stems from the outside environment at one time or the
other to provide the meaningful entity we experience”. ----------------------
Perception 33
Notes There are two basic elements in the above definition.
1. Perception is a process of selection or screening, which prevents us from
----------------------
processing irrelevant or disruptive information.
---------------------- 2. There is organisation of stimuli implying that the information that is
processed has to be ordered and classified in some logical manner, which
----------------------
permits us to assign meaning to the stimuli situations. The individual tends
---------------------- to recognise the information, assemble it, as well as compare it with earlier
experience. This involves the entire history of events, which have taken
---------------------- place with him over his life span. It is the organisation of inputs through
a dynamic inner process, which shapes what comes in from the outside
----------------------
environment. Again, what comes in changes what is inside the individual.
---------------------- Thus, unlike the sensation process, which is concerned primarily with
basic elementary behaviour largely determined by physiological operation,
---------------------- perception is a highly complex and comprehensive process. It involves a
complicated interaction of selection, organisation and interpretation of
----------------------
data.
---------------------- Despite the fact that it relies upon the senses for obtaining raw data, the
process of perception tends to amalgamate, improve and entirely change this
----------------------
data because of its complexity of interaction. It adds as well as deducts from the
---------------------- sensory world. In organisational settings, we find numerous examples, which
help us in understanding perception. An experienced engineer observing a panel
---------------------- of dials in front of him gets more information than does a manager who visits
from the head office.
----------------------
Perception involves five sub-processes. They are as follows:
----------------------
1. Stimulus: The presence of a stimulus situation initiates perception. In
---------------------- organisational settings, the superior forms the stimulus situation for the
subordinate’s perceptual process.
----------------------
2. Registration: Registration involves the physiological mechanism
---------------------- including both sensory and neural. Obviously, an individual’s physiological
ability to hear and see influence his perception.
----------------------
3. Interpretation: It is a highly crucial sub-process. Other psychological
---------------------- processes assist in perceptual interpretation. For example, in work
settings, an individuals’s motivation, personality and learning process
----------------------
determine his interpretation of a stimulus situation.
---------------------- 4. Feedback: Feedback is important for interpreting the perceptual event
data. In work settings, the psychological feedback that is likely to affect a
----------------------
subordinate’s perception may be in the form of a variation in the behaviour
---------------------- of the superior.
---------------------- 5. Consequence: Perception ends in reaction or response, which may be in

the overt or covert form. As a consequence of perception, an individual
---------------------- responds to work demands. These sub-processes indicate the complexity
of perception.
----------------------
Table 3.1: The sub-processes involved in Perception Notes
EXTERNAL
ENVIRONMENT CONFRONTATION
of specific stimulus (e.g.
REGISTRATION
of the stimulus (e.g.
----------------------
Sensual Stimulation Supervisor or his raised sensory and neural
eye brows) mechanisms) ----------------------
Physical Environment
----------------------
Office
Research Lab. FEEDBACK INTERPRETATION
Climate etc. for clarification (e.g. of the stimulus (e.g. ----------------------
kinesthetic or motivation,
Socio Cultural Environment psychological) learning, personality)
----------------------
Management Styles
Values ----------------------
Discrimination etc.
BEHAVIOR CONSEQUENCE
e.g. Overt such as e.g. reinforcement, ----------------------
rushing off or covert punishment or some
such as attitude organisational
outcome ----------------------
----------------------
Obtained from Fred Luthans - Organisational Behaviour, Page - 105
----------------------
----------------------
----------------------
Match the following:
Multiple Choice Single Response ----------------------
1. The process which involves the physiological mechanism including ----------------------

both sensory and neural is called:
----------------------
i. Perception
ii. Sensation ----------------------
iii. Registration ----------------------
iv. Motivation
----------------------
Multiple Choice Multiple Response.
1. Sub-processes of perception are: ----------------------
i. Sensation ----------------------
ii. Stimulus
----------------------
iii. Registration
iv. Interpretation ----------------------
1. Perception is concerned with the initial contact between organism
----------------------
and their physical environment.
----------------------
----------------------
Perception 35
Notes
Activity 1
----------------------
---------------------- You are a manager of a group of technology professionals. Within the team,
there is a group of five members, who come from a particular state of the
---------------------- country. You have often seen them going for long coffee breaks and taking
commonly planned leaves. They are good on the job but are also secretive
----------------------
about their plans. They also do not mix much with others in the team. One
---------------------- day, one of them comes to your cabin and says, “Sir, I have got a better
opportunity and I am quitting this organisation.” What would be some of
---------------------- the thoughts that immediately cross your mind?
----------------------
---------------------- 3.3 PRINCIPLES OF PERCEPTUAL SELECTION

---------------------- There are many stimuli demanding attention of the individual at the same
time and that individual can sense only a limited amount of stimuli at a time.
---------------------- Human beings are characteristically selective. They select from among those
---------------------- physical stimuli, which they can register at a point in time. They close themselves
off entirely from some stimuli and tend to open their channels of absorption to
---------------------- others. Thus, they set themselves to respond to a particular stimulus or a group
of stimuli. Yet, certain events may characteristically creep into an individual’s
---------------------- perception and distract his attention. For instance, the sound of a gun, other things
---------------------- being equal, is more likely to attract attention than the sound of a gas burner. Thus,
while dealing with selective phenomenon, two terms are involved: attention and
---------------------- set. Attention incorporates all aspects of the selective process whereas set refers
to specific factors or processes within the individual himself that has a bearing
---------------------- on what he attends to.
---------------------- Accordingly, while studying the selective process in perception, we study
set factors lying within the individual himself, as well as those stimuli which can
---------------------- creep into his experience − those which are characteristically attention inviting.
---------------------- Thus, some of the factors that attract attention lie in the situations and
some are within the individual. The factors that are in the situations are called
---------------------- “external attention factors” and those factors that are within an individual are
---------------------- called “internal set factors”.
----------------------
The six external attention factors are intensity, size, contrast, repetition,
---------------------- motion, and novelty and familiarity. They are explained below.
---------------------- 1. Intensity: The intensity of stimulus implies that the more intense the
stimulus, audio or visual, the more is the likelihood it will be perceived.
---------------------- A loud noise, strong odour or bright light or bright colours will be more
readily perceived than soft sound, weak odour or dim light. It is because
----------------------
of this advantage that advertisers employ intensity to draw the consumers’
----------------------
attention. For example, consider the following statement from your boss Notes
to you:
----------------------
Scenario 1: “Please let me have that information at your earliest
convenience.” ----------------------
Scenario 2: “You must give me the report by today evening.”
----------------------
What would most people respond to and why?
----------------------
If we want people to perceive what we are saying and act accordingly,
the intensity of our communication must be high. This could be in form ----------------------
of tone, volume, an aggressive body language, etc. Also, the same holds
good for actions. If we want our employees to perceive the growth of the ----------------------
organisation, there must be action around this message. ----------------------
2. Size: As regards the size of the stimulus, any odd size attracts attention.
A tall Great Dane attracts attention. At the same time, a pocket dog also ----------------------
attracts attention because of its size. However, generally the larger the ----------------------
object the more likely it will be perceived. The amount of attention
enhances with the size of the newspaper advertisement exposed to ----------------------
the individuals, although the increase in attention may not be directly
proportional to the increase in size. ----------------------
3. Contrast: The contrast principle states that external stimuli, which stand ----------------------
out against the background or which are not what the people expect, will
receive attention. Safety signs, which have black lettering on a yellow ----------------------
background or white lettering on a red background, are attention getting. ----------------------
Any change in the accustomed atmosphere attracts attraction. Thus, if
----------------------
one or more of the machines suddenly come to a halt, the supervisor
would immediately notice the difference in noise level. Also, a person ----------------------
who has fallen asleep in a bus because of the drone of the engine, wakes
up immediately when the engine stops. ----------------------
4. Repetition: The factor of repetition implies that a repeated external ----------------------
stimulus attracts more attention than the one that occurs at one time alone.
Perhaps, it is because of this that supervisors tend to repeat directions ----------------------
regarding job instructions several times for even simple tasks to hold
----------------------
the attention of their workers. Advertisers while putting TV or radio
advertisements repeat the brand name they are advertising. ----------------------
5. Motion: The factor of motion implies that individuals attend to changing ----------------------
objects in their field of vision than to static objects. It is because of this
advantage that advertisers involve signs, which include moving objects in ----------------------
their campaigns. At an unconscious level, the animals in the jungles make
use of this principle. A tiger lying in wait is motionless until his prey is ----------------------
nearer him and then jumps at an appropriate moment. ----------------------
6. Novelty and familiarity: A novel object in a familiar situation or a
familiar object in a novel situation tends to attract attention. Job rotation ----------------------
----------------------
Perception 37
Notes is an example of this principle. Recent research indicates that job rotation
not only increase attention but also employees’ acquisition of new skills.
----------------------
---------------------- The internal set factors are as under:
---------------------- 1. Habit: Generally, a Hindu will bow and do namaskar when he sees a
temple while walking on road, because of his well-established habit. The
---------------------- motor set may cause the likelihood of inappropriate responses. These
are several instances in life when individuals tend to react with the right
----------------------
response to the wrong signals. A retired soldier may throw himself on the
---------------------- ground when he hears a sudden burst of car tyre because of his learning
and experience in armed forces.
----------------------
2. Motivation and interest: Motivational factors increase the individual’s
---------------------- sensitivity to those stimuli, which he considers as relevant to the
satisfaction of his needs in view of his experience with them.
----------------------
A thirsty individual has a perceptual set to seek a water fountain or a hotel
---------------------- to quench his thirst, which increases for him the likelihood of perceiving
restaurant signs and decreases the likelihood of visualising other objects
---------------------- at that moment in time.
---------------------- A worker, who has a strong need for affiliation, when walks into the
lunchroom, tends to perceive the table where several co-workers are
---------------------- sitting while the empty table or the table where only one person is sitting
---------------------- attracts no attention.
3. Learning and perception: The process of learning plays a crucial role
----------------------
in every organisation. However, it should be recognised that the role of
---------------------- learning is more pronounced in respect of complex forms of perception
where the symbolic content creeps into the process. Although interrelated
---------------------- with motivation and personality, learning may play the single biggest role
in developing perceptual set. Read the sentence in the triangle below:
----------------------
----------------------
----------------------
---------------------- Turn off

off the Engine
----------------------
----------------------
---------------------- It may take several seconds to realise there is something wrong. Because
of familiarity with the sentence from prior learning, the person is perceptually
----------------------
set to read, “Turn off the engine”. This illustration shows that learning affects
---------------------- perceptual set by creating an expectancy to perceive in a certain manner.
There are many other illustrations, which are commonly used to demonstrate
----------------------
the impact of learning on the development of perceptual set.
For instance, how the figure of a woman is perceived can be radically Notes
influenced by a simple experiment. If a person is first shown a clear, unambiguous
picture of a beautiful young woman and then shown a line drawing, the person ----------------------
will almost always interpret it as a figure of a young woman. If a clear picture
of an old woman is seen first, the viewer will subsequently report seeing the old ----------------------
woman in the figure below: ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 3.1: Young Woman or Old Lady? ----------------------
In addition to the above example, there is a wide variety of commonly
----------------------
used illusions that effectively demonstrate the impact of learning on perception.
An illusion may be thought of as a form of perception that badly distorts reality. ----------------------
4. Organisational role and specialisation: Modern organisations value ----------------------
specialisation. Consequently, the specialty of a person that casts him in a
particular organisational role predisposes him to select certain stimuli and ----------------------
to disregard others. Thus, in a lengthy report a departmental head will first
notice the text related to his department. ----------------------
----------------------
Activity 3
----------------------
Answer the following question: ----------------------
Imagine that you want to put up an important notice in the organisation ----------------------
concerning the change in working hours and holidays for this year. How
would you design it so that it is noticed visually and perceived in the right ----------------------
manner and why? Also, how would you ensure that it reaches all those who
need to know about this change? ----------------------
----------------------
3.4 PERCEPTUAL SET IN ORGANISATIONAL SETTINGS ----------------------
The personality of the perceiving individual, which affects what is attended ----------------------
to in the confronting situation, is closely related to learning and motivation.
There are numerous examples of perceptual sets in work settings. Individuals ----------------------
may tend to perceive the same stimulus situation in largely different manners.
----------------------
Take the example of poor production record in a manufacturing company. The
works engineer is likely to perceive the solution to the issue in the form of ----------------------
improved machine design whereas the personnel manager is likely to perceive
the solution in the form of improved personnel policies, training programmes and ----------------------
Perception 39
Notes incentive schemes. The workers are likely to perceive it as something thrilling
because it may be indicative of poor ability of their supervisor whom they dislike.
---------------------- Irrespective of who is right or wrong, it is obvious that all related individuals
tend to perceive the same situation in entirely different manner. Another popular
---------------------- example relates to the divergence of perception, which takes place between the
---------------------- union and management groups. It is widely held that perceptual divergence is a
major cause of industrial conflicts.
----------------------
Perceptual Organisation
---------------------- When we discuss perceptual organisation, the question arises as to what the
individual does with the sensory data he has received. Obviously, some organising
----------------------
processes, which give meaning to the incoming event data appear to take place
---------------------- in the nervous system and are relatively free from the effects of past experience
or motivational factors. These processes are called the primitive processes of
---------------------- organisation. The central nervous system does not simply register raw sensory
data in a passive form. Rather, it does something to them by creating a definitive
----------------------
organisation. Illusions, false interpretation or misleading organisation of sensory
---------------------- events best exemplifies the active role of the central nervous system. There are
several kinds of processes of perceptual organisations such as grouping, closure,
---------------------- figure-ground effect and constancy phenomenon.
---------------------- 1. Perceptual grouping: The grouping principle of perceptual organisation
states that there is a tendency to group several stimuli together into a
---------------------- recognisable pattern. The principle is very basic and seems largely inborn.
In the visual fields, we find that objects that are similar in appearance tend
----------------------
to be grouped together. Likewise, the individual tends to create a whole
---------------------- even when it is not there.
---------------------- 2. Closure: The closure principle of grouping is closely related to the gestalt
school of psychology. The principle is that a person will sometimes
---------------------- perceive a whole when one does not exist. The person’s perceptual
processes will close the gaps that are unfilled from the sensory inputs.
----------------------
3. Figure-ground: The objects are perceived with reference to their
---------------------- background. The figure-ground principle means simply that perceived
objects stand out as separable from their general background. When
---------------------- the reader is reading this paragraph, in terms of light-wave stimuli, the
---------------------- reader perceives patches of irregularly shaped blacks and whites. Yet
the reader perceives the shapes as letters and figures printed against the
---------------------- white background. In other words, the reader perceptually organises these
stimuli into recognisable patterns, i.e., the words.
----------------------
4. Perceptual constancy: Constancy is one of the more sophisticated
---------------------- forms of perceptual organisation. It gives a person a sense of stability
in a changing world. This principle permits the individual to have some
---------------------- constancy in a tremendously variable world. If constancy were not at
---------------------- work, the world would be very chaotic and disorganised for a person. An
organisational example would be that of a worker who must select a piece
---------------------- of material or a tool of the correct size from a wide variety of materials
and tools at varying distances from a workstation. Without perceptual Notes
constancy, the shapes, sizes, colours, etc. of the objects would keep on
changing, making the job almost impossible for the worker. ----------------------
5. Perceptual defence: Closely related to context is perceptual defence. A ----------------------
person may build a defence (a block or a refusal to recognise) against
stimuli or situational events in the context that are individually or culturally ----------------------
unacceptable or threatening. Accordingly, perceptual defence may play
----------------------
an influential role in understanding union-management relations.
Although there is some conflicting evidence, most studies verify the ----------------------
existence of perceptual defence. Two examples are classic studies
----------------------
that found barriers to perceiving personality-threatening words and
identification of thresholds for critical, emotionally toned words. In ----------------------
another study, more directly relevant to organisational behaviour, the
researchers describe how people may react with a perceptual defence ----------------------
that is activated in them when they are confronted with a fact that is
----------------------
inconsistent with a preconceived notion. In this study, college students
were presented with the word “intelligent” as a characteristic of a factory ----------------------
worker. This was contradictory to their perception of factory workers, and
they built defences in the following ways: ----------------------
i. Denial: A few of the students denied the existence of intelligence in ----------------------
factory workers.
----------------------
ii. Modification and distortion: This was one of the most frequent
forms of defence. The pattern was to explain the perceptual conflict ----------------------
by joining intelligence with some other characteristic, for example,
“He is intelligent, but doesn’t possess the initiative to rise above his ----------------------
group.” ----------------------
iii. Change in perception: Many of the students changed their
perception of the worker because of the intelligence characteristic. ----------------------
The change, however, was usually very subtle; for example, “He ----------------------
cracks jokes.” became “He’s witty.”
iv. Recognition: Very few students explicitly recognised the conflict ----------------------
between their perception of the worker and the characteristic of ----------------------
intelligence that was confronting them. For example, one student
stated, “The traits seem to be conflicting; most factory workers I ----------------------
know about aren’t too intelligent.”
----------------------
The general conclusion to be drawn from this classic study is that
people may learn to avoid perceiving certain conflicting, threatening ----------------------
or unacceptable aspects of the context.
----------------------
These and other relevant experiments have been summarised into
three general explanations of perceptual defence: ----------------------
i. Emotionally disturbing information has a higher threshold for ----------------------
recognition, that is, we do not perceive it readily than neutral
----------------------
Perception 41
Notes or non-disturbing information. This is why a chain of events
may be seen differently by those who are not personally
---------------------- involved and by those who are involved; thus, warning signs
of trouble are often not seen by those who will be most
---------------------- affected by the trouble.
---------------------- ii. Disturbing information and stimuli are likely to bring
about substitute perceptions, which are distorted to prevent
----------------------
recognition of the disturbing elements. In this way, a manager
---------------------- can perceive that workers are happy, when actually they are
disgruntled. Then when a grievance committee is formed or
---------------------- a strike takes place, the manager cannot perceive that these
“happy” workers are participating willingly and concludes
----------------------
that it is because they have fallen victim to some agitator and
---------------------- that things in the shop are still fine.
iii. Emotionally arousing incidence actually does arouse
----------------------
emotions. For example a road accident where the passersby
---------------------- gather and put blame on the owner of bigger vehicle even if it
is not his mistake. Even though the emotion is distorted and
---------------------- directed elsewhere like kicking, shouting, pelting stones etc.
---------------------- Such findings as the above help explain why some people, especially
supervisors and subordinates in an organisation, have a “blind spot”.
---------------------- They do not “see” or they consistently misinterpret certain events or
situations.
----------------------
6. Social perception: The social aspects of perception play an important
---------------------- role in organisational behaviour. Social perception is directly concerned
---------------------- with how one individual perceives other individuals, how we get to know
others.
----------------------
3.5 CHARACTERISTICS OF THE PERCEIVER AND
----------------------
THE PERCEIVED
---------------------- A summary of research findings on some specific characteristics of the
---------------------- perceiver and the perceived reveals a profile of the perceiver as follows:
1. Knowing oneself makes it easier to see others accurately.
----------------------
2. One’s own characteristics affect the characteristics one is likely to see in
---------------------- others.
---------------------- 3. People who accept themselves are more likely to be able to see favourable
aspects of other people.
----------------------
4. Accuracy in perceiving others is not a single skill.
---------------------- The above four characteristics greatly influence how a person perceives
---------------------- others in the environmental situation.
----------------------
There are also certain characteristics of the person being perceived, which Notes
influence social perception. Research has shown that:
----------------------
1. The status of the person perceived will greatly influence others’ perception
of the person. ----------------------
2. The person being perceived is usually placed into categories to simplify
----------------------
the viewer’s perceptual activities. Two common categories are status and role.
3. The visible traits of the person perceived will greatly influence others’ ----------------------
perception of the person.
----------------------
These characteristics of the perceiver and the perceived suggest the extreme
complexity of social perception. Organisational participants must realise that their ----------------------
perceptions of another person are greatly influenced by their own characteristics ----------------------
and the characteristics of the other person. If, for example, a manager has high
self-esteem and the other person is physically attractive and pleasant and comes ----------------------
from the home office, then the manager will most likely perceive this other
person in a positive and favourable manner. On the other hand, if the manager ----------------------
has low self-esteem and the other person is an arrogant, unattractive person, the ----------------------
manager is likely to perceive this other person in a negative and unfavourable
manner. Such attributions that people make of others play a vital role in their ----------------------
social perceptions and resulting behaviour.
----------------------
Perception of People
Let us examine how the basic and social factors described above are related ----------------------
to our perceptions of people. Each individual interacts with other individuals ----------------------
and establishes relationships with them. The maintenance of these relationships
necessitates knowledge of social behaviour involving constant judgment about ----------------------
the other individual’s needs, emotions and thoughts. Research results have
shown three kinds of features that affect these perceptions. These are related to ----------------------
the person perceived, the perceiver and the situation. ----------------------
First, consider the person who is perceived. The features of the individual
----------------------
with whom one tends to interact, exert considerable impact on his evaluation
and behaviour in all interpersonal situations. These features are of four kinds − ----------------------
physical, social, historical and personal.
----------------------
The important physical features include gestures, posture, facial expression
and colour of the skin. The social features that assume significance in perception ----------------------
are the qualities of voice and appearance. An individual with long hair and
casual dress is called a “hippie” involving judgments about his political, social ----------------------
and moral values accordingly. Likewise, historical features, such as sex, age,
----------------------
occupation, religion, race, etc. largely influence an individual’s evaluations of
others. There are also numerous personality features attributed to others that ----------------------
affect an individual’s evaluation of them. Individuals tend to be attracted to
others whom they perceive to be identical to them. ----------------------
This leads us to the perceiver’s features. There seem to be two kinds ----------------------
of general features of the perceiver, which are crucial in understanding an
individual‘s perception of others. They are: ----------------------
Perception 43
Notes • An individual’s own social and personality features cause a divergence.
• The complexity of an individual’s perception of other individuals is also
----------------------
crucial.
---------------------- Obviously, individuals tend to differ in the manner in which they describe
others. Some individuals describe others as tricky, ruthless, etc. When further
----------------------
complexity is involved, they tend to describe others as friendly, aggressive,
---------------------- honest etc. A still higher level of complexity involves traits, such as passive,
charming, etc. These latter features involve a more complex mode of perceiving
---------------------- than physical features. Research results have shown that the leader’s complexity
of perceiving his fellow workers is markedly associated with his group’s
----------------------
performance, depending upon the situation where they are engaged.
---------------------- The features that are associated with an individual’s perception of others
involve the situation in which he finds himself. Individuals tend to make
----------------------
judgments regarding the behaviour of others as indicators of their personality
---------------------- and these judgments are markedly associated with the suitability of the behaviour
to the given situation. Thus, our perception of individuals as well as objects
---------------------- depends upon certain historical, current and situational factors, our experience;
culture and learning exert a wide impact on these judgments, as do our current
----------------------
needs and feelings along with the physical and social environmental factors. This
---------------------- understanding of perceptual process provides an insight as to why we behave
in the manner we do.
----------------------
Table 3.2: Common Perceptual Errors
----------------------
A rater forms an overall impression
---------------------- about anobject and then uses the
impression to bias ratings about the
---------------------- object.
---------------------- Leniency is a personal characteristic

Leniency that leads an individual to
---------------------- consistently evaluate other people or
objects in an extremely positive way.
----------------------
---------------------- Is the tendency to avoid all extreme

Central Tendency judgments and rate people and
---------------------- objects as average or neutral.
----------------------
The tendency to remember recent
information. If the recent
---------------------- Recency Effect information is negative, the person or
object is evaluated negatively.
----------------------
---------------------- The tendency to evaluate people or

Contrast Effect objects by comparing them with
---------------------- characteristics of recently observed
people or objects.
----------------------
Notes
----------------------
1. Which term refers to our own unique understanding of how the work
----------------------
world operates?
i. Audience selectivity ----------------------
ii. Culture clash
----------------------
iii. Personal construct
iv. Halo effects ----------------------

1. Few of the common perceptual errors are: ----------------------
i. Halo
----------------------
ii. Leniency
iii. Central tendency ----------------------
iv. Sycophancy
----------------------
2. Physical features of an individual that exert an impact on his evaluation
and behaviour are: ----------------------
i. Gesture ----------------------
ii. Posture
----------------------
iii. Facial expression
iv. Hair style and colour ----------------------
----------------------
----------------------
Summary ----------------------
• Perception is an important cognitive process deciding how a person will ----------------------
behave. Through this complex process people interpret the world to
themselves. ----------------------
• Perception is a unique phenomenon, influencing people behave differently. ----------------------
• Externally stimuli selectivity is affected by such factors as the intensity,
----------------------
size, movement, repetition etc. Internally perceptual selectivity is
influenced by learning, culture, experience, interest, motivation etc. ----------------------
• The social context plays an important role in understanding human
----------------------
behaviour in organisations. Of particular importance to social perception
is how people cause of another’s or their own behaviour. ----------------------
----------------------
----------------------
Perception 45
Notes Keywords
----------------------
●● Stimuli: Events in the environment that influence behaviour or something
---------------------- that causes an individual to respond or react in a certain way.
●● Perceptual set: A tendency to perceive or notice some aspects of the
---------------------- available sensory data and ignore others.
---------------------- ●● Perceptual defence: The process by which it is thought that certain
stimuli are either not perceived or are distorted due to their offensive,
---------------------- unpleasant or threatening nature.
---------------------- ●● Perceptual grouping: The human visual ability to extract significant
image relations from lower-level primitive image features without any
---------------------- knowledge of the image content and group them to obtain meaningful
---------------------- higher-level structure.
●● Perceptual error: Every person sees things in his own way and as
---------------------- perceptions become a person’s reality this can lead to misunderstandings,
---------------------- which further lead to incorrect decisions.

---------------------- 1. Define perception. Explain the importance of perception in the
---------------------- organisational context. Why it is necessary for us to have the understanding
of perception?
----------------------
2. What do you mean by perceptual selection? Explain the internal set
---------------------- factors and the external attention factors of perceptual selection.
3. Explain the factors affecting the perceptional set of an individual in an
----------------------
organisation.
---------------------- 4. What are the characteristics of a perceiver and the perceived?
---------------------- 5. Write short notes on:
---------------------- a. Perceptual constancy

b. Perceptual defense
----------------------
c. Learning and perception
----------------------
d. Motivation and perception
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Answers to Check your Progress Notes
1. The process which involves the physiological mechanism including both
sensory and neural is called: ----------------------
iii. Registration ----------------------

1. Sub-processes of perception are:
----------------------
i. Stimulus
----------------------
ii. Registration
iii. Interpretation ----------------------

1. False ----------------------
----------------------
----------------------
1. Which term refers to our own unique understanding of how the work
world operates? ----------------------
iii. Personal construct ----------------------
Multiple Choice Multiple Response
----------------------
1. Few of the common perceptual errors are:
----------------------
i. Halo
ii. Leniency ----------------------
iii. Central tendency ----------------------

2. Physical features of an individual that exert an impact on his evaluation ----------------------
and behaviour are:
----------------------
i. Gesture
ii. Posture ----------------------
iii. Facial expression ----------------------
----------------------
Suggested Reading
----------------------
1. Agarwal, Kaushal. Perception Management ‘The Management Tactics’.
New Delhi: Global India Publications Pvt. Ltd. ----------------------
----------------------
----------------------
Perception 47
Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Personality
UNIT
Structure:
4
4.1 Introduction
4.2 Definition of Personality
4.3 Determinants of Personality
4.4 Personality Theories
4.4.1 Intrapsychic Theory
4.4.2 Type Theories
4.4.3 Trait Theories
4.4.4 Social Learning Theory
4.4.5 Self Theory
4.5 Personality and Organisation
4.6 Personality Structure
4.7 Personality and Behaviour
Case Study
Summary
Key words
Suggested Reading
Personality 49
Notes
Objectives
----------------------
----------------------
• Define the meaning of personality.
----------------------
• Analyse the importance of personality in work life.
---------------------- • Explain various theories about the formation of personality
---------------------- • Illustrate how the knowledge about differences in personality helps
a manager better perceive the human behaviour at work
----------------------
----------------------
4.1 INTRODUCTION
----------------------
Personality factors are extremely important in organisational settings.
---------------------- Often the “wrong” kind of personality proves disastrous and causes undesirable
tensions and worries in organisations. The costs of such tensions and worries are
---------------------- enormous when we interpret them from the point of view of employee-employer
---------------------- relations, peer relations and superior-subordinate relations. Sometimes, the
personality difficulties are the root cause of organisational conflicts and often
---------------------- lead to turnover and job dissatisfaction. A consideration of personality differences
of focal persons is important for at least three reasons.
----------------------
Some people arouse hostility and aggression in their associates, while
---------------------- others invoke sympathy and supportive responses because of their personality
features. Likewise, some people encourage and others discourage free and
---------------------- open communication in view of their personality traits as perceived by their
---------------------- subordinates and associates.
Personality characteristics tend to produce differential emotional reactions
----------------------
to stress. Some people tolerate severely stressful situations, while tensions and
---------------------- anxieties and similar circumstances swamp others.
Individual personalities lead to individual differences in styles of coping
----------------------
with stress. When exposed to tension producing situations, some people tend to
---------------------- be problem oriented, others happen to deal with the emotional experience which
the stress arouses in them rather than with the determinants of the experience.
---------------------- Still others tend to deal with derivative problems, which may be created by their
efforts to cope with the stress. They may happen to project hostility on to others
----------------------
and thus make easier guilt-free aggression against them. The dangers inherent in
---------------------- such a hostile counterattack are obvious. Thus, it appears personality matters very
significantly from the standpoint of human relations and organisational behaviour.
----------------------
Every day in conversation we hear such statements as − “he has no
---------------------- personality at all”. If we analyse such usages, we discover that the phrase “a lot
of personality” refers to the physical appearance of the individual, especially
---------------------- on initial contact. “A poor personality” ordinarily indicates that the person has
----------------------
characteristics not approved of generally. The term “no personality” is saved for Notes
the “run-of-the-mill” individual who is little noticed by others.
----------------------
The unique ways of responding to day-to-day life situations is at the heart
of human behaviour. Accordingly, personality embraces all the unique traits and ----------------------
patterns of adjustment of the individual in his relationship with others and his
environment. ----------------------
4.2 DEFINITION OF PERSONALITY ----------------------
The word “personality” has been traced back by etymologists to the Latin ----------------------
words “per” and “sonare”. The term “per sonare” means, “to sound through”. The
----------------------
word persona derived from these two words originally meant an actor’s mask,
through which the sound of his voice was projected. Later persona was used to ----------------------
mean not the mask itself but the false appearance, which the mask created. Still
later it came to mean the characters in the play (dramatis personae). ----------------------
It is interesting to note that the word “personality” by derivation should ----------------------
mean, “what an individual only appears to be, not what he really is”. This meaning
is almost the exact opposite of what the word means in modern psychology. ----------------------
We find that to some extent personality is defined in terms of a specific ----------------------
theoretical frame of reference. However, most psychologists agree generally with
Gordon Allport’s definition, in which personality is “the dynamic organisation ----------------------
within the individual of those psycho-physical systems that determine his unique
----------------------
adjustments to his environment”.
About a decade after Allport’s formulation R.W. White simplified it by ----------------------
substituting “tendencies” for “psycho-physical systems”. White’s definition ----------------------
states that “personality is the organisation of an individual’s personal pattern of
tendencies”. ----------------------
Behaviour involves a complex set of interactions between the person and ----------------------
the situation. Events in the surrounding environment (including presence and
behaviour of others) strongly influence the way people behave at any particular ----------------------
time; yet people always bring something of their own to the situation. This
“something”, which is unique, is what personality is. ----------------------
A well-known personality theorist Salvatore Maddi proposed the following ----------------------

definition of personality:
----------------------
“Personality is a stable set of characteristics and tendencies that determine
those commonalities and differences in the psychological behaviour (thoughts, ----------------------
feelings and actions) of people that have continuity in time and that may not be
----------------------
easily understood as the sole result of the social and biological pressures of the
moment.” ----------------------
This definition contains three important ideas.
----------------------
First, the definition does not limit the influence of personality only to certain
behaviours, certain situations or certain people. Rather, personality theory is a ----------------------
general theory of behaviour – an attempt to understand or describe all behaviours ----------------------
all the time.
Personality 51
Notes Second, the phrase “commonalities and differences” suggests an important
aspect of human beings. In certain respects, every person is like all other people,
---------------------- some other people and no other person.
---------------------- Thus, each employee in an organisation is unique and may or may not
respond as others do in a particular situation. This complexity makes managing
---------------------- and working with people extremely challenging. Therefore, to understand, predict
and control behaviour, it is important to study personality.
----------------------
Finally, Maddi’s definition refers to personality as being “stable” and
---------------------- having continuity in time. If your entire personality could change suddenly
and dramatically, your family and friends would meet a stranger. Personality
----------------------
development occurs to a certain extent throughout life, but the greatest changes
---------------------- occur in early childhood.
---------------------- 4.3 DETERMINANTS OF PERSONALITY

----------------------
The major determinants of personality of an individual can be studied
---------------------- under four broad headings:
1. Biological factors: Biological factors may be studied under the following
----------------------
three heads:
---------------------- i. Heredity:The relative effects of heredity comprise an extremely old
argument in personality theory. Certain characteristics, primarily
----------------------
physical in nature, are inherited from one’s parents, transmitted by
---------------------- genes in the chromosomes contributed by each parent.
---------------------- Research on animals has showed that physical and psychological

characteristics can be transmitted through heredity. But research on
---------------------- human beings is inadequate to support this viewpoint. However,
psychologists and geneticists have accepted the fact that heredity
---------------------- plays an important role in one’s personality. The importance of
---------------------- heredity varies from one personality trait to another. For instance,
heredity is generally more important in determining a person’s
---------------------- temperament rather than values and ideals.
---------------------- ii. Brain: Another biological factor that influences personality is the
role of the brain of an individual. The psychologists are unable to
---------------------- prove empirically the contribution of human brain in influencing
personality. Preliminary results from the electrical stimulation of
---------------------- the brain (ESB) research gives indication that better understanding
---------------------- of human personality and behaviour might come from the study of
the brain.
---------------------- iii. Physical features: Perhaps the most outstanding factor that
---------------------- contributes to personality is the physical stature of an individual. An
individual’s external appearance is proved to be having a tremendous
---------------------- effect on his personality. For instance, the fact that a person is
short or tall, fat or skinny, handsome or ugly, black or whitish will
---------------------- undoubtedly influence the person’s effect on others and in turn,
will affect the self-concept. A person’s physical characteristics Notes
may be related to his approach to the social environment, to the
expectancies of others, and to their reactions, to him. These in turn ----------------------
may have impacts on personality development.
----------------------
Psychologists contend that the different rates of maturation will also
influence an individual’s personality. ----------------------
2. Cultural factors: Culture is traditionally considered as the major ----------------------
determinant of an individual’s personality. The culture largely determines
what a person is and what a person will learn. The culture within which ----------------------
a person is brought up is a very important determinant of behaviour of a ----------------------
person.
----------------------
The personality of an individual, to a marked extent, is determined by
the culture in which he is brought up. According to Paul H. Mussen “... ----------------------
each culture expects, and trains, its members to behave in the ways that
are acceptable to the group.” In spite of the importance of the culture on ----------------------
personality, researchers are unable to establish correlation between these ----------------------
two concepts of personality and culture.
----------------------
3. Family and social factors: In order to understand the effects of a family
on individual’s personality, we have to understand the socialisation ----------------------
process and identification process.
----------------------
i. Socialisation process: The contribution of family and social group
in combination with the culture is known as socialisation. In the ----------------------
words of Mussen, “socialisation is the process by which an individual
----------------------
infant acquires, from the enormously wide range of behavioural
potentials that are open to him at birth, those behavioural patterns ----------------------
that are customary and acceptable according to the standards of his
family and social group.” Socialisation initially starts with contact ----------------------
with the mother and later on the other members of the family (father, ----------------------
sisters, and close relatives) and the social group play influential role
in shaping an individual’s personality. ----------------------
ii. Identification process: Identification starts when a person begins to ----------------------
identify himself with some other members of the family. Normally
a child tries to emulate certain actions of his parents. Identification ----------------------
process can be examined from three angles. It can be viewed as:
----------------------
(a) the similarity of behaviour between the child and the model,
(ii) the child’s motives or desires to be like the model and (iii) the ----------------------
process through which the child actually takes on the attributes of
the model. ----------------------
Apart from the socialisation and identification processes, the home ----------------------
environment influences the personality of an individual. There is
----------------------
substantial empirical evidence to indicate that the overall environment at
home created by parents is critical to personality development. ----------------------
Personality 53
Notes 4. Situational factors: Many a times the actions of the person are
determined more by the situation, rather than his behaviour. Heredity,
---------------------- family and friends, siblings and environment are no doubt important to
personality but it must be recognised that it is the immediate situation or
---------------------- circumstances which may predominate finally. Let us take an example
---------------------- of an employee whose developmental history has shaped a personality
which incorporates a high need for power and achievement. When
---------------------- placed in a highly bureaucratic work situation, this individual may
become frustrated and behave apathetically or aggressively. Thus, on the
---------------------- surface, this employee appears to be indifferent or a trouble maker; yet
---------------------- the developmental history would predict that the individual would be a
very hard employee, striving to progress ahead.
----------------------
Therefore, the situation may potentially have a very big impact on the
---------------------- actions and expressions of an individual.
---------------------- 4.4 PERSONALITY THEORIES

---------------------- Researchers have developed a number of personality theories but no theory,
---------------------- at the outset it must be pointed out, is complete in itself. Personality theories can
be grouped under the five heads:
----------------------
1. Intrapsychic theory
---------------------- 2. Type theories
---------------------- 3. Trait theories
---------------------- 4. Social learning theory

5. Self theory
----------------------
These theories differ markedly in the constructs they propose as forming
---------------------- the structure of the personality, and also the way they relate these constructs
to behaviour. They also differ in the methods they use to assess or measure an
---------------------- individual’s personality. Let us examine these theories.
---------------------- 4.4.1 Intrapsychic Theory
---------------------- Freud remains the most influential theorist in the area of personality.
According to Freud, the human mind is composed of three elements: i) the
---------------------- preconscious, ii) the conscious, and iii) the unconscious.
---------------------- The items in the mind that can be recognised only through Freud’s
association method are “preconscious”. The “conscious” element is concerned
---------------------- with thoughts, feelings, beliefs and desires that we probe during introspection.
---------------------- The final component “unconscious” is basically concerned with ideas and
wishes that cannot be learned through introspection but can be determined by
---------------------- hypnotism, analysis of dreams and Freudian therapeutic techniques.
---------------------- According to Freud, the “conscious” is guided by a “reasoned reality”
principle and the “unconscious” is guided by the famous “hedonistic principle”
---------------------- of pleasure. Freud developed an organisation of personality consisting of three
structures within the human mind: the id, the ego and the superego. These parts Notes
of the mind are primarily responsible for originating human actions and reactions
and modifications. ----------------------
i. Id ----------------------
It is the original and the most basic system of human personality. At
----------------------
the base of the Freudian theory lies the id that is primitive, instinctual
and governed by the principles of greed and pleasure. Id represents a ----------------------
storehouse of all instincts, containing in its dark depths all wishes and
desires that unconsciously direct and determines our behaviour. Id is ----------------------
largely childish, irrational, never satisfied, demanding and destructive
----------------------
of others. However, id is the foundation upon which all other parts of
personality are erected. Like a newborn, id has no perception of reality. It ----------------------
is primitive, immoral, insistent and rash. Id is the reservoir of the “psychic
energy” which Freud calls “libido”. According to Freud, id is totally ----------------------
oriented towards increasing pleasure and avoiding pain, and it strives for
----------------------
immediate satisfaction of desires.
One notable characteristic of id is that it cannot tolerate uncomfortable ----------------------
levels of tension within it and seeks to release the tension as soon as
----------------------
it develops. The methods for dealing with tension by id are primary
processes and reflex actions. The former attempts to discharge tension by ----------------------
forming a mental image of the desirable means of releasing the tension.
However, this kind of tension release is temporary and mental, and would ----------------------
not satisfy the real need. If, for instance, a person is hungry, the id deals
----------------------
with the situation by creating a mental image of desirable and good food
that is palatable. The later method (reflex actions) of tension release is ----------------------
reflected in the behaviour of individuals such as blinking of eyes, raising
eyebrows, rubbing the cheeks, etc. Id, in fact, is capable of resolving the ----------------------
tension in reality. Id basically represents an individual’s natural urges and
----------------------
feelings.
ii. Ego ----------------------
As an individual learns to separate the unreality from reality in childhood, ----------------------

the ego develops. The ego is reality-oriented part of thinking; it is largely
practical and works in an executive capacity. Ego is rational and logical, ----------------------
and in essence, it is the conscious mediator between the realities of world ----------------------
and the id’s demands. It constantly works to keep a healthy psychological
balance between id’s impulsive demands and superego’s restrictive ----------------------
guidance. Ego is a rational master. The ego is said to be the executive
part of the personality because it controls the gateway to action, selects ----------------------
the features of the environment to which it will respond and decides what ----------------------
instincts will be satisfied.
The most important characteristic of ego is that it has the ability to ----------------------
distinguish between mental images and actual sources of tension release ----------------------
and it responds to the real sources of tension reduction. The ego performs
this task by: ----------------------
Personality 55
Notes a) Observing accurately what exists in the outside world (perceiving).
b) Recording these experiences carefully (remembering).
----------------------
c) Modifying the external world in such a way as to satisfy the instinctual
---------------------- wishes (acting).
---------------------- iii. Superego
---------------------- Superego represents noblest thoughts, ideals, feelings that are acquired
by a person from his parents, teachers, friends, religion, organisation
---------------------- and colleagues, etc. As a child grows and absorbs parental and cultural
attitudes and values, he develops superego. Superego is the moralistic
---------------------- segment of the human personality. The primary concern of superego is
---------------------- to determine whether the action proposed by “ego” is right or wrong so
that the individual acts in accordance with the values and standards of
---------------------- the society. If people violate the prohibitions of superego they may feel
guilty.
----------------------
The superego acts as a censor on the individual and as a censor, a too
---------------------- strong superego is likely to be in constant and pronounced battle with the
id. Freud says that the ego’s role is to mediate between the id and superego.
---------------------- A personality becomes disorderly when either the id or superego becomes
---------------------- dominant. At the same time, it should be noted that when too much
energy is consumed by ego in mediating between the id and superego, an
---------------------- individual’s personal development will suffer (or adversely affected).
---------------------- The superego, in some respects, is the antithesis of id. Psychologist Duane
Schult notes that id is pressing for satisfaction, the ego is trying to delay
---------------------- it and the superego urges morality above all. Freud’s human being is,
therefore, described as “basically a battlefield”.
----------------------
Psychoanalysis, while acknowledged as having a powerful influence, has
---------------------- been seriously questioned as a scientific theory. This theory is criticised
on methodological grounds. Further Freud’s theory is criticised because
----------------------
it is largely untestable since his constructs are difficult to define and are
---------------------- ambiguous.
4.4.2 Type Theory
----------------------
Personality type theory aims to classify people into distinct categories.
---------------------- Personality types are synonymous with “personality styles”.
---------------------- Types refer to categories that are distinct and discontinuous. For example,
you are one or the other. This is important to understand, because it helps to
---------------------- distinguish a personality type approach from a personality trait approach, which
---------------------- takes a continuous approach.
To clearly understand the difference between types and traits, consider the
---------------------- example of the personality dimension of “introversion”. We can view introversion
---------------------- as:
• A personality type approach says you are either an introvert or an extrovert.
----------------------
• A personality trait approach says you can be anywhere on a continuum Notes
ranging from introversion to extroversion, with most people clustering in
the middle, and fewer people towards the extremes. ----------------------
4.4.3 Trait Theories ----------------------
Trait theorists view personality from the standpoint of understanding traits.
----------------------
Among trait theorists are included Gordon Allport, Raymond Barnard Cattell
and William Sheldon. ----------------------
Allport is of the opinion that each individual possesses a set of traits that are
----------------------
not shared by any other individuals. He emphasises the uniqueness of personality.
Cattell has extensively worked on traits in various work settings employing ----------------------
a number of psychological measures. Based on factor analysis, he developed ----------------------
factor concepts, such as tender-mindedness, somatic anxiety, dominance, etc.
Sheldon extended physical structuring by asserting that physique consists ----------------------
of three components: endomorphs (soft and spherical structure), mesomorphs ----------------------
(tough and muscular body), and ectomorphs (linear and fragile). The relative
existence of these three physical elements indicates specific personality ----------------------
patterns. Corresponding to these physical aspects, he assumed three aspects of
temperament: viscerotonia (love of comfort and affection), somatotonia (love of ----------------------
physical adventure and risk taking) and cerebrotonia (restraint and inhibition). ----------------------
Although he assumed a close relationship between respective aspects of structure
and personality, there is no evidence to support this view. ----------------------
4.4.4 Social Learning Theory ----------------------
Learning can be defined as the process leading to relatively permanent
----------------------
behavioural change or potential behavioural change. In other words, as we learn,
we alter the way we perceive our environment, the way we interpret the incoming ----------------------
stimuli, and therefore the way we interact or behave. This new way of approaching
a very successful theory marked a transition away from strict behaviourism and ----------------------
toward a concept known as social learning theory. As this occurred, researchers
----------------------
began to recognise the fact that people sometimes exhibit a behaviour without
any external reward or reinforcement. The idea then, was that, perhaps internal ----------------------
thoughts could be rewarded just as external behaviours.
----------------------
4.4.5 Self Theory
The intrapsychic, type and trait theories represent the traditional approaches ----------------------
to understanding the complex human personality. Self theory rejects both ----------------------
psychoanalytic and behaviouristic conception of human nature as too mechanistic,
portraying people as creatures helplessly tossed about by internal instincts or ----------------------
external stimuli. Carl Rogers and his associates have developed the self theory
that places emphasis on the individual as an initiating, creating, influential ----------------------
determinant of behaviour within the environmental framework. ----------------------
To understand Rogers’ theory, we have to understand: a) the self-concept,
b) the organism and c) the development of self. ----------------------
----------------------
Personality 57
Notes i. Self-concept: The most important concept in Rogers’ theory is the self.
The self consists of all the perceptions, ideas, values and characteristics
---------------------- that characterise “I or Me”. It includes “What I am” and “What I can do”.
Rogers’ defines the self-concept as “an organised, consistent, conceptual
---------------------- gestalt composed of perceptions of the characteristics of the I or me and
---------------------- the perceptions of the relationships of I or me to these perceptions”. Here
“I” refers to the personal self and “me” refers to the social self.
----------------------
Personal self consists of a person’s psychological processes, such as
---------------------- perception, motivation and attitudes, etc. that result in a composed whole.
On the other hand, the social self is the way an individual appears to others
---------------------- and the manner this person thinks he appears to others. The perceived self
influences the person’s perception of the world and his behaviour. An
----------------------
individual with a strong, positive self-concept is quite likely to view world
---------------------- quite differently from one whose self-concept is weak. One important
thing to remember here is that self-concept does not necessarily mean or
---------------------- reflect reality. The essence of this theory is that individuals normally are
active creators and initiators rather than passive reactors to the pressures
----------------------
of the environment.
---------------------- There is yet another self in Rogers’ self theory. That is the ideal self. It
represents the type of person an individual likes to be. This concept is
----------------------
similar to Freud’s ego ideal. If the ideal self is closer to the real self, then
---------------------- the individual will be more fulfilled and happy.
ii. Organism: The organism is essentially the locus of all experience. The
----------------------
totality of experience is the field known to the person himself and is
---------------------- frequently referred to as frame of reference. Behaviour of an individual is
largely determined by this field and not by the stimulating conditions of
---------------------- events in the external field or environment.
---------------------- The individual evaluates every experience in relation to his self-concept.
The experiences may be symbolised or unsymbolised. When they are
---------------------- symbolised they become part of individual’s consciousness. Conversely,
---------------------- when they are unsymbolised they remain outside the confines of the
awareness or consciousness of an individual. The important thing here is
---------------------- that distorted symbolisation gives rise to inappropriate behaviour.
---------------------- iii. Development of self-personality: Rogers feels that the fundamental force
motivating the human organism is self-actualisation, i.e., “a tendency
---------------------- toward fulfillment, toward the maintenance and enhancement of the
organism”. The tendency of self-actualisation of both the organism and
---------------------- the self is subject to the profound influence of the social environment. In
---------------------- the childhood itself, when the child’s behaviour is evaluated continuously
by his parents, he will be in a position to discriminate between thoughts
---------------------- and actions that are considered “worthy” and “unworthy”. He will be able
to exclude the unworthy experiences from his self-concept.
----------------------
Rogers maintains that the innate tendency toward self-actualisation often
---------------------- runs counter to two needs – the need for their regard and the need for
positive reward. It is true that the latter need is universal whereas the Notes
former one is the internalisation of those actions and values that others
approve. The regard may be conditional and unconditional. Ideally, the ----------------------
more completely the individual is given positive regard acceptance that is
not conditional to specific behaviours the more congruence there will be ----------------------
between his self-concept and his actual experience, as well as between his ----------------------
self-concept and ideal self.
----------------------

1. The word “personality” can be traced back to Latin words ‘per ----------------------
sonare’, which mean:
----------------------
i. “To wear a mask”
ii. “To have a distinct nature” ----------------------
iii. “To possess unique traits”
----------------------
iv. “To speak through”
----------------------
1. Individual personalities lead to individual differences in styles of ----------------------
coping with stress.
----------------------
2. Heridity and Environment are the major determinants of individual
personality. ----------------------
Fill in the blank. ----------------------
1.
Personality is a stable set of _________ and___________ that ----------------------
determines commonalities and differences in the psychological
behaviour of people. ----------------------
1. The biological factor, which determines personality are:
----------------------
i. Heredity
ii. Brain ----------------------
iii. Physical features ----------------------
iv. Blood group
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Personality 59
Notes
Activity 1
----------------------
---------------------- 1. Recollect your favourite personality from any field. What makes him/
her your favourite personality?
----------------------
2. In the above response, can you identify the things that this person
---------------------- does that makes you believe he/she has an influencing personality?
----------------------
---------------------- 4.5 PERSONALITY AND ORGANISATION
---------------------- In organisations, the difference in personalities of individuals are

aggregated and lost when they are regarded as having somewhat identical patterns
---------------------- of behavioural tendencies. Some people in organisations respond most favourably
to rule conscious, conformity demanding, security laden and most protective
---------------------- principles. In other words, there is a passion for bureaucracy for these people.
---------------------- On the other side, some other people prefer autonomy, flexibility in operations,
job dynamism, etc. in the organisation. Therefore, a good match between
---------------------- individual personality and organisation is essential. Unfortunately, mismatches
between personality and organisational requirements may also be bound to
---------------------- happen sometimes., Bureaucratisation, for example, may be associated with the
---------------------- people characterised by greater intellectual flexibility, higher valuation of self,
direction, greater openness to new experience and more personally rewarding
---------------------- morale standards, etc. Such a mismatch between personality and organisation
structure may lead to confusion and chaos, loss of interest by the members in
---------------------- the organisation, low morale and low job satisfaction.
---------------------- How is an individual’s personality determined?
---------------------- The source of personality differences has two important factors:
i. Heredity (Nature): Deeply ingrained in many people’s notions of
----------------------
personality is a belief in its genetic basis. Expressions, such as “He is
---------------------- just like his father.” reflect such beliefs. Historically, the nature-nurture
controversy in personality theory was a sharp disagreement about the
---------------------- extent to which the genetic factors influence personality.
---------------------- ii. Environment (Nurture): Many behavioural experts still believe that the
environment plays a larger role in shaping personality than do inherited
---------------------- characteristics. Aspects of the environment that influence personality
---------------------- formation include:
a. Culture: The term culture refers to the distinctive ways in which
---------------------- different human populations or societies organise their lives.
---------------------- Individuals born into a particular culture are exposed to family
and societal values and norms of acceptable behaviours. Although
---------------------- culture has an impact on the development of employee’s personality,
not all individuals respond to cultural influences equally. Indeed,
---------------------- one of the serious mistakes managers could make is to assume that
their subordinates and team members are just like themselves in Notes
terms of societal norms, values and personality.
----------------------
b. Family: The primary vehicle for socialising an individual into a
particular culture is the person’s immediate family. In particular, ----------------------
parents and family influence the development of their children in
four important ways: ----------------------
• Through their own behaviours, they present situations that ----------------------
bring out certain behaviours in children.
----------------------
• They serve as role models with which children often strongly
identify. ----------------------
• They selectively reward and punish certain behaviours. ----------------------
• The family’s situation is also an important source of personality
differences. Situational influences include the family’s size, ----------------------
socio-economic levels, race, religion, parent’s education, and ----------------------
so on.
c. Group membership: The first group to which most individuals ----------------------
belong is their family. People also participate in various groups in ----------------------
their lives. The numerous roles and experiences that people have as
members of groups represent another important source of personality ----------------------
differences. Although playmates and school groups early in life may
have the strongest influences on personality formation, social and ----------------------
group experiences in the later life continue to influence and shape ----------------------
personality.
----------------------
d. Life experiences: Each person’s life is also unique in terms of
specific events and experiences, which can serve as important ----------------------
determinants of personality. The development of self-esteem,
for example, depends on a series of experiences that include the ----------------------
opportunity to achieve goals and meet expectations, evidence of
----------------------
ability to influence others, and clear sense of being valued by others.
----------------------
4.6 PERSONALITY STRUCTURE
----------------------
The number and variety of specific personality traits or dimensions is
bewildering. The term “personality trait” typically refers to the basic components ----------------------
of personality. Trait simply refers to the terms people use to describe each other. ----------------------
To be useful, these terms need to be organised into small sets of concepts or
descriptions. ----------------------
Five main factors summarise the personality structure. These Big Five ----------------------
factors, as they often are referred to, describe an individual’s adjustment,
sociability, conscientiousness, agreeableness and intellectual openness. As shown ----------------------
in the figure below, each factor includes a potentially large number and range of
----------------------
specific traits or dimensions.
----------------------
Personality 61
Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Figure 4.1 The Big Five Personality Structure
---------------------- 4.7 PERSONALITY AND BEHAVIOUR

---------------------- Personality and behaviour of people in the organisation are intricately linked.
---------------------- Researchers, for example, have extensively investigated the relationships
between the personality factors and job performance. Their findings indicate that
---------------------- the employees who are responsible, dependable, persistent and achievement-
oriented, perform better than those who lack these traits. The personality factors
---------------------- that determine job performance are discussed below.
---------------------- 1. Self-esteem: It is the result of an individual’s continuing evaluation of
himself and herself. In other words, people develop, hold and sometimes
---------------------- modify opinions of their own behaviour, abilities, appearance and worth.
---------------------- These general assessments reflect responses to people and situations,
successes and failures and the opinion of others.
----------------------
Self-esteem affects behaviour in organisations and other social settings
---------------------- in several important ways. Self-esteem is related to initial vocational
choice. Individuals with high self-esteem, for example, take risks in job
---------------------- selection, are attracted to high status occupations and are more likely to
choose unconventional or non-traditional jobs than individuals with low
----------------------
self-esteem.
---------------------- Self-esteem is also related to numerous social and work behaviours.
Employees with low self-esteem, for example, are more easily influenced
----------------------
by the opinions of others around than are employees with high self-
---------------------- esteem. Employees with low self-esteem set lower goals for themselves
and are more susceptible to adverse job conditions, such as stress, conflict,
---------------------- ambiguity, poor supervision, poor working conditions, etc. than employees
with high self-esteem. In a general sense, self-esteem is positively related
----------------------
to achievement and willingness to expend efforts to accomplish tasks.
---------------------- Clearly, self-esteem is an important individual difference in terms of
effective work behaviour.
----------------------
2. Locus of control (LOC): It refers to the extent to which individuals
---------------------- believe that they can control events affecting them. Individuals who have a
high internal LOC (internals) believe that their own behaviour and actions Notes
primarily, but not necessarily totally, determine many of the events in
their lives. On the other hand, individuals who have a high external LOC ----------------------
(externals) believe that chance, fate or other people primarily determine
what happens to them. ----------------------
Many differences between internals and externals are significant in ----------------------

explaining aspects of behaviour in organisations and other social settings.
----------------------
3. Goal orientation: Another individual difference of importance for
behaviour in work settings is goal orientation or the preference for one ----------------------
type of goal versus another. Specifically, two orientations are considered
----------------------
important in terms of understanding some aspects of individual job
performances. A learning goal orientation is a predisposition to develop ----------------------
competence by acquiring new skills and mastering new situations.
A performance goal orientation is a predisposition to demonstrate and ----------------------
validate competence by seeking favourable judgments from others (e.g.,
----------------------
a supervisor) and avoiding negative judgments. The table below presents
a checklist that you can use to access your own learning and performance ----------------------
goal orientation with regard to your academic studies.
----------------------
Table 4.1 The Effects of Locus of Control on Performance
----------------------
Conditions Performance
Information Processing ----------------------
The work requires complex infonnation Internals perform better ----------------------
processing and complex learning.
----------------------
The work is quite simple and easy to learn Internals perform no better than
externals ----------------------
Initiative ----------------------
The work requires initiatives and Internals perform better
independent action ----------------------
The work requires Compliance and Externals pertonn better ----------------------

conformity
----------------------
Motivation
----------------------
The work requires high motivation and Internals perform better
provides valued rewards in return for ----------------------
greater efforts; incentive pay for greater
productivity ----------------------
A performance goal orientation can lead to a “helpless” response pattern in ----------------------
behaviour. That is, employees with a strong performance goal orientation
may avoid challenges at work and perform poorly when they encounter ----------------------
obstacles that are difficult to overcome. When faced with failure, such ----------------------
individuals are likely to become unhappy and dissatisfied and seek to
withdraw from the situation in which they find themselves. ----------------------
Personality 63
Notes By contrast, individuals with a strong learning goal orientation are
more likely to exhibit “mastery-oriented” responses to work challenges.
---------------------- Employees with a strong learning goal orientation strive to overcome
failure and setbacks by increasing their efforts and seeking new solutions
---------------------- to the problem. They treat failure as a form of useful feedback, typically
---------------------- maintain their composure when challenged, and sustain or increase
performance even when they face obstacles that are difficult to overcome.
----------------------
Although an individual’s goal orientation can vary somewhat in different
---------------------- situations, there is strong evidence that a significant amount of goal
orientation can be considered to be an aspect of individual’s personality.
---------------------- A strong learning goal orientation may be summed up by the slogan often
placed by coaches on the walls of locker rooms: When the going gets
----------------------
tough, the tough get going.
---------------------- A medical supplies distributor investigated the relationship between goal
orientation and job performance in a study of sales people employed. As
----------------------
expected, superior sales performance was associated with a learning goal
---------------------- orientation. Researchers concluded that simply “wanting to look good” (a
performance goal orientation) would not allow sales people to succeed.
---------------------- These sales people needed to have the desire to develop the skills needed
for success (a learning goal orientation). One recommendation to the
----------------------
organisation was to seek evidence of a learning goal orientation when
---------------------- selecting employees for their sales force.
4. Introversion and extroversion: In everyday usage, the words introvert
----------------------
and extrovert describe a person’s congeniality. An introvert is shy and
---------------------- retiring, whereas an extrovert is socially gregarious and outgoing. The
terms have similar meanings when used to refer to personality dimensions.
----------------------
One of the most striking implications of the introversion-extroversion
---------------------- personality dimension involves task performance in different
environments.
----------------------
Introversion is a tendency to be directed inward and have a greater affinity
---------------------- for abstract ideas and sensitivity to personal feelings. Introverts are quiet,
introspective and emotionally unexpressive.
----------------------
Extroversion is an orientation towards other people, events and objects.
---------------------- Extroverts are sociable, lively, impulsive and emotionally expressive.
Extroverts are well represented in managerial occupations because the
---------------------- manager’s role often involves working with others and influencing them
---------------------- to attain organisational goals.
Evidence suggests that introverts perform better alone and in a quiet
----------------------
environment, whereas extroverts perform better in an environment with
---------------------- greater sensory stimulation, such as a noisy office with many people and
a high level of activity.
----------------------
Although some people exhibit the extremes of introversion and
---------------------- extroversion, most are only moderately introverted or extroverted or are
even relatively balanced between the extremes. Introverts and extroverts, Notes
appear in all educational, gender, and occupational groups. Research even
suggests that some extroversion or extreme introversion can interfere ----------------------
with an individual’s effectiveness in an organisation.
----------------------
Recall our discussion of the sources of personality differences among
people (nature versus nature). Interestingly, many experts consider ----------------------
introversion and extroversion to be personality dimensions with a
----------------------
relatively high genetically determined component.
5. Dogmatism: Dogmatism refers to the rigidity of a person’s beliefs. The ----------------------
highly dogmatic individual perceives the world as a threatening place,
----------------------
often regards legitimate authority as absolute and accepts or rejects
other people on the basis of their agreement with accepted authority or ----------------------
doctrine. The high-dogmatic (HD) individual is close-minded, and the
low-dogmatic (LD) person is open-minded. As a result, HDs appear to ----------------------
depend more on authoritative figures in the organisation for guidance and
----------------------
direction and are more easily influenced by them.
Some relationship between the degree of dogmatism and group behaviour ----------------------
also seem to exist. HDs, for example, typically need more group structure
----------------------
than do LDs to work effectively with others. Hence, the performance of HDs
assigned to task forces and committees may vary somewhat, depending ----------------------
on how the group goes about its work. A high degree of dogmatism is
related to a limited search for information in decision-making situations, ----------------------
which sometimes leads to poor managerial performance.
----------------------
6. Authoritarianism: The authoritarian personality describes someone who
adheres to conventional values, obeys recognised authorities, exhibits a ----------------------
negative view of society, respects power and toughness and opposes the ----------------------
expression of personal feelings.
In organisations, the authoritarian personality probably is subservient to ----------------------
authority figures and may even prefer superiors who have a highly directive, ----------------------
structured leadership style. Both dogmatism and authoritarianism are
related to the intellectual openness factor. ----------------------
7. Organisational implications: It should be evident by now that the ----------------------
personality dimensions discussed, and the specific relationship for each,
have important implications for organisational behaviour. However, ----------------------
managers and groups should not try to change or otherwise directly control
employees’ personality. Even if such control were possible, it would be ----------------------
highly unethical. Rather, the challenge for managers and employees is ----------------------
to understand the crucial role played by personality in explaining some
aspects of human behaviour in the workplace. Knowledge of important ----------------------
individual differences provides managers, employees, and students of
organisational behaviour with valuable insights and a framework that ----------------------
they can use to diagnose events and situations. ----------------------
8. The person and the situation: Although understanding differences in
----------------------
personality is important, behaviour always involves an interaction of the
Personality 65
Notes person and the situation. Sometimes the demands of the situation may be
so overwhelming that individual differences are relatively unimportant.
---------------------- If, for example, an office building is burning, everyone in it will try to flee.
However, the fact that all employees behaved the same way says nothing
---------------------- about the personalities of those individuals. In other cases, individual
---------------------- differences may explain more about behaviour.
The relative importance of situational versus dispositional (personal)
----------------------
determinants of behaviour continues to be debated, but considerable evidence
---------------------- exists for roles by both.

----------------------
State True or False
----------------------
1. Learning can be defined as the process leading to relatively permanent
---------------------- behavioural change or potential behavioural change.
---------------------- 2. The knowledge of self-concept helps managers to apply and reinforce
motivational and leadership techniques.
----------------------
3. Low dogmatic individuals are considered to be close-minded
----------------------
----------------------
Activity 1
----------------------
1. Some questions are given below. Take your time and think about your
---------------------- answers. For each of your answers, write down a number 1 to 5.
---------------------- 1. Strongly disagree/Not at all/That’s not me.
---------------------- 2. Somewhat disagree/Not usually.

3. Riding the fence.
----------------------
4. Somewhat agree/Sometimes.
----------------------
5. Strongly agree/Most of the time/That’s me.
---------------------- a. Are your failures usually due to your lack of skills and/or intelligence?
__________
----------------------
b. Do you usually fail at getting what you want out of life? __________
----------------------
c. If someone was brought up without a proper education, will they be less
---------------------- successful?_________________
---------------------- d. Are you confused by others’ opinions of you? ____________
e. If you believe in something, will you always believe in the same thing?
----------------------
_________
---------------------- f. Can you make a difference in lowering the crime rate? _________
----------------------
Notes
g. Can people teach themselves to be more intelligent? ____________
h. Can you change the outcome of a failure to make it a success in the ----------------------
future? __________
----------------------
i. If you are successful, does chance have more of an impact over your
skills? ________ ----------------------
j. If someone had an unhappy childhood, will that person be an unhappy ----------------------

adult? _____________
----------------------
k. Are you the master of your own fate? _____________
----------------------
l. If you have a bad day, can that factor alone lead to a project failure?
_________ ----------------------
m. Have you earned the respect others show you? ____________ ----------------------
n. If you have failed once, will you fail the same task again? __________ ----------------------
o. Does persistence in a project generally lead to success? ___________
----------------------
p. Are your failures usually due to your lack of effort and/or environmental
conditions? _____________ ----------------------
q. Is your life usually controlled by others? __________ ----------------------
r. Do you know who your real friends are? ____________ ----------------------
s. Can a sudden rush of creative energy make a project a lot more
----------------------
successful? _____________
t. Can one become successful just by being at the right place at the right ----------------------
time? _________________ ----------------------
Locus of Control ----------------------
Internal External
----------------------
6 2
----------------------
11 4
13 9 ----------------------
15 17 ----------------------
18 20 ----------------------
Total = Total =
----------------------
For each question, add the numerical value (1−5) next to the question
number in the above columns. ----------------------
Add up the numerical values you just entered. Each column should have a ----------------------
value between 5 and 25. The highest number between Internal and External
is your Locus of Control type. ----------------------
----------------------
Personality 67
Notes
2. What’s my basic personality?
---------------------- Listed below is a set of 15 pairs of adjectives. For each, select the number
---------------------- along the scale that most closely describes you or your preferences.
1 Quiet 12345 Talkative
----------------------
2 Tolerant 12345 Critical
---------------------- 3 Disorganised 12345 Organised
---------------------- 4 Tense 12345 Calm
5 Imaginative 12345 Conventional
---------------------- 6 Reserved 12345 Outgoing
---------------------- 7 Uncooperative 12345 Cooperative
8 Unreliable 12345 Dependable
----------------------
9 Insecure 12345 Secure
---------------------- 10 New 12345 Familiar
11 Sociable 12345 Aloof
----------------------
12 Suspicious 12345 Trusting
---------------------- 13 Undirected 12345 Goal-oriented
---------------------- 14 Enthusiastic 12345 Depressed
15 Changing 12345 Unchanging
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Analysis:
---------------------- • Extraversion: Someone who is sociable, talkative and assertive. High
---------------------- scores indicate an extravert; low scores indicate an introvert.
• Agreeableness: Someone who is good-natured, cooperative and trusting.
---------------------- This is a measure of your propensity to defer to others. High scores
---------------------- indicate you value harmony; low scores indicate you prefer having your
say or way on issues.
---------------------- • Conscientiousness: Someone who is responsible, dependable, persistent,
---------------------- and achievement-oriented. High scores indicate that you pursue fewer
goals in a purposeful way; low scores indicate that you are more easily
---------------------- distracted, pursue many goals and are more hedonistic.
• Emotional stability: Someone who is calm, enthusiastic and secure. Notes
High scores indicate positive emotional stability; low scores indicate
negative emotional stability. Openness to experience. Someone who is ----------------------
imaginative, artistically sensitive and intellectual. High scores indicate
a wide range of interests and a fascination with novelty and innovation; ----------------------
low scores indicate that you are more conventional and find comfort in ----------------------
the familiar.
----------------------
Case Study ----------------------
Cisco beats a path to disabled workers. ----------------------
The high-tech giant has seen the good business sense of scouting for hires
in the disabled community. ----------------------
Students at the Rochester Institute for the Deaf might have a Cisco Systems ----------------------
career in their future. The high-tech juggernaut is looking to set up a recruiting
----------------------
relationship with the technical training departments of the school as part of an
ongoing push to hire more disabled employees. ----------------------
Sounds like a nice press release. But this initiative is hardly a token effort.
----------------------
In fact, Cisco is not only a NASDAQ bellwether but also a leader in recruiting
and employing the disabled. The San Jose (Calif.)-based company, which makes ----------------------
the computer routers that direct traffic on the Internet, also recruits disabled
employees through disability organisations, including regional groups such as ----------------------
Project Hired, TransAccess, Sensory Access and national groups, such as the
----------------------
National Disability Business Council.
In fact, the company recently took the extra step of developing and ----------------------
implementing its own curriculum for teaching disability etiquette and outreach
----------------------
techniques to Cisco recruiters. The aim was to increase their ability to
communicate effectively and comfortably with disabled potential hires. Bottom ----------------------
line? Cisco gets it when it comes to working with the disabled.
----------------------
Customer advantage
Cisco’s logic here is simple. Employees with disabilities are good for ----------------------
business. They add diversity to a workforce, something that Cisco CEO John ----------------------
Chambers has long trumpeted as a factor in improved productivity and creativity.
Furthermore, some of the company’s customers have disabled employees. So ----------------------
acclimating Cisco’s workers to professional contact with disabled workers inside
the company has the added benefit of enabling them to work productively with ----------------------
Cisco clients. ----------------------
“We have employees with disabilities, and we have customers with
disabilities whose information needs must be met. As a result, we do our best ----------------------
to accommodate their communications needs,” says Nancy Cruz, who oversees ----------------------
Cisco’s disability policies and recruiting efforts.
----------------------
That’s a nice sound bite. But the truth is Cisco really practises what it
preaches. I spoke to dozens of people and could not find anyone who had bad ----------------------
Personality 69
Notes things to say about the company with regard to its efforts to both employ and
accommodate disabled workers.
----------------------
Here are some examples of how Cisco puts its money where its mouth is.
---------------------- It has taken pains to keep its website completely accessible, a rarity in the
tech field, where Byzantine sites often frustrate screen-reading software. It is
----------------------
moving toward even further accessibility by integrating audio and video files into
---------------------- the recruiting portion of Cisco.com. “We do not use frames on our Web pages,
which are what makes it difficult for someone using screen-reader technology
---------------------- to translate,” says Cruz.
---------------------- Proactive approach
---------------------- The company also maintains a pool of Telecommunications Device

for the Deaf (TDD) (text teletype) devices for use on an on-call basis by its
---------------------- deaf and hearing-impaired employees. That’s a solid proactive step to ensure
that these employees can work in any part of the company and still find a key
---------------------- communications tool at their fingertips. These extra efforts do make a difference.
---------------------- Just ask Lee Mudrock, a hearing-impaired electrical engineer at Cisco, Mudrock
claims the company provides him with everything he needs, including a TDD
---------------------- and other assistive-tech tools. “Having been here several years, I know Cisco is
really interested in my abilities. I have everything I need for my job,” he says.
----------------------
Mudrock’s view is backed up by former Cisco employees with disabilities.
---------------------- Take Cheryl Mitchler, who has cerebral palsy with a severe speech impediment.
People with this condition often have tremendous difficulty obtaining work due
---------------------- to the dual impairments to their speech and mobility. She worked at Cisco from
---------------------- 1997 through 1999 as a systems engineer and left the company to pursue a PhD
in electrical engineering at the prestigious University of California, Los Angeles.
---------------------- “My supervisors bought me all the technology I needed and never asked me why.
I felt like a very valued employee,” says Mitchler, who has no regrets from her
---------------------- Cisco years.
---------------------- Job-placement agencies for the disabled that work with Cisco say the
company has a similarly proactive approach to recruiting. Unlike other tech
---------------------- businesses, Cisco regularly comes to these agencies in search of workers. Usually
---------------------- it’s the other way around, with the agencies spending most of their time beating
the bush for potential employers, says Karen Kuczler, a counsellor at Santa Clara,
---------------------- Calif., non-profit Project Hired.
---------------------- Driven by the boss
To be sure, many other technology companies have laudable programmes
----------------------
to hire and accommodate disabled workers. Both Microsoft and IBM have won
---------------------- acclaim in the disability community for hiring and supporting disabled workers.
But Cisco is unlike those two in that it conducts most of its business with telecom
---------------------- and data companies, not consumers. For Microsoft, accessibility technology could
be a future tool to attract aging Baby Boomers who are losing their hearing or
----------------------
vision. IBM has similar contact with consumers. For Cisco, the rationale behind
---------------------- its move to include the disabled, although smart business, is less obvious.
Part of Cisco’s drive likely has come from CEO Chambers, who himself is Notes
dyslexic and under Section 508 of the Americans with Disabilities Act, companies
bear a legal responsibility to ensure that their hiring practices and workplaces are ----------------------
accessible to the disabled. Cisco sees that as an opportunity. “Companies will
have to employ more disabled people to meet the accessibility requirements of ----------------------
508. The best testers and developers of assistive-technology hardware, software ----------------------
and accessibility issues are disabled people,” says Cruz.
----------------------
How many Lee Mudrocks has Cisco hired? That remains unclear, as the
company declines to divulge how many disabled people it employs. Number of ----------------------
disabled employees in the tech sector as a whole is likewise murky, but possibly
in the thousands. Project Hired’s Kuczler says, though, that she regularly places ----------------------
workers with Cisco.
----------------------
Thus far, the company has failed to promote anyone with disabilities into
the very top executive ranks. That’s not unusual, however. Few technology ----------------------
companies have taken that step − a glass ceiling still blocks the executive suites
----------------------
of Silicon Valley. Perhaps Cisco can set a standard there, too, by hiring the first
top executive with a disability. It would be a crowning achievement for a company ----------------------
that has already thrown its doors wide open to the disabled.
[Source: fastcompany.com] ----------------------
----------------------
Summary
----------------------
• Personality is an important cognitively-oriented variable in the study
of OB. Personality represents the whole person. It includes perception, ----------------------
learning, physique and a lot more of a person. ----------------------
• The Determinants of Personality of an individual can be studied under the
four broad headings: Biological, Cultural, Familial & Situational. ----------------------
• Thinkers have tried to explain various determinants of personality. ----------------------

However, we find that every theory tends to take a specific view of the
----------------------
major determinants of personality.
• Personality, however, is not a static. It has determinants. It is the psycho- ----------------------
physical, socio- environmental combination that makes personality
----------------------
dynamic.
----------------------
Keywords
----------------------
• Personality: The particular combination of emotional, attitudinal and ----------------------
behavioural response patterns of an individual.
• Personality trait: Traits are primarily habitual patterns of behaviour, ----------------------
thought and emotion. ----------------------
• Intrapsychic: A psychological term referring to internal psychological
processes of the individual. ----------------------
----------------------
Personality 71
Notes • Locus of control: A theory in personality psychology referring to the
extent to which individuals believe that they can control events that affect
---------------------- them.
---------------------- • Dogmatism: Arrogant assertion of opinions as truths.
• Id, ego and superego: The three parts of the psychic apparatus defined
----------------------
in Sigmund Freud’s structural model of the psyche; they are the three
---------------------- theoretical constructs in terms of whose activity and interaction, mental
life is described. According to this model of the psyche, the id is the set
---------------------- of uncoordinated instinctual trends; the ego is the organised, realistic part;
and the superego plays the critical and moralising role.
----------------------

---------------------- 1. Define personality. Explain the determinants of personality.
---------------------- 2. Explain the significance of personality in work life.
---------------------- 3. Discuss Sigmund Freud’s intrapsychic theory of personality.
4. Critically examine trait theory of personality.
----------------------
5. How can one determine an individual’s personality? Describe the “Big
---------------------- Five Personality Structure”.
---------------------- 6. How does personality affect one’s behaviour? Give suitable examples.
a) Self theory
----------------------
b) Introversion and extroversion
----------------------
c) Dogmatism and authoritarianism
----------------------
----------------------
Check your progress 1
----------------------
----------------------
1. The word “personality” can be traced back to Latin words ‘per sonare’,
---------------------- which mean
---------------------- i. “To wear a mask”

State True or False:
----------------------
i. True
----------------------
ii. True
---------------------- Fill in the blanks.
---------------------- 1. Personality is a stable set of characteristics and tendencies that determines
commonalities and differences in the psychological behaviour of people.
----------------------
Multiple Choice Multiple Response. Notes
1. The biological factor, which determines personality are:
----------------------
i. Heredity
----------------------
ii. Brain
iii. Physical features ----------------------
----------------------
State True or False
----------------------
1. True
----------------------
2. True
3. False ----------------------
----------------------
Suggested Reading
----------------------
1. Khanka S.S. Organisational Behaviour. S. Chand & Co.
----------------------
2. Aswathappa, K. Organisational Behaviour. Himalaya Publishing House.
----------------------
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Personality 73
Notes
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Attitudes
UNIT
Structure:
5
5.1 Introduction
5.2 Nature of Attitude
5.3 Arousal of Attitude
5.4 Attitudes and Values
5.5 Attitudes and Opinions
5.6 Attitudes, Beliefs and Ideology
5.7 Attitudes and Prejudices
5.8 Characteristics of Attitude
5.9 Attitude Formation
5.10 Measurement of Attitude
5.11 Changing Attitudes
5.12 Attitudes and Behaviour
5.12.3 Commitment to Organisation
Summary
Key Words
Suggested Reading
Attitudes 75
Notes
Objectives
----------------------
----------------------
• Describe the nature and importance of attitude
----------------------
• Analyse the differences between attitudes, opinion, value, ideology, etc.
---------------------- • Appraise how attitudes are formed and how attitudes can be changed
---------------------- • Justify work attitudes like job satisfaction and organisational
commitment
----------------------
----------------------
5.1 INTRODUCTION
----------------------
Developing climate for teamwork and mutually supporting atmosphere
----------------------
in organisation calls for predicting and estimating the individual’s responses to
---------------------- certain organisational stimuli. Individuals react to different stimuli on the basis
of learned preferences. An individual’s behaviour is a function of attitudes. An
---------------------- attitude is a cognitive element; it always remains inside a person. In organisational
context, employees have attitudes related to job security or uncertainty, prestige
----------------------
of the department and the work that they do, etc. The individual’s attitudes toward
---------------------- these factors are indicative of his apathy or enthusiasm toward the activities and
objectives of the organisation.
----------------------
The notable feature of attitude is that it varies in direction, (favourable-
---------------------- unfavourable) intensity, (how strongly they are held) and the extent of
consciousness (awareness of individual concerning his attitude).
----------------------
---------------------- 5.2 NATURE OF ATTITUDE

---------------------- An attitude may be defined as a tendency to react positively or negatively
with regard to an object., A person who, for example, has a positive attitude
---------------------- towards religion is likely to enjoy going to worship services, to believe that
religious institutions foster morality, and therefore, may contribute towards its
----------------------
financial support.
---------------------- An attitude is always directed toward some object, such as the temple,
---------------------- school, etc. The object may be of general social significance, such as labour-
management relations, or it may be purely personal, such as a feeling about
---------------------- playing cricket or football. Moreover, the object of an attitude may be as abstract
as the philosophy of re-birth or as concrete as a car.
----------------------
An attitude is a tendency to react in a certain way. That is, a person who has
---------------------- an attitude has a readiness or a disposition to react favourably or unfavourably
to anyone or a large variety of related situations. Until some situation arouses it,
---------------------- however, the attitude is latent. A man who, for example, has a patriotic attitude
---------------------- toward his country is not continuously aroused about it. But his patriotic attitude
arises when his country is threatened from an external aggression or if the National Notes
Anthem is sung, and so on.
----------------------
Attitudes are for or against things. We tend to have favourable attitudes
toward sources of gratification and unfavourable attitudes toward sources of ----------------------
punishment and frustration. It is possible, of course, that our attitude toward an
object may not be uniformly favourable or unfavourable. We, for example, may ----------------------
admire and respect American technical accomplishments and yet resent other
----------------------
aspects of its system.
----------------------
5.3 AROUSAL OF ATTITUDE
----------------------
What kinds of events are likely to arouse attitudinal reactions? The
following principles outline conditions for attitude arousal: ----------------------
• If an event appears to maintain, attain or foster movement toward ----------------------

what one values, then that event will tend to arouse positive reactions.
----------------------
Accordingly, a person who identifies with the goals of management would
react positively to legislation or proposal to restrict unionism. ----------------------
• If an event appears to destroy, prevent attainment of, or otherwise
----------------------
endanger what one values, then that event will tend to arouse negative
reactions. Accordingly, a person who identifies with the goals of labour ----------------------
unions would react negatively to legislation or proposal to restrict trade
unionism. ----------------------
The stronger an attitude, the lesser is the stimulation necessary to arouse it. ----------------------
Let us assume that the following items constitute an ascending scale of ----------------------
stimulation of attitude arousal for a person who has an unfavourable attitude
toward labour unions: ----------------------
a) Seeing a group of people in working clothes. ----------------------
b) Seeing a group of labourers entering a union hall.
----------------------
c) Seeing a group of labourers picketing in an orderly manner.
----------------------
d) Seeing a group of labourers milling about, jeering and overturning a
company truck. ----------------------
For a person who has a weakly unfavourable attitude toward labour unions,
----------------------
perhaps only item “d” would produce much of an attitudinal reaction. On the
other hand, for a person who has an intensely anti-union attitude, item “b” and ----------------------
even “a” would be capable of arousing the attitude.
----------------------
The stronger one’s attitude, the greater is the probability of arousal of the
attitude or the wider is the range of stimulus situations which are capable of ----------------------
arousing it. Those who, for example, have strong attitudes, either favourable or
unfavourable, towards untouchables, are likely to be aroused by a wider range ----------------------
of situations than are those who have weak attitudes. ----------------------
An aroused attitude consists of three categories of internal (implicit, covert)
responses. These consist of affective (emotional) reactions, cognitive (thoughts, ----------------------
Attitudes 77
Notes perceptual reactions, judgements), and action tendencies. The latter are actually
motives for doing particular things.
----------------------
Suppose, for example, we consider someone’s internal reactions to
---------------------- situations involving higher education. He likes (affective reaction) the company of
well-educated people, enjoys (affective reaction) spending time in the university
---------------------- library, believes (cognition) that industrial society depends upon what universities
do, judges (cognition) that college professors are capable people, and wants
----------------------
(action tendency) to contribute to a campaign to raise the university endowment.
---------------------- Thus, an aroused attitude can be regarded as having affective, cognitive and
action components.
----------------------
The set of implicit responses that is aroused on a particular occasion
---------------------- depends upon the person and the stimulus situations. Sometimes we have strong
emotional reactions to a situation but lack definite beliefs and action tendencies
---------------------- in relation to it. We, for example, might deeply resent a foreigner’s criticism of
our country’s policies but not have any systematic belief about the significance of
----------------------
his actions or any definite action tendencies. In some people affective reactions
---------------------- and beliefs may play a large part in their religious attitudes while their action
tendencies are minimal.
----------------------
The greater the degree of arousal of the affective component of an attitude,
---------------------- the greater is the strength of reaction to other attitude-related stimuli. If a person
is already stirred up about something relevant to an attitude, he will tend to
---------------------- react to some new attitude stimulus more strongly than he would otherwise do.
A community that is angry about a “communal incident” will be likely to be
----------------------
sensitised to new threats to its values. It is not even necessary that the affective
---------------------- arousal be related to an attitudinally relevant stimulus for its effect to occur.

----------------------
Multiple Choice Single Response
----------------------
1. For a management staff who has unfavourable attitude towards labour
---------------------- union, which of the following item stimulates negative attitude?
---------------------- i. Seeing a group of employees in uniform celebrating a festival
---------------------- ii. Seeing a group of employees causing damage to the employer’s

property
---------------------- iii. Seeing a group of employees entering a canteen
---------------------- State True or False
---------------------- 1. The stronger one’s opinion the greater is the probability of arousal of
the attitude
----------------------
2. Every person has attitude irrespective of their social and economic
---------------------- status.
----------------------
5.4 ATTITUDES AND VALUES Notes
Value is defined as a “concept of the desirable, an internalised criterion ----------------------

or standard of evaluation a person possesses”. Such concepts and standards are
----------------------
relatively few and determine or guide an individual’s evaluations of the many
objects encountered in everyday life. ----------------------
Values are tinged with moral flavour, involving an individual’s judgment ----------------------
of what is right, good or desirable. Thus values:
a) Provide standards of competence and morality. ----------------------
b) Are fewer in number than attitude. ----------------------
c) Transcend specific objects, situations or persons.
d) Are relatively permanent and resistant to change. ----------------------
e) Are most central to the core of a person. ----------------------
There are differences between values and attitudes. Attitudes essentially ----------------------
represent predispositions to respond. Values focus on the judgment of what ought
to be. This judgment can represent the specific manifestation of a determining ----------------------
tendency below the surface of the behaviour. Attitudes represent several beliefs
focussed on a specific object or situation. Value, on the other hand, represents a ----------------------
single belief that transcendentally guides actions and judgments across objects and ----------------------
situations. Finally, a value stands in relation to some social or cultural standards
or norms while attitudes are mostly personal experiences. ----------------------
There are similarities between values and attitudes. Both are powerful ----------------------
instruments influencing cognitive process and behaviour of people. Both are
learned and acquired from the same source – experiences with people and ----------------------
objects. Values and attitudes are relatively permanent and resistant to change.
Finally, values and attitudes influence each other and are, more often than not, ----------------------
used interchangeably. ----------------------
5.5 ATTITUDES AND OPINIONS ----------------------
An opinion is an expression of an evaluative judgment or point of view ----------------------

regarding a specific topic or subject. An attitude is somewhat generalised (such ----------------------
as liking or not liking a person’s supervisor), whereas an opinion, typically, is
an interpretation regarding a specific matter, such as saying that the boss plays ----------------------
favourites in granting promotions.
----------------------
Opinions, however, are typically influenced by the more generalised
attitude. The facts or observations related to an individual’s experiences are ----------------------
interpreted in the light of his attitudes. Thus, if an engineer calls the attention of
his work group to the fact that some of the safety rules have been violated, one ----------------------
person (who has an “unfavourable” attitude toward the engineer) might later ----------------------
express the opinion to one of his colleagues that the engineer is “just picking
on us”. Another person (who has a “favourable” attitude toward the engineer) ----------------------
might later express the opinion that “the engineer is simply trying to keep us
from getting our fingers cut off”. ----------------------
Attitudes 79
Notes 5.6 ATTITUDES, BELIEFS AND IDEOLOGY
---------------------- A belief is a judgment about something. A belief, for example, that the
---------------------- world is round is a judgment about its form. Many of our beliefs, of course, are
emotionally neutral; others are definitely favourable or unfavourable toward
---------------------- some object. A favourable attitude towards religion, for example, may involve
beliefs that religion helps to curb delinquency, worshippers’ are better citizens
---------------------- than non-devotees, that people who stay away from temples are unhappy and
---------------------- immoral, and so on.
When beliefs become organised into systems, they are called ideologies.
---------------------- The capitalist ideology, for example, is a set of beliefs that a free enterprise
---------------------- economy is maximally productive; that competition in the long run brings down
prices and raises quality; and that events in the marketplace do and should
---------------------- determine what is produced.
---------------------- Related to this is a disbelief system – the set of beliefs that one rejects. An
individual committed to capitalist ideology would disbelieve that industry can
---------------------- be run efficiently without the profit system; that people will work primarily out
of a desire to serve others; or that public ownership of all utilities is necessary
---------------------- for the common good.
---------------------- There are ideologies pertaining to all the major institutions of society, such
as the family, the law, the government, and the economic system. Although these
----------------------
ideologies are difficult to verify, we feel strongly about them and, as long as
---------------------- things go well, have great confidence in them. They give us an interpretation and
a justification for our practices. Like religion, they are matters of faith. They give
---------------------- us an interpretation and a justification for our practices. Like religion, they are
matters of faith. They give us social definition of reality. It is an interesting thing
----------------------
about human behaviour that some of the beliefs that we hold most tenaciously
---------------------- with the strongest feelings are not readily subject to proof or disproof.
---------------------- 5.7 ATTITUDES AND PREJUDICES

---------------------- A prejudice is defined as an attitude that is emotionally resistant to
---------------------- being changed. Prejudices are strongly entrenched and vigorously defended,
if threatened. They are acquired in the same way as other attitudes. They are
---------------------- supported by differences in relative privileges, fear and certain personality factors.
---------------------- Prejudice refers to a positive or a negative attitude or belief directed toward
certain people based on their membership in a particular group. The root word
---------------------- of prejudice is “pre-judge”. It is “a set of attitudes, which causes, supports or
justifies discrimination”. Prejudice refers to a tendency to “over categorise”.
----------------------
Prejudiced people respond to others in a more or less fixed way.
---------------------- Three kinds of prejudice are as follows:
---------------------- 1. Cognitive prejudice: Cognitive prejudice refers to what people believe
is true.
----------------------
2. Affective prejudice: Affective prejudice points to people’s likes and Notes
dislikes.
----------------------
3. Conative prejudice: Conative prejudice refers to how people are inclined
to behave. Note that this is still an attitude because people don’t actually ----------------------
act on their feelings. An example of conative prejudice might be found in
----------------------
the statement “If I were in charge I’d send all those whom I dislike back
to wherever they came from." ----------------------
While these three types of prejudice are correlated, all don’t have to ----------------------
be present in a particular individual. Someone, for example, might believe a
particular group possesses low level of intelligence, but harbour no ill- feeling ----------------------
toward that group. On the other hand, one might not like a group because of ----------------------
intense competition for jobs, but still recognise no inherent differences between
groups. ----------------------
----------------------
5.8 CHARACTERISTICS OF ATTITUDE
----------------------
Attitudes can be characterised by their valence, multiplexity, relation to
needs and centrality. ----------------------
a) Valence: It refers to the magnitude or degree of favourableness or ----------------------
unfavourableness towards the object/event. While measuring the attitudes
we are basically concerned with valence. If a person is relatively indifferent ----------------------
towards an object then his attitude has low valence. On the other hand, if ----------------------
a person is extremely favourable or unfavourable towards an object, then
his attitude will have a high valence. ----------------------
b) Multiplexity: It refers to the number of elements constituting the attitude. ----------------------

One student, for example, may show interest in studies, but another not
----------------------
only shows interest, but also works hard, is sincere and serious. Similarly,
an employee may feel simply loyal to an organisation, but another may ----------------------
feel loyal, respectful, fearful and dependent.
----------------------
c) Relation to needs: Attitudes vary in relation to needs they serve. For
example, attitude of an individual towards pictures may serve only ----------------------
entertainment needs. On the other hand, attitude of an individual towards ----------------------
a task may serve strong needs for security, achievement, recognition and
satisfaction. ----------------------
d) Centrality: One salient characteristic of attitude refers to the importance ----------------------
of the object to the individual. The centrality indicates the importance of
----------------------
the object. The attitudes that have high centrality for an individual will be
less susceptible to change. ----------------------
----------------------
----------------------
Attitudes 81
Notes
----------------------
---------------------- State True or False.

1. An attitude is a tendency to react in a certain way.
----------------------
2. Attitude is only for and against people.
---------------------- 3. The greater the degree of arousal of the affective component of an
attitude, the greater is the strength of reaction to other attitude-related
---------------------- stimuli.
---------------------- 1. The concept of the desirable, an internalised criterion or standard of
evaluation a person possess is known as:
---------------------- i. Value
---------------------- ii. Opinion
iii. Belief
----------------------
iv. Ideology
---------------------- 2. Which of the following is not a characteristic of attitude?
---------------------- i. Valence
ii. Multiplexity
----------------------
iii. Relation to need
---------------------- iv. Uniformity
----------------------
----------------------
Activity 1
----------------------
---------------------- Your organisation has procured a very challenging project and you are in
charge of delivering it successfully. You know that the only way it will
---------------------- happen is when you have a strong and committed team. There is a project
team, which is currently available for working on this project. However, you
----------------------
know that this team comprises members who are known for inconsistent
---------------------- performance, unruly behaviour on the job and wavering commitment levels.
You have no choice but to work with this team. The only strength you see
---------------------- in this team is that every member is technically brilliant and fits perfectly
with the requirements of this project. The only thing you will need to work
----------------------
on as a manager is their attitude. How will you do that?
----------------------
---------------------- 5.9 ATTITUDE FORMATION

---------------------- The question often arises, “Where do attitudes come from?” Attitudes are
basically learned. People are not born with specific attitudes; rather they acquire
----------------------
them through “processes of learning”. Attitudes reflect a person’s previous Notes
reinforcement history.
----------------------
The sources of a person’s attitude are a mixture of:
a) Personal experiences: People form attitudes by coming in direct contact ----------------------
with an attitude object. By the time a person goes for work in a specified
----------------------
organisation, he holds many attitudes toward the type of the job that is
acceptable to him, the expected pay, working conditions and supervision. ----------------------
Through job experiences, people develop attitudes about such factors
as salary, performance reviews, job design, work group, affiliation and ----------------------
managerial capabilities, etc. Previous work experience can account for
----------------------
the individual differences in attitudes, such as loyalty, commitments,
performance, etc. Many managers in work organisations frequently notice ----------------------
these differences in attitudes.
----------------------
b) Association: People are highly influenced by the major groups or
associations to which they belong. Geographic region, religion, ----------------------
educational background, race, sex, age, income and class, all strongly
influence attitudes. The nearer the group the stronger is the group influence ----------------------
on the attitudes of the individual.
----------------------
c) Family: Family is the primary group that an individual belongs to.
Family exerts influence on the initial core of attitudes held by an ----------------------
individual. Individuals develop certain attitudes from family members ----------------------
– parents, brothers, sisters, etc. The family characteristics influence the
individual’s early attitude patterns. Researchers have found a high degree ----------------------
of relationship between parents and children in attitudes than they found
between children and their peers. They also empirically observed low ----------------------
correlation between attitudes of the children and their teachers. ----------------------
d) Peer groups and society: As people approach their adulthood, they
increasingly rely on their peer groups for approval/attitude. How others ----------------------
judge an individual largely determine his self-image and approval- ----------------------
seeking behaviour. Social class and religious affiliation also play vital
role in forming attitudes of an individual. The culture, language and the ----------------------
structure of society, all provide an individual with the boundaries of his
initial attitudes. At the very early age an individual is taught that certain ----------------------
attitudes are acceptable and certain others are unacceptable in the society. ----------------------
What seem to be appropriate in one individual’s culture and society may
be totally unacceptable in another culture. ----------------------
e) Models: Some of the attitudes are developed through imitation of models. ----------------------
The process is something like this. In a particular situation, we see how
another person behaves. We correctly or incorrectly interpret his behaviour ----------------------
as representing certain attitudes and beliefs. If we identify with him and
respect his judgment, we tend to accept his way of perceiving and feeling ----------------------
about the situation. Children are often quite observant about how their ----------------------
parents react to different people and situations. They learn by watching
whom their parent’s respect, which they treat with condescension, whom ----------------------
Attitudes 83
Notes they regard as friends and whom they dislike. Such evaluations maybe
acquired without the child’s directly interacting with such people. Instead
---------------------- of using a simple model, children (and adults) may seek to emulate
different characteristics of different people. In this way their values,
---------------------- attitudes and beliefs may be derived from many other people. Those that
---------------------- are functional for them tend to be retained.
f) Institutional factors: Many institutional factors function as sources
----------------------
of and support for our attitudes and beliefs. For example, consider the
---------------------- description of a certain temple prayer. When people come into this temple,
they bow down to pray, sit with heads bowed. Their clothes are clean and
---------------------- freshly washed. When the Pujari signals, all start singing Bhajan and clap.
The entire process is devoted to ritual. From this, we can get an idea as to
----------------------
the general character of the religious attitudes and beliefs. There is implicit
---------------------- attitude of reverence, an orientation towards a deity, a ritualised rather
than spontaneous expression of feeling, a sharp differentiation between
---------------------- Pujari and devotees and so on. The different parts of the institution –
the architecture, furnishings, people’s clothing, and behaviour – have a
----------------------
meaning, which fits in with certain beliefs and attitudes. There are many
---------------------- other institutions in our society – schools, military organisations, and
the like, which also function as sources of and support for attitudes and
---------------------- beliefs.
----------------------
5.10 MEASUREMENT OF ATTITUDE
----------------------
Though attitude is a hypothetical construct, it is also subject to measurement.
----------------------
The most common and frequently used measures of attitudes are
---------------------- questionnaires, which ask the respondents to evaluate and rate their attitude
towards a particular object directly and to respond favourably or unfavourably
---------------------- about his belief regarding the attitude object. Generally, bipolar scales are used
to assess the attitudes of individual employees in an organisation. Different types
----------------------
of scales are in use with respect to measurement of attitudes, viz., Thurstone’s
---------------------- scale, Likert’s scale, Bogardus’s social distance scale, Guttman’s scale, etc. Let
us throw some light on these scales.
----------------------
a) Thurstone’s scale: The statements, both favourable and unfavourable,
---------------------- relating to the area in which attitudes are to be measured are placed into
11 piles; one representing the most favourable one and one representing
---------------------- the unfavourable. Individuals are then asked to check those statements
with which they agree. The average of the scale values of the items, which
----------------------
they accepte, will give an indication of the placement of a person along
---------------------- the attitude continuum.
b) Likert’s scale: Another scale that is relatively easy when compared to the
----------------------
earlier is the one developed by Rensis Likert.
---------------------- Likert’s scale consists of five boxes ranging from “strongly agree” to
---------------------- “strongly disagree”. Under each statement of attitude, the respondent
will be given a chance to tick in one of the five boxes and finally all the Notes
ratings are summed up. The Likert’s scale is also known as summed-
rating measure, because several statements are collected in an attitude ----------------------
area, such as one’s attitude about a job, and the scales are added up or
summed to obtain a person’s attitude toward his job. The summed-rating ----------------------
scale provides a means of measuring the intensity of one’s attitude toward ----------------------
a particular object/event in addition to the direction.
----------------------
c) Bogardus’s social distance scale: Perhaps the most simple scale of
measuring attitudes is the social distance scale developed by Bogardus in ----------------------
1925. The scale is composed of a large number of statements regarding
national, racial or ethnic groups. ----------------------
d) Guttman’s scale: Guttman in 1950 developed cumulative scaling ----------------------
technique to measure attitude. In the scale of one’s attitude towards
work, an employee might be presented with six statements displaying ----------------------
successively higher degrees of dissatisfaction. It is assumed that the
----------------------
employee will reach some point beyond which he can no longer agree.
The main threshold is considered to be the degree of satisfaction. ----------------------
e) Projective tests: Another method to measure attitudes is the projective
----------------------
test, which requires a person to respond to an unstructured stimulus
situation. The rationale behind such tests is that, when the stimulus ----------------------
situation is unstructured, mainly his motives, expectations and other
personal factors determine the individual’s responses. Projective tests ----------------------
of attitude are particularly valuable in the study of prejudice, since so
----------------------
many of our prejudices operate at an unconscious level or are deliberately
disguised to conform to prevailing taboos – against the expression of ----------------------
overt prejudice.
----------------------
There are many other good scales to measure attitudes. From a practical
standpoint, one should either use a standard questionnaire or consult an expert ----------------------
to obtain a valid estimate of attitudes of the employees in an organisation.
----------------------
Attitudes cannot be precisely measured. Behavioural scientists have tried to ----------------------
understand, analyse and measure attitudes but these methods suffer from certain ----------------------
drawbacks as follows:
----------------------
i) When paper and pencil (questionnaire / descriptive) or interview methods
are used to assess attitudes, there are certain matters, which require special ----------------------
care. Leading questions, which induce the subject to give a certain answer,
should be avoided, for example, questions like “How do you feel about ----------------------
TV shows which feature violence, cheating and immoral conducts?” It
----------------------
would be impossible to express agreement with such TV shows.
ii) The questions to assess attitude should be understandable to the respondent ----------------------
and should take into account the respondent’s way of thinking about the
----------------------
matter in question. Open-ended questions, as distinct from structured set
of questions, are often used so that the respondent does not have to choose ----------------------
Attitudes 85
Notes between fixed alternatives and may respond freely according to how he
thinks and feels about the subject. Then, depending on his answers, he is
---------------------- asked further questions which are intended to find out how he feels about
specific aspects of the subject.
----------------------
iii) Respondents sometimes consciously or unconsciously distort their
---------------------- answers. Conscious distortion or faking is most likely to occur when
a person has some motive to misrepresent his attitude, such as fear of
----------------------
reprisal, embarrassment or guilt at feeling a certain way or a desire to
---------------------- please or impress the questioner. We may answer attitude questions by
giving what we consider to be the socially desirable answer instead of
---------------------- expressing feelings we think others would reject.
---------------------- iv) One must be careful to get a representative sample of whatever group or
population to which one wishes to generalise his findings.
----------------------
---------------------- 5.11 CHANGING ATTITUDES
---------------------- A whole set of influences, some of which are favourable and others
unfavourable to the object, usually determines an attitude.
----------------------
In principle, an attitude change is attributable to a change in the relative
---------------------- strength of these influences. When the influences in a given direction become
relatively stronger than those in the opposite direction, the attitude will tend to
---------------------- shift. Weakening the opposing forces can also bring about such a shift.
---------------------- Attitude changes may be roughly classified into congruent and incongruent
changes. By congruent change we mean a movement in the same direction. To
---------------------- take an example, a less serious student may be converted into a more serious
student by resorting to attitude change. On the other hand, an incongruent
----------------------
attitude change involves a change towards the other end of the continuum. For
---------------------- example, conversion of a dull and non-intelligent student into an interesting and
intelligent student constitutes this incongruent attitude change. Similarly turning
---------------------- dislike into like, unfavourable into favourable, etc. are examples of incongruent
attitude changes.
----------------------
A manager attempting to change an individual employee’s attitude should
---------------------- keep in mind that the attitude change depends on following factors:
---------------------- 1. Characteristics of the communicator: The most important thing in
attitude change is the characteristics of the communicator. These include
---------------------- the status and prestige of the communicator, whether according to the
---------------------- employee, the communication is biased or dispassionate, etc.
One very important variable is status of the manager. The higher the status
---------------------- of the manager, the higher is the probability that he will be able to change
---------------------- the employee’s attitude.
Changing attitude is also a function of the trust in the communicator
----------------------
by the employees. If the employees trust their manager they accept the
---------------------- message and may try to change their attitudes correspondingly. On the
other hand, if a manager has insignificant prestige, trust, and is not shown Notes
considerable respect by his peers and subordinates, he will be in a difficult
position to change the attitudes of his employees. One of the most reliable ----------------------
research findings is that the greater the prestige of the communicator, the
more is his ability to change the attitude of employees. ----------------------
2. Method of communication: Another influential factor in attitude change ----------------------
is the way the manager communicates the message to his employees.
People, when presented with two-sided views, will be more convinced as ----------------------
they perceive that the argument is not biased.
----------------------
Another method of communication is through “fear appeals”. By
communicating the terrible consequences of the continuance of the ----------------------
present attitudes, a manager can bring change in attitudes. Anti-smoking
----------------------
advertisement, by constantly emphasising the dangerous possibility of
cancer attacks, are famous examples of “fear appeals”. Research results ----------------------
indicate that fear appeals can be effective, especially when the target
cannot do something constructive to reduce the fear on the spot. ----------------------
3. Characteristics of the target: The single most important factor influencing ----------------------
attitude change is the degree of commitment of the target (employee)
to the initial attitude. Further, attitudes that are publicly expressed are ----------------------
more difficult to change because the person concerned has already shown
commitment and to change the attitude would be to admit the mistake. ----------------------
Research reveals that attitudes represented by public statements are more ----------------------
resistant to change than those stated privately. Also firmly held attitudes
to which people are behaviourally or morally committed are difficult to ----------------------
change.
----------------------
4. Situational factors: Situational factors are not only extensive but also
play a major role in influencing the change in attitudes of people. How ----------------------
one perceives the message is dependent on the situation or the prevailing
context. If the employee believes that the group (his colleagues) is more ----------------------
favourable to the manager, then he will have less hesitation in changing his
----------------------
attitude. Further, when the person feels the group and the group members
are important he will have an “easy go” in changing his attitude towards ----------------------
the group.
----------------------
5. New experiences: Whether or not new experiences (or information) will
change our attitudes depend partly upon the strength of the initial attitudes ----------------------
and beliefs and partly upon how strongly favourable or unfavourable the
experiences may be. ----------------------
If we already have strong attitudes, we are likely to resist changing them. ----------------------
Indeed, we can be so strongly prejudiced that we interpret what would otherwise
be favourable experiences as exceptions. Moreover, we may be especially ----------------------
sensitive to any experience, which is unfavourable. Nevertheless a prolonged
series of strikingly favourable or unfavourable experiences can effect a change. ----------------------
We are motivated to perceive those situations or aspects of situations, which ----------------------

are congruent with our existing attitudes and beliefs, and to reject information
to the contrary. ----------------------
Attitudes 87
Notes A person may resist changing his attitude because of ego. This is because
of a need to enhance and defend our self-esteem.
----------------------
When our self-esteem is threatened we are very likely to resist vigorously
---------------------- any attempt to change our attitude. We may reject another’s evaluation simply
because agreeing would appear to admit his superiority. Sometimes, however,
---------------------- when the threat is removed, we may consider the situation more objectively.
----------------------
5.12 ATTITUDES AND BEHAVIOUR
----------------------
The importance of attitude-behaviour relationship can best be demonstrated
---------------------- by examining two key work attitudes: job satisfaction and organisational
commitment. Of interest also are the complex relationships between job
---------------------- satisfaction and job performance.
---------------------- In organisational behaviour, perhaps the attitude of greatest interest is the
general attitude of employees towards work or towards a job, which is often
----------------------
called job satisfaction. The sources of job satisfaction are of particular interest
---------------------- because they often suggest corrective action that can be taken.
----------------------
Job satisfaction is sometimes regarded as a single concept, i.e., a person is
---------------------- satisfied or not satisfied with the job. However, it actually is a collection of specific
job attitudes that can be related to various aspects of the job. For example, a
----------------------
popular measure of job satisfaction − the Job Descriptive Index (JDI) − measures
---------------------- satisfaction in terms of five specific aspects of a person’s job: pay, promotion,
supervision, the work itself and co-workers. Obviously, an employee may be
---------------------- satisfied with some aspects of the job and, at the same time, be dissatisfied with
others.
----------------------
The following points determine job satisfaction:
----------------------
• Mentally challenging work
---------------------- • Equitable rewards
---------------------- • Supportive working conditions
---------------------- • Supportive colleagues
• Personality-job fit
----------------------
• Heredity/genes
----------------------
However, the sources of job satisfaction and dissatisfaction vary from
---------------------- person to person. Sources important for many employees include the challenge
of the job, the degree of interest that the job holds for the person, the extent
---------------------- of required physical activity, the characteristics of working conditions (e.g.
---------------------- temperature, humidity, proximity to others and so on), the types of rewards
available from the organisation (e.g. the level of pay), the nature of co-workers
---------------------- and the like.
----------------------
Table 5.1 lists work factors that are often related to levels of employees’ job Notes
satisfaction.
----------------------
Table 5.1 Effects of Various Work Factors on Job Satisfaction
----------------------
Work Factors Effects
Work itself Mentally challenging work that the individual can ----------------------
successfully accomplish is satisfying.
----------------------
Physical demands Tiring work is dissatisfying
----------------------
Personal interest Personally interesting work is satisfying.
Reward structure Rewards that are equitable and that provide accurate ----------------------
feedback for performance are satisfying.
----------------------
Working conditions
----------------------
Physical needs Satisfaction depends on the match between working
conditions and physical needs. ----------------------
Goal attainment Working conditions that promote goal attainment are ----------------------
satisfying.
Self High self-esteem is conducive to job satisfaction. ----------------------
Others in the Individuals will be satisfied with supervisors, ----------------------

organisation co-workers or subordinates who help them attain
rewards. Also, individuals will be more satisfied with ----------------------
colleagues who see things the same way they do. ----------------------
Organisation and Individuals will be satisfied with organisations that
management have policies and procedures designed to help them. ----------------------
Individuals will be dissatisfied with conflicting roles ----------------------
and/or ambiguous roles imposed by the organisation.
----------------------
An important implication of the relationship suggested is that job satisfaction
perhaps should be considered primarily as an outcome of the individual’s work ----------------------
experience. Thus, high levels of dissatisfaction might indicate to managers
that problems exist, say, with working conditions, the rewards systems or the ----------------------
employees’ role in the organisation. ----------------------
----------------------
Of special interest to managers and employees are the possible relationships
between job satisfaction and various job behaviours and other outcomes in the ----------------------
workplace. A common sense notion is that job satisfaction leads directly to
effective task performance. A happy worker is a good worker. Yet, numerous ----------------------
studies have shown that a simple, direct linkage between job satisfaction and ----------------------
job performance often doesn’t exist. The difficulty of relating attitudes to
behaviour is pertinent here. Earlier, we noted that general attitudes best predict ----------------------
general behaviours and that specific attitudes are related most strongly to specific
behaviours. ----------------------
----------------------
Attitudes 89
Notes These principles explain, at least in part, why the expected relationships
often do not exist. Overall job satisfaction, as a collection of numerous attitudes
---------------------- towards various aspects of the job, represents a general attitude.
---------------------- Performance of a specific task, such as preparing a particular monthly
report, can’t necessarily be predicted on the basis of a general attitude. Even
---------------------- though tight linkage between satisfaction and specific task performance cannot
always be drawn, job satisfaction is often important in terms of organisational
----------------------
effectiveness. For example, studies have shown that levels of job satisfaction in
---------------------- the workforce and organisational performance are linked. That is, organisations
with satisfied employees tend to be more effective than organisations with
---------------------- unsatisfied employees. Further, many organisations appreciate the linkage
between customer satisfaction and the satisfaction of employees who interact
----------------------
with their customers.
---------------------- Job satisfaction is also important for the following reasons in addition to
the points mentioned above:
----------------------
i) Since satisfaction represents an outcome of the work experience, high
---------------------- levels of dissatisfaction help to identify organisational problems that need
attention.
----------------------
ii) Job dissatisfaction is strongly linked to absenteeism, turnover and physical
---------------------- and mental health problems. Research, for example, clearly shows that
---------------------- highly dissatisfied employees are more likely to be absent from work than
are satisfied employees.
---------------------- iii) Further, dissatisfied employees are more likely to leave a job for other
---------------------- employment. High levels of absenteeism and turnover are costly for
organisations. Many management experts suggest that the strong
---------------------- relationship between dissatisfaction and absenteeism and turnover
is a compelling reason for paying careful attention to employee job
---------------------- satisfaction.
---------------------- 5.12.3 Commitment to Organisation
---------------------- Another important work attitude that has a bearing on organisational
behaviour is commitment to the organisation.
----------------------
Organisational commitment refers to the strength of an employee’s
---------------------- involvement in the organisation and identification with it. Strong organisational
commitment is characterised by:
----------------------
i) A belief in and acceptance of the organisation’s goals and values.
---------------------- ii) A willingness to exert considerable effort on behalf of the organisation
---------------------- iii) A desire to remain with the organisation.
Organisational commitment goes beyond loyalty to include active
---------------------- contribution to accomplishing organisational goals. The concept of organisational
---------------------- commitment represents a broader work attitude than job satisfaction because it
applies to the entire organisation than just a job. Further, it is likely to be more
---------------------- stable than job satisfaction because day-to-day events are not likely to affect it.
Sources of organisational commitment Notes
As with job satisfaction, sources of organisational commitment may vary from
----------------------
person to person.
i) Employees’ initial commitment to the organisation is determined largely ----------------------
by their individual’s characteristics (personality, values, etc.) and how
----------------------
well their early job experiences match their expectations.
ii) Pay, relationships at workplace, working conditions, opportunities for ----------------------
advancement. etc.
----------------------
iii) Over time, it becomes stronger because:
----------------------
a) Individuals develop deeper ties with the organisation and their co-
workers. ----------------------
b) Seniority often brings advantages that tend to develop more positive ----------------------
work attitudes.
----------------------
c) Opportunities in the market may decrease with increasing age and
hence, employees may become more attached with the current ----------------------
organisation.
----------------------
1. A successful way for organisations to deal with stereotypic attitudes ----------------------

of employees is to implement a diversity programme.
----------------------
----------------------
1. Attitudes are reflected when:
i. One talks about something ----------------------
ii. One thinks about something ----------------------
iii. One perceives something ----------------------
iv. One feels about something
----------------------
----------------------
1. Values and attitudes play an important role in organisational behaviour
because: ----------------------
i. They indicate the motives inherent in behaviour.
----------------------
ii. They are the essential keys to understand individual behaviour.
----------------------
iii. They are manifestations of explicit behaviour.
----------------------
iv. They are easy to understand and predict.
----------------------
----------------------
Attitudes 91
Notes
Activity 2
----------------------
---------------------- Shyam was an average performer in the organisation. He did his job with
sincerity and dedication but could not go up the ladder for a few years.
----------------------
----------------------
There was a critical project situation. The customer was being very rude
---------------------- and difficult. He was agitated because the project milestone was not met by the
team for the last two times. Shyam had worked with this customer earlier and
---------------------- hence he was sent to the customer location to meet up and calm things down.
What is the type of attitude he must have for this difficult assignment? Use the
----------------------
following survey in case of Shyam.
---------------------- Tip: Attitude reflects in behaviour. So you can also list the key behaviours
Shyam must and must not demonstrate to handle the situation favourably.
----------------------
Sample Attitude Survey
----------------------
Answer each of the following statements using the following rating scale.
---------------------- 5 = Strongly agree 2 = Disagree
---------------------- 4 = Agree 1 = Strongly disagree
---------------------- 3 = Undecided
---------------------- Statement Rating

1. This company is a pretty good place to work.
----------------------
2. I can get ahead in this company if I make efforts.
----------------------
3. This company’s compensation is competitive with those
---------------------- of other companies. This company is fair in making
promotion decisions.
----------------------
4. I am aware of various growth opportunities available in
---------------------- this company. I feel fairly treated in all respects.
---------------------- 5. My competencies and skills are best utilised in this

company.
---------------------- 6. I trust my boss and feel confident about his/her support to
---------------------- me. I am able to voice my opinion without any fear.
7. Expectations of my boss from me are clear and
---------------------- unambiguous.
----------------------
Summary
----------------------
• Like personality and perception, attitude is an important cognitive input
---------------------- deciding the direction of human behaviour. Attitudes have some basic
---------------------- characteristics in that they persist unless changed in some way; they range
along a continuum; and they are directed towards an object about which Notes
a person has some feelings.
----------------------
• An attitude is an amalgam of personal experience, family, society, peers,
models and the institutional factors. ----------------------
• Though attitude is a hypothetical construct it is also subject to measurement.
----------------------
Various scales like Thurstone’s, Likert’s, Guttman’s scales are available.
• Every manager is concerned with the issue if the attitudes can be changed. ----------------------
If so, then how? Change in the attitude depends on the characteristics of
----------------------
the communicator, the method of communication, the characteristics of
the person to be influenced, situational factors, etc. ----------------------
• Job satisfaction and organisational commitment reflect work attitudes of ----------------------
employees. These have a large bearing on their behaviour and ultimately
their performance. ----------------------
----------------------
Keywords
----------------------
• Behaviour: The range of actions and mannerisms made by people in
conjunction with their environment. ----------------------
• Prejudice: Preconceived, usually unfavourable, judgments towards ----------------------
people or a person because of gender, social class, age, disability,
religion, sexuality, race/ethnicity, language, nationality or other personal ----------------------
characteristics.
----------------------
• Job satisfaction: The extent of pleasurable emotional feelings individuals
have about their jobs. ----------------------
• Job attitude: A set of evaluations of one’s job that constitute one’s ----------------------
feelings toward beliefs about, and attachment to one’s job.
----------------------
• Values: Broad preferences concerning appropriate courses of action or
outcomes. As such, values reflect a person’s sense of right and wrong or ----------------------
what ought to be.
----------------------
Self-Assessment Questions ----------------------
1. Define attitude. How does attitude differ from opinion, ideology, beliefs ----------------------
and values?
----------------------
2. What leads to the formation of attitude? Give the various characteristics
of attitude. ----------------------
3. “Attitudes can be changed.” If so, how? Explain the various factors that ----------------------
lead to change in attitude.
4. Explain the different ways of measuring attitude. What are the problems ----------------------
faced during attitude measurement?
----------------------
5. Define job satisfaction. What are the sources of job satisfaction? Explain
the effect of various work factors on job satisfaction. ----------------------
Attitudes 93
Notes 6. Write short notes on:
a. Attitude and prejudice
----------------------
b. Job satisfaction
----------------------
c. Sources of organisational commitment
----------------------
----------------------
----------------------
----------------------
1. For a management staff who has unfavourable attitude towards labour
---------------------- union, which of the following item stimulates negative attitude?
---------------------- ii. Seeing a group of employees causing damage to the employers

property
---------------------- State true or false
---------------------- 1. True
---------------------- 2. True
----------------------
----------------------
----------------------
1. True
---------------------- 2. False
---------------------- 3. True

1. The concept of the desirable, an internalised criterion or standard of
---------------------- evaluation a person possess is known as:
---------------------- i. Value
---------------------- 2. Which of the following is not a characteristic of attitude?
d. Uniformity
----------------------
----------------------
---------------------- 1. False
1. Attitudes are reflected when:
----------------------
i. One talks about something
----------------------
Multiple Choice Multiple Response. Notes
1. Values and attitudes play an important role in organisational behaviour
----------------------
because:
i. They indicate the motives inherent in behaviour. ----------------------
ii. They are the essential keys to understand individual behaviour. ----------------------
iii. They are manifestations of explicit behaviour. ----------------------
Suggested Reading ----------------------
----------------------
1. Gordon Judith R. A Diagnostic approach to Organizational Behaviour.
Allyn & Bacon. ----------------------
2. Robins, Stephen P. Organisational Behaviour. Prentice Hall.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Attitudes 95
Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Motivation: The Driving Forces of Human Behaviour
UNIT
Structure:
6
6.1 Introduction
6.2 Characteristics and Classification of Motives
6.3 Intrapersonal Conflicts
6.3.1 Defence Mechanism
6.4 Money as a Motivator
Summary
Keywords
Suggested Reading
Motivation: The Driving Forces of Human Behaviour 97

Notes
Objectives
----------------------
----------------------
• Describe the causes of human behaviour
---------------------- • Identify the characteristics of motives
---------------------- • Classify motives
---------------------- • Justify how blocked need fulfillment leads to intrapersonal conflict
• Appraise the importance of money as motivator
----------------------
----------------------
----------------------
6.1 INTRODUCTION
---------------------- The concept of motivation occupies a central place in the discipline of

Organisational Behaviour. It is a concept, which has received the maximum
---------------------- attention from the academicians and researchers alike. Since a motivated
employee is highly productive and highly quality oriented, the managers are
---------------------- also interested in the concept of motivation.
---------------------- Motivation is not the only explanation of human behaviour. It interacts
and acts in conjunction with mediating processes and environment. Motivation,
---------------------- like perception and learning, is a construct of behaviour. It is a process that starts
---------------------- with psychological and or physiological deficiency that activates the behaviour
towards goal attainment. Thus, motivation represents a relationship between
---------------------- need, drive and goal. Needs are created when there is imbalance, physiological or
psychological. Drives are set up to restore balance. Drives ultimately lead to goal
---------------------- accomplishment. Motivation is a psychological process. In a sense, motivation
---------------------- means causes of behaviour.
History
----------------------
The attempt to explain human behaviour can be traced back to the writings
---------------------- of Greek philosophers. They presented hedonism as the explanation of human
behaviour. Hedonism claims that:
----------------------
a) Human behaviour is rational.
----------------------
b) Human behaviour is deliberate.
---------------------- c) Humans consciously try to avoid pain and discomfort and their behaviour
---------------------- is directed to secure comfort and pleasure.
This concept held sway over the thinking and writings of philosophers
---------------------- for a very long time. Springing from this concept is the concept of “economic
---------------------- man”. This concept of economic man assumes that human behaviour is directed
to maximise economic gains and minimise economic losses.
----------------------
Given this assumption of human behaviour, it is very easy to motivate
---------------------- employees. Whenever certain behaviour is to be encouraged, give rewards;
whenever certain behaviour is to be discouraged, give punishment. This is the Notes
theory of “reward and punishment”. Unfortunately this takes a simplistic view
of human behaviour. Humans are not always motivated either by reward or ----------------------
by punishment or both. Adherence to “reward and punishment” or “carrot and
the stick” as it is sometimes called, does not cause continuance of desired and ----------------------
sustained behaviour over a long time. ----------------------
It was William James, who in the first decade of the last century, disputed
----------------------
the basic assumptions of hedonistic concept. He thought that much of human
behaviour is based on instincts. These instincts are unlearned and are innate ----------------------
drives of human beings.
----------------------
William McDougal, the pioneering social psychologist, further developed
the instinctive theory. He defined an instinct as “an innate disposition which ----------------------
determines the organism to perceive or to pay attention to any object” which
causes behaviour. In other words, instincts are the behaviours taught to us by ----------------------
Mother Nature. A partial list of instincts would include jealousy, love, anxiety,
----------------------
fear, hatred, lust, fear of dark places, etc.
Implicit in the instinctual approach to human behaviour is the hint that ----------------------
human behaviour is unconscious behaviour. It was Sigmund Freud, however,
----------------------
who shaped the theory of “unconscious behaviour”.
Freud reasoned that human behaviour is like an iceberg; only a small part ----------------------
of which is visible. However, the part of iceberg, which is not seen, controls the ----------------------
seen part. So is the case of human behaviour. To Freud, a person is constantly
in conflict with the self. The three constructs of human personality are always ----------------------
conflicting. The final outcome, which is the observable behaviour, is the product
of this conflict. According to Freud, this is the reason why many a time a person ----------------------
cannot verbalise his or her motivations. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 6.1 Motivational Framework
----------------------
6.2 CHARACTERISTICS AND CLASSIFICATION OF MOTIVES ----------------------
Modern psychologists are prepared to recognise the existence of unconscious ----------------------
behaviour, but not in the sense implied by Freud. They believe human behaviour
is sparked by a motive. A motive is a felt need. Human behaviour is directed ----------------------

Notes to satisfy these needs or motives. They have the following five characteristics:
1. The need having the highest strength dominates human behaviour.
----------------------
2. A need once satisfied ceases to influence behaviour.
---------------------- 3. When a need is satisfied, it gives rise to a new need.
---------------------- 4. Needs are recurrent in nature.
5. Needs are ubiquitous.
----------------------
Psychologists do not totally agree on how to classify various human
---------------------- motives. However, some psychologists tend to classify motives according to
whether they are unlearned or learned and whether they are psychological or
----------------------
physiological. The following is the classification of human motives:
---------------------- 1. Primary motives are the ones that are unlearned and are physiological.
---------------------- Defined this way the most commonly recognised primary motives include
hunger, thrust, sleep avoidance of pain, etc.
---------------------- 2. General motives are the ones that are unlearned but not physiological.
---------------------- Primary needs seek to reduce the tension or stimulation. Although not all
psychologists agree, these motives are curiosity, manipulative activity,
---------------------- affection, etc.
---------------------- 3. Secondary motives develop as human society develops economically and
becomes more complex. The examples of secondary motives are need
---------------------- for power, need for affiliation, need for achievement, need for security,
need for status, etc. At this stage a discussion on power, achievement and
----------------------
affiliation motivation would be appropriate.
---------------------- a) Power motive: Power motive essentially is the desire to control others,
to direct other’s behaviour. Power attaches to one’s personal competence.
----------------------
In an organisation, because of his or her competence, a person comes to
---------------------- acquire power. His say influences the decisions of his superiors. In other
words, he comes to acquire extra-constitutional powers. The person who
---------------------- has acquired such power must use it for the good of the organisation. It
is necessary that he recognises that the power he has, is because of the
----------------------
organisation. In other words, he is high on social inhibition also. The
---------------------- leading advocate of this motive was pioneering psychologist, Alfred
Adler.
----------------------
b) Achievement motive: David C. McClelland is most closely associated
---------------------- with the study of achievement motive. Out of his extensive research
has emerged a clear profile of the characteristics of the high achiever.
---------------------- Achievement motivation can be expressed as a desire to perform in terms
of a standard of excellence or to be successful in competitive situations.
----------------------
The specific characteristics of a high achiever are: a) moderate risk taking,
---------------------- b) need for immediate feedback, c) satisfaction with accomplishment, and
d) preoccupation with the task.
----------------------
c) Affiliation motive: This motive is indicative of the need to belong to and
---------------------- be accepted by others. The consideration of this motive is important in the

discussions of group dynamics. The higher the need for affiliation among Notes
the members of the group, the higher is the group cohesiveness.
----------------------

1. Which of the following is not a primary motive? ----------------------
i. Hunger
----------------------
ii. Thirst
iii. Sleep ----------------------
iv. Avoidance of pain ----------------------
v. Money
----------------------
2. Which of the following is not a characteristic of high achievers?
i. Need for immediate feedback ----------------------
ii. Satisfaction with accomplishments ----------------------
iii. Pre-occupation with the task
----------------------
iv. Hunger for more power
1. Which of the following are examples of secondary motives? ----------------------

i. Need for power ----------------------
ii. Need for affiliation
----------------------
iii. Need for status
----------------------
iv. Need for affection
----------------------
6.3 INTRAPERSONAL CONFLICTS ----------------------
----------------------
In the discussion of the characteristics of motives it was said that motives
are ubiquitous. If that is so, the question arises as to how a human satisfies his ----------------------
motive. The concept of coping behaviour says the human changes his behaviour
until he gets what he wants. The behaviour continues on the way leading to need ----------------------
satisfaction. ----------------------
However, human life is not a bed of roses. Many a time situations arise
----------------------
in such a way that human beings do not understand what they should do; or
many times their self- image is likely to be criticised by the world; or the need ----------------------
fulfillment gets continually blocked. When this occurs, a phenomenon known
as intrapersonal conflict arises. ----------------------
Intrapersonal conflicts are of three types: role conflict, goal conflict and ----------------------
frustration.
----------------------

Notes a) Role conflict: Role conflict arises when a person is performing two
different roles having contrary or contradictory expectations at the same
---------------------- time. A worker who is also a worker-director is sandwiched between
different expectations. On one hand, he is a worker and on the other,
---------------------- he is director on the board of directors. As a director he may have to
---------------------- concur with the decision which may not be, from his point of view, in the
interests of workers as such. If he performs his role as a worker he fails
---------------------- in his role as a director. Conversely, if he performs his role as a worker he
fails in his role as a director.
----------------------
b) Goal conflicts: There are three types of goal conflicts. They are:
----------------------
i) Approach-approach conflict: It arises when there are two equally
---------------------- positive but mutually exclusive situations. Both are equally
attractive but a person can choose only one of them. A person
---------------------- receiving two equally good job offers gets into this kind of conflict.
In life somehow or the other a person makes a choice and settles
----------------------
down with it. This kind of conflict is not known to create stress and
---------------------- tensions for a long time.
ii) Avoidance-avoidance conflict: It arises when there are two
----------------------
equally negative situations, one of which has to be accepted. For a
---------------------- prisoner continuing in the jail is negative, but at the same time if he
breaks jail, there is a likelihood of his getting caught and increase
---------------------- in the punishment. He detests both but he has to choose either. This
conflict also is not known to create stress for a long time. Somehow
----------------------
or the other a person makes a choice and settles down with it.
---------------------- iii) Approach-avoidance conflict: It is known to create stress in the
---------------------- mind of a person for a long time. This type of conflict arises when a
positive situation is coupled with a negative one; if a person wants
---------------------- the positive, he must choose the negative too. A person who wants
a promotion but not the transfer that comes in its wake, faces this
---------------------- kind of conflict.
---------------------- c) Frustration: Frustration occurs when need fulfillment is continually
blocked or when one’s self-image is in jeopardy. Defence mechanisms
---------------------- are the behaviours occurring to deal with frustration.
---------------------- 6.3.1 Defence Mechanism
---------------------- Before we go to discuss various defence mechanisms, note that we are
discussing only some of the defence mechanisms we come across commonly at
---------------------- work life. Defence mechanisms are unconscious behaviours. These behaviours are
not deliberate behaviours. They just occur. It is only for the sake of convenience
----------------------
that they are discussed separately. In life there could be a mixture of different
---------------------- defence mechanisms in one instance of behaviour. In life, there is no prioritising
when it comes to defence mechanisms for dealing with frustration. These defence
---------------------- mechanisms serve an important function of keeping the human personality
integrated.
----------------------

i) Rationalisation: It means giving pseudo-justification to explain one’s Notes
failures. The common examples are sour grapes or a bad workman
quarrelling with his tools. ----------------------
ii) Regression: It is sliding back in terms of one’s chronological age. ----------------------
Certain patterns of behaviours are learnt during the childhood that are
subsequently, in the adult age, replaced by the behaviours acceptable ----------------------
by the society. At an unguarded moment, in the adulthood, in the flush
----------------------
of emotions, however, these childhood behaviours take charge of the
personality of the person. A superior getting angry with his subordinate ----------------------
and throwing files at him or a person throwing a pen because of the ink
not flowing, are the examples of this defence mechanism. ----------------------
iii) Aggression: Also known as emotional transference, it means giving ----------------------
vent to the pent up feelings by offensive behaviour towards a third object
or a person unconnected with the source of frustration. The offensive ----------------------
behaviour is, almost always, against the third object or the person that
----------------------
cannot retaliate. A superior scolding his subordinate because of something
happening at home is the example of this defence mechanism. ----------------------
iv) Fantasy: It means building castles in the air with a view to escaping from
----------------------
the problem situation. Fantasy is temporarily removing oneself, mentally,
from the problem situation and losing oneself in the imaginary world ----------------------
where things happen at his behest. As long as a person is in his imaginary
castle he is happy but some time or the other he has to come down to ----------------------
the earth. When he comes out of the imaginary world, the problem starts
----------------------
pinching him again. The increased frequency of fantasising is a signal
that one had better seek some help from a psychiatrist. ----------------------
v) Resignation, flight or withdrawal: It signifies a complete surrender to ----------------------
the problem situation. This is accepting a situation and ceasing any effort
to deal with the problem. ----------------------
Table 6.1 Behavioural Descriptions of Various Defence Mechanisms ----------------------
Defence Psychological process Illustration ----------------------
mechanism
Rationalisation Justifying inconsistent or Padding the expense ----------------------
undesirable behaviour, account “because everybody ----------------------
beliefs, etc. by providing does it.”
acceptable explanation ----------------------
for them.
----------------------
Regression Individual returns to an A manager shouting at his
earlier less mature level subordinate. ----------------------
of adjustment in the face
of frustration. ----------------------
----------------------
----------------------

Notes Defence Psychological process Illustration
mechanism
----------------------
Aggression, Re-directing pent- Roughly rejecting a
---------------------- i.e. emotional up emotions towards request from a subordinate
transference persons or objects after receiving a rebuff from
----------------------
unconnected with the the boss.
---------------------- source of frustration.
Fantasy Daydreaming or other Employee daydreams
----------------------
forms of imaginative of the day when in the
---------------------- activity provide an staff meeting he corrects
escape from the the boss and is publicly
---------------------- reality and imagined acknowledged as the real
satisfaction. brain.
----------------------
Negativism Active or passive A manager saying that
---------------------- resistance operating the recommendations
unconsciously. of a committee are not
----------------------
implementable because he
---------------------- could not become a member
of the committee.
----------------------
Resignation, Leaving the field where A student who could not
---------------------- flight or anxiety or conflict is pass an examination, quits
withdrawal experienced. the course.
----------------------
[Adapted from, Fred Luthans Organisational Behaviour – VI Edition Page 373]
----------------------

---------------------- 1. Approach -approach conflict is caused when there exist two equally
_______ but mutually exclusive situations.
----------------------
2. ___________ conflict arises when a positive situation is coupled with
---------------------- a negative one.
---------------------- Match the following.
---------------------- i. Negativism a. Daydreaming.
---------------------- ii. Withdrawal b. Returns to an earlier less mature level of
adjustment in the face of frustration.
----------------------
iii. Fantasy c. Redirecting emotions towards persons.
---------------------- iv. Rationalisation d. Resistance operating unconsciously.
---------------------- v. Aggression e. Leaving the field where anxiety or conflict is
experienced.
----------------------

Notes
Activity 1
----------------------
Map the following statements with the primary needs based on what is ----------------------
discussed above.
----------------------
The person says… The primary need is…
“I must be a part of the team!” Need for _______ ----------------------
“I must complete this project on time” Need for _______ ----------------------
“I want to become the manager of this large ----------------------
team so that I can get things done my way!” Need for _______
----------------------
----------------------
6.4 MONEY AS A MOTIVATOR ----------------------
“Managers tend to use compensation as a crutch. After all, it is far easier ----------------------
to design an incentive system that will do the management’s work than it is to
articulate a direction persuasively, develop agreement about goals and problems ----------------------
and confront difficulties when they arise,” says Michael Beer, Harvard professor
----------------------
of business administration, researcher and author of papers and books on
organisational change. ----------------------
Decades of research and dozens of studies show that while money can be ----------------------
a demotivator, it is rarely a good motivator. Money always shows up as fourth
or fifth on any list of motivational factors. Pay gets people to show up for work, ----------------------
but it doesn’t get many to excel. More important is interesting, challenging or
----------------------
meaningful work, recognition and appreciation, a sense of accomplishment,
growth opportunities and the like. ----------------------
However, the big problem is that managers have consistently listed money ----------------------
as the number one factor that they think motivates people. So they keep fiddling
with pay, bonus and financial incentives in a futile attempt to find the elusive ----------------------
combination that will motivate people to higher performance.
----------------------
Bribing people to perform turns them into mercenaries. It debases, degrades
and demeans work. It sets a vicious, self-perpetuating cycle into motion — ----------------------
incentives, inducements, rewards and the like leave people feeling manipulated ----------------------
and overly focused on what they get for complying with management’s goals
and direction − tuned only to “what’s in it for me” (WIFM). The emptier the ----------------------
work is, the more people look elsewhere for fulfillment; so we demand more
----------------------
money and incentives to continue working in such a meaningless, unfulfilling job
(which then “proves” to managers that people won’t improve their performance ----------------------
unless they’re bribed to do so). Money is rarely an effective rallying point for
high performance. That’s because money doesn’t provide deeper meaning and ----------------------
inspiration for a bigger cause and purpose. ----------------------

Notes Organisations believe in paying people very well. Organisations agree
with the saying, “If you pay peanuts, you get monkeys.” Corporates believed in
---------------------- and practiced profit sharing and organisation or team performance bonuses. The
people who helped create the profits should share in the rewards in proportion
---------------------- to their contribution
---------------------- But more important than the money are the messages profit and performance
bonuses can send. They should make people feel like partners, not puppets on
----------------------
a string. That means rewards should follow, not lead high performance. It also
---------------------- means that education, communication, measurement, feedback, skill development
and the like must be tightly melded to any reward and recognition programmes.
----------------------
A high performing organisation is filled with high performers who are well
---------------------- paid. People must be paid well, but once they feel their compensation is fair
and equitable, do not even mention money again until next year. Fix everyone’s
---------------------- attention on the bigger and more meaningful issues of context and focus (vision,
values and purpose), customers and partners, innovation, goals and priorities,
----------------------
growth and improvement. Concentrate on building a culture of success and
---------------------- forward momentum with lots of recognition and appreciation for everyone’s
contributions.
----------------------
Table 6.2 Usage of Rewards and Recognition
----------------------
Traditional Management Approach Leadership-Based Approach
----------------------
Helps to manipulate, control and Helps to support organisational
---------------------- direct behaviour. change and improvement.
---------------------- Used with employees to push Used with people to develop
---------------------- motivational buttons. meaningful systems and practices.
---------------------- Paternalistic pats on the head − Participative, respectful partnerships

management decides who gets − customer input helps management
---------------------- rewarded and recognised for meeting and partners decide who and how to
their goals. reward and recognise.
----------------------
Assumes performance problems are Poorly designed systems, structures
----------------------
from lazy, unmotivated and uncaring and processes leave people feeling
---------------------- people. powerless and uncaring.
----------------------
---------------------- Activity 3
----------------------
Is monetory compensation a motivator or a demotivator? Analyse suitable
---------------------- examples from professional and personal life to support your point.
----------------------
----------------------

Notes
Activity 4
----------------------
Do you think that your employees will perform well if you compensate ----------------------
them highly or by introducing new reward programmes? Explain in brief
with an example with respect to the BPO industry. ----------------------
----------------------
Summary ----------------------
• Motivation is not only the explanation of human behaviour. It interacts ----------------------
and acts in conjunction with mediating processes and environment.
----------------------
• A motive is a felt need. One of the most important characteristics of
motives is that they are ubiquitous. ----------------------
• Role conflict arises as a result of a person performing two contrary or ----------------------
contradictory roles at the same time.
• Three types of goal conflicts are approach-approach, approach-avoidance ----------------------
and avoidance-avoidance conflicts. ----------------------
• When need fulfillment is continually blocked or when the self-image is
----------------------
threatened, frustration arises. Defence mechanisms are the ways to deal
with frustration. ----------------------
----------------------
Keywords
----------------------
• Motivation: The internal condition that activates behaviour and gives it
direction. ----------------------
• Drive: The trait of being highly motivated. ----------------------
• Motive: Corresponds to a want or a preference that is sufficiently strong
that it moves to action or deliberate inaction. ----------------------
• Goal conflict: The strategy that is made but cannot be effectively ----------------------
completed because of inherent differences and problems between goals.
----------------------
• Frustration: Related to anger and disappointment, it arises from the
perceived resistance to the fulfillment of individual will. The greater the ----------------------
obstruction and the greater the will, the more the frustration is likely to
----------------------
be.
----------------------
1. What do you mean by the term “Hedonism?” Explain it with historical ----------------------
context of motivation.
----------------------
2. Explain the characteristics of motives.
3. What are the types of motives? Explain each of the motives in detail. ----------------------

Notes 4. Explain the behavioural descriptions of various defence mechanisms in
detail.
----------------------
---------------------- i. Goal conflict
ii. Role conflict
----------------------
iii. Regression
---------------------- iv. Negativism
----------------------
----------------------
---------------------- 1. Which of the following is not a primary motive?
---------------------- v. Money
2. Which of the following is not a characteristic of high achievers?
----------------------
iv. Hunger for more power
---------------------- 1. Which of the following are examples of secondary motives?
i. Need for power
----------------------
ii. Need for affiliation
---------------------- iii. Need for status
----------------------
---------------------- 1. Approach-approach conflict is caused when there exist two equally
positive but mutually exclusive situations.
----------------------
2. Approach-avoidance conflict arises when a positive situation is coupled
---------------------- with a negative one.
---------------------- Match the following.
i–d
----------------------
ii – e
---------------------- iii – a
---------------------- iv – b
v–c
----------------------
----------------------
Suggested Reading
1. Herbert, Theodore T. Dimensions of Organisational Behaviour.
---------------------- MacMillan.
---------------------- 2. Luthans, Fred. Organisational Behaviour. McGraw Hill.

Work Motivation Theories
UNIT
Structure:
7
7.1 Introduction
7.2 Abraham Maslow’s Theory of Need Hierarchy
7.3 Herzberg’s Two-Factor Theory of Motivation
7.4 Alderfer’s ERG Theory
7.5 Vroom’s Expectancy Theory of Motivation
7.5.1 Criticism
7.6 The Porter-Lawler Model
7.7 Equity Theory of Work Motivation
7.8 Attribution Theory
7.9 Theory X and Theory Y
7.10 Pygmalion in Management
Case Study
Summary
Keywords
Suggested Reading
Work Motivation Theories 109

Notes
Objectives
----------------------
----------------------
• Discuss the differences between content and process theories of
---------------------- work motivation
---------------------- • Analyse the major theories of work motivation
• Employ the contemporary equity and attribution theories of work
----------------------
motivation.
----------------------
----------------------
7.1 INTRODUCTION
----------------------
Approaches to work motivation can be broadly classified as content and
----------------------
process theories.
---------------------- Content theories are concerned with identifying the needs that people have
and how needs are prioritised. They are concerned with the types of incentives
----------------------
that drive people to attain need fulfillment. Maslow’s Hierarchy Theory, Fredrick
---------------------- Herzberg’s Two Factor Theory and Alderfer’s ERG Needs Theory fall in this
category. Although such a content approach has logic, is easy to understand, and
---------------------- can be readily translated in practice, the research evidence points out limitations.
There is very little research support for these models’ theoretical basis and
----------------------
predictability. The trade off for simplicity sacrifices true understanding of the
---------------------- complexity of work motivation. On the positive side, however, the content models
have given emphasis to important content factors that were largely ignored by
---------------------- human relationists. In addition the Alderfer model allows more flexibility and
the Herzberg model is useful as an explanation for job satisfaction and as a point
----------------------
of departure for job design.
---------------------- Process theories provide a more sound theoretical explanation of work
motivations. The Expectancy Model of Vroom and the extensions and the
----------------------
refinements provided by Porter and Lawler help explain the important cognitive
---------------------- variables and how they relate to one another in the process of work motivation.
The Porter-Lawler Model also gives specific attention to the important
---------------------- relationship between performance and satisfaction. A growing research literature
is somewhat supportive of these expectancy models, but conceptual and
----------------------
methodological problems remain. Unlike the content models, these expectancy
---------------------- models are relatively complex and difficult to translate into actual practice, and,
consequently, they have generally failed to meet the goals of prediction and
---------------------- control of organisational behaviour.
---------------------- Process theories are concerned with identifying the variables that go into
motivation and more importantly, how they are related to one another.
----------------------
----------------------

7.2 ABRAHAM MASLOW’S THEORY OF NEED HIERARCHY Notes
It was Abraham Maslow who thought that human needs that spark off ----------------------
an activity can be arranged in a hierarchy of pre-potency and probability of ----------------------
occurrence. Maslow based his theory on the belief that a need that is not satisfied
dominates the behaviour, sparking off an activity for its satisfaction. This need, ----------------------
when satisfied, in its turn activates the higher need. This sequence can be denoted
as under. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 7.1 Sequence of Maslow’s Need Hierarchy Theory ----------------------
1. Physiological needs: The fulfillment of physiological needs, such as thirst, ----------------------

hunger, sex, sleep, etc. takes precedence over all other needs; in fact on the
satisfaction of these needs is dependent the very survival and continuance ----------------------
of the human race. Unlike other needs, the physiological needs have a ----------------------
tendency to recur. An individual may postpone the fulfillment of these
needs and/or adapt his need-satisfying behaviour to suit the culture and ----------------------
the situation. Money represents the best means to satisfy physiological
needs. Money is valued not for its own sake, but for the sake of what it can ----------------------
buy for us. This is one of the dimensions of money motive. Physiological
----------------------
needs are finite but are recurrent.
2. Safety needs: Once physiological needs are met, safety needs become ----------------------
important. While physiological needs have a reference to the present,
----------------------
safety needs look to the future. The needs for food, clothing, etc. are
satisfied today. But what about tomorrow? A man, so long as he is young ----------------------
and working and earning, is able to satisfy the physiological needs as
and when they occur. But will he be able to satisfy needs and fend for ----------------------
himself when he gets old? He must have reasonable “safety” in his old
age too. Implicit in the fulfillment of these safety needs is the origin of ----------------------
many labour enactments in India today. Pension plans, the Payment of ----------------------
Gratuity Act, the Provident Funds Act, etc. and other retiral benefits are
basically to ensure security for old age. ----------------------

Notes Too much security makes a man reckless and careless or lazy, disobedient
and under-productive. At the same time insecurity also makes a man
---------------------- under-productive. How much is enough security is a dilemma before the
management providing security of jobs to their employees.
----------------------
3. Social needs: The need for belongingness has its origin in the gregarious
---------------------- nature of the human being. Since man is a social being, he has a need to
belong and be accepted by various groups. When social needs become
----------------------
dominant, a person will strive for meaningful relations with others.
---------------------- People interact simply because they enjoy it. Even such interactions
which give no apparent tangible rewards are entered into simply because
---------------------- they reasonably assure one that one is a part of the society and is accepted
by the society.
----------------------
We live in society and are surrounded by others. We may, therefore, fail
---------------------- to properly visualise the strength of these needs. It would not be wrong
to say that even hardened criminals dread the punishment of solitary
----------------------
confinement. Solitary confinement is known to rupture the human psyche.
---------------------- The informal groups in an organisation are founded in a quest to fulfill the
needs for belongingness. One of the many reasons for the informal groups
----------------------
to thrive in an organisation could be the employees’ reaction to the threat
---------------------- posed by boredom, insignificance and insecurity that the employees feel.
---------------------- The least the management can do is to recognise the fact that informal
groups can be an asset to them and can be instrumental in furthering the
---------------------- goals of the organisation. Management does not create informal groups
and the management cannot destroy them.
----------------------
The fixation for the fulfillment of these need results in what is known as
---------------------- group think.
---------------------- 4. Esteem needs (self-worth): This need arises because it is not sufficient
for a human being to just “belong”. What he craves for and strives
---------------------- towards is that others should recognise his worth. An employee stays in
an organisation not merely because he gets his salary and other material
---------------------- rewards but he is there because others recognise that he is worthy of the
---------------------- job and other material benefits that he gets. This need manifests itself in
three forms: (i) the need for status; (ii) the need for power and (iii) the
---------------------- need for recognition.
---------------------- The scuffle in the organisation for achieving the organisational status and
the power that goes with it is the essence of esteem needs. A promotion is
---------------------- a recognition of one’s capability to shoulder higher responsibilities.
---------------------- 5. Self-actualisation needs: In the words of Maslow, these needs denote
“what a man can be should be.” A self-actualised person has a cause;
---------------------- an ideology to fight for the goal set for himself. He concentrates on the
feedback, which is task oriented, and is not taken in by personal criticism
----------------------
or praise.
----------------------

Since such a person has a cause to believe in, many a time he forgoes Notes
fulfillment of other needs in pursuance of the cause. He is unmindful of
the physical surroundings. ----------------------
Archimedes, when he exclaimed “Eureka” was oblivious of the ----------------------
surroundings. The great Indian leader, Mahatma Gandhi, deprived himself even
of the physical necessities when he underwent a fasting penance at Nowkhali at ----------------------
the time of the partition of the country. A highly successful scientist may fall in
----------------------
the category of the self-actualised persons.
Barring exceptions, this need of self-actualisation remains latent in most ----------------------
people.
----------------------
----------------------
Part of the appeal of Maslow’s theory is that it provides both a theory of
human motives by classifying basic human needs in a hierarchy and the theory ----------------------
of human motivation that relates these needs to general behaviour. Maslow’s
major contribution lies in the hierarchical concept. He was the first to recognise ----------------------
that a need once satisfied is a spent force and ceases to be a motivator. ----------------------
Maslow’s need hierarchy presents a paradox in as much as while the theory
is widely accepted, there is a little research evidence available to support the ----------------------
theory. ----------------------
It is said that beyond structuring needs in a certain fashion, Maslow does
not give concrete guidance to the managers as to how they should motivate their ----------------------
employees. ----------------------
The need hierarchy as postulated by Maslow does not appear in practice.
----------------------
It is likely that over-fulfillment of any one particular need may result in fixation
for the need. In that case, even when a particular need is satisfied, a person may ----------------------
still engage in the fulfillment of the same need.
----------------------
Furthermore, in a normal human being, all the needs are not always satisfied
entirely. There remains an unsatisfied corner of every need in spite of which the ----------------------
person seeks fulfillment of the higher need.
----------------------
A person may move on to the next need in spite of the lower need being
unfulfilled or being partly fulfilled. ----------------------
Maslow in his later work said: ----------------------
a) Gratification of the self-actualisation need causes an increase in its
importance rather than a decrease. ----------------------
b) Long deprivation of a given need results in fixation for that need. ----------------------
c) Higher needs may emerge not after gratification, but rather by long ----------------------
deprivation, renunciation or suppression of lower needs.
----------------------
d) Human behaviour is multi-determined and multi-motivated.
----------------------
----------------------

Notes 7.3 HERZBERG’S TWO-FACTOR THEORY OF MOTIVATION
---------------------- Frederick Herzberg extended the work of Maslow and developed a specific
content theory of work motivation. In 1950s, he conducted a study noting
---------------------- responses of accountants and engineers employed by the firms in and around
Pittsburgh. In collecting data, he used the critical incidental method. In this
----------------------
method, the respondent was asked to narrate one incident from his work life
---------------------- about which he was particularly unhappy and another incident from work life
about which he was particularly happy.
----------------------
On analysing the data thus collected, Herzberg concluded that there are
---------------------- two sets of factors at the work life; one set he called “hygiene factors” while the
other was called the “motivators”. The following are the hygiene factors and
---------------------- motivators.
---------------------- Table 7.2: Hygiene Factors and Motivators of Herzberg’s Two-Factor
Theory of Motivation
----------------------
Hygiene Factors, i.e. dissatisfiers Motivators, i.e. satisfiers
----------------------
1. Company policies and administration 1. Achievement
---------------------- 2. Technical supervision 2. Recognition
---------------------- 3. Interpersonal relations with superiors 3. Advancement
---------------------- 4. Interpersonal relations with peers 4. Work
5. Interpersonal relations with subordinates 5. Possibility of growth
----------------------
6. Salary 6. Responsibility
----------------------
7. Job security
---------------------- 8. Personal life
---------------------- 9. Working conditions
---------------------- 10. Status

Hygiene factors are those factors that by their absence inhibit performance
----------------------
but any addition in them does not increase efficiency or productivity. These are
---------------------- the job context factors that occur at the time of doing the job. Thus, they are
extrinsic to the job. These factors are also called dissatisfiers.
----------------------
Motivators are those factors, which by their absence do not inhibit
---------------------- performance, but any addition in them increases efficiency. These are the job
content factors that make the job itself a tool of motivation. These factors are
---------------------- also called satisfiers.
---------------------- By their very nature, hygiene factors are necessary for the performance but
what is required of the manager is to provide these factors to the required level
---------------------- and focus his attention to provide more and more on the motivators.
---------------------- Motivators cater to the higher order needs of the human being and,
therefore, they are more important. In order to build these factors into the job
---------------------- design, a manager should load the job with motivators. This is the theory of job

loading. Job loading can be done either by horizontal loading or by vertically Notes
loading the job.
----------------------
The horizontal job loading is known as “job enlargement” while vertical
job loading is known as “job enrichment”. ----------------------
1. Job enlargement: The following are the principles of job enlargement:
----------------------
a) Challenging employees by increasing the amount of production
expected of them. ----------------------
b) Adding other tasks to the job. ----------------------
c) Removing the more difficult parts of the assignment in order to free ----------------------
the worker.
d) Rotating the assignments. ----------------------
When talking about job enlargement in his article “One more time, how ----------------------
do you motivate your employee?”,[Harvard Business Review; Jan-Feb
----------------------
’68], Herzberg talks in arithmetical terms and ultimately comes to the
conclusion that the theory of “job enlargement” does not give dividends ----------------------
for a long period of time. He, therefore, advocates job enrichment.
----------------------
2. Job enrichment: The principles of job enrichment according to Herzberg
are as under: ----------------------
Table 7.3: Different Principles of Job Enrichment ----------------------
Principle Motivators involved ----------------------
1. Removing some controls while 1. Responsibility and
----------------------
retaining accountability personal achievement
2. Increasing accountability for 2. Responsibility and ----------------------
individual’s own work recognition ----------------------
3. Giving a person a complete natural 3. Responsibility and
unit of work [Module] area etc.] recognition ----------------------
4. Granting additional authority to an 4. Responsibility and ----------------------

employee in his activity recognition
----------------------
5. Making periodic reports directly 5. Internal recognition
available to the worker himself ----------------------
6. Introducing new and more difficult 6. Growth and learning ----------------------

tasks not handled previously
----------------------
7. Assigning individuals specific or 7. Responsibility, growth
specialised tasks, enabling them to and advancement ----------------------
become experts
----------------------
----------------------
Even though the Herzberg model of job enrichment was employed in some
companies, the results were not uniform. One of the main criticisms against the ----------------------

Notes theory is that it is not corroborated by subsequent research. Many critics do not
agree to the straight jacketing of certain items into hygiene factors and motivators.
---------------------- Depending on the environment and perception, what a hygiene factor is to one
may be a motivator to others.
----------------------
Herzberg implies building challenges and freedom into the jobs. However,
---------------------- what a challenge is to one may be perceived as a threat by some.
---------------------- Moreover, all jobs cannot be re-designed and enriched, e.g., routine
programmed jobs cannot be enriched.
----------------------
In spite of the seemingly legitimate criticism, Herzberg has to be given
---------------------- credit for contributing substantially to the study of work motivation. He extended
the Maslow concept and made it more applicable to work motivation. Herzberg
---------------------- added much to the better understanding of job content factors and employee
satisfaction, but fell short of a comprehensive theory of work motivation.
----------------------
---------------------- Activity 1
----------------------
Mehul is a team member in the Sales Department of an organisation. She has
---------------------- been performing as expected by her manager in the last few assignments.
Her manager realises that she is a very hard worker and gives in her best.
----------------------
However, she is not extraordinary. One day she realises that her performance
---------------------- for the last two quarters has been dipping. In her conversation with Mehul,
the manager realises that the reason is that Mehul is not motivated enough.
---------------------- “After all, she is paid for what she does,” her manager thinks. Is her thought
in the right direction? Comment based on your understanding of the above
----------------------
theories.
----------------------
---------------------- 7.4 ALDERFER’S ERG THEORY

---------------------- Clayton Alderfer identified three groups of core needs: Existence (E),
Relatedness (R), and Growth (G).
---------------------- 1. Existence needs are concerned with survival.
---------------------- 2. Relatedness needs stress the importance of interpersonal and social
relationship.
---------------------- 3. Growth needs are concerned with an individual’s intrinsic desire for
---------------------- personal development.
Alderfer suggests more of a continuum of needs than hierarchical levels.
---------------------- The following table shows how these groups of needs are related to the Maslow
---------------------- and Herzberg categories. No doubt, they are very close, but the ERG needs do
not have strict lines of demarcation.
---------------------- According to ERG theory, the person’s background or cultural environment
---------------------- may dictate that the relatedness needs will take precedence over unfulfilled
existence needs and that the more the growth needs are satisfied, the more they
---------------------- will increase in intensity.

Unlike Maslow or Herzberg, he does not contend that a lower level need has Notes
to be fulfilled before a higher level need becomes motivating or that deprivation
only can activate the need. ----------------------
There has not been a great deal of research on the ERG Theory. Although ----------------------
there is some evidence to counter the theory’s predictive value, most contemporary
analyses of work motivation tend to support Alderfer’s theory over Maslow’s ----------------------
and Herzberg’s.
----------------------
Overall, the ERG Theory seems to take some of the strong points of the
earlier content theories, but is less restrictive and limiting. The fact remains, ----------------------
however, that content theories, in general, lack explanatory power over the
----------------------
complexities of work motivation and, with the possible exception of the
implications for job design of Herzberg’s work, do not readily translate to the ----------------------
actual practice of human resources management.
----------------------
Frustration - Regression Satisfaction - Progression
----------------------
Growth Needs ----------------------
----------------------
Relatedness Needs ----------------------
----------------------
Existence Needs
----------------------
Fig. 7.4 ERG Model of Motivation
----------------------
Criticism of Alderfer’s theory:
----------------------
The fact that the needs are not strictly demarcated goes against the theory.
Probably this is one of the important reasons for lack of popularity of Alderfer’s ----------------------
theory. The term ‘relatedness’ used in the theory is particularly confusing and
like other content theories, it fails to contribute effectively to human resources ----------------------
management.
----------------------
7.5 VROOM’S EXPECTANCY THEORY OF MOTIVATION ----------------------
Process theories are concerned with the cognitive antecedents that go into
motivation and with the way they are related to one another. The theories given ----------------------
by Vroom, Porter and Lawler fall in this category. ----------------------
Unlike content theories, which attempt to identify human needs, Vroom
considers what leads to effort. He gives the following equation: ----------------------
M = (V x E) ----------------------
M is motivation, which is the sum total of the multiplication of valence
and expectancy. V, i.e., valence stands for the preference of an individual for ----------------------
a particular outcome. Thus, when an individual desires a particular outcome
----------------------
the value of V is positive. On the other hand, when he does not desire a certain
outcome, the value of V is negative. ----------------------

Notes E stands for expectancy. The value of E ranges between zero and one. When
a certain event will definitely not occur, the value of E is zero. On the contrary,
---------------------- when the event is bound to occur, the value of E is one.
The lesson, therefore, for the manager is that he should attach positive
----------------------
rewards to the job and lay down objective criteria to attain the said positive
---------------------- rewards.
7.5.1 Criticism
----------------------
Although Vroom does not directly contribute to the techniques of motivating
---------------------- people, his work is of value in understanding organisational behaviour. It clarifies
the relation between individual and organisational goals. The model is designed
---------------------- to help management understand and analyse employee motivation and identify
---------------------- some of the relevant variables. However, the theory falls short of providing
specific solutions to motivational problems.
---------------------- The theory also does not take into account the individual differences based
on individual perceptions. Thus, the theory indicates only the conceptional
----------------------
determinantsof motivation and how they are related.
----------------------
----------------------

---------------------- 1. The needs which is finite but recurrent in nature is:
i. Security needs
---------------------- ii. Psychological needs
---------------------- iii. Physiological needs
iv. Esteem needs
----------------------
2. The factors which by their absence inhibit performance but any
---------------------- addition in them does not increase efficiency or productivity are:
i. Hygiene factors
---------------------- ii. Motivators
---------------------- iii. Monetary factors
iv. Psychological factors
----------------------
3. The horizontal job loading is called:
---------------------- i. Job enlargement
---------------------- ii. Job enrichment
iii. Job rotation
---------------------- iv. Job specification
---------------------- 4. The needs that are concerned with an individual’s intrinsic desire for
personal development are:
---------------------- i. Relatedness needs
---------------------- ii. Expectancy needs
iii. Existence needs
---------------------- iv. Growth needs

Notes
Activity 2
----------------------
Sripad was a very dedicated manager. He was very focused on his job but ----------------------
also constantly thought about the returns he would get for additional efforts
in the form of bonuses and incentives. He put in efforts in projects only ----------------------
when he believed that it was going to be beneficial for the organisation and
----------------------
also to him. Was he right in his thoughts? Comment.
----------------------
7.6 THE PORTER-LAWLER MODEL ----------------------
----------------------
Vroom has suggested what leads to effort. The Porter-Lawler Model,
however, goes a step ahead and postulates that effort does not necessarily lead ----------------------
to performance and satisfaction. While efforts are determined by the value of
reward and the perceived reward probability, performance, i.e., accomplishment ----------------------
is influenced by an individual’s abilities and role perceptions. In the ultimate
----------------------
analysis, an employee derives satisfaction, which is an amalgam of effort leading
to performance interacting with rewards. ----------------------
The model can be diagrammatically explained as under:
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 7.2 The Porter-Lawler Model ----------------------
----------------------
----------------------

Notes 7.7 EQUITY THEORY OF WORK MOTIVATION
---------------------- As a theory of work motivation, credit for Equity Theory is usually given
to J. Stacy Adams. Simply put, the theory argues that a major input into job
----------------------
performance and satisfaction is the degree of equity (or inequity) that people
---------------------- perceive in the work situation. Adams depicts a specific process of how this
motivation occurs.
----------------------
Inequity occurs when a person perceives that the ratio of his or her outcome
---------------------- to inputs and the ratio of a relevant other’s outcome to inputs are unequal.
Schematically, this is represented as follows:
----------------------
Equity occurs when,
---------------------- Person’s outcomes = Other’s outcome
---------------------- Person’s inputs = Other’s inputs
---------------------- Both the inputs and the outputs of the person and the other are based
upon the person’ s perceptions, which are affected by age, sex, education social
---------------------- status, organisational position, qualifications, and how hard the person works,
etc. Outcome consists primarily of rewards, such as pay, status, promotion and
----------------------
intrinsic interest in the job. In essence, the ratio is based upon the person’s
---------------------- perception of what the person is giving (inputs) and receiving (outcomes) versus
the ratio of what the relevant is giving and receiving. This cognition may or may
---------------------- not be the same as someone else’s observation of the ratios or the same as the
actual situation.
----------------------
If a person’s perceived ratio is not equal to the other’s, he or she will
---------------------- strive to restore the ratio to equity. This “striving” to restore equity is used as
the explanation of work motivation. The strength of this motivation is in direct
----------------------
proportion to the perceived inequity that exists.
----------------------
Activity 3
----------------------
---------------------- Tick in the right column and put your reasons in brief.
---------------------- When my perception of equity is… High Low Reason
• The manager has given my colleague better
---------------------- rating in the performance appraisal and I don’t
---------------------- see why?
• I feel I have got better rewards as compared
---------------------- to others in my team and obviously I deserved
---------------------- them.
----------------------
7.8 ATTRIBUTION THEORY
----------------------
The study of attribution was initially associated with Fritz Heider (1896–
---------------------- 1988) (1958). Later Bernard Weiner (1935–) of the University of California at

Los Angeles developed a more comprehensive and extensive model of human Notes
attributions.
----------------------
Attribution theorist Harold Kelley stresses that the Attribution Theory is
concerned mainly with the cognitive processes by which an individual interprets ----------------------
behaviour as being caused by certain parts of the relevant environment. The
attribution theorist assumes that humans are rational and are motivated to identify ----------------------
and understand the causal structure of their relevant environment. It is this search
----------------------
for attributes that characterises Attribution Theory.
Fritz Heider believed that both internal forces, i.e. personal attributes such ----------------------
as ability, effort and fatigue and external forces, i.e. environment attributes,
----------------------
such as rules and the weather combine additively to determine behaviour. He
stressed that it is the perceived and not the actual determinants that are important ----------------------
to behaviour.
----------------------
Many studies indicate that the types of attributions that individuals make
influence their subsequent behaviors in predictable ways. Both the expectancy ----------------------
beliefs and the emotions that individuals experience as a result of the attributional
process tend to determine future behaviors. ----------------------
----------------------
7.9 THEORY X AND THEORY Y
----------------------
A powerful influence for maturity on organisational behaviour was
Douglas McGregor’s Theory X and Theory Y, first published in 1957 in his ----------------------
book The Human Side of Enterprise. These two theories clearly distinguished
----------------------
traditional autocratic assumptions about the nature of people (Theory X) from
behavioural assumptions (Theory Y). The usefulness of the McGregor theories ----------------------
is his convincing arguments that most management actions flow directly from
whatever theory of human behaviour managers hold. Management personnel ----------------------
practice decision-making, operating practices, and even organisational design
----------------------
flow from assumptions about human behaviour. The table below gives the
assumptions of both these theories ----------------------
Table 7.5
----------------------
Theory X Theory Y
----------------------
 The typical person dislikes  Work is as natural as play orrest.
work and will avoid it if ----------------------
possible.
----------------------
 The typical person lacks  People are not inherently lazy. They
responsibility, has little have become that way as a above all. ----------------------
ambition, and seeks security result of experience.
----------------------
 Most people must be coerced,  People will exercise self-direction and
controlled, and threatened self-control in the service of objectives ----------------------
with punishment to get them to which they are committed.
to work. ----------------------
----------------------

Notes Theory X Theory Y
----------------------
 People have potential. Under proper
conditions they learn to accept and seek
---------------------- responsibility. They have imagination,
ingenuity, and creativity that can be
---------------------- applied to work.
---------------------- With these assumptions the With these assumptions the managerial
managerial role is to coerce and role is to potential in employees and
---------------------- control employees. help them release that potential toward
---------------------- common objective.
----------------------
----------------------

1. The theory that postulates that effort does not necessarily lead to
---------------------- performance and satisfaction is:
---------------------- i. Vroom’s expectancy model
ii. Attribution theory
----------------------
iii. Porter-Lawler model
---------------------- iv. Equity theory of motivation
---------------------- 2. What occurs when a person perceives that the ratio of his outcome
to inputs and the ratio of a relevant other’s outcome to inputs are
---------------------- unequal?
---------------------- i. Expectancy
ii. Equity
----------------------
iii. Inequity
---------------------- iv. Valence
---------------------- 3. The theory which is concerned with the cognitive processes by which
an individual interprets behaviour as being caused by certain parts of
---------------------- the relevant environment is:
---------------------- i. Equity theory of motivation
ii. Attribution theory
---------------------- iii. Porter-Lawler model
---------------------- iv. Vroom’s expectancy model

1. Physiological needs have a tendency to recur.
----------------------
2. Need for esteem remains latent in most people.
----------------------
----------------------

Notes
Activity 4
----------------------
Comment on the style of management based on Theory X and Theory Y. ----------------------
My Manager…. His style is….. ----------------------
Closely supervises my work
----------------------
Discuss things which are only connected with work
----------------------
Says he doesn’t trust his team members and hence
wants to do all the work himself ----------------------
He is often rude while giving feedback
----------------------
Believes that people in his team are capable and
they want to do a good job. ----------------------
----------------------
1. Work motivation approaches can be broadly classified as: ----------------------

i. Content theories ----------------------
ii. Process theories
iii. Maslow’s hierarchy theory ----------------------
iv. Frederick Herzberg’s two factor theory ----------------------
2. Three groups of core needs according to Alderfer are:
----------------------
i. Existence
ii. Relatedness ----------------------
iii. Growth ----------------------
iv. Equity
----------------------
Match the following.
----------------------
i. Giving a person a complete natural a. Growth and learning
unit of work ----------------------
ii. Removing some controls while b. Responsibility and personal
retaining accountability achievement ----------------------
iii. Introducing new and more difficult c. Responsibility and growth
----------------------
tasks not handled previously
iv. Making periodic reports directly d. Internal recognition ----------------------
available to the worker himself
e. Responsibility and ----------------------
recognition
f. Internal recognition and ----------------------
growth ----------------------

Notes CASE STUDY
---------------------- Jobs for Life
---------------------- Ernst & Young is a cautious firm that has embarked on a bold experiment
to address deeply personal questions about work. The goal, say the people behind
----------------------
these programmes, is to create jobs for life.
---------------------- “So what are you doing for the next five years?” Deborah Holmes laughed
off Philip Laskawy’s question. The chairman and CEO of Ernst & Young LLP
----------------------
couldn’t be offering her a job. It was the fall of 1996. Holmes, 36, research
---------------------- director of Catalyst, a New York City-based organisation that studies women in
business, had just presented her analysis of turnover among female employees
---------------------- at E&Y. And the news wasn’t good. For years, half of the $5 billion accounting
---------------------- and consulting firm’s new hires had been women, but the percentage of female
partners and managers − not quite 20% − had barely budged.
----------------------
More disturbing was that E&Y’s turnover problem did not involve only
---------------------- women. Holmes’s research revealed that corporate culture was producing equal-
opportunity angst. A culture that equated face time with commitment and that
---------------------- consistently demanded that its employees sacrifice family for work was clearly out
of whack. About 60% of the women and 57% of the men in senior management
----------------------
at E&Y told Catalyst that they were dissatisfied with working long hours. Each
---------------------- year, about 23% of the women and 18% of the men were leaving.
---------------------- Imagine the cost. E&Y was losing not only talent but also continuity with its
clients. And it was spending hundreds of thousands of dollars to fill each vacant
---------------------- position. Holmes told E&Y’s leaders that if they wanted to buck that trend, they
would have to make sweeping changes in the way they conducted business, and
----------------------
that such an effort would require the full-time attention of at least one person
---------------------- and probably more than one person.
---------------------- That was when Laskawy, 59, threw down the gauntlet. “So what are you
doing for the next five years?” But it wasn’t until Laskawy called Holmes at
---------------------- her office later that she finally realised how serious he was. She knew she was
staring at what could be an opportunity of a lifetime − a chance to see whether
---------------------- the ideas that she had been developing for the past seven years as a work-life
---------------------- consultant would work in the real world.
“You realise that I’m not guaranteeing anything. My ideas may not work,”
----------------------
Holmes hedged. Laskawy agreed. This was no layup. But “whoever cracks this
---------------------- code will be a winner with this workforce,” Holmes remembers him saying. “So
let’s give it a try.”
----------------------
Today, more than three years later, Ernst & Young still hasn’t cracked the
---------------------- code, but it certainly has made progress. Laskawy and Holmes are reshaping the
work lives of 34,000 professionals in an industry where customer focus is crucial
----------------------
to survival. How do you bring balance to a profession that, by definition, demands
---------------------- brutally long hours? How can work be flexible when a client sets a tight deadline

and expects to see you working around the clock to meet it? How do you make Notes
it acceptable to talk about personal needs with partners as well as with clients?
----------------------
In late 1996, soon after Holmes was hired to direct E&Y’s newly created
Office for Retention, she launched four pilot programmes to address those ----------------------
questions. Three of those programmes − involving internal networking, mentoring,
and external networking − were aimed exclusively at women, and all have proved ----------------------
reasonably successful. The fourth, and by far the most ambitious, targeted all ----------------------
34,000 E&Y employees. Its focus − balancing the work-life equation. That
programme had partners and staffers across the firm fundamentally reevaluating ----------------------
how E&Y does business. The programme wasn’t about establishing flextime or
job sharing; it was also about incorporating the reality of peoples’ lives into the ----------------------
firm’s business strategy. ----------------------
By the end of 1999, 11 of the firm’s 50 largest consulting teams and
----------------------
all of its 12 tax and audit practices had rolled out retention initiatives. From
San Jose, California to Detroit, E&Y consultants, auditors, and accountants ----------------------
began experimenting with a variety of self-generated measures, among them,
telecommuting, restricting consultants’ travel, even curbing the temptation to ----------------------
check e-mail and voice mail on weekends. (As this article went to press, France’s ----------------------
Cap Gemini SA announced that it was acquiring E&Y’s consulting practice. That
deal will not affect the firm’s work-life strategies.) ----------------------
“What’s impressive is the extent of E&Y’s initiative and determination ----------------------
to create a wave − a set of changes − that will make the company look like a
new organisation in five years,” says Stew Friedman, on leave as director of the ----------------------
Work/Life Integration Project (based at the Wharton School of the University of
----------------------
Pennsylvania), which recently did a case study on E&Y’s efforts. “There is not
just one measure here but a whole campaign that is being mobilised to engage ----------------------
everyone in changing the values and beliefs that drive the company.”
----------------------
Change hasn’t come easily or quickly. E&Y remains, by nature, a deeply
cautious place. Requests for even the most mundane information take weeks ----------------------
to process, while staffers ruminate over the implications of those requests.
----------------------
Many E&Y professionals still work an obscene number of hours, missing more
anniversaries, birthdays and vacations than they want to admit. Although some ----------------------
offices have seen retention improve dramatically − firmwide turnover among
women had dropped by 5% between 1995 and 1998 − overall, turnover stands ----------------------
at 20%. Of course, treading water in this hot economy may be an achievement
----------------------
of sorts. A survey of 1,192 major US employers, conducted by the American
Management Association, found that between mid-1998 and mid-1999, turnover ----------------------
decreased in only 16% of those companies, whereas it rose in 28% of them. Yet
Holmes acknowledges that E&Y has a long way to go. “Some of the work that ----------------------
we started in 1997 is only now beginning to bear fruit,” she says. ----------------------
Perhaps E&Y hasn’t won the war, but it has turned life balance into a
----------------------
grassroots crusade with a momentum on its own. Many companies announce
work-life programmes with much fanfare, only to forget them within months. ----------------------

Notes E&Y avoided that pitfall by implementing three critical strategies. First, Laskawy
has made himself a visible and persistent advocate of life balance, ensuring that
---------------------- everyone understands that Holmes’s office has his personal backing.
---------------------- Second, Holmes doesn’t dictate policy. Instead, she urges local offices to
examine long-held assumptions and to invent their own solutions. In the past two
---------------------- years, hundreds of partners and staffers across the firm have formed “solution
teams” to determine the scope and nature of life-balance programmes. Says
----------------------
Holmes: “People who live with a problem can solve it better than anyone who
---------------------- rides in from headquarters on a white horse.”
Finally, and most importantly, partners have tried to reflect change in their
----------------------
own work lives. Employees won’t back off work until they see their bosses doing
---------------------- the same. So some of the most driven, hardworking partners now make a point
of not checking or leaving voice mail on weekends or during vacations. “You
---------------------- simply have to lead by example,” says Roger Dunbar, 54, managing partner for
the northern California and Pacific Northwest area.
----------------------
The work-life initiatives have energised E&Y, infusing its people with
---------------------- invention and purpose. Once sacred truths − “serve the client at any cost,” for
---------------------- instance − are questioned openly. In many offices, partners dare to raise their
staffers’ life-balance issues with clients. In fact, some actually work with clients
---------------------- to reinvent processes, making them family friendlier for employees on both ends.
“For me, being part of the process and getting people to talk about these issues
---------------------- has been invigorating,” says Jayne McNicol, 34, a senior audit manager in Palo
---------------------- Alto, California, who helped create one of the firm’s first life-balance prototypes.
Dunbar agrees, “That process has given me my passion back.”
---------------------- Principles for Change
---------------------- How do you make changes in an organisation that’s mired in tradition?
Ernst & Young put these five principles to work.
----------------------
a) Start at the top: Chairman and CEO Phil Laskawy has made it clear
---------------------- that Deborah Holmes’s Office for Retention is not just window dressing.
In a company where office size and location still mean a lot, Holmes’s
----------------------
office space is just down the hall from Laskawy’s. He also personally
---------------------- introduced her to the firm’s top people and promoted her programmes in
companywide voice mails.
----------------------
b) Lead by example: When executives work like maniacs, their staffers are
---------------------- likely to do the same. At E&Y, partners try to become models of balance.
When the 3-4-5 travel schedule for consultants was implemented, many
---------------------- partners adopted it as well. They also began talking openly about how
they meet their own needs, so that others would feel comfortable doing
----------------------
the same.
---------------------- c) One size doesn’t fit all: That’s especially true in massive organisations
like E&Y. So the firm encourages each office and consulting project to set
----------------------
up its own solution teams. An added benefit of this is that because large
----------------------

numbers of leaders and staffers are involved in the process, the measures Notes
had widespread support when they were put in place. “Most people are
much more enthusiastic about new ideas that are homegrown,” says ----------------------
Holmes, “and the ideas tend to be a lot better.”
----------------------
d) Keep it simple: In 1997, consultants on E&Y’s Detroit project had an
idea: Why not offer extra compensation to staffers who log extra hours ----------------------
on the road? However, they dropped the idea when it began raising too
----------------------
many questions. “If you want change to be sustainable, you have to keep
it simple,” says Bob Forbes, the partner-in-charge of that project. ----------------------
e) Don’t forget the big picture: No matter what initiatives E&Y’s solution
----------------------
teams consider, team members must always consider the corporate
mission: to provide top-quality service to the firm’s clients. Some teams ----------------------
resist measures that they feel might impede client service, even as other
teams embrace those innovations. “Every change that’s made has to be in ----------------------
the context of serving the client,” says Forbes, “because that’s what we’re
----------------------
all about.”
Sanity Toolbox ----------------------
When Ernst & Young launched its life-balance initiatives, the firm didn’t ----------------------
just roll out one or two measures. It offered a wide variety of items – some quick
fixes, some long-term solutions. Here is a sampling. ----------------------
i) The 3-4-5 travel schedule: Consultants can spend months at a time on ----------------------
the road. To ease the grind, the 3-4-5 schedule requires that consultants
spend just three nights away from home, four days at a client’s site, and ----------------------
day five working either at home or in their home office. Many consultants
----------------------
spend that fifth day at home, catching up on errands.
ii) Life-balance survey and agreement: Since consultants work on ----------------------
different assignments with different colleagues, each project begins with
a comprehensive survey of individual needs and concerns. Consultants ----------------------
and their supervisors then complete a life-balance operating agreement ----------------------
– a contract that spells out staffing requirements, an individual’s specific
needs and the way a supervisor plans to meet those needs. ----------------------
iii) Mail-duty reprieve: E&Y’s tax and audit offices in San Jose and Palo ----------------------
Alto came up with a simple innovation. Employees aren’t obliged to check
e-mail or voice mail either on weekends or while they’re on vacation. No ----------------------
one is prevented from doing so, but the message is clear. Checking mails
in when you’re off work is unnecessary. ----------------------
iv) Telecommuting: This is far from a novel solution, but it has gained broad ----------------------
acceptance at E&Y. The company’s Silicon Valley offices screen suitable
candidates for telecommuting, based on logistics and temperament. ----------------------
Commuting distance, workload and seniority are also criteria. Then E&Y
----------------------
provides qualified employees with an ISDN phone line, secure access to
its network, a computer and other equipment and office furniture. As a ----------------------
result, employees’ commutes are shortened and their morale is heightened.
----------------------

Notes v) Workload patrols: Several factors contribute to unmanageable workloads.
First, E&Y accountants get their assignments from a number of partners.
---------------------- Second, little effort is made to coordinate those assignments. And third,
employees are loath to turn down billable hours. To address those
---------------------- problems, E&Y’s San Jose and Palo Alto practices have each appointed
two committees to review employees’ time sheets and to make sure that
----------------------
no one is overwhelmed with work. Those committees can remove staffers
---------------------- from assignments, even when no replacements are available. The result?
Less burnout.
----------------------
vi) Best-practices database: Called the Life-Balance Matrix, this online
---------------------- database contains descriptions of the best life-balance measures that are
used across the firm as well as a list of contacts. The database lets offices
---------------------- share information and resources, so that they can build on one another’s
success.
----------------------
(Source: fastcompany.com)
---------------------- Questions:
---------------------- 1. What new initiatives were introduced by Deborah Holmes?
---------------------- 2. Do you really think that E & Y infused its people with invention and
purpose?
----------------------
Summary
----------------------
• The work motivation theories can be broadly categorised into two classes:
----------------------
content theories and process theories.
---------------------- • The content theories are concerned with identifying the needs that people
---------------------- have and how needs are prioritised.
• Content theories are concerned with types of incentives that drive people
---------------------- to attain need fulfillment. Examples are - The Maslow Hierarchy Theory,
---------------------- Fredrick Herzberg’s Two-Factor Theory and Alderfer’s ERG Needs
Theory.
---------------------- • The process theories are concerned with the cognitive antecedents that
---------------------- go into motivation and with the way they are related to one another.
Example: The theories given by Vroom, Porter and Lawler, equity theory
---------------------- and attribution theory.
----------------------
Keywords
----------------------
• Self-actualisation: The tendency to actualise, as much as possible,
---------------------- individual capacities or the full realisation of one’s potential.
---------------------- • Hygiene factors: Factors that by their absence inhibit performance but
any addition in them does not increase efficiency or productivity.
----------------------
----------------------

• The Pygmalion effect: Described by J. Sterling Livingston in the Notes
September/October, 1988 Harvard Business Review, “The way managers
treat their subordinates is subtly influenced by what they expect of them.” ----------------------
• Process theory: Attempts to explain the mechanism by which human ----------------------
needs changes. Some of the theories that fall in this category are
expectancy theory, equity theory, and goal setting. ----------------------
• Content theory: Explains why human needs change with time. Content ----------------------
theory includes the work of David McClelland, Abraham Maslow and
other psychologists. ----------------------
• Job enrichment: An attempt to motivate employees by giving them the ----------------------
opportunity to use the range of their abilities.
----------------------
1. Explain in correct sequence Abraham Maslow’s Theory of Need Hierarchy. ----------------------

2. Who developed the Two-Factor Theory of Motivation? What do you ----------------------
mean by hygiene factors and motivators? Explain.
----------------------
3. What was Alderfer’s ERG Theory of Motivation?
4. What do you mean by process theories of motivation? Explain in detail ----------------------
the Porter-Lawler Model. ----------------------
5. Explain the equation M = (VxE) and describe Vroom’s Expectancy
Theory of Motivation. ----------------------
6. What was McGregor’s Theory X and Theory Y of Motivation? Explain in ----------------------

detail.
----------------------
----------------------
i. Pygmalion in management
ii. Attribution theory ----------------------
iii. Equity theory of motivation ----------------------
iv. Job enlargement and job enrichment ----------------------
Answers to Check your Progress ----------------------

1. The needs which is finite but recurrent in nature is: ----------------------
iii. Physiological needs
----------------------
----------------------
----------------------

Notes 2. The factors which by their absence inhibit performance but any addition
in them does not increase efficiency or productivity are:
----------------------
i. Hygiene factors
---------------------- 3. The horizontal job loading is called:
---------------------- i. Job enlargement
---------------------- 4. The needs that are concerned with an individual’s intrinsic desire for
personal development are:
---------------------- iv. Growth needs
----------------------

----------------------
1. The theory that postulates that effort does not necessarily lead to
---------------------- performance and satisfaction is:
---------------------- iii. Porter-Lawler Model
---------------------- 2. What occurs when a person perceives that the ratio of his outcome to
inputs and the ratio of a relevant other’s outcome to inputs are unequal?
----------------------
iii. Inequity
---------------------- 3. The theory which is concerned with the cognitive processes by which
an individual interprets behaviour as being caused by certain parts of the
----------------------
relevant environment is:
---------------------- ii. Attribution theory
---------------------- 1. True
2. False
----------------------
----------------------
Answers to Check your Progress 3
---------------------- 1. Work motivation approaches can be broadly classified as:
---------------------- i. Content theories

ii. Process theories
----------------------
2. Three groups of core needs according to Alderfer are:
----------------------
i. Existence
---------------------- ii. Relatedness
---------------------- iii. Growth
----------------------

Match the following. Notes
i-e
----------------------
ii – b
----------------------
iii – a
iv – d ----------------------
----------------------
Suggested Reading
----------------------
1. Steers R.W. and L.W. Porter. Motivation and Work Behaviour. McGraw-
----------------------
Hill
2. Vroom V.H. Work and Motivation. New Delhi: Weley Eastern. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
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----------------------
----------------------

Morale and Work & Conditions of Work
UNIT
Structure:
8
8.1 Introduction
8.2 Indicators of Morale
8.3 Various Aspects of Morale
8.4 Improving Employee Morale
8.5 Work and Conditions of Work
8.6 Relationship among Job Characteristics, Working Conditions and Job
Performance
8.7 Characteristics of Work
8.8 Creating a Favourable Work Environment
Summary
Keywords
Suggested Reading
Morale and Work & Conditions of Work 133

Notes
Objectives
----------------------
----------------------
• Define morale
---------------------- • Predict the relationship between morale and productivity
---------------------- • Outline some of the morale indicators
• Justify the various aspects of morale in an organization
---------------------- • Appraise how one can improve the morale of the employees
---------------------- • Analyse the relationship among job characteristics, working
conditions and job performance
----------------------
• Determine the relationship of productivity to the time spent at work
---------------------- • Devise ways to avoid decrement in the work curve
• Compare and contrast how various factors in the physical
----------------------
surroundings affect productivity
----------------------
---------------------- 8.1 INTRODUCTION

----------------------
There does not seem to be congruence of the opinions of the OB thinkers
---------------------- about the meanings of job satisfaction and morale. Many thinkers use these
words synonymously. Even Keith Davis in his earlier editions of the book
---------------------- Human Behaviour at Work in earlier editions uses the word Morale, which in the
subsequent editions is changed to ‘job satisfaction’. But we can say that while job
----------------------
satisfaction is an individual phenomenon, morale indicates a group phenomenon.
---------------------- According to Keith Davis, morale means “the attitude of employees and
group towards their work environment and toward voluntary cooperation to the
---------------------- full extent of their ability in the best interests of the organization.”
---------------------- According to Morris Viteles “Morale refers to the condition of a group
where there are clear and fixed group goals that are felt to be important and
---------------------- integrated with individual goals: where there is confidence in the attainment of
---------------------- these goals and the confidence in the means of attainment in the leader, associates
and finally in oneself.”
---------------------- Morale indicates the happiness of the employees with the organizational
---------------------- environment. It also refers to the preparedness of the groups of the employees to
subordinate the individual and the group goals to the goals of the organization.
---------------------- Morale essentially is akin to job satisfaction. It represents the integration
---------------------- of an individual with the team and the organization itself. Generally, it can be
said that morale has a positive relationship with productivity .The higher the
---------------------- morale the higher is the productivity. However, this need not always be so, as
can be seen from the following graph:
----------------------
----------------------

Notes
----------------------
Job satisfaction
----------------------
----------------------
----------------------
----------------------
Fig 8.1: The Productivity Curve
In the above graph, ----------------------
Line A represents high morale, low productivity. ----------------------

Line B represents high morale, high productivity. ----------------------
Line C represents high productivity, low morale.
----------------------
High productivity involves a combination of ability, training, work habits,
performance goals etc. Curve A above where morale is high but productivity is ----------------------
low indicates the management’s failure in the proper discharge of management ----------------------
functions, chiefly, the planning function.
Productivity can be high in spite of morale being low because of the rigid ----------------------
systems and controls imposed by the management. ----------------------
The situations where productivity is higher in spite of morale being low
or productivity being lower in spite of morale being high do not last long. In the ----------------------
first situation, productivity is high because of the strict management controls and ----------------------
close supervision. It also happens in an atmosphere where the people are treated
as machines. In this situation, the management is apparently creating discontent ----------------------
in the organization, which may blow up in its face. When this happens, the
productivity also dips. ----------------------
In the second situation, when morale is high but productivity is low, slowly ----------------------
people distance themselves from the Organization because of the disillusionment
----------------------
about the management abilities. In this situation, after some time, the morale
comes down. Thus in both these situations ultimately morale as well as ----------------------
productivity are at their nadir.
----------------------
Every manager is always interested in curve ‘B’indicating high morale as
well as productivity. But morale is not a static phenomenon. Today the morale ----------------------
high but something may go wrong and the morale might start coming down. In
other words, a manager must have his fingers on the morale in the Organization. ----------------------
No doubt, a manager can know the level of morale in his organization by morale
----------------------
surveys. These morale surveys involve drafting of questionnaires, interview
people, tabulate and analyze the data. This may be time-taking process. Instead ----------------------
he may pay due attention to some of the morale indicators that give an idea about
the status of morale at a particular time. ----------------------
----------------------

Notes 8.2 INDICATORS OF MORALE
---------------------- A manager should always be interested in knowing the level of morale in
his organization/ section. Morale cannot be quantified. However, it can be talked
---------------------- of in comparative terms.
---------------------- Though it is always possible or advisable that a manager conducts morale
surveys, which can help a manager to know the status of morale the following are
---------------------- the morale indicators that give an idea to the manager about the status of morale.
---------------------- 1. The rate of rejections of finished products by Quality Assurance Dept.:
The higher the rate of rejections, the lesser is the morale.
----------------------
2. The rate of wastage of raw material: The higher the wastage, the lower is
---------------------- the morale.
3. Petty grievances: The higher the number of the petty grievances, the lower
----------------------
is the morale.
---------------------- 4. Absenteeism: In the Indian situation, absenteeism is dependent upon
seasons such as sowing etc. and the festivals. High absenteeism during
---------------------- these periods need not indicate low morale.
---------------------- 5. Resignations of skilled personnel: In the Indian situation, there being large
unemployment, an unskilled or a semi-skilled person, even if unhappy
---------------------- with the job cannot leave the job. On the contrary, however, a person
---------------------- having higher levels of skills can leave the job in case he is unhappy with
the job. In the Indian situation, therefore, exodus of skilled personnel is a
---------------------- morale indicator.
---------------------- 6. Exit Interviews: Since an employee who is leaving the organization is
not inhibited by the organizational constraints, he can afford to give
---------------------- his feelings with regard to many practices in the organization. The exit
interviews do constitute a good source of information for the management
---------------------- to set right many non-productive or the pernicious practices or procedures
---------------------- in the organization.
Table 8.2: Employees of an organization with high morale
----------------------
1
Consider themselves winners and resent the presence of losers in their
---------------------- ranks.
2 Censure any member who brings discredit on the department.
----------------------
3 Are among the best in the world at what they do and they know it.
---------------------- 4 Express admiration for their leaders.
5 Brag about the accomplishments of colleagues.
----------------------
6 Have a very low rate of absenteeism.
---------------------- 7 Require virtually no supervision.
8 Cooperate with one another.
----------------------
9 Do their jobs even when the boss is not looking.
---------------------- 10 Display a relaxed camaraderie.
---------------------- 11 Make suggestions for improvement.
12 Voluntarily come early and stay late.
Notes
----------------------
1. The attitude of employees and group towards their work environment
----------------------
and toward voluntary co-operation to the full extent of their ability in
the best interests of the organisation is ----------------------
i. Productivity
----------------------
ii. Job enrichment
iii. Morale ----------------------
iv. Job satisfaction ----------------------
2. The situation that exists due to strict management controls and close
supervision is; ----------------------
i. High productivity, high morale ----------------------
ii. Low productivity , high morale ----------------------
iii. High productivity, low morale
----------------------
iv. Low productivity, low morale
3. A manager may know the status of morale in an organisation through: ----------------------
i. Morale survey ----------------------
ii. Exit interview
----------------------
iii. Employee turnover rate
----------------------
iv. Grapevine
4. What motivates people to do things but does not raise morale? ----------------------
i. Training ----------------------
ii. Money
----------------------
iii. Appreciation
iv. Gifts ----------------------
----------------------
8.3 VARIOUS ASPECTS OF MORALE ----------------------
1. Morale and happiness are not the same. ----------------------

Supervisors often confuse the concepts of morale and happiness. Morale ----------------------
and happiness are two different things. Some happy employees have poor
morale and some have high morale. Some unhappy employees have high ----------------------
morale and some have low morale.
----------------------
2. Elitism is the cornerstone of department morale.
----------------------
Elite departments tend to have high morale because members take pride
in their membership. They develop camaraderie, cohesiveness and ----------------------

Notes loyalty to one another and their leaders. If one could still see, there was
an almost tangible difference between the attitude of the marines and that
---------------------- of the members of the other two services in the US army. In a nutshell,
marines radiated self-assurance. They clearly felt that they had undergone
---------------------- a warrior’s rite of passage and had gained entry into an elite group. In
---------------------- general, members of the other two services were just glad basic training
was over. Quite a few actually complained that basic training was not
---------------------- hard enough. As far as, I know in that early stage in their careers, the
soldiers in all three services receive equivalent pay and benefits, but the
---------------------- difference in morale was almost tangible.
---------------------- 3. Departments have to earn high morale.
---------------------- High morale cannot be bestowed on a department or its members. A
leader must set the stage so that department members can become the best
---------------------- at what they do. By implication, this means that those who are not among
the best cannot remain as department members. When a leader stands
----------------------
before a mediocre department and pronounces them an elite group, he is
---------------------- not fooling anyone. Department members know department deficiencies.
Such pronouncements by leaders engender cynicism, the antithesis of
---------------------- morale. The leader must set high standards and relentlessly enforce them.
The department must adopt a culture of excellence.
----------------------
4. The department must rid itself of employees who do not meet
---------------------- standards.
---------------------- Department leaders must ensure that poorly performing employees do not
remain in the department. Unless a weak employee has some decisively
---------------------- and clearly remediable problem, the department leader must protect the
---------------------- culture of excellence and rid the department of the employee. Particularly
in soft skills jobs, poorly performing employees tend not to improve.
---------------------- 5. Money and goodies cannot buy morale.
---------------------- Give people enough money or goodies and they will do ALMOST
anything. There is no doubt that money motivates people to do things.
---------------------- While money may motivate people to do something, it does not raise
---------------------- morale. If someone were to pay me a million dollars a year to shovel shit
out of animal cages at the zoo, I would do it, but my attitude would not
---------------------- be very good. Generally, soldiers in elite military departments receive
a few extra dollars every month. But if you spend any time with elite
---------------------- departments, you know that money is a minor factor in their morale. Poorly
---------------------- paid soldiers who have high morale are willing to die if necessary. High
paid mercenaries tend to be less willing to die. They often avoid a real fight.
---------------------- People may work hard to earn money, but they can have lousy morale.
---------------------- 6. Good leadership (not just good management) is essential for high
morale.
----------------------
Department members must have confidence in their leaders. The leaders
---------------------- must be leaders, not just by virtue of their rank, but by earning the respect

and admiration of department members. A poor leader can quickly destroy Notes
department morale. If the adage, “Familiarity breeds contempt.” applies
to a leader, replace the leader. Familiarity should breed admiration. ----------------------
A good leader who inherits a department with poor morale can take a
long time to raise morale. Employees in departments with low morale ----------------------
tend to be cynical. Cynicism is a comfortable cocoon and it is difficult to ----------------------
dislodge employees from it. The environment in the cocoon is risk-free.
Employees sit in the cocoon and take pot shots at management. If you do ----------------------
not trust anyone, you will not suffer any more disappointment.
----------------------
7. Leaders of departments with high morale are vulnerable.
----------------------
Perversely, leaders of departments with high morale are very vulnerable.
Peers and superiors envy them. Department members also tend to be ----------------------
envied. Envy is a vicious enemy. Insecure bosses feel threatened by
subordinate supervisors receiving too much praise. High-ranking US ----------------------
military officers, renowned as paper pushers, not warriors, have expressed
----------------------
their envy by urging the elimination of the Marine Corps and Special
Forces. I personally suffered from the envy engendered by building an ----------------------
elite department. My boss was openly hostile. Finally, after giving me an
outstanding appraisal, he assigned me to a non-supervisory staff job at the ----------------------
same grade level, but with few responsibilities.
----------------------
8. Leaders have to keep lines of communication open with department
members. ----------------------
This is a truism. Yet, so many bosses are “too busy” to maintain a dialogue ----------------------
with their subordinates. One wonders why so few people in leadership
positions actually do keep open the lines of communication. ----------------------
----------------------
8.4 IMPROVING EMPLOYEE MORALE
----------------------
Improving employee morale benefits everyone involved in a work place.
Boosting employee morale means that people will take more pride in their work, ----------------------
call in sick less often and be more productive. Happier employees mean happier
----------------------
employers, since the employer will not lose money due to inefficiency and lost
time. Improving employee morale can be accomplished fairly easily. ----------------------
Most people thrive on feeling appreciated. You can improve employee ----------------------
morale by showing your appreciation in simple ways, such as rewarding an
employee by saying, “job well done,” or, “thank you for the good work.” It is a ----------------------
grave mistake on the part of employers to only interact with their workers when
there is a problem. ----------------------
Another way to show appreciation and boost employee morale is by being ----------------------
friendly and interested in your employees. A warm smile and a sincere query
about how one is doing will in turn motivate employees. Knowing people’s names ----------------------
and personalizing the work environment inspires employees to want to help you. ----------------------
Encouraging social interaction between employees and immediately
resolving conflict is another way to improve employee morale. Social events ----------------------

Notes such as office picnics and softball games create a sense of camaraderie between
employees. Social interaction positively influences cooperation and a general
---------------------- enthusiasm about coming to work everyday. Isolation, on the other hand, causes
depression and a lack of motivation.
----------------------
Another way to improve employee morale is by offering reward incentives.
---------------------- A job well done might be rewarded with a gift card or a cash bonus. This reward
can come as a surprise to the employees who earn it, or it can be announced as a
----------------------
sort of game or contest. Having a goal to work towards that directly benefits the
---------------------- employee can help create enthusiasm, which tends to be contagious.
A very important factor in improving employee morale is the work
----------------------
environment. Psychological research shows that atmosphere greatly and directly
---------------------- affects the motivation level and feeling of well being of the employees in a
workplace. When possible, providing comfortable and aesthetically pleasing
---------------------- furniture is one way that researchers suggest to motivate people. Lighting, flowers
and artwork can also help improve employee morale.
----------------------
Obviously, providing a pleasant atmosphere is not always possible, for
---------------------- instance in factories or repair shops. In these types of environments, offering a
pleasant break room or relaxation area helps to improve morale. In any work
----------------------
environment, safe and comfortable conditions improve employee morale by
---------------------- giving workers a reasonable sense of security.
---------------------- Following are some of the ways to build employee morale;

1. Use variety: What motivates one employee won’t necessarily motivate
---------------------- another. Employees have different ideas and expectations for their jobs,
---------------------- so offering varied morale boosters is the best way to impact employee
morale across the board.
---------------------- Forms of morale boosters might include compensation or recognition,
---------------------- or even a special privilege or perk in certain situations. Knowing what
will influence your employees most will help you choose the type of
---------------------- motivational tool to use.
---------------------- 2. Allow employees a sense of ownership in their jobs: Invite and
encourage their ideas and input. Let them know that you value them and
---------------------- their opinions. Implement their suggestions when feasible, and if you’re
unable to do so, explain why you can’t. Treat your employees with respect
----------------------
and it will go a long way in helping them to do a better job and remain
---------------------- loyal to your company.
3. Recognize their efforts: A simple thank you note or card for a job well
----------------------
done, a birthday card, get well card or company anniversary card are
---------------------- simple, inexpensive ways to acknowledge your employees and let them
know how much you appreciate them and they work they do.
----------------------
4. Help them improve: Most employees want to do a good job. You can
---------------------- offer them training opportunities in a variety of subject areas related to
specific tasks, customer service, leadership and more. Helping employees
---------------------- feel better about themselves will help them feel better about the company.

eLearning courses can easily be taken online for little expense, yet they Notes
will still give a tremendous boost to morale and job satisfaction.
----------------------
5. Make it fun: Sure, you have a job to get done, but making work fun
will build morale quicker than almost anything else you can do. Allow ----------------------
for interaction. Provide activities outside work. Host a company picnic,
or a barbecue at your home. Hold a “bring your kids to work day” or a ----------------------
visitors day where family members are welcome to come in and view
----------------------
what your employees do. Remember that your employees are people first
and workers second. Treat them as such and morale will naturally remain ----------------------
high.
----------------------
6. Communication: The combination of fear and ignorance is powerful,
indeed, so keep your employees in the loop. Weekly meetings, open door ----------------------
policies and regular visits with employees will help quell the rumors that
are often damaging to staff morale. ----------------------
----------------------
----------------------
Multiple Choice Multiple Response ----------------------

1. Management basics to deal with the problem of low morale are;
i. Communication ----------------------
ii. Leadership ----------------------
iii. Training
iv. Control ----------------------
2. Employees of an organization with high morale; ----------------------
i. Consider themselves winners
ii. Express admiration for their leaders ----------------------
iii. Have high rate of absenteeism
----------------------
iv. Voluntarily come early and stay late
State True or False ----------------------
1. Morale essentially is akin to job satisfaction. ----------------------
2. Leaders have to keep their heads up irrespective of their own moral level.
----------------------
3. Productivity can be high in spite of morale being low because of rigid
and authoritative control system imposed by the management. ----------------------
----------------------
i. Management failure in proper a. High productivity low morale
discharge of planning function ----------------------
ii. Rigid systems and controls b. People with low morale
----------------------
imposed by the management
iii. Cynicism c. Low morale low productivity ----------------------
iv. Elite departments d. High morale high productivity
----------------------
e. People with high morale
f. High morale low productivity ----------------------

Notes
Activity 1
----------------------
---------------------- Summarise the key points after going through the following article
----------------------
Employee Morale: Role of Leadership
---------------------- Even in the best of times, morale is a delicate, unpredictable thing. Will
---------------------- one employee sulk when another receives a promotion? Will a canceled project
throw a team into a tailspin of recrimination and apathy? Will a switch from coke
---------------------- to lemon water in the company cafeteria cost you your best worker? Threading
your way through these problems can be like negotiating a minefield. At any
---------------------- moment, something can blow up in your face and send productivity tumbling
---------------------- even as your employees commence to mumbling and grumbling. Of course,
these are not the best of times.
----------------------
Bad morale is insidious. Bad morale sulks, it lurks, and it simmers just
---------------------- beneath the conversation at the water cooler. But if you keep your eyes and ears
open, you will know when its there.
----------------------
It is not the Economy; it is you
---------------------- Morale is more than a people issue; it is a business issue. Low morale
increases turnover, and turnover (when unplanned) is bad for you and your
----------------------
reputation, department and efficiency
---------------------- – and, of course, the bottom line. Low morale also causes declines in
---------------------- productivity and quality. No figures exist to quantify those declines, says Anne
Reustle, leader of the work- life consulting group at William M. Mercer in
---------------------- Philadelphia, but the correlation between morale and business functioning is
self-evident.
----------------------
”Stress and illness caused by excessive demands in work and personal life
---------------------- can seriously reduce a worker’s productivity and have a direct impact on the
bottom line,” Reustle asserts.
----------------------
Before the problem of morale can be tackled, a couple of ground rules
---------------------- need to be understood. There are no easy fixes or blanket solutions. Morale is not
like a buggy software program – there are no service packs or patches. It cannot
---------------------- be fixed in one day or one week, and it will not be solved by pizza parties, free
---------------------- mugs or wacky Hawaiian shirt day.
Lack of communication and bad management, or lack of confidence in
----------------------
management, are the two biggest causes of low morale. It does not matter what
---------------------- the economy is like.
– Rick Chapman, CIO and chief administrative officer, Kindred Healthcare.
----------------------
What you need to understand about morale is this: The mood of your
---------------------- employees can be brought down by external factors, such as the state of the
economy, but it is your leadership skills – or lack thereof – that will tip the morale
----------------------

scales one way or the other. In tough times such as these, the people are looking Notes
for support, leadership and reassurance. If they are ignored or underestimated,
there is a morale problem on hands. ----------------------
The first step toward fixing bad morale is acknowledging that the problem ----------------------
exists.
----------------------
The second step is realizing that it is your responsibility to make it better.
While morale may seem like the domain of HR, that is a cop-out, says David ----------------------
Van De Voort, a principal consultant and leader of the IT workforce effectiveness
group at Mercer. ----------------------
There are, however, actions you can and must take to deal with and reverse ----------------------
a bad morale situation, including placing special emphasis on management basics
such as communication, leadership and special programs for employees: training, ----------------------
rewards and recognition.
----------------------
Here are steps that you can take towards recognizing and rehabilitating
low morale: ----------------------
a) Look, Listen, Take Nothing for Granted ----------------------

Morale is like the weather on the plains – it can change drastically in the ----------------------
space of a minute. But on the plains, you can see a storm coming; the
warning signs of bad morale are more subtle and difficult to detect. Some ----------------------
old signals, such as increased turnover and frequent absences, are not as
reliable now as they once were. ----------------------
A vice president and CIO of a textile manufacturing organization make ----------------------

it a point to meet with his team on a daily basis to discuss work related
----------------------
issues. He keeps his ears open for the red flags that could signal trouble.
"The biggest mistake you can make is to ignore the existence of a ----------------------
problem or rationalize it away,” he says. “People shouldn’t be constantly
----------------------
uncommunicative. If they get negative in conversations, you have to
perk up your ears. Look at their faces. Are they laughing or smiling at all ----------------------
around the office? Are they quiet in meetings? If behavior and attitudes
have changed, red lights should start flashing in your mind.” ----------------------
Even if you have a large team “you have to make an effort to get to know ----------------------
them, know their spouses, know what’s going on in their lives,” he says.
“I’ve told them all about my family because I care about them, and they ----------------------
should know that. I want them to care about me as well because I need a ----------------------
lot from them, and I need them to want to give that kind of effort.”
Having daily contact with the team is essential for maintaining morale, ----------------------
says Theresa Welbourne, associate professor of organization behavior ----------------------
and human resource management at the University of Michigan business
school. ----------------------
“No organization is good at being proactive when it comes to morale,” ----------------------
Welbourne says. “Most companies are reactive.
----------------------

Notes Is your staff engaged and participating in projects and meetings, or are
they withdrawn and lethargic? If people are no longer contributing,
---------------------- particularly if they used to speak up often, that is a sign. If people are
talking but are being pessimistic, that is very telling. When things are
---------------------- good, employees feel like they can do anything. But when morale is
---------------------- down, they tend to feel like even one project is too much to be done. The
sense of urgency on projects diminishes.
----------------------
You might have an open culture, but people learn from previous jobs to
---------------------- keep their mouths shut. Employees try to hide their feelings because they
are afraid of a pdepartmentive backlash if they say anything.
----------------------
The best way to counteract that kind of wariness is to talk to your staff in
---------------------- a consistent, honest manner.
b) Honesty is the Best Policy
----------------------
The most important tool for recognizing and combating bad morale is
---------------------- communication. Even if your company is going down the tubes and the
---------------------- future looks grim, tell your employees what is really going on, says a CIO
and executive vice president of an IT products company in the US.
---------------------- ”The biggest mistake is to withdraw and keep information to yourself,”
---------------------- he says. “There’s nothing more miserable than when a CIO holes up
in his office and assesses a situation behind closed doors and doesn’t
---------------------- share information with the employees. It’s insulting to your employees’
intelligence, and it’s very destructive in terms of morale.”
----------------------
Being up front is important, as is honesty. “You don’t want to say
---------------------- everything is rosy and then come back in a week and say the company is
not going to make it,” he says.
----------------------
CIOs sometimes keep information to themselves because they do not
---------------------- want to worry their employees, but even though they mean well, hiding
information will only spark anger and distrust.
----------------------
“Tell them what is going on, and don’t hold back because you think it
---------------------- will worry or upset them.If you stay silent, you won’t be protecting them.
In fact, you will be leaving them vulnerable, and that will only make the
----------------------
situation worse.
---------------------- Tell them that you will update them as it comes, but that it could change
---------------------- at any minute. Even if you do not have an answer for them, tell them
that you do not know. That helps them know you are being honest, even
---------------------- though it is not an easy situation. Be up front about layoffs and other
reductions in staff. Everyone knows about layoffs because it is in the
---------------------- paper every day. You have to address it honestly with your staff because
---------------------- they are concerned. Try to look ahead so there are no surprises for them.”
As a leader, even if your own morale is down, you have to keep your head
---------------------- up. When morale is bad, it is more vital than ever that you be a fount of
---------------------- energy and guidance, even if it is just by keeping a smile on your face.

This is where your leadership skills come into play. Everything that you Notes
do, say or feel is projected to your staff, and even the slightest negativity
will come across. And your staff needs that leadership. ----------------------
Building morale through improved communication means more than ----------------------
smiling and keeping an open door, however. It means developing trust
between you and your employees, and that kind of connection is made by ----------------------
opening up about yourself, both personally and professionally. Tell your
employees about your leadership style, your philosophy on work and life, ----------------------
the environment you want to create with them, your vision and how you ----------------------
plan to achieve it,” Klaus says.
Let them see you as you are. Let them know you have been through rough ----------------------
times before and how you plan to get through it this time. Thank them for ----------------------
staying with you through this. Solicit their concerns and offer your help
in getting through obstacles. Get specific about how you intend to make ----------------------
the situation better if you can, and how you will support them.
----------------------
Hold a series of meetings with the goal of gathering suggestions for fixing
morale. At each meeting, update your employees on what is being done ----------------------
and gather feedback on the process as it moves forward.
----------------------
By involving your staff, you give them some power over the situation,
instead of them feeling powerless,” she says. It will make them feel like ----------------------
part of the solution, instead of part of the problem. By soliciting their
advice, you demonstrate a level of respect and trust that they need to see.” ----------------------
c) Don’t Take Away Their Training ----------------------
One of the most effective ways of boosting morale and solidifying a
----------------------
sense of commitment between you and your staff is to shore up your
professional development and training program. Training is especially ----------------------
important during down times when you are asking your staff to do more
and, in some cases, take over unfamiliar jobs. ----------------------
If you shut down your training program, you will find that a morale ----------------------
problem develops very quickly. Even if your budget is tight, you can
find economical ways to fund training. Options include online learning ----------------------
courses and self-teaching packages.
----------------------
By maintaining the training program, you let your staff know that you are
committed to helping them stay current. Training indicates an ongoing ----------------------
dedication to employees, and taking it away is one of the worst things you
can do. ----------------------
d) No cheap tricks ----------------------

Monte Ford, CIO of American Airlines in Fort Worth, Texas, has tackled ----------------------
more serious threats to the morale of his organization during his 14 months
on the job than most CIO’s expect to deal with in an entire career. In April ----------------------
2001, Ford guided his organization though
----------------------
1a merger with TWA in the largest airline integration in history. Last fall,
the sale of Sabre to EDS meant that American Airlines lost almost 4,200 ----------------------

Notes longtime contract employees. And after Sept. 11, Ford had to help his
staff support the airline’s IT needs as they and the company were rocked
---------------------- by grief and loss.
---------------------- Through each challenge, Ford kept one idea in mind: The people are his
single most valuable asset. To succeed as a leader and to keep his people’s
---------------------- spirits up, he learned to adjust the way he viewed his employees.
---------------------- "You have to treat your staff as though they’re volunteers, not paid
workers,” Ford explains. “You have to do something every day that will
---------------------- make them want to come to work. Employees are smart; if you treat them
badly, particularly during tough times, they’ll remember. If you treat them
----------------------
well, they’ll be loyal and stick around. If not, they’ll leave for a better
---------------------- place as soon as they can.”
As part of his philosophy, Ford has instituted a system of rewards and
----------------------
recognition. If someone has worked all weekend to finish a project or has
---------------------- done something good for the department, Ford personally applauds them.
He and his managers also praise the staff on an individual and team basis
---------------------- once a week during staff meetings.
---------------------- "Appreciate your staff as much and as often as possible,” says the Wharton
School’s Klaus. “No matter how long they’ve been at the company, treat
---------------------- them like they’re the best, the hottest stars in the place. Do whatever you
---------------------- can, even in small ways, through e-mails and meetings and one-on-ones,
through small gifts or extra time off, to let them know you value them and
---------------------- the work they do.”
---------------------- For such efforts to be effective, they have to be genuine.

"People don’t stay for cheap tricks. They stay if the environment is
---------------------- supportive and challenging, the business is functional and there are positive
---------------------- working relationships."
Bad morale is a very real, very serious problem that demands good
----------------------
leadership. The first step is to acknowledge the existence of a morale problem. If
---------------------- you make the effort to examine your management and communication skills and
address a need for improvement, morale will go up and you will find yourself with
---------------------- a loyal, resilient team that will not bolt for the hills once the economy improves.
----------------------
8.5 WORK AND CONDITIONS OF WORK
----------------------
Work environment must be conducive to working. It must provide an
---------------------- environment conducive to do innovative work and to work on challenging
projects. Working conditions pertain to the workers’ job environment, such as
---------------------- hours of work, safety, paid holidays and vacations, rest periods, free clothing
---------------------- or uniforms, possibilities of advancement, etc. The working conditions of an
organisation shall be such that workers or employees are able to contribute
---------------------- their best efforts and bring about quality output. Workers should feel safe and
comfortable while working. Working conditions should be such that workers
----------------------

do not feel burdened with the work, instead they should be encouraged and Notes
motivated to work with pleasure. In other words, they should do their job in a
similar manner as they do their personal work. Along with work, the workers ----------------------
must be engaged in fun activities both inside and outside the office, such as
partying at office, picnic or weekend trip, etc. ----------------------
In many organisations, experiments and investigations are carried out ----------------------

by the social scientists and psychologists in the field of employee motivation.
----------------------
Small cohesive work groups and emphatic and understanding supervisors must
be there to satisfy their social needs. Efforts need to be made to reduce stress at ----------------------
work because professional stress or job stress poses a threat to physical health,
which consequently affects the health of an organisation. Increased workload, ----------------------
extremely long work hours and intense pressure to perform at peak levels all
----------------------
the time for the same pay and unrealistic expectations especially in the time of
corporate reorganisations put employees at stress. The employees, especially ----------------------
women employees, should be ensured about their safety at a workplace.
----------------------
Efforts must be made by both the employers and the employees themselves
to maintain team spirit among the workers. Workers should be encouraged to ----------------------
work for common goals of the organisation, along with their individual goals,
by cooperating with fellow employees. ----------------------
Work environment should be clean, healthy, spacious and hygienic. It ----------------------
should be free from unnecessary noise and disturbances. Satisfactory physical
conditions of work, such as ventilation, temperature balance, lighting, noise and ----------------------
related disturbances, colour, surroundings, etc. will help to remove workers’
----------------------
irritation or stress at work. There should be proper infrastructure facility in an
organisation. ----------------------
There should be proper performance appraisal of employees at regular ----------------------
intervals. Those who perform well should be rewarded. Various incentives and
benefits should be given to employees. A system of wage incentive will assure ----------------------
adequate incomes to employees and convince them that the management is
sincerely interested in a better living standard for them and not in greater profits ----------------------
for itself alone. ----------------------
Work, in essence, is the use of person’s physiological and mental processes
in the attainment of some goal. The goal may be a managerial decision, the sale ----------------------
of an insurance policy and the erection of a stone wall or the production of steel ----------------------
ingot. This definition of work is broad and it is sometimes criticised because of its
generality. For example, may we not define play in the same way? Does not the ----------------------
tennis player use his physiological and mental processes in the attempt to attain
the goal of winning the game? Indeed he does. However, the point to remember ----------------------
is that even though work and play may seem to be extremes of a continuum, ----------------------
the distinction rests primarily upon motivation rather than on any fundamental
differences between performance determinants. What is play to some people may ----------------------
be work to others. The basic principles describing and explaining both work and
play are the same. ----------------------
----------------------

Notes 8.6 RELATIONSHIP AMONG JOB CHARACTERISTICS,
---------------------- WORKING CONDITIONS AND JOB PERFORMANCE
---------------------- In job performance literature, although age, gender, experience, observation

time and interpersonal relationship have been considered in many studies, no
---------------------- research has been devoted to the potential effects of job characteristics and
working conditions on task and contextual performance.
----------------------
Some jobs in the workshops of mechanical processing, machining and
---------------------- maintenance are jobs of high-level complexity. Job type, job level and job context
create different influences on job performance. Some jobs require high-level skill
----------------------
and responsibility to perform tasks successfully.
---------------------- Blue-collar employees working in manufacturing companies exert different
levels, frequencies and durations of physical effort during performing the tasks
----------------------
within their jobs. They use strength of kneeling, crouching/crawling, walking,
---------------------- standing, balancing, lifting and pulling/pushing objects. The requirement of
physical effort for a job changes from a combination of sitting, standing and
---------------------- working with little requirement to an intense requirement for lifting objects
weighing over 30 kg with no mechanical aid. An increase in the level of physical
----------------------
effort was accompanied by an increase in energy expenditure. The majority of
---------------------- the energy consumption generally is converted to the waste activities, such as
static effort (e.g., lifting, pulling/pushing objects), to other awkward postures
---------------------- or to inefficient equipment or method. These waste activities cause decreasing
productivity.
----------------------
Some jobs in the workshops such as mechanical processing, painting,
---------------------- maintenance are performed in unpleasant working conditions. In job evaluation
---------------------- literature, working conditions imply two dimensions: environmental conditions
and hazards. Environmental conditions range from ordinary to extreme conditions
---------------------- in terms of the factors such as heat, humidity, noise, smell, light, and dust.
---------------------- Unpleasant environmental conditions have both direct and indirect effects
on employee job performance. The concentration to tasks of an employee who is
---------------------- exposed to these impacts decreases, which leads to low employee performance
including productivity, quality, emotional stress, and in turn, this causes high
---------------------- cost. Hazards are unavoidable direct or indirect exposure to light wound/scald,
---------------------- flammable danger, electrical hazards, occupational disease and mortal hazards.
It is believed that ergonomic deficiencies are the root causes of workplace
---------------------- health hazards, low level of safety. The application of the relevant human factor
principles can reduce the likelihood of accidents and injuries. These reduce
---------------------- worker productivity and cause high absenteeism.
----------------------
8.7 CHARACTERISTICS OF WORK
----------------------
As a basis for discussion, it will be helpful to examine work performance
---------------------- pictorially in terms of its basic concepts. By obtaining measures of production
---------------------- and plotting them against time, we come up with a work curve, which looks

something like the hypothetical work curve shown in figure below. Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 9.1 Hypothetical Work Curve showing Common Characteristics ----------------------
[Source: R. Von Haller Gilmer –Industrial Psychology McGraw Hill Book Co.]
----------------------
The work curve shows that before peak productivity is reached, there
is an initial warming-up period (Point A-B). In Point B to C, the productivity ----------------------
levels off. Eventually there is a decrement or falling off in productivity (Point
C-D). Often, may be, in anticipation of the end of the workday, there is a spurt ----------------------
(Point D onwards). A word of caution about work curves is in order. There are
----------------------
variations in the curves from day to day for the same worker and also variations
among workers. Also, different kinds of work − heavy muscular work, light task ----------------------
or work of a clerical nature – do not yield identical curves. It is for these reasons
that we will talk of a representative work. ----------------------
Avoiding Decrement in Work Curve ----------------------
The work curve shows that from the beginning of the shift people start ----------------------
warming up and consequently there is a continuous rise in the output. After
some time the curve levels off. Approximately one and a half hour to two hours ----------------------
from the start of the shift, the decrement sets in. Every manager is interested in
avoiding this decrement in the output. ----------------------
There are two main reasons for this decrement to occur: fatigue and boredom. ----------------------
1. Fatigue: Fatigue can be defined as the tiredness of the body as a result of ----------------------
continuous physical activity. Fatigue can be avoided by introduction of
authorised rest pauses. ----------------------
In India, we find that around one and a half hour or two hours after the ----------------------
shift starts, the canteen boys come to sell snacks and tea to the workers. A
worker is provided a stool to sit on and the worker takes a rest pause. ----------------------
Work supervisors sometimes argue that most employees take unauthorised ----------------------
rests when there are no regularly scheduled rest periods. Are there any
advantages of authorised rest periods over periods of unauthorised rest? ----------------------
How can we account for the beneficial effects of rest pause on production? ----------------------
Rest provides the opportunity to recover from fatigue. The physiologist has
demonstrated that work causes an accumulation of waste products within ----------------------
the organism that reduces work capacity. Rest provides a period during ----------------------

Notes which the waste products are dissipated and bodily capacity restored. In
heavy muscular work, physiological fatigue is unquestionably a major
---------------------- factor contributing to work decrement.
---------------------- When work does not involve the expenditure of a great deal of physical
energy, the beneficial effect of rest periods may be due to the relief from a
---------------------- task that engenders in the worker feelings of boredom. The worker is not
physically tired. He is irritated, lacks interest and is fed up with his job.
----------------------
He wants a change, a break from what seems to be interminable activity.
---------------------- Rest pauses provide an opportunity to talk and think about non-job
activities. When the worker returns to his job, he is psychologically and
---------------------- physiologically refreshed, and this is reflected in the increased output.
---------------------- The effectiveness of introducing rest pauses may be due to still another
factor as a change in attitude toward the company, including, of course,
---------------------- the work supervisor. A worker with a favourable attitude toward his
supervisor is much less likely to slacken pace on the job than the worker
----------------------
who dislikes his boss. The introduction of rest periods may be tangible
---------------------- evidence that management has an interest in the welfare of the worker
and he may respond with output that is more efficient. On the other hand,
---------------------- the worker may feel differently if the tea break, for example, is gained
through union negotiations.
----------------------
One reason of the advantage of authorised over unauthorised rest periods
---------------------- is probably placement of the rest interval during the work period.
---------------------- The best way to determine how rest periods should be scheduled is to plot
production throughout the work period and note drop in production. The
---------------------- pause may be introduced at point “C” in the diagram referred in 9.1. This
---------------------- is the point from where the decrement sets in.
2. Boredom: The introduction of rest periods is not the only way to alter the
---------------------- shape of the work curve in the direction of increased output. The nature
---------------------- of the job itself has a lot to do with how long a person can maintain a
high rate of production. Repetitive jobs appear to be least interesting. We
---------------------- reflect this lack of interest when we say that the job is boring. Actually
the job itself is not boring. While fatigue is the reaction of the body to the
---------------------- continuous work, boredom is the reaction of the mind to having to do the
---------------------- same work continuously More specifically, boredom arises from a conflict
between the necessity for doing a dull job and wanting to turn to more
---------------------- interesting activities. Attention requirements have much to do with the
degree of boredom engendered by repetitive tasks. A highly repetitive job
---------------------- to which the worker becomes habituated elicits relatively little boredom
---------------------- in some workers if they do not have to pay close attention to what they
are doing. If the worker can do the job “without thinking”, he is free
---------------------- to talk to his fellow workers about “yesterday’s cricket match or next
month’s vacation” or, if conversation is impossible, he may daydream.
---------------------- Boredom will be pronounced on a repetitive job like an assembly-line
---------------------- operation where the continuous workflow and the task requirements occur

repeatedly but permit few lapses or shifts in attention. Boredom is not a Notes
problem in a complex and varied task that, because of its intrinsic nature
tends to hold attention. ----------------------
A promising lead on how to reduce boredom comes from the finding ----------------------
that repetitive tasks do not give rise to the same degree of boredom in
all persons. For example, in an investigation of women sewing machine ----------------------
operators, those reporting the strongest feeling of boredom disliked routine
----------------------
activity; they more often preferred active leisure activities and indicated
lack of satisfaction in their home and personal life. Operators who were ----------------------
least susceptible to boredom were placid and generally contented with the
existing state of affairs. ----------------------
Another study of women performing repetitive work in a chemical factory ----------------------
showed that those experiencing boredom the most tended to the more
extroverted than introverted, desired opportunities to use their own ideas ----------------------
and attached great importance to promotions.
----------------------
There is also evidence that person of lower than normal intelligence is
less bored by repetitive work than person of higher intelligence. ----------------------
Additional study of the personality characteristics associated with ----------------------
feelings of boredom are necessary, but the available evidence indicate
that production decrement resulting from boredom can be reduced by ----------------------
selecting people who will not be bored with the jobs to which they are ----------------------
assigned.
Job rotation is not a general cure for boredom. The effectiveness of the ----------------------
practice depends at least in part on the amount of similarity between the ----------------------
jobs and the frequency with which the rotations are made. If two jobs are
perceived as highly similar, changing from one to the other will do little ----------------------
good to alleviate boredom. On the other hand, if they are highly dissimilar,
a great versatility in skills is required. Boredom may be reduced but at a ----------------------
great loss in efficiency. Where there is a moderate degree of similarity that ----------------------
allows the use of the same skills but the experience of doing something
different, the beneficial effects of job rotation will be maximised.. ----------------------
----------------------
Activity 1
----------------------
Give five ways in which you can make your workplace energetic.
----------------------
----------------------
8.9 CREATING A FAVOURABLE WORK ENVIRONMENT
----------------------
There is no doubt that people generally prefer pleasant surroundings to
----------------------
unpleasant ones and when attention is paid to creating a favourable working
environment as well as to actual job performance methods, overall pleasantness ----------------------
prevails. However, one must be somewhat cautious in accepting all the claims
made as to the result of creating favourable work environment. Much of the work ----------------------

Notes that has been done in this field suffers from errors in experimental methodology.
With this in mind, we may discuss some changes in environmental factors that
---------------------- may be useful to make surroundings more acceptable.
---------------------- 1. Noise: Noise is usually regarded as a distracter and, therefore, as interfering
with work efficiency. Actually, clear-cut evidence that noise reduces
---------------------- work output is very scant. We do know, of course, that many people find
different kinds of auditory stimulation irritating. Thus, high tones and
----------------------
very low tones are judged almost universally to be more annoying and
---------------------- irritating than tones in the middle ranges. Unexpected noises, intermittent
noises and reverberating noises are also irritating to most people. Such
---------------------- knowledge as this has made it possible to sound-treat work areas in order
to reduce the irritating effects of noise.
----------------------
In view of the universal dislike of noise it seems probable that deleterious
---------------------- effects of noise exist, but much additional research must be conducted
before definite conclusions can be drawn regarding the effects of noise on
----------------------
work output in different jobs.
---------------------- 2. Music: Music is said to have salutary effects on attitudes, improve morale,
and increase production. Some of these claims have been subjected to
----------------------
experimental inquiry. It is now clear that music does not have a direct
---------------------- effect on productivity. It increases productivity only indirectly through
improvement in the morale and the attitudes of the employees. Moreover,
---------------------- in respect of the job requiring close attention, requiring application of
mind, music is a total waste.
----------------------
Despite these findings, workers seem to be favourably disposed toward
---------------------- music and perhaps more significantly, they believe that it increase their
---------------------- actual production.
3. Illumination: It is unnecessary to say that the light should be adequate;
---------------------- not too bright or not too dim. The research tells that intermittent bright
---------------------- flashes of light tire the eyes fast and hence, affect productivity.
4. Colour: The colour dynamics of workplaces is often claimed to be an
---------------------- important determinant of work efficiency, but supporting evidence is
---------------------- conspicuously nonexistent. It can, therefore, be safely said that colour
scheme affects productivity only indirectly through soothing the eyes.
----------------------
5. Atmospheric effects: A determination of temperature effects on work
---------------------- efficiency would seemingly be an easy matter. The problem actually
is complicated because almost always when atmospheric temperature
---------------------- varies, other conditions such as humidity do not remain constant.
---------------------- There are a few studies that enable us to pinpoint temperature effects
on productivity. It is felt that ideal temperatures for sedentary work in winter
---------------------- are from 68 to 73°F and for the same kind of work in summer, 75 to 80°F; for
moderately hard work in all seasons, the desirable temperature is 65°F and for
----------------------
strenuous work 60°F.
----------------------

The role of humidity has been demonstrated in a number of studies, so Notes
that there is a factual basis for the common expression that “it is not the heat,
but the humidity” which causes discomfort. Besides temperature and humidity, ----------------------
air circulation is another atmospheric condition that is critical in a good working
environment. ----------------------
----------------------
----------------------
1. The tiredness of the body as a result of continuous physical activity is ----------------------
defined as:
i. Sickness ----------------------
ii. Exhaustion ----------------------
iii. Boredom
iv. Fatigue ----------------------
2. The reaction of the mind in having to do the same work continuously ----------------------
is:
----------------------
i. Depression
ii. Monotony ----------------------
iii. Boredom ----------------------
iv. Fatigue
----------------------
3. Ideal temperature for sedentary work in summer is:
i. 60 to 65°F ----------------------
ii. 65 to 70°F ----------------------
iii. 70 to 75°F
----------------------
iv. 75 to 80°F
4. What is regarded as a distraction and an interference with work ----------------------
efficiency?
----------------------
i. Illumination
ii. Music ----------------------
iii. Noise ----------------------
iv. Atmospheric effects
----------------------
5. What has a positive direct co-relationship to boredom?
i. Productivity ----------------------
ii. Humidity ----------------------
iii. Intelligence
----------------------
iv. Temperature
----------------------
----------------------

Notes
---------------------- 1. Intermittent bright flashes of light tire the eyes fast and hence, affect
productivity.
----------------------
2. Music has a direct effect on productivity.
----------------------
3. A person of lower than normal intelligence is more bored by
---------------------- repetitive work than a person of higher intelligence.
---------------------- 4. Colour scheme affects productivity directly.
----------------------
----------------------
Activity 2
---------------------- With the advent of globalisation, larger organisations are trying to enter
global markets due to which employees have heavy workload. In such a
----------------------
situation, you being an employee, what would you suggest to the company
---------------------- so that there are less employee exits or absenteeism and higher employee
retention.
----------------------
----------------------
Summary
----------------------
• Morale indicates the happiness of the employees with the organizational
---------------------- environment.
---------------------- • It refers to the preparedness of the groups of the employees to subordinate
the individual and the group goals to the goals of the organization.
----------------------
• Relationship between morale and productivity need not always be direct.
---------------------- Sometimes even when the morale is high, there can be low productivity
and vice-versa.
----------------------
• A manager is interested in high morale in the organization. Therefore, he
---------------------- must know the level of morale in the organization.
---------------------- • Morale can be measured by morale surveys, which might take some time.
Therefore, a manager has to understand some of the morale indicators in
---------------------- the organization. An attention to these indicators may enable him to take
some corrective action on time.
----------------------
• Work curve is the representation of productivity against time spent at
---------------------- work.
---------------------- • The work curve differs from individual to individual and for the same
individual from time to time.
----------------------
• As a result of fatigue, boredom and monotony, productivity declines after
---------------------- some time. Fatigue can be avoided by introducing rest pause.
----------------------

• Intelligence has a positive direct co-relationship to boredom. An intelligent Notes
person is susceptible to boredom.
----------------------
• There are certain factors in the physical surrounding like noise, colour
scheme, temperature, humidity, dust and fumes, music, etc., which need to ----------------------
be paid proper attention to avoid the fall in the productivity of employees
at workplace. ----------------------
----------------------
Keywords
----------------------
• Morale: (also known as esprit de corps) is the capacity of a group's
members to maintain belief in an institution or goal, particularly in the ----------------------
face of opposition or hardship.
----------------------
• Elitism: is the belief or attitude that some individuals, who form an elite
— a select group of people with a certain ancestry, intrinsic quality or ----------------------
worth, higher intellect, wealth, specialized training or experience, or ----------------------
other distinctive attributes — are those whose influence or their authority
is greater than that of others ----------------------
• Productivity: is a measure of the efficiency of production. Productivity is ----------------------
a ratio of production output to what is required to produce it (inputs). The
measure of productivity is defined as a total output per one unit of a total ----------------------
input.
----------------------
• Exit interview: is a survey conducted with an individual who is separating
from an organization or relationship. ----------------------
• Fatigue: The tiredness of the body as a result of continuous physical ----------------------
activity.
----------------------
• Boredom: An emotional state experienced when an individual is left
without anything in particular to do, and he is not interested in the ----------------------
surroundings.
----------------------
• Productivity: A ratio of production output to what is required to produce
it (inputs). ----------------------
----------------------
----------------------
1. Define Morale. Give suitable examples for increasing the morale of your
employees at work. ----------------------
2. “Morale has a positive relation with productivity.” Is it true or false? ----------------------
Explain with the help of a graph.
----------------------
3. What do you mean by Morale indicators? Provide some indicators of
morale at work. ----------------------
4. How can we boost the morale of our employees in any organization? ----------------------
5. Explain in detail the various aspects of morale.
----------------------

Notes 1. What do you mean by work? Explain the characteristics of work.
2. What steps would you take as a manager to make your place of work
----------------------
favourable to work?
---------------------- 3. What do you mean by Work Curve? Explain its importance.
---------------------- 4. Give five points to improve your work. Do you think time management
can help you perform better?
----------------------

----------------------
1. The attitude of employees and group towards their work environment and
---------------------- toward voluntary co-operation to the full extent of their ability in the best
interests of the organisation is
----------------------
iii. Morale
---------------------- 2. The situation that exists due to strict management controls and close
supervision is;
----------------------
iii. High productivity, low morale
---------------------- 3. A manager may know the status of morale in an organisation through:
---------------------- i. Morale survey
---------------------- 4. What motivates people to do things but does not raise morale?
ii. Money
----------------------
----------------------
1. Management basics to deal with the problem of low morale are;
---------------------- i. Communication
---------------------- ii. Leadership
iii. Training
----------------------
2. Employees of an organization with high morale;
---------------------- i. Consider themselves winners
---------------------- ii. Express admiration for their leaders
iv. Voluntarily come early and stay late
----------------------
----------------------
1. True
---------------------- 2. True
----------------------
----------------------
----------------------

3. True Notes
----------------------
i–f
ii – a ----------------------
iii – b ----------------------
iv - e
----------------------
----------------------
----------------------
1. The tiredness of the body as a result of continuous physical activity is
defined as: ----------------------
iv. Fatigue
----------------------
2. The reaction of the mind in having to do the same work continuously is:
----------------------
iii. Boredom
3. Ideal temperature for sedentary work in summer is: ----------------------
iv. 75 to 80°F ----------------------

4. What is regarded as a distraction and an interference with work efficiency? ----------------------
iii. Noise
----------------------
5. What has a positive direct co-relationship to boredom?
----------------------
iii. Intelligence
----------------------
State True or False
----------------------
1. True
2. False ----------------------
3. False ----------------------
4. False ----------------------
----------------------
Suggested Reading
----------------------
1. http://www.forbes.com/sites/robertsher/2012/08/03/why-you-need-
dissatisfied-employees/ ----------------------
2. Kaur, Harinder Bir. Organisational Culture & Employee Morale. Delhi: ----------------------
Saujanya Books.
----------------------
4. Clark J.M. Ed. Introduction to working conditions and environment. ILO
Publication. ----------------------
5. Working environment: Sixth item on the agenda. Vol. 2, ILO Publication. ----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Maximising Human Potential Through EQ
UNIT
Structure:
9
9.1 Introduction
9.2 Principles of Emotional Intelligence
9.3 Daniel Goleman on EI in the Workplace
9.4 Significance of EQ at the Workplace?
9.5 Examples of High and Low EQ at Work
9.6 EQ Impacts Communication in the Workplace
9.7 Leading with Emotional Intelligence in Management
9.8 Emotional Intelligence for Project Managers
9.9 Using EI in HR (Human Resources)
9.10 Emotional Intelligence Interview Questions
9.11 Improving Your Emotional Quotient
Summary
Key Words
Suggested Reading
Maximising Human Potential Through EQ 159

Notes
Objectives
----------------------
----------------------
• Recognize your own EQ strengths and weaknesses
---------------------- • Regulate your emotions in tough situations
---------------------- • Manage difficult people
• Motivate yourself through ups and downs
---------------------- • Help an employee develop emotional intelligence
---------------------- • Handle specific situations like tense communications across
different departments
----------------------
----------------------
9.1 INTRODUCTION
----------------------
Emotional intelligence (EQ) – Base Concepts
---------------------- In this unit, we will define emotional intelligence in the context of the
---------------------- workplace, describe its components, explore its correlates in the workplace, and
look at how to improve it for both individual employees and the organization
---------------------- as a whole.
---------------------- Scholars may have coined the term “emotional intelligence” in the early
1990s, but business leaders quickly took the concept and made it their own. EQ,
---------------------- is a term that is being used more and more within Human Resources departments
and is making its way into executive boardrooms.
----------------------
A study by Pearson of thousands of managers and employees concluded
---------------------- the following:
---------------------- ●● Two-thirds of employees said their performance declined
●● Four out of five employees lost work time worrying about the unpleasant
----------------------
incident
---------------------- ●● 63% wasted time avoiding the low EQ offender
---------------------- ●● More than 75% of respondents said that their commitment to their
employer had declined
---------------------- ●● 12% resigned due to the low EQ behaviour
---------------------- The Hay Group states that one study of 44 Fortune 500 companies found
that sales people with high EQ produced twice the revenue of those with
---------------------- average or below average scores. In another study, technical programmers
---------------------- demonstrating the top 10 percent of emotional intelligence competency were
developing software three times faster than those with lower competency were.
---------------------- A Fortune 500 company in financial services proved that its high EQ salespeople
produced 18% more than the lower EQ salespeople produced. One recent study
---------------------- conducted by a Dallas corporation measured that the productivity difference
---------------------- between its low-scoring emotional intelligence employees and its high-scoring

emotional intelligence employees was 20 times. All of these cases are starting Notes
to prove the value of having highly emotionally intelligent employees that
make up the workforce and if we want a competitive advantage in this highly ----------------------
competitive business world.
----------------------
EQ is defined as a set of competencies demonstrating the ability one has to
recognize his or her behaviors, moods, and impulses, and to manage them best ----------------------
according to the situation. Typically, “emotional intelligence” is considered to
----------------------
involve emotional empathy; attention to and discrimination of one’s emotions;
accurate recognition of one’s own and others’ moods; mood management or ----------------------
control over emotions; response with appropriate (adaptive) emotions and
behaviors in various life situations (especially to stress and difficult situations); ----------------------
and balancing of honest expression of emotions against courtesy, consideration,
----------------------
and respect (i.e., possession of good social skills and communication skills).
Definition: ----------------------
“EQ refers to someone’s ability to perceive, understand and manage their own ----------------------
feelings and emotions”
----------------------
(Chignell, 2018).
----------------------
Emotional Intelligence Skills (EQ) can be explained as the talent
or capability to know the name as well as manage personal emotions while ----------------------
analysing and understanding the emotions of other people as well. Thus, EQ
helps in linking up with others in a highly successful manner both professionally ----------------------
as well as personally, that too in a wider range of roles as well as contexts. ----------------------
9.2 PRINCIPLES OF EMOTIONAL INTELLIGENCE ----------------------
There are five pillars of Emotional Intelligence, and; on these pillars, a ----------------------
person can be evaluated at the time of hiring. ----------------------
●● Self-Awareness: Defined as “the ability to decode one’s emotion”. If a
person is capable of regulating their emotion is usually better at handling ----------------------
constructive criticism. ----------------------
●● Self-Regulation: Defined as “the ability to regulate one’s emotion”. If
a person manages their emotion and expresses it properly and tactfully, ----------------------
then they are less likely for an emotional outburst. ----------------------
●● Motivation: Defined as “an inner force that drives to work towards
satisfaction and accomplishment”. Emotionally Intelligent people are ----------------------
self-motivated, and they are usually optimistic and resilient. ----------------------
●● Empathy: Defined as “the ability to connect with the emotions of other
people”. This does not mean showing sympathy or any sort of agreement ----------------------
to their behavior; it’s just that you can understand a thing from their ----------------------
perspective on a more professional front.
●● Social Skills: Defined as “the ability to interact with peer group to fulfill ----------------------
each other needs and demands”. This skill is by default present in people ----------------------

Notes with Emotional Intelligence and generally enjoy and respect other’s
presence.
---------------------- From a glance at these components, it’s easy to see how EI applies in the
---------------------- workplace! Clearly workers with higher in self-regulation, intrinsic motivation,
and social skills have a leg up on those with less. We’ll go over some of the
---------------------- reasons why this is so later in following sections.
----------------------
9.3 DANIEL GOLEMAN ON EI IN THE WORKPLACE
----------------------
EI was first defined and established as a construct in psychology back in the
---------------------- 1990s, but interest in it has grown exponentially since then-especially in its
application in the workplace. Emotional intelligence expert Daniel Goleman
---------------------- shares his view on why there is so much interest on EI/EQ in the workplace:
---------------------- “The interest in emotional intelligence in the workplace stems from the
widespread recognition that these abilities – self-awareness, self-management,
---------------------- empathy and social skill – separate the most successful workers and leaders
---------------------- from the average. This is especially true in roles like the professions and higher
level executives, where everyone is about as smart as everyone else, and how
---------------------- people manage themselves and their relationships gives the best and edge.”
---------------------- (Goleman, 2012).
Emotional intelligence skills separate the best leaders and workers from
----------------------
the average. High EQ is also strongly correlated with job performance and with
---------------------- higher job satisfaction. And employees who work with or are managed by those
with high EQ tend to have higher job satisfaction as well, according to Goleman;
----------------------
A high-EQ person tends to: A low-EQ person tends to:
---------------------- apologize when they are wrong. need to always be “right.”
---------------------- be curious about others. behave insensitively.
accept criticism without denial or blame others when things go wrong.
---------------------- hostility.
roll with the punches. have poor coping skills.
----------------------
not expect perfection. struggle with relationships.
---------------------- be a good listener. redirect conversations toward
themselves.
----------------------
let go of mistakes. have emotional outbursts.
----------------------
9.4 SIGNIFICANCE OF EQ AT THE WORKPLACE?
----------------------
Emotional intelligence is a vital consideration in the workplace for many
----------------------
reasons, but there are two that really stick out:
---------------------- 1. It is linked to higher job satisfaction for those with high EI/EQ as well as
---------------------- employees who work with or are managed by those with high EI/EQ.
2. It is strongly associated with job performance.
----------------------

It’s well-known that emotional intelligence is related to job satisfaction. Notes
Employees who are high in EI/EQ also tend to be higher in job satisfaction.
----------------------
Characteristics of high EQ people:
●● Balanced ----------------------
●● Curious ----------------------
●● Gracious
----------------------
●● Self aware
●● Empathetic ----------------------
●● Change agents ----------------------
You might be thinking, “How does emotional intelligence have such an ----------------------
impact on job performance?” Through these seven traits and characteristics:
1. Emotional stability (greater ability to manage their own emotions and ----------------------
tolerate stress) ----------------------
2. Conscientiousness (tendency to be diligent, hardworking, control
impulses) ----------------------
3. Extraversion (personality trait that makes people more open and better at ----------------------
establishing relationships with others)
----------------------
4. Ability EI (individuals’ ability to perform emotion-related behaviors, like
expressing emotions, empathizing with others, and combine emotion with ----------------------
reasoning)
----------------------
5. Cognitive ability (IQ; studies suggest there is at least some overlap
between the IQ and EQ) ----------------------
6. General self-efficacy (confidence in the ability to cope with the demands ----------------------
of our job)
----------------------
7. Self-rated job performance
----------------------
9.5 EXAMPLES OF HIGH AND LOW EQ AT WORK
----------------------
We know that high EI/EQ in the workplace is an advantage, but how do ----------------------
we know it when we see it? What does it look like?
Here are some good examples of high vs. low EI/EQ at work : ----------------------
1. An Upset Employee Finds a Compassionate Ear ----------------------

We all get moody sometimes, even at work. How a person deals with ----------------------
her coworkers or employees when they are having a bad day is a good
indication about her EI/EQ level. ----------------------
If she doesn’t even notice the moodiness, ignores the employee, exacerbates ----------------------
the bad mood, or criticizes the employee and tells them to “snap out of
it,” she probably has low EI/EQ. If, on the other hand, she notices that ----------------------
something’s up, offers her employee compassion and understanding, and
----------------------

Notes tries to cheer the employee up or distract them from their woes, that’s a
great indicator that she has high EI/EQ.
----------------------
2. People Listen to Each Other in Meetings
---------------------- Unfortunately, not all meetings are positive and productive; sometimes
meetings can devolve into everyone talking at once, no one offering any
----------------------
input at all, or-worst of all-shouting and heated arguments.
---------------------- If an employee contributes to any of the above in a meeting, he is
displaying low emotional intelligence. If he allows others to have their
----------------------
say, listens attentively and refrains from interrupting others, and gently
---------------------- but effectively keeps everyone on task, he is probably high in EI/EQ.
---------------------- 3. People Express Themselves Openly

A person who is comfortable speaking up about things that are important,
---------------------- and is just as comfortable listening to others talk about their own
---------------------- opinions, is showing high workplace EI/EQ. She is probably also adept
at expressing her own emotions in an appropriate way and accepting of
---------------------- others who express their own emotions.
---------------------- A person who keeps things bottled up or gets upset when others disagree
with her at work is likely low in emotional intelligence. She might spar
---------------------- with her coworkers about their opinions or-conversely-expect everyone
to simply keep all emotions and opinions to themselves.
----------------------
4. Most Change Initiatives Work
----------------------
If a workplace is generally high in emotional intelligence, it likely handles
---------------------- change well. Change initiatives are probably taken seriously and carried
out in earnest.
----------------------
On the flip side, workplaces with low emotional intelligence are resistant
---------------------- to change, fail to put in the effort necessary to make change initiatives
succeed, or even actively sabotage them. Additionally, poorly though-out
---------------------- initiatives indicate that the management team is low in EI/EQ and does
---------------------- not understand how their proposed changes will affect their employees.
5. Flexibility
----------------------
A workplace that offers flexibility and understanding of the complex,
---------------------- busy lives of organization members is one that is probably high in EI/EQ.
Managers and executives who accept that people have differing needs
---------------------- and offer ways to work smarter are displaying a good sense of emotional
---------------------- intelligence.
Managers and executives who refuse to allow their employees flexibility
----------------------
and hold strictly to the way things have always been done (when there is
---------------------- no need to do so) are showing signs of low emotional intelligence.
6. People Have the Freedom to Be Creative
----------------------
Similarly, workplaces that allow their employees the opportunity to be
---------------------- creative and innovative are high in EI/EQ. Giving people the chance to

practice their creativity and think outside the box is not only a welcome Notes
gesture for employees, it’s also a smart move for the workplace.
----------------------
Workplaces that make their employees stick to strict policies and
procedures (again, when there is no need for such strictness) are low in ----------------------
EI/EQ. Not understanding the value of creativity and the need employees
have to be imaginative and invested in their work is a hallmark of low EI/ ----------------------
EQ.
----------------------
7. People Meet Out of Work Time
----------------------
Finally, a good sign of emotional intelligence in the workplace is when
organization members meet outside of the workplace. Organizations ----------------------
where employees enjoy happy hours, having lunch together, or other
social activities indicates that there is a high level of EI/EQ present. ----------------------
Workplaces that don’t feature such strong bonds and those in which ----------------------
employees do not spend any non-working time together are likely low
in EI/EQ. When people are emotionally intelligent, they tend to get ----------------------
along and see the value in investing their time and energy into workplace ----------------------
relationships, but people low in EI/EQ are generally not interested in
building quality relationships with their peers. ----------------------
Benefits and Advantages of Using EQ in Business ----------------------
If you’re not already convinced about the benefits of using EI/EQ in the
workplace, here are a few more reasons you should pay attention to it! ----------------------
1. Motivation-high EI/EQ translates to better control of our motivation, and ----------------------

perhaps even more motivation for our coworkers!
----------------------
2. Common vision-those high in EI/EQ are able to more effectively
understand and communicate with others, which makes it easier to ----------------------
develop and maintain a common team vision.
----------------------
3. Change-highly emotionally intelligent people can handle the stress,
uncertainty, and anxiety that comes with working in business. ----------------------
4. Communication-clear communication is a telltale sign of emotional ----------------------
intelligence, and it contributes to better relationships, an easier time
getting help from others, and more effective persuasion and influence of ----------------------
others. ----------------------
5. Leadership-self-leadership, leading others, influencing others-all of these
are vital for those in business; more on this later (Elite World Hotels, ----------------------
2018). ----------------------
Are There Disadvantages and Limitations to Using EQ in the Workplace?
----------------------
There are absolutely advantages to using EI/EQ in the workplace,
as the examples and associations above show. So far, there are virtually no ----------------------
disadvantages to it.
----------------------
However, there are some limitations-emotional intelligence can be
enhanced, but as with other traits and skills, there is an upper limit to it that is ----------------------

Notes likely determined at least in part by genetics. Not everyone can be a master of
emotional intelligence.
----------------------
In addition, there is some concern that too much emotional intelligence can
---------------------- encourage manipulation and other unethical or bad behavior. If unscrupulous
employees have extremely high EI/EQ, they may be tempted to use their
---------------------- emotional intelligence to manipulate, deceive, and take advantage of their
coworkers, subordinates, and perhaps even their management.
----------------------
Generally, having excess EI/EQ is not something anyone should be too
---------------------- concerned about; it’s much more common to have too little than too much!
---------------------- Consequences of Lack of EQ in the Workplace
---------------------- Speaking of too little EI/EQ, you might be wondering what a lack of
emotional intelligence in the workplace looks like. There are two main ways
---------------------- that a lack of EI/EQ can negatively impact the workplace:
---------------------- 1. Communication
2. Decision Making
----------------------

----------------------
Multiple choice single response:
---------------------- 1. EQ is defined as a set of competencies demonstrating the ability one
---------------------- has to recognize his or her;
a) Behavior
----------------------
b) Moods
----------------------
c) Impulses
---------------------- d) Personality
---------------------- 2. Self-Awareness is defined as;
---------------------- a) the ability to decode one’s emotion
---------------------- b) the ability to regulate one’s emotion

c) the ability to connect with the emotions of other people
----------------------
d) the ability to interact with peer group to fulfill each other needs
---------------------- and demands
---------------------- 3. A high-EQ person tends to:
---------------------- a) accept criticism without denial or hostility

b) blame others when things go wrong
----------------------
c) redirect conversations toward themselves
----------------------
d) Struggles with relationships
----------------------

9.6. EQ IMPACTS COMMUNICATION IN THE Notes
WORKPLACE ----------------------
A lack of EI/EQ can negatively impact communication in the workplace ----------------------
through several mechanisms:
----------------------
●● Less understanding of one’s own emotions
●● Less understanding of the emotions of others ----------------------
●● Less effective communication of ideas and emotions to others ----------------------
●● Inappropriate communication-related behavior, such as outbursts of
emotion, oversharing or failing to communicate important information. ----------------------
It’s easy to see how these mechanisms impact overall communication ----------------------
and, through less effective communication, lower productivity and efficiency
in the workplace. ----------------------
Emotional Intelligence Affects Decision Making in the Workplace ----------------------

Similarly, EI/EQ can have a significant impact on decision-making in the ----------------------
workplace. When emotional intelligence is high, organization members can
understand the cause-and-effect relationship between emotions and events and ----------------------
plan effectively.
----------------------
When EI/EQ is low, organization members may experience “incidental
emotions” surrounding decision-making. For example, anxiety is a common ----------------------
emotion involved in decision-making, especially for big decisions that will
----------------------
have a significant impact.
Those low in EI/EQ may not understand the source of their anxiety or ----------------------
how to effectively manage it, leading to too much risk-taking, not enough risk-
----------------------
taking, or judgment clouded by bias.
EQ Used to Manage and Address Problems in the Workplace ----------------------
So we know what a lack or surplus of EI/EQ can do to a workplace, but ----------------------

we still need to consider how emotional intelligence can actually be applied in
the workplace. ----------------------
There are many applications for EI/EQ at work, but there are three ----------------------
interesting areas where emotional intelligence interventions can be especially
----------------------
effective:
●● Leadership and management ----------------------
●● Project management ----------------------
●● Social work
----------------------
----------------------
----------------------
----------------------

Notes
Activity 1
----------------------
---------------------- Talk to the supervisor at the workplace and identify employees with
High and Low EQ respectively. Try to analyse their communication and
---------------------- behavioural pattern at workplace. Determine the reasons of their difference
in interpersonal relations at workplace and try to suggest the plan of action
----------------------
for better performance at work.
----------------------
---------------------- 9.7 LEADING WITH EMOTIONAL INTELLIGENCE IN

----------------------
MANAGEMENT
---------------------- Emotional intelligence is perhaps most effective and impactful when

applied to leadership and management; higher EI/EQ in leadership has a
---------------------- funny way of starting a trickle-down effect of positivity and efficiency in an
organization.
----------------------
A leader who embodies and practices high EI/EQ can:
----------------------
1. Communicate their vision more effectively.
---------------------- 2. Improve their persuasion and inspirational speaking abilities.
---------------------- 3. Ensure appropriate responses to stressful and confusing situations at
work.
----------------------
4. Manage their own emotions and the emotions of their employees (to an
---------------------- extent).
---------------------- All of this leads directly (and indirectly) to a more efficient, effective, and
productive workplace.
----------------------
To learn more about emotional intelligence in leadership and management,
---------------------- see the EI/EQ training resources towards the end of this piece.
---------------------- 9.8 EMOTIONAL INTELLIGENCE FOR PROJECT

---------------------- MANAGERS
---------------------- Emotional intelligence is clearly important for leaders and managers, but
don’t underestimate its importance in more peer-heavy projects and interactions.
---------------------- Project managers have good reason to pay attention to their EI/EQ levels, and
improve them if possible.
----------------------
To be successful, project managers must be able to…
----------------------
1. Perceive emotion: ability to recognize, attend to, and understand one’s
---------------------- own emotions and others’ emotions.
---------------------- 2. Manage emotion: ability to effectively manage, control, and express

emotions.
----------------------

3. Decision-making: ability to appropriately apply emotion to manage and Notes
solve problems.
----------------------
4. Achieve: the best motivation to achieve is inner or intrinsic motivation.
5. Influence: ability to recognize, manage, and evoke emotions in others ----------------------
(Davey-Winter, n.d.).
----------------------
As you might have guessed, higher emotional intelligence is characterized
by these five abilities! High EI/EQ is a must-have for project managers! ----------------------
Using Emotional Intelligence in Social Work ----------------------
Emotional intelligence is especially important to apply in social work. ----------------------
Social workers have some of the most difficult situations, challenging
interactions, and heavy emotional labor of all professions. ----------------------
EI/EQ can be applied to improve one’s skills and abilities in five core ----------------------
social work tasks:
----------------------
1. Engagement of users/clients
2. Assessment and observation ----------------------
3. Decision making ----------------------
4. Collaboration and cooperation ----------------------
5. Dealing with stress
----------------------
Improvements in these five tasks will not only allow the social worker to
work more effectively, but will also improve their clients’ experience and help ----------------------
the social worker feel more positive, fulfilled, and satisfied with their job.
----------------------
----------------------
State True or False
1. Conscientiousness is a tendency to be diligent, hardworking and to ----------------------
control impulses ----------------------
2. Extraversion is a personality trait that makes people more open and
better at establishing relationships with others ----------------------
3. General self-efficacy is a confidence in the ability to cope with the ----------------------

demands of our job
----------------------
4. Emotional Quotient has nothing to do with communication at
workplace ----------------------
----------------------
9.9 USING EI IN HR (HUMAN RESOURCES) ----------------------
HR is one of the most effective places to apply what we know about ----------------------
emotional intelligence. Besides contributing to better communication,
relationships, and problem-solving among current employees, emotional ----------------------

Notes intelligence can also help you to identify the best candidates for positions within
the organization.
----------------------
Using Emotional Intelligence Interview Questions
---------------------- Emotional intelligence interview questions can be extremely helpful
in narrowing down your pool of applicants, especially if you have a lot of
----------------------
applicants with similarly impressive qualifications.
---------------------- However, make sure you don’t just jump in and come up with your own
ways to assess emotional intelligence; follow these guidelines to make sure
----------------------
you’re doing it the right way.
---------------------- Don’t:
---------------------- ●● Use personality tests as a proxy for EI; many of the EI/EQ measures
are designed to measure emotional intelligence as a facet of personality
---------------------- rather than an indicator of work habits, competencies, and skills. They
---------------------- may not measure specific components of emotional intelligence such as
self-awareness, positive outlook, achievement orientation, empathy, or
---------------------- inspirational leadership.
---------------------- ●● Use a self-report test (i.e., a test in which your candidates answer questions
and report on their own emotional intelligence. This doesn’t really work
---------------------- for two reasons: (1) if a person is not self-aware, they possibly aren’t
going to be able to accurately assess their own emotional intelligence,
---------------------- and (2) if they are self-aware, you could be giving them the opportunity to
---------------------- exaggerate their skills or abilities and make themselves seem like a better
candidate than they really are.
---------------------- ●● Use a 360-degree feedback instrument-even if it is a good measure of EI
---------------------- competencies. A tool like 360-degree feedback is best used for development
and improvement in current employees rather than evaluation and hiring.
---------------------- When these instruments are used to evaluate, some people “game” them
by carefully selecting the respondents and even instructing them how to
---------------------- answer the questions.
---------------------- Do:
---------------------- ●● Get references for the candidate-and actually call them! Letters of reference
don’t cut it when it comes to gauging a candidate’s EI/EQ, because they
---------------------- are carefully prepared, static, and usually pretty general. When you get
the chance to speak with a candidate’s references, you can ask them
---------------------- questions that really get to the heart of EI/EQ and its subcomponents and
---------------------- competencies. Get as many examples as you can and press for details.
Above all, be sure to ask for examples of how your candidate treats other
---------------------- people.
---------------------- ●● Interview for emotional intelligence. This might sound easy or like it’s
something you are already doing, but chances are you aren’t actually
---------------------- assessing EI/EQ. In interviews that aren’t strictly structured, we usually
let people be vague in their responses-even to the point of not really
---------------------- answering the question-and we often fail to ask good follow-up questions.

Even when we ask candidates directly about emotional intelligence or Notes
EI-related competencies, they generally provide us with a picture of an
idealized version of themselves rather than an accurate portrait of their ----------------------
real selves. To overcome these obstacles to getting a good handle on your
candidates’ EI/EQ, behavioral event interviewing is the way to go. ----------------------
Behavioral event interviewing is a method that allows you to see their EI/ ----------------------
EQ competencies almost firsthand.
----------------------
Annie McKee from the Harvard Business Review explains how to do it:
----------------------
1. Start the interview off on the right foot; make it as warm, friendly, and
comfortable as possible. This will help you get the candidate in a frame ----------------------
of mind conducive to sharing the information you want to get.
----------------------
2. Ask a few traditional questions about the candidate’s experience,
background, and education. ----------------------
3. Next, ask the candidate about a recent situation where she and some of her
----------------------
peers (co-workers, teammates, etc.) faced a difficult challenge that needed
solving, and encourage her to pick one where she’s the “protagonist” of ----------------------
the story and one where she was ultimately successful and/or proud of her
solution. ----------------------
4. Ask her to tell the story in a few brief sentences first. Once you have the ----------------------
outline, have her go over the story in detail and ask her specific, detailed
questions about it (e.g., what she thought at a certain point, how she felt ----------------------
about what happened, what she did about it). ----------------------
5. Ask her to share a similar story except this time it should be about a time
when she failed and learned a valuable lesson. Again, have her give a ----------------------
brief overview then go more in-depth, and ask detailed questions. ----------------------
6. Finally, end on a positive note-ask for another positive story.
----------------------
This technique will give you insight into your candidate’s thought
processes, her awareness of her own emotions, how she thinks and feels about ----------------------
others, what she does during a conflict, and how she handles disagreements and
----------------------
challenges with other people (McKee, 2016).
You may not be great at this method right away, but practice makes perfect! ----------------------
----------------------
9.10 EMOTIONAL INTELLIGENCE INTERVIEW
QUESTIONS ----------------------
There are tons of good questions you can ask to gauge emotional ----------------------
intelligence. These six were identified by Karla Cook, editor and team manager ----------------------
at HubSpot Marketing, as some of the best ones to get an indicator of EI/EQ:
●● Can you tell me about a time you tried to do something and failed? ----------------------
●● Tell me about a time you received negative feedback from your boss. ----------------------
How did that make you feel?
----------------------

Notes ●● Can you tell me about a conflict at work that made you feel frustrated?
●● Tell me about a hobby you like to do outside of work. Can you teach me
---------------------- about it?
---------------------- ●● What would your co-workers say is the most rewarding thing about
working with you? What about the most challenging thing?
----------------------
●● Can you tell me about a time you needed to ask for help on a project?
---------------------- (Cook, 2017).
These six questions offer you some great opportunities to learn about
----------------------
your candidates EI/EQ, but if you need even more suggestions, check out the
---------------------- list below:
---------------------- ●● What is one of your weaknesses? How do you overcome that weakness?
●● What motivates you to do your work?
----------------------
●● Describe a stressful work situation you’ve had. How did you resolve that
---------------------- situation?
●● What are one or two things that make you angry or frustrated at work?
----------------------
What do you do when you get angry or frustrated at work?
---------------------- ●● Tell me about a time when you received feedback on your performance,
and you disagreed with the feedback. How did you handle the situation?
----------------------
●● Tell me about a setback you had at work. How did you handle it?
---------------------- ●● Describe a time when you made a big mistake at work. How did you
---------------------- handle the situation?
●● Tell me about a time when you had to handle multiple work assignments
---------------------- at once. How did you feel? How did you handle the situation?
---------------------- ●● Tell me about a time when you took on a task at work that was new to you.
How did you feel doing it?
----------------------
●● How would you handle a coworker who consistently does not pull his
---------------------- weight on group assignments?
●● How do your colleagues benefit from working with you?
----------------------
●● Tell me about a time when you did or said something that had a positive
---------------------- impact on an employee, coworker, or customer.
---------------------- ●● Have you ever noticed that someone at work was having a bad day? How
did you know? What did you do?
----------------------
●● Tell me about a time when you had a dispute with a colleague. What did
---------------------- you do to deal with the situation?
●● Describe a time when a colleague came to you with a problem. How did
---------------------- you respond?
---------------------- ●● Tell me about a time when understanding someone else’s perspective
helped you accomplish a task or resolve an issue.
----------------------
●● Tell me about a time when you motivated someone to accomplish a task.
---------------------- How did you motivate him or her?

●● Why is it important to develop a rapport with your colleagues? Notes
●● How do you build a rapport with your colleagues? (Doyle, 2018).
----------------------
9.11 IMPROVING YOUR EMOTIONAL QUOTIENT ----------------------
Well according to research 90% of the high performance at the workplace ----------------------
possess high emotional quotient. While 80% of low performance have a low
emotional quotient. Emotional intelligence is the most important thing to ----------------------
improve personal relationships. Unlike IQ (intelligence quotient), which does
----------------------
not change significantly over a lifetime, our emotional quotient can evolve and
increase with our desire to learn and grow. ----------------------
Here are some effective ways to improve your emotional quotient which
----------------------
can help you to grow through your life.
Self-Awareness: ----------------------
Self-awareness is the ability to recognise and understand your own ----------------------

character, moods and emotions and their effect on others. It includes a realistic
self-assessment of what you’re capable of – your strengths and weaknesses – ----------------------
and knowing how others perceive you. It can help you to highlight areas for ----------------------
self-improvement, make you better at adapting and can limit bad decisions.
----------------------
Personal Goals:
Setting personal goals will provide long-term direction and short-term ----------------------
motivations, So grab a Pen and write down your short term and long term goals
----------------------
with date and read it daily. These goals should be based on your strengths and
make these goals relevant to you. Also, make sure these goals should be exciting ----------------------
and achievable for you. This will definitely help you to change your mindset
about work and you will achieve more in your life. ----------------------
Be Positive: ----------------------
It’s very important to maintain a positive and optimistic mindset. See ----------------------
problems and setbacks as learning opportunities instead of Failure. Try to avoid
toxic people and surround yourself with positivity and positive people. This ----------------------
will definitely help you to change your mindset and perspective about different
situations. You will develop a positive mindset and this will ultimately help you ----------------------
to improve your emotional quotient. ----------------------
Don’t Prioritize Perfection:
----------------------
People with high EQ never try to achieve perfection because they know
it doesn’t exist. When you go after perfection, you will always end up with a ----------------------
nagging sense of failure and instead of doing what you are capable of you will
try to do the same thing differently to achieve perfection which doesn’t even ----------------------
exist. ----------------------
Self–Management:
----------------------
Once you’ve gotten control with self-awareness and how your emotions
work, you can get control on self-management also. Self-management means ----------------------

Notes taking responsibility for your own behaviour and well-being as well as
controlling emotional outbursts. In self-management, you need to be punctual
---------------------- of what you are doing all along the day. It will not only help you to increase
your emotional quotient but it will also help you to make your daily life easy.
----------------------
Empathy:
----------------------
Quite simply, empathy is the ability to understand other people’s emotions.
---------------------- Understanding that everyone has their own set of feelings, desires, triggers and
fears. To be empathetic you’re allowing their experiences to resonate with your
---------------------- own in order to respond in an emotionally appropriate way. It’s a lifelong skill
and the most important one for navigating relationships, and whilst it may not
----------------------
come naturally, there are a few ways it can be nurtured.
---------------------- Practice:
---------------------- As we know practice makes the men perfect. You can’t learn to control
your emotions overnight. You have to observe, learn and then practice daily to
---------------------- master this ability.
---------------------- So, practice these tips daily and it will not only help you to improve your
emotional quotient but also help you to live a happy and better life.
----------------------
---------------------- Summary
---------------------- ●● Emotional Quotient is primarily your ability to understand other people
and what motivates them as well as your own motivations and emotional
---------------------- intelligence. In addition to this, the ability to monitor and manage your
---------------------- own emotions also ties in with your level of emotional intelligence.
●● It is crucial to determine your emotional intelligence as it impacts almost
---------------------- everything you do and say each day.
---------------------- ●● Being in touch with your feelings allows you to manage stress levels and
communicate effectively with other people, two skills that enhance your
---------------------- life both personally and professionally.
---------------------- ●● Unlike IQ, which remains constant throughout your life, EQ can be
developed and honed over time.
----------------------
---------------------- Keywords
---------------------- ●● Emotional Quotient: is defined as a set of competencies demonstrating
the ability one has to recognize his or her behaviors, moods, and impulses,
---------------------- and to manage them best according to the situation.
---------------------- ●● Intelligent quotient: The term ‘IQ’ was coined in 1912 by the psychologist
William Stern in relation to the German term Intelligenzquotient. At that
---------------------- time, IQ was represented as a ratio of mental age to chronological age
x 100. So, if an individual of 10 years of age had a mental age of 10,
----------------------
their IQ would be 100. However, if their mental age was greater than
---------------------- their chronological age (e.g., 12 rather than 10), their IQ would be 120.

Similarly, if their mental age was lower than their chronological age, their Notes
IQ would be lower than 100.
----------------------
1. Explain the concept of Emotional Intelligence. ----------------------
2. What are the basic principles of Emotional Intelligence?
----------------------
3. List down the characteristics of a person with High Emotional quotient.
----------------------
4. What is the significance of EQ at the workplace?
5. How EQ impacts communication at the workplace? ----------------------
6. Do you feel the knowledge of EQ helps managers at workplace? Discuss. ----------------------
----------------------
Answers to Check your Progress:
----------------------
Check your progress 1:
----------------------
Multiple choice single response:
1. EQ is defined as a set of competencies demonstrating the ability one has ----------------------
to recognize his or her;
----------------------
a) Behavior
----------------------
2. Self-Awareness is defined as;
a) the ability to decode one’s emotion ----------------------
3. A high-EQ person tends to: ----------------------

a) accept criticism without denial or hostility ----------------------
----------------------
State True or False
----------------------
1. True
2. True ----------------------
3. True ----------------------
4. False ----------------------
----------------------
Suggested Reading
----------------------
There are other emotional intelligence books that can give you a succinct
overview, an in-depth exploration, or an understanding that is somewhere in ----------------------
between the two. Check out these seven books to get started:
----------------------
●● Harvard Business Review Everyday Emotional Intelligence: Big Ideas
and Practical Advice on How to Be Human at Work ----------------------
----------------------

Notes ●● Emotional Intelligence at Work: The Untapped Edge for Success by
Hendrie Weisinger (Amazon)
---------------------- ●● How to Improve Your Emotional Intelligence at Work & in Relationships
---------------------- by Shawn Kent Hayashi (Amazon)
●● Put Emotional Intelligence to Work: Equip Yourself for Success by Jeff
---------------------- Feldman and Karl Mulle (Amazon)
---------------------- ●● Emotional Intelligence at Work: 18-Year Journey of a Researcher by Chi-
Sum Wong (Amazon)
----------------------
●● Emotion at Work: Unleashing the Secret Power of Emotional Intelligence
---------------------- by Roberta Ann Moore (Amazon)
●● Emotional Intelligence: The Emotional Intelligence Book – Emotional
----------------------
Intelligence at Work and Emotional Intelligence Leadership by John C.
---------------------- Allen (Amazon)
●● The Emotionally Intelligent Workplace: How to Select for, Measure, and
----------------------
Improve Emotional Intelligence in Individuals, Groups, and Organizations
---------------------- by Cary Cherniss and Daniel Goleman (Amazon)
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Conflict Management
UNIT
Structure:
10
10.1 Introduction
10.2 Levels of Conflict in Organisational Behaviour
10.3 Types of Conflict
10.4 Interpersonal Conflict Handling Styles
10.5 Intrapersonal Conflict and ways to Manage Intrapersonal conflicts
10.6 Negotiations in Conflict Management
10.6.1 Intra Personal Conflict
10.7 Mediation
Summary
Keywords
Suggested Reading
Conflict Management 177

Notes
Objectives
----------------------
----------------------
• Define conflict
---------------------- • Examine the causes of conflict
---------------------- • Compare the types and levels of conflicts in an organisation
• Evaluate the positive and negative impact of conflict
---------------------- • Compare and Contrast various styles of managing a conflict.
----------------------
---------------------- 10.1 INTRODUCTION

---------------------- It is very difficult to imagine a conflict-free world and therefore, a conflict-
free organisation. In the previous units, we have seen the myriad aspects on
---------------------- which each individual is unique. Personalities are varied, the way we look at the
---------------------- world, our perceptions are different, our attitudes vary and what motivates us is
different. This uniqueness is a major reason of the conflicts that we encounter
---------------------- in our personal as well as professional life.
---------------------- Conflict is a natural disagreement arising between two or more people.

It exists when they have incompatible goals and one or more believe that the
---------------------- behaviour of the other prevents them from their own goal achievement.
---------------------- It is a process in which one party (person or group) perceives that its
interests are being opposed or negatively affected by the other party.
----------------------
Reasons for conflict
---------------------- Sigmund Freud and other psychologist hold the view that the innate instinct
for aggression in man is the main cause of conflict. Thus, various causes lead
----------------------
to conflict.
---------------------- The main cause of conflict may be briefly stated as follows:
---------------------- 1. Each one is a unique person.
---------------------- 2. We have incompatible needs. Resources are limited but we need them at
the same time and in maximum quantity.
----------------------
3. We look at the same picture but with our own eyes. So, we have different
---------------------- perceptions.
4. Different people value different things.
----------------------
5. Beliefs are varied.
----------------------
6. Cultural differences
---------------------- 7. Job design.
---------------------- However, what comes out of the conflict depends on what we do with it
and how we handle it.
----------------------

“Are conflicts always bad?” is an interesting question to answer, especially Notes
in an organisational context.
----------------------
Five Stages of Conflict Process: How it Work in Organization
Organizational conflict arises when the goals, interests or values of ----------------------
different individuals or groups are incompatible and those individuals or groups
----------------------
block or thwart one another’s attempts to achieve their objective. Conflict
Process shows how conflict works within the organization. ----------------------
We can identify the stages that a conflict born and grows in an organization.
----------------------
Here, we will look at the stages of a conflict covering the birth, rise, and ending
in it. ----------------------
5 Stages Conflict Process are; ----------------------
1. Potential Opposition or Incompatibility.
----------------------
2. Cognition and Personalization.
----------------------
3. Intentions.
4. Behavior. ----------------------
5. Outcomes. ----------------------
Conflict Process consists of five stages that show how conflict begins, ----------------------
grows, and unfolds among individuals or groups with different goals, interests
or values of the organization. ----------------------
These stages are described below; ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Stage 1: Potential Opposition or Incompatibility
----------------------
The first step in the conflict process is the presence of conditions that
create opportunities for conflict to develop. These cause or create opportunities ----------------------
for organizational conflict to rise.
----------------------
They need not lead directly to conflict, but one of these conditions is
necessary if the conflict is to surface. ----------------------

Notes For simplicity’s sake, these conditions have been condensed into three
general categories.
----------------------
1. Communication,
---------------------- 2. Structure, and
---------------------- 3. Personal Variables.
---------------------- These 3 conditions cause conflict are explained;

1. Communications
----------------------
Different words connotations, jargon insufficient exchange of information
---------------------- and noise in the communication channel are all antecedent conditions to
conflict.
----------------------
Too much communication, as well as too little communication, can lay
---------------------- the foundation for conflict.
---------------------- 2. Structure
---------------------- In this context, the term structure is used to include variables such as
size, the degree of specialization in the tasks assigned to group members,
---------------------- jurisdictional clarity, members/goal compatibility, leadership styles,
reward systems and the degree of dependence between groups.
----------------------
The size and specialization act as forces to stimulate conflict. The larger
---------------------- the group and the more specialized its activities, the greater the likelihood
of conflict. Tenure and conflict are inversely related.
----------------------
The potential for conflicts tends to be greatest when group members are
---------------------- younger and when turnover is high.
---------------------- In defining where responsibility for action lies; the greater the ambiguity
is the greater the potential for conflict to the surface. Such Jurisdictional
---------------------- ambiguity increases inter-group fighting for control or resources and
territory.
----------------------
3. Personal Variables
----------------------
Certain personality types- for example, individuals who are highly
---------------------- authoritarian and dogmatic- lead to potential conflict. Another reason for
the conflict is the difference in value systems.
----------------------
Value differences are the best explanations of diverse issues such as
---------------------- prejudice disagreements over one’s contribution to the group and rewards
one deserves.
----------------------
Stage 2: Cognition and Personalization
---------------------- Conflict must be perceived by the parties to it whether or not the conflict
---------------------- exists is a perception issue, the second step of the Conflict Process.
If no one is aware of a conflict, then it is generally agreed that no conflict
----------------------
exists. Because conflict is perceived does not mean that is personalized.
----------------------

For example; Notes
A may be aware that B and A are in serious disagreements but it may not
----------------------
make A tense or nations and it may have no effect whatsoever on A’s affection
towards B. ----------------------
It is the felt level when individuals become emotionally involved that
----------------------
parties experience anxiety, tension or hostility.
Stage-2 is the place in the process where the parties decide what the ----------------------
conflict is about and emotions play a major role in shaping perception.
----------------------
Stage 3: Intentions
----------------------
Intentions are decisions to act in a given way, intentions intervene between
people’s perception and emotions and their overt behavior. ----------------------
Using two dimensions cooperativeness (the degree to which one party ----------------------
attempts to satisfy the other party’s concerns) and assertiveness (the degree to
which one party attempts to satisfy his or her concerns) five conflict-handling ----------------------
intentions can be identified.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Stage 4: Behavior
This is a stage where conflict becomes visible. The behavior stage includes ----------------------
the statements, actions, and reactions made by the conflicting parties.
----------------------
These conflict behaviors are usually overt attempts to implement each
party’s intentions. ----------------------
When most people think of conflict situations, they tend to focus on Stage 4. ----------------------
Why?
----------------------
Because this is a stage Where conflict becomes visible. The behavior stage
includes the statements, actions, and reactions made by the conflicting parties; ----------------------
These conflict behaviors are usually overt attempts to implement each
----------------------
party’s intentions. But these behaviors have a stimulus quality that is separate
from intentions. ----------------------
As a result of miscalculations or unskilled enactments, overt behaviors
----------------------
sometimes deviate from original intentions.
It helps to think of stage 4 as a dynamic process of interaction. ----------------------

Notes Stage 5: Outcomes
The action-reaction interplay between the conflicting parties results in
---------------------- consequences.
---------------------- These outcomes may be functional in that the conflict results in an
improvement in the group’s performance, or dysfunctional in that it hinders
---------------------- group performance.
---------------------- Conflict is constructive when it improves the quality of decisions that
stimulates creativity and innovations encourage interest and curiosity among
---------------------- group members to provide the medium through which problems can be aired
---------------------- and tensions released and foster an environment of self-evaluation and change.
Conflict is dysfunctional when uncontrolled opposition breeds discontent,
---------------------- which acts to dissolve common ties and eventually leads to the destruction of
the group.
----------------------
Among the more undesirable consequences are a retarding of
---------------------- communication, reductions in group cohesiveness and subordination of group
goals to the primacy of infighting between members.
----------------------
10.2 LEVELS OF CONFLICT IN ORGANISATIONAL
----------------------
BEHAVIOUR
---------------------- Four primary levels of conflicts might be present in an organisation:
---------------------- 1. Intrapersonal: This occurs within an individual and usually involves
some form of goal, cognitive or affective conflict. It involves making
---------------------- decisions, facing dilemmas, etc. This also has an impact on other levels
---------------------- of conflicts.
• APPROACH – APPROACH
---------------------- • AVOIDANCE – AVOIDANCE
---------------------- • APPROACH - AVOIDANCE
---------------------- 2. Interpersonal: This occurs when two or more individuals perceive that
their attitudes, behaviours or preferred goals are in opposition. Individuals
---------------------- manage this type of conflict by using various styles. These styles are
discussed in the next section.
----------------------
3. Intragroup: This refers to disputes among some or all of group’s
---------------------- members, which often affect the group’s dynamics and effectiveness.
4. Inter-group: This refers to opposition, disagreements and disputes
---------------------- between groups and teams. Under high levels of competition and conflict,
---------------------- the parties develop attitudes towards each other that are characterised by
distrust, rigidity, a focus only on self-interest, failure to listen, etc.
----------------------
10.3 TYPES OF CONFLICT
---------------------- There are four varieties of conflicts. The common aspect of all these is
---------------------- incompatibility.
1. Goal conflict: It stems from incompatible preferred or expected outcome.
---------------------- It also includes inconsistencies between the individual’s or group’s values

and norms and the demands and goals assigned by higher-level managers Notes
in the organisation. It also happens when our goals and our capacity to
achieve them are at odds. ----------------------
2. Cognitive conflict: This happens when ideas and thoughts within an
----------------------
individual or between individuals are incompatible.
3. Affective conflict: It occurs when feelings and emotions within individuals ----------------------
or between individuals are incompatible.
----------------------
4. Procedural conflict: It occurs when individuals differ in their process
to achieve an objective. They might have different ways of doing the ----------------------
same things. Union- management negotiations often involve procedural
conflicts before negotiations actually begin. ----------------------
Now that we understand conflicts are a part of our organisational life, it
----------------------
is important to understand how they affect people’s behaviour and what can be
done to ensure that conflicts have a positive effect on the organisation. ----------------------
----------------------
----------------------
1. The conflict that occurs within an individual and involves some form
of goal, cognitive or affective conflict is: ----------------------
i. Intragroup
----------------------
ii. Intrapersonal
iii. Inter-group ----------------------
iv. Interpersonal ----------------------
2. The conflict that occurs when two or more individuals perceive that
their attitudes and behaviours are in opposition is: ----------------------
i. Intragroup ----------------------
ii. Intrapersonal
----------------------
iii. Interpersonal
iv. Inter-group ----------------------
3. What stems from incompatible preferred or expected outcome? ----------------------
i. Goal conflict
ii. Procedural conflict ----------------------
iii. Interpersonal conflict ----------------------
iv. Affective conflict
----------------------
4. When individuals differ in their process to achieve an objective, it
leads to: ----------------------
i. Cognitive conflict
----------------------
ii. Goal conflict
iii. Affective conflict ----------------------
iv. Procedural conflict ----------------------

Notes
Activity 1
----------------------
---------------------- Undertake an observation visit to various departments of an organization

and make a list of potential causes of conflict amongst employees.
----------------------
----------------------
10.4 INTERPERSONAL CONFLICT HANDLING STYLES
----------------------
Individuals manage their conflicts depending on how they perceive it. What
---------------------- they do in a conflict situation is a function of the following aspects:
---------------------- 1. Personality of the individuals, whether passive, aggressive or assertive.
2. Favourable or unfavourable situation.
----------------------
3. Strength of the other party.
----------------------
4. Stakes involved, i.e., concern for self-interest or interests of others.
---------------------- 5. Positive or negative attitude.
---------------------- Although an individual may have a natural tendency towards one or two
styles, he may use all of them as the above factors change.
----------------------
There are five basic styles of managing conflicts used by individuals.
----------------------
a. Competing Style: It refers to assertive and uncooperative behaviours and
---------------------- represents a win-lose approach to interpersonal conflict. Those who use
this style try to achieve their own goals without concern for others. It
---------------------- includes coercion and dominance. These individuals assume that conflict
resolution means one person wins and the other person loses. This style by
----------------------
manager may lead to demotivation of subordinates. Thrusting decisions
---------------------- will also mean lower commitment by others in its execution.
---------------------- However, sometimes competing style becomes necessary. Such situations may
include:
---------------------- i. When emergencies require quick action.
---------------------- ii. Unpopular courses of action must be taken for long-term
organisational effectiveness, such as dismissal of employee for
---------------------- non-performance, introduction of cost-cutting measures, etc.
---------------------- iii. When professional stakes are very high and you cannot get a group
to agree on one thing
----------------------
b. Accommodating Style: It refers to cooperative and unassertive
---------------------- behaviours. It is a lose-win approach. Accommodation may represent an
unselfish act, a long-term strategy to encourage cooperation by others or
----------------------
a submission to the wishes of others. Others typically evaluate individuals
---------------------- with this style favourably, but they may also be perceived as weak and
submissive. They may be taken for granted and lose their credibility in the
---------------------- long run. This style may be effective in the short run when the individual

is in a potentially explosive conflict situation, and smoothing is used to Notes
defuse it. Relationships are crucial. Maintaining harmony and avoiding
disruption is important in the situation. ----------------------
c. Collaborating Style: It refers to strong cooperative and assertive ----------------------
behaviours. It is the win-win approach to interpersonal conflict handling.
The person using this style desires to maximise joint results. With this ----------------------
style, conflict is recognised openly and evaluated by all the concerned
parties. Sharing, examining and assessing the reasons for conflict should ----------------------
lead to development of alternatives that effectively resolve it and is fully
----------------------
acceptable to everyone involved. An individual using this approach will
tend to: ----------------------
i. See conflict as natural, helpful and positive.
----------------------
ii. Exhibit trust in and candor with others.
iii. Recognise that this approach will lead to maximum commitment to ----------------------
the solution jointly evolved.
----------------------
Collaboration is most practical when there is:
a. Plenty of time to establish relationship and explore the ----------------------
interdependence.
----------------------
b. Sufficient parity in power among individuals so that they feel free
to interact candidly, regardless of their formal superior-subordinate ----------------------
status.
c. Sufficient organisational support for investing the necessary time ----------------------
and energy in resolving disputes in this manner.
----------------------
d. The norms, rewards and punishments and the culture in the
organisation provide the framework for encouraging or discouraging ----------------------
collaboration.
----------------------
d. Compromising Style: It refers to behaviours at an intermediate level of
cooperation and assertiveness. It is a win some-lose some. The individual ----------------------
using this style engages in give and take and use a series of concessions. It
is a middle ground to resolve conflicts. Compromise achieves moderate, ----------------------
but only partial satisfaction for each party. This style is likely to be
appropriate when: ----------------------
i. Something gained is better than nothing at all. ----------------------
ii. Achieving a total win-win is simply impossible.
----------------------
iii. Conflicting goals or opposing interests block agreement on one
person’s proposal. ----------------------
It is essentially win some-lose some approach and might work in short run
only. What we will compromise on and what we will not is another question to ----------------------
be answered. Repeated compromises might blind us to the merits of an issue ----------------------
and also lose sight of the larger picture. Employees, for example, might look
at compromise as an easy way out and not look at the larger interests of the ----------------------
organisation.
----------------------
e. Avoiding Style: It refers to unassertive and uncooperative behaviours.
It is a lose-lose approach. A person uses this style to stay away from ----------------------

Notes conflict, ignore disagreements or remain neutral. The avoidance approach
reflects an aversion to tension and frustration and may involve a decision
---------------------- to let a conflict work itself out. When unresolved conflicts affect the
achievement of goals, the avoiding style will lead to negative results
---------------------- for the organisation. However, this style may be desirable under some
---------------------- situations:
i. The issue is minor or only of passing importance and hence, does
---------------------- not deserve the individual’s time and effort.
---------------------- ii. The individual needs time to deal with the conflict.
iii. The individual needs more preparation.
----------------------
iv. The other party is too strong.
---------------------- v. Others can deal with it more effectively.
----------------------
----------------------
----------------------
1. Which of the following refers to assertive and uncooperative
---------------------- behaviour to resolve interpersonal conflict?
---------------------- i. Compromising
ii. Competing
---------------------- iii. Avoiding
---------------------- iv. Accommodating
2. The process in which two or more individuals having both common
----------------------
and conflicting goals, state and discuss proposals for a specific term
---------------------- of a possible agreement is:
i. Distraction
----------------------
ii. Negotiation
---------------------- iii. Mediation
---------------------- iv. Avoidance
----------------------
1. Competing styles include:
---------------------- i. Coercion
---------------------- ii. Dominance
iii. Flexibility
----------------------
iv. Rigidity
---------------------- 2. Avoiding style may be desirable under the following situations:
---------------------- i. Individual needs more preparation
ii. Other party is too strong
----------------------
iii. Issue is of minor importance
---------------------- iv. Achieving win-win is impossible

10.5 INTRAPERSONAL CONFLICT AND WAYS TO Notes
MANAGE INTRAPERSONAL CONFLICTS
----------------------
Conflict happens. How you respond to and resolve conflict will limit ----------------------
or enable your success. By embracing conflict as a part of life, you can make
the most of each situation and use it as a learning opportunity or a leadership ----------------------
opportunity. You can also use it as an opportunity to transform the situation into
something better. ----------------------
The Thomas Kilmann Conflict Mode Instrument is a model for handling conflict: ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Attitude towards conflicts
----------------------
Attitude plays a very important role in conflict management. Nothing can
be achieved unless and until you believe in yourself and have a positive attitude. ----------------------
An individual must avoid finding faults in others. Always remember, if you are
pointing towards someone else, four fingers are towards you as well. It is wrong ----------------------
to always assume that the other person is at fault.
----------------------
Adopt a positive attitude towards work and life on the whole. Be a little
more flexible and adjustive. No one has ever gained anything out of conflicts; ----------------------
it has all the adverse consequences. Individuals tend to lose control on their
----------------------
emotions and overreact hurting the sentiments of the other person.
1. Positive Attitude: Conflicts in organisations can be a positive force. The ----------------------
creation and/or resolution of conflict may lead to constructive problem
----------------------
solving. The need to resolve conflict can lead people to search for ways
of changing how they do things, perceive the world around, understand ----------------------
and maintain relationships. The conflict resolution process can stimulate
innovation and positive change, as well as make change more acceptable. ----------------------
The benefits of this attitude towards conflict may be on three fronts −
----------------------
beneficial effects on productivity, relationship outcome and constructive
organisational change. ----------------------
2. Negative Attitude: Conflicts may also have serious negative effects, ----------------------
diverting effects from the goals of the organisation and draining of
organisational resources, especially time and energy. Conflicts also have ----------------------
an adverse impact on the psyche of the employees, which lead to stress
and strain the interpersonal relationships at the workplace. This affects ----------------------

Notes performance. Deep and lasting conflicts that are not addressed may even
trigger violence among employees or between employees and others.
----------------------
3. Balanced Attitude: This attitude is that conflict may sometimes be
---------------------- desirable and at other times destructive. Although some conflicts can be
avoided and reduced, others have to be resolved and properly managed.
---------------------- The balanced attitude is sensitive to the consequences of conflict, ranging
from negative outcomes to positive ones. It recognises that conflict occurs
----------------------
in organisations whenever interests collide. Sometimes, employees will
---------------------- think differently, want to behave differently and seek to pursue different
goals. When these differences divide the interdependent individuals, they
---------------------- must be managed constructively.
----------------------
10.6 NEGOTIATIONS IN CONFLICT MANAGEMENT
----------------------
Negotiation is a process in which two or more individuals or groups, having
---------------------- both common and conflicting goals, state and discuss proposals for a specific
term of a possible agreement.
----------------------
Negotiation includes a combination of compromise, collaboration and
---------------------- possibly some forcing on vital issues. A negotiation situation is one in which:
---------------------- 1. Two or more individuals must make a decision about their interdependent
goals and objectives.
----------------------
2. The individuals are committed to peaceful means of resolving their
---------------------- dispute.
---------------------- 3. There is no clear or established method for making decisions.

Types of Negotiations
----------------------
There are many ways to win at negotiation, but they need not be at the
---------------------- expense of others. In addition to gaining what you want, more money or a
better position, for example, there are benefits to building a relationship through
---------------------- negotiation.
---------------------- While negotiation is an ideal strategy for handling conflict, there are
some non-productive ways of dealing with conflict that should be avoided.
----------------------
These include denial, escalation to a higher authority, capitulation, and passive-
---------------------- aggressive behaviour.
a. Distributive Negotiations: Traditional win-lose, wherein one party’s
----------------------
gain is other party’s loss is called distributive negotiations. They often
---------------------- occur over economic issues and interaction patterns may include guarded
communication, limited expression of trust, use of threats and distorted
---------------------- statements and demands. In short, the parties are engaged in tense,
emotion-laden conflict. The forcing and compromise handling styles are
----------------------
dominant in distributive negotiations.
---------------------- b. Integrative Negotiations: Joint problem solving to achieve results
benefiting both parties is called integrative negotiations. The parties
----------------------

identify mutual problems, identify and assess alternatives, openly express Notes
preferences and jointly reach a mutually acceptable solution. Rarely
perceived as equally acceptable, the solution is simply advantageous to ----------------------
both sides. Those involved are strongly motivated to solve problems,
----------------------
exhibit flexibility and trust and explore new ideas. The collaborative and
compromise handling styles are dominant in integrative negotiations. ----------------------
In the bestseller Getting to Yes: Negotiating Agreement Without Giving ----------------------
In, authors Fisher and Ury outline four key principles for integrative (win-win)
negotiations. They called the following principles “negotiations on merits”: ----------------------
i. Separate the people from the problems. ----------------------
ii. Focus on interests and not positions. ----------------------
iii. Invent options for mutual gains.
----------------------
iv. Insist on using objective criteria.
----------------------
c. Attitudinal Structuring: It is a process by which the parties seek to
establish desired attitudes and relationships. Throughout any negotiation, ----------------------
the parties reveal certain attitudes (e.g., hostility, friendliness,
competitiveness, cooperation, etc.) that influence their interactions. ----------------------
d. Intra-organisational Negotiations: Groups often negotiate through ----------------------

representatives. However, these representatives first may have to obtain
----------------------
the agreement of their respective groups before they can agree with each
other. In intra-organisational negotiations, each set of negotiators tries to ----------------------
build consensus for agreement and resolve intergroup conflict before
dealing with other group’s representatives. ----------------------
10.6.1 Intra personal conflict ----------------------

Intrapersonal conflict refers to an individual's ability to relate to and ----------------------
understand himself, particularly in high-stress situations. Intrapersonal conflicts
develop within a person when he feels incapable of handling a difficult situation ----------------------
and acts out in ways that might seem motivated by anger and can be disruptive ----------------------
to family or coworkers. Intrapersonal conflict is different from interpersonal
conflict, which is conflict that arises between two individuals. ----------------------
Intrapersonal conflict is the conflict humans face within themselves; it is ----------------------
a conflict between ‘should’ and ‘want’. Should is always driven by the values,
religious beliefs, upbringing etc. Wants, on the other hand, are driven by the ----------------------
environment, which entices humans to indulge overlooking ‘should’. ----------------------
Intrapersonal Conflict is the part of human life. At every point, humans
----------------------
face intrapersonal conflicts between ‘should’ and ‘want’. Conflict arises when
any kind of decision needs to be taken, be it important of unimportant. Simple ----------------------
decisions inlcude buying a car or complex decisions include marriage or money.
Every time a decision needs to be taken, should and want weigh on us, based on ----------------------
which we take decision. ----------------------

Notes Six Tactics for Managing Intrapersonal Conflict
1. Coaching or Therapy: In a workplace environment, managers can
----------------------
arrange coaching sessions for employees they feel are inhibited in their
---------------------- work performance due to intrapersonal conflict. Coaches help employees
identify the triggers for their internal responses to certain situations so they
---------------------- can implement new, more effective responses. On a personal or family
basis, individuals might seek out a therapist to assist them in identifying
----------------------
intrapersonal conflict behaviours and instituting healthy changes.
---------------------- 2. Stress Management: Individuals need to cultivate effective self-care
habits, which help them cope with stress, whether in the workplace or
----------------------
at home. At work, individuals want to find a trusted colleague whom
---------------------- they can talk to openly about stressful situations and who can help them
brainstorm effective solutions for handling stress. At home, stress can be
---------------------- better managed by learning to communicate with a spouse and children
more effectively, being able to clearly express needs and feelings and by
----------------------
cultivating activities such as exercise, which help manage stress.
---------------------- 3. Know the Triggers: Emotional triggers are those events from a person's
past, which still directly impact how he sees and deals with his current
----------------------
life. In stressful situations, triggers can be activated. This can result,
---------------------- for example, in a normally calm and rational employee lashing out in
anger when an unexpected organizational change is announced. Effective
---------------------- managers recognize when an employee might be behaving poorly, not
out disrespect for his job, but due to emotional triggers interacting with
----------------------
workplace stress. The most effective course is to talk with the employee
---------------------- directly and see if coaching might be useful. Sometimes an employee
simply needs to be given an opportunity to express his fears or concerns
---------------------- in a setting that he finds safe. As individuals become more aware of their
personal triggers, they are better able to manage them.
----------------------
4. Practice New Skills: Intrapersonal conflict often stems from past
---------------------- traumatic experiences. We learn to be afraid of conflict as children and
---------------------- so fear it as adults. We have had bad experiences with sudden change and
so resist any new change that comes our way. Once emotional triggers
---------------------- have been identified, it is time for the individual to learn and practice new
ways of dealing with stress, change and fear. A coach or therapist can
---------------------- suggest new skills, such as how to express emotions calmly and clearly,
---------------------- meditative techniques that help with anger, fear and stress and writing
down emotions in a journal to better understand them.
---------------------- 5. Make a Change: If a work environment is regularly filled with stress,
---------------------- sudden and unexpected change, unclear expectations or work assignments
and minimal constructive feedback, a person might have to consider a job
---------------------- change. Managers can minimize turnover due to intrapersonal conflict by
focusing on effective communications strategies, providing clear direction
---------------------- and addressing individual employees who seem disproportionately
---------------------- impacted by workplace stress.

6. The Role of Values and Ethics: Intrapersonal conflict can also be Notes
triggered when a situation an individual finds himself in conflicts with his
personal values and ethics. Employees who do not agree with company ----------------------
values or ethics are more likely to experience intrapersonal conflict
issues. Managers want to explore with potential new employees how the ----------------------
company's value and ethics align or do not align with the employee's own. ----------------------
This will help to minimize conflict in the future by giving the employee a
fair assessment of the workplace culture he is joining. ----------------------
----------------------
----------------------
----------------------
1. Joint problem solving to achieve results benefiting both parties is
called: ----------------------
i. Attitudinal structuring ----------------------
ii. Distributive negotiation
----------------------
iii. Integrative negotiation
iv. Intra-organisational negotiation ----------------------
2. Styles dominant in integrative negotiations are as follows: ----------------------
i. Collaborative
----------------------
ii. Distributive
iii. Integrative ----------------------
iv. Compromise ----------------------
Fill in the blanks.
----------------------
1. The common aspect of all varieties of conflict is ____________.
----------------------
2. An individual using ___________ approach tends to see conflict as
natural, helpful and positive. ----------------------
3. __________ provides only partial satisfaction to the conflicting party. ----------------------
----------------------
----------------------
Activity 3
----------------------
Analyse the industrial unrest incident at Maruti Udyog Limited. ----------------------
----------------------
10.7 MEDIATION ----------------------
Mediation is a process by which a third party helps two or more other parties ----------------------
resolve one or more conflicts. Most of the actual negotiations occur directly
between the involved individuals. However, when the parties appear likely to ----------------------

Notes become locked in a win-lose conflict, a mediator, acting as a neutral party, may
be able to help them resolve their differences.
----------------------
Competencies and Tasks of a Mediator
---------------------- Mediators need special competencies. They must:
---------------------- 1. Be able to diagnose the conflict.
---------------------- 2. Be skilled at breaking deadlocks and facilitating discussions at the right

time.
---------------------- 3. Show mutual acceptance.
---------------------- 4. Have the ability to provide emotional support and reassurance.
---------------------- In brief, an effective mediator is able to instill confidence and acceptance
amongst the conflicting parties.
----------------------
Key tasks of a mediator include:
---------------------- a. Ensuring mutual motivation. Each party should have incentives to resolve
---------------------- the conflict.
b. Achieving a balance in situational power. If the situational power of
---------------------- individuals is not equal, establishing trust and open lines of communication
---------------------- will be difficult.
c. Promoting openness in dialogue.
----------------------
d. Maintaining an optimum level of tension. If the threat and tension are too
---------------------- low, the incentive for change or finding a solution is minimal. If they are
too high, the individuals involved may not be able to process information
----------------------
and envision creative alternatives. They may begin to polarise and take
---------------------- rigid positions.
---------------------- Summary
---------------------- • Conflict is a natural disagreement arising between two or more people. It
---------------------- exists when they have incompatible goals and one or more believe that the
behaviour of the other prevents them from their own goal achievement.
----------------------
• Four primary levels of conflicts generally observed in organisations are
---------------------- intrapersonal, interpersonal, intra-group and intergroup conflict.
• There are four types of conflicts. They are goal conflict, cognitive conflict,
----------------------
affective conflict and procedural conflict. The common aspect of all these
---------------------- conflicts is incompatibility.
• There are five basic styles of managing conflicts used by individuals.
----------------------
They are competing style, accommodating style, collaborating style,
---------------------- compromising style and avoiding style.
----------------------
----------------------

Keywords Notes
----------------------
• Conflict: A natural disagreement arising between two or more people.
It exists when they have incompatible goals and they believe that the ----------------------
behaviour of the other prevents them from their own goal achievement.
• Attitude: An expression of favour or disfavour toward a person, place, ----------------------
thing or event. ----------------------
• Negotiation: A process in which two or more individuals or groups,
having both common and conflicting goals, state and discuss proposals ----------------------
for a specific term of a possible agreement. ----------------------
• Mediation: A process by which a third party helps two or more other
parties resolve one or more conflicts. ----------------------
----------------------
----------------------
1. What is conflict? Give five reasons for the cause of conflict in an
----------------------
organisation.
2. At which levels of the organisation can conflicts occur? Explain the ----------------------
various types of conflict in an organisation.
----------------------
3. With the help of a flow chart, explain the process of conflict. Describe the
various styles of conflict management. ----------------------
4. What is negotiation? Describe the types of negotiations. ----------------------
5. What is mediation? Define the role of a mediator.
----------------------
6. Short notes on:
i. Interrogative negotiation ----------------------
ii. Negotiation on merits ----------------------
iii. Reasons for occurrence of conflict
----------------------
Answers to Check your Progress ----------------------

1. The conflict that occurs within an individual and involves some form of ----------------------
goal, cognitive or affective conflict is:
ii. Intrapersonal ----------------------
2. The conflict that occurs when two or more individuals perceive that their ----------------------
attitudes and behaviours are in opposition is:
----------------------
iii. Interpersonal
----------------------
3. What stems from incompatible preferred or expected outcome?
i. Goal conflict ----------------------

Notes 4. When individuals differ in their process to achieve an objective, it leads
to:
---------------------- iv. Procedural conflict
---------------------- 1. Which of the following refers to assertive and uncooperative behaviour to
resolve interpersonal conflict?
---------------------- ii. Competing
---------------------- 2. The process in which two or more individuals having both common and
conflicting goals, state and discuss proposals for a specific term of a
---------------------- possible agreement is:
---------------------- ii. Negotiation
----------------------
1. Competing styles include:
---------------------- i. Coercion
---------------------- ii. Dominance
2. Avoiding style may be desirable under the following situations:
----------------------
i. Individual needs more preparation
---------------------- ii. Other party is too strong
iii. Issue is of minor importance
----------------------
5. Integrative negotiation
----------------------
---------------------- 2. Styles dominant in integrative negotiations are as follows:
i. Collaborative
----------------------
iv. Compromise
---------------------- 1. The common aspect of all varieties of conflict is incompatibility.
---------------------- 2. An individual using collaborating approach tends to see conflict as natural,
helpful and positive.
----------------------
3. Compromise provides only partial satisfaction to the conflicting party.
----------------------
Suggested Reading
----------------------
1. Eunson, Baden. Dealing with Conflicts. Wiley.
----------------------
2. Pammer, William Jr. and Jerri Killian Ed. Handbook of Conflict
---------------------- Management. Marcel Dekker Inc.
---------------------- 3. Stoner, A.F. Conflict Management. Prentice Hall of India.

Group Dynamics
UNIT
Structure:
11
11.1 Introduction
11.2 Classification of Groups
11.3 Teams and Types of Teams
11.4 Developmental Stages of Groups
11.5 Influences on Team Effectiveness
11.6 Team Diversity
11.7 Groupthink and Remedies to Overcome Groupthink
11.8 Group Maturity
11.9 Groups: A Sociological View
11.10 Effective Team Working
Case Study
Summary
Keywords
Suggested Reading
Group Dynamics 195

Notes
Objectives
----------------------
----------------------
• Identify the nature and types of groups
---------------------- • Explain why people form and join groups
---------------------- • Describe the stages of team formation
• Analyse the factors affecting group dynamics and effectiveness
----------------------
---------------------- 11.1 INTRODUCTION

---------------------- Organisations are defined as group of people who come together to achieve
some common objectives. They work in a structured fashion and utilise resources
---------------------- to reach predetermined goals and targets.
---------------------- Therefore, groups are an integral part of any organisation. They influence
individuals and therefore, have an impact on organisational behaviour.
----------------------
A group is “any number of people who share goals, often communicate
---------------------- with one another over a period of time and are few enough so that each individual
may communicate with all the others, person-to-person”.
----------------------
Two or more people interacting to achieve a common objective is also
---------------------- called a group. Why do people form or join groups? Groups are formed because
they fulfill certain needs of their members, such as task accomplishment, security,
---------------------- affiliation, esteem, status and power.
---------------------- There are also other reasons why people form or join groups: These include:
---------------------- 1. Propinquity: Geographical proximity.
---------------------- 2. Balance: Similar attracts. People are attracted to others with similar
attitudes towards common interests and then try to maintain a balance
---------------------- between the attraction and common attitudes/values. A relationship lasts
as long as the balance is maintained.
----------------------
3. Exchange: People form/join groups where they get greater benefits than
---------------------- costs paid. Benefits include satisfaction of needs and costs include effort,
anxiety, frustration, embarrassment, etc. Membership lasts as long as a
---------------------- positive balance is maintained.
----------------------
11.2 CLASSIFICATION OF GROUPS
----------------------
Most individuals belong to various types of groups, which can be classified
---------------------- in many ways.
---------------------- Groups classified according to evaluation of primary goals are:
---------------------- ●● Friendship group: It evolves informally to meet its members’ personal

security, esteem and belonging needs.
----------------------

●● Task group: It is created by the management to accomplish certain Notes
organisational goals.
Groups can further be classified as under: ----------------------
●● Formal groups: They are established by an organisation to facilitate the ----------------------

achievement of the organisational goals.
----------------------
●● Informal groups: They develop out of the day-to-day activities,
interactions and sentiments of the members for meeting their social needs. ----------------------
●● Effective group: An effective group is one, which has the following ----------------------
characteristics:
a. Its members know why the group exists; they have shared goals. ----------------------
b. Its members support agreed-upon guidelines or procedures for ----------------------
making decisions.
----------------------
c. Its members communicate freely among themselves.
d. Its members have learned to receive help from one another and to ----------------------
give help to one another.
----------------------
e. Its members have learned to deal with conflict within the group.
----------------------
f. Its members have learned to diagnose individual and group
processes and improve their own and the group’s functioning. ----------------------
Activity 1 ----------------------
----------------------
Think of five points of distinction between formal and informal groups.
Based on these points, try to analyze which group has influenced you as an ----------------------
individual the most. Explain the group’s influence on you briefly. ----------------------
----------------------
11.3 TEAMS AND TYPES OF TEAMS
----------------------
A team “is a small number of employees with complementary competencies
(abilities, skills and knowledge) who are committed to common performance ----------------------
goals and working relationships for which they hold themselves mutually
accountable”. ----------------------
Two or more people who are interdependent, who share responsibility for ----------------------
outcomes, who see themselves as (and who are seen by others as) an intact social
entity in a larger social system are also called teams. ----------------------
When teams are formed, its members must have (or quickly develop) the ----------------------
right mix of complementary competencies to achieve the team’s goals. Also its
----------------------
members need to be able to influence how they will work together to accomplish
those goals. ----------------------
Types of Teams
----------------------
In view of their widespread popularity, various types of teams have to
come to stay. One of the easy ways to classify teams is by the functions they ----------------------
Group Dynamics 197

Notes carry out; for example, some teams make or do things, some teams recommend
things and some teams run things.
----------------------
1. Functional teams: They usually represent individuals who work
---------------------- together daily on a cluster of ongoing and independent tasks. Functional
teams often exist within functional departments – marketing, production,
---------------------- finance, auditing, human resources and the like.
---------------------- 2. Problem-solving teams: They focus on specific issues in their areas of
responsibility, develop potential solutions and are often empowered to
---------------------- take actions within defined limits. Such teams frequently address quality
or cost problems.
----------------------
3. Cross-functional teams: They bring together the knowledge and skills
---------------------- of people from various work areas to identify and solve mutual problems.
They draw members from several specialties or functions and deal with
----------------------
problems that cut across departmental and functional lines to achieve
---------------------- their goals.
---------------------- They are often more effective in situations that require adaptability, speed
and a focus on responding to customers’ needs.
---------------------- 4. Self-managed teams: They normally consist of employees who must
---------------------- work together effectively daily to manufacture an entire product (or
major identifiable component) or service. These teams perform a variety
---------------------- of managerial tasks, such as:
---------------------- i. Scheduling work and vacations by members.
ii. Rotating tasks and assignments among members.
----------------------
iii. Ordering materials.
----------------------
iv. Deciding on team leadership.
---------------------- v. Setting key team goals.
---------------------- vi. Budgeting.
---------------------- vii. Hiring replacements for departing team members.
viii. Evaluating one another’s performance.
----------------------
Functional, problem solving, cross-functional and self-managed teams
---------------------- have gradually started operating as “virtual teams”. A “virtual team”
is a group of individuals who collaborate through various information
----------------------
technologies on one or more projects while being at two or more locations.
---------------------- Their team members may be from one or multiple organisations.
---------------------- Team Empowerment

The term “team empowerment” refers to the degree to which its members
---------------------- perceive the group as:
---------------------- 1. Capable of being effective (potency).
---------------------- 2. Performing important and valuable tasks (meaningfulness).

3. Having independence and discretion (autonomy) in performing the work, Notes
4. Experiencing a sense of importance and significance (impact) in the work
----------------------
performed and goals achieved.
An empowered employee has the authority and responsibility to make ----------------------
decisions, rather than needing to get approval or instructions from a manager.
----------------------
In an empowered team, each teammate has a voice in group decisions. The team
self-organizes around a leader instead of reporting to a manager, and may make ----------------------
changes to their project or product at will. An organization structured around
empowered teams will have a relatively flat hierarchy and a high proportion of ----------------------
well-educated, highly trusted employees.
----------------------
Activity 2 ----------------------
----------------------
Visit an orgnisation and its various departments to observe their functioning.
Based on your observations, try to list down the difference between ----------------------
functional team and cross functional team
----------------------
----------------------
11.4 DEVELOPMENTAL STAGES OF GROUPS
----------------------
Groups are formed through several stages. They do not form overnight. The
process of developing from a group of strangers to a unit of cohesive and well ----------------------
coordinated team members requires time and great deal of interaction among
group members. Groups pass through a standard sequence of five stages: Forming, ----------------------
Storming, Norming, Performing and Adjourning. These are explained as under: ----------------------
1. Forming stage: Under this, group members often focus on defining or
understanding goals and developing procedures for performing their ----------------------
tasks. Group development at this stage involves getting acquainted and ----------------------
understanding leadership and other members’ roles.
2. Storming stage: During this stage, conflicts emerge over work behaviours, ----------------------
relative priorities of goals, who is to be responsible for what and the task- ----------------------
related guidance and direction of the leader. Some members may withdraw
or try to isolate themselves from the emotional tensions generated. The ----------------------
key is to manage the conflicts and not to suppress or withdraw from it.
This process involves the development of decision-making, interpersonal ----------------------
and technical competencies when they are lacking. ----------------------
3. Norming stage: Work behaviours at this stage evolve into a sharing of
----------------------
information, acceptance of different options and positive attempts to
make decisions that may require compromise. During this stage, group ----------------------
members set the rules by which the group will operate. Cooperation and
a sense of shared responsibility develop among group members. ----------------------
4. Performing stage: In this, the group members show how effectively and ----------------------
efficiently they can achieve results together, that the roles of individual
members are accepted and understood. The members have learned when ----------------------
Group Dynamics 199

Notes they should work independently and when they should help each other.
Some groups learn to develop from their experiences and others may
---------------------- perform only at a level that is needed for their survival.
---------------------- 5. Adjourning stage: The group porepares for its disbandment. Task
performance is no longer the groups top priority. The termination of work
---------------------- behaviour and disengagement from social behaviour occur during this
stage.
----------------------
Table 11.1 Stages of Group Development
---------------------- No. Stage Interpersonal Task Characteristics
---------------------- Characteristics
1 Forming Individuals become familiar What the task is and how
---------------------- with each other to do it
2 Storming Tension between group Resistance arises to task
----------------------
members and leader and method
---------------------- 3 Norming Harmony develops, norms Task co-operation
are established prevalent
----------------------
4 Performing Relationships are stabilised All the activities / efforts
---------------------- and performance standards required to complete the
are followed task are carried out
---------------------- 5 Adjourning Contact decreases, Task is over. Roles are
---------------------- emotional dependency performed. Group prepares
reduces for disbandment
----------------------
11.5 INFLUENCES ON TEAM EFFECTIVENESS
----------------------
---------------------- The influences on team or group effectiveness are interrelated. Some of

the factors that are necessary to gain an understanding of team dynamics and its
---------------------- effectiveness are as under:
---------------------- 1. Context: The context (external environment) can directly affect each
of the six other factors because it comprises the conditions that affect
---------------------- a team. The teams’ context might include technology, value orientation
of members, physical working conditions, management practices and
---------------------- formal organisational rules, strategies developed by higher management
---------------------- and organisational rewards and punishments.
2. Goals: They can be either team goals or superordinate goals wherein
---------------------- team goals are the outcomes desired for the team as a whole, not just the
---------------------- individual goals of the individual members. Superordinate goals are those
where two or more individuals, teams or groups might pursue but cannot
---------------------- achieve a goal without their interaction and cooperation.
---------------------- 3. Team size: The effective size of a team can range from two members to
a normal upper limit of 16 members. Probably 12 members is the largest
---------------------- size that allows each member to interact easily with each other face to
face.
----------------------

4. Team members’ roles and diversity: Similarities and differences Notes
among members and their roles influence team behaviour, dynamics and
outcome. Attempts to influence behavioural roles in a team and group are ----------------------
more useful and are further classified as under:
----------------------
a) Task-oriented Roles:
Task-oriented roles have following objectives: ----------------------
i) Initiating: Proposing tasks or goals; defining a group problem; ----------------------

suggesting ways to solve a problem.
----------------------
ii) Seeking information or opinions: Requesting facts; asking for
expressions of feeling; requesting a statement or estimate; seeking ----------------------
suggestions and ideas.
----------------------
iii) Giving information or opinions: Offering facts; providing relevant
information; stating an opinion; giving suggestions and ideas. ----------------------
iv) Clarifying and elaborating: Interpreting ideas or suggestions;
----------------------
clearing up confusion; defining terms; indicating alternatives and
issues before the group. ----------------------
v) Summarising: Pulling together related ideas; restating suggestions
----------------------
after the group has discussed them; offering a decision or conclusion
for the group to accept or reject. ----------------------
vi) Consensus testing: Asking if the group is nearing a decision; taking
----------------------
a “straw vote”.
b) Relationship-oriented Roles: ----------------------
Relationship-oriented roles serves the following purpose: ----------------------
i) Harmonising: Attempting to reconcile disagreements; reducing
----------------------
tension; getting people to explore differences.
ii) Gatekeeping: Helping to keep communication channels open; ----------------------
facilitating the participation of others; suggesting procedures that
----------------------
permit sharing remarks.
iii) Encouraging: Being friendly, warm, and responsive to others; ----------------------
indicating by facial expression or remarks the acceptance of others’
contributions. ----------------------
iv) Compromising: When one’s own idea or status is involved in a ----------------------

conflict, offering a compromise, which yields status; admitting
error; modifying one’s position in the interest of group cohesion or ----------------------
growth. ----------------------
c) Self-oriented Roles:
----------------------
Self-oriented roles help each individual members to contribute and to
achieve individual objectives: ----------------------
i) Dominator: Interrupts others; launches long monologues; over- ----------------------
positive and over-dogmatic; tries to lead group and assert authority;
generally autocratic. ----------------------
Group Dynamics 201

Notes ii) Negativist: Rejects ideas suggested by others; takes a negative
attitude on issues; argues frequently and unnecessarily; pessimistic,
---------------------- refuses to cooperate; pouts.
---------------------- iii) Aggressor: Tries to achieve importance in group; boasts; criticises
or blames others; tries to get attention; shows anger or irritation
---------------------- against group or individuals; deflates importance or position of
others in group.
----------------------
iv) Playboy: Not interested in the group except as it can help him or
---------------------- her to have a good time.
---------------------- v) Storyteller: Likes to tell long “fishing stories” which are not
relevant to the group; gets off on long tangents.
----------------------
vi) Interrupter: Talks over others; engages in side conversations;
---------------------- whispers to neighbour.
---------------------- vii) Poor me: Tries to get the group’s attention to deal with personal
concerns, discomfort, bad luck, etc.
----------------------

----------------------
---------------------- 1. In which stage, do members focus on defining or understanding goals
and developing procedures for performing their tasks?
----------------------
i. Storming
---------------------- ii. Adjourning
---------------------- iii. Forming
iv. Norming
----------------------
2. The termination of work behaviours and disengagement from social
---------------------- behaviours occur during the stage of:
i. Storming
----------------------
ii. Forming
----------------------
iii. Adjourning
----------------------
iv. Norming
---------------------- 3. What is created by management to accomplish organisational goals?
---------------------- i. Formal group
---------------------- ii. Task group

iii. Friendship group
----------------------
iv. Informal group
----------------------

Notes
4. The following develops out of the day-to-day activities, interactions
and sentiments of the members for the purpose of meeting their social ----------------------
needs:
i. Informal group ----------------------
ii. Team ----------------------
iii. Task group
----------------------
iv. Formal group
5. Individuals who work together daily on a cluster of ongoing and ----------------------
independent tasks are represented by:
----------------------
i. Cross-functional teams
----------------------
ii. Problem-solving teams
iii. Virtual teams ----------------------
iv. Functional teams ----------------------

6. Individuals who bring together the knowledge and skills of people ----------------------
from various work areas to identify and solve mutual problems are
known as: ----------------------
i. Problem-solving teams ----------------------
ii. Functional teams ----------------------
iii. Cross-functional teams
----------------------
iv. Virtual teams
----------------------
----------------------
Activity 3 ----------------------
Imagine you are the team leader of your group and you are working in a BPO ----------------------
(Call Centre) handling a US Process (i.e., working late night hours). Tell ----------------------
us how will you sustain your group’s enthusiasm and work continuously
without interruptions. ----------------------
----------------------
11.6 TEAM DIVERSITY ----------------------
We have noted earlier how the issue of cultural diversity is gaining ----------------------
importance at the workplace. The composition of workforce is undergoing
continuous change in terms of age, gender, race, cultural values, physical ----------------------
well-being, lifestyle preferences, ethnicity, educational background, religion
preference, occupational background and the like. The goal of achieving diversity ----------------------
creates unique challenges in making it work for the long-term interests of ----------------------
individuals, teams and organisations.
----------------------
Group Dynamics 203

Notes The attitude expressed about diversity is called positive multiculturalism.
This condition allows an individual to acquire new competencies, perspectives
---------------------- and attitudes that improve the person’s ability to relate effectively to others within
the same or other teams regardless of their backgrounds and characteristics.
----------------------
Positive multiculturalism is additive, i.e., individuals can maintain their
---------------------- self-defining attributes while adding competencies and positive attitudes to help
them form and maintain sound working relationships with others.
----------------------
Norms
----------------------
They are the rules of pattern and behaviour that are accepted and expected
---------------------- by members of the team. They help define the behaviours that members believe
to be necessary to help them reach their goals. Over time, every team establishes
---------------------- norms and enforces them on its members. Norms are often more rigidly defined
and enforced in informal groups – by peer pressure – than in formal organised
----------------------
teams. Such norms may further inhibit achievement of organisational goals.
---------------------- Cohesiveness
---------------------- It is the strength of the member’s desire to remain in a team and their
commitment to it. It is influenced by the degree of compatibility between team
---------------------- goals and individual member’s goals. Members, who have a strong desire to
---------------------- remain in the team and personally accept its goals, form a highly cohesive team.
---------------------- 11.7 GROUPTHINK AND REMEDIES TO OVERCOME

---------------------- GROUPTHINK
---------------------- “Groupthink” is an agreement-at-any-cost mentality that results in

ineffective team decision- making and poor decisions. When decision-making
---------------------- teams are both conforming and cohesive, a phenomenon called “groupthink” can
emerge. Group members try to minimize conflict and reach a consensus decision
----------------------
without critical evaluation of alternative ideas or viewpoints, and by isolating
---------------------- themselves from outside influences.
The characteristics of groupthink include the following:
----------------------
1. Illusion of invulnerability
----------------------
2. Collective rationalisation
---------------------- 3. Unquestioned belief
---------------------- 4. Stereotypical views
---------------------- 5. Direct pressure
6 Self-censorship
----------------------
7. Shared illusion of unanimity
----------------------
Groupthink is not inevitable and several steps can be taken to avoid it.
---------------------- People holding diverse views can be encouraged to present them.
----------------------

Remedies to overcome groupthink are: Notes
1. Organisational remedies
----------------------
i. Multiple groups examine the same issue.
----------------------
ii. Managers learn methods they can use to recognise and overcome
symptoms. ----------------------
2. Leader-oriented remedies ----------------------
i. Encourage all members to evaluate ideas critically.
----------------------
ii. Bring in outsiders to evaluate ideas critically.
----------------------
iii. Pick a member to play devil’s advocate.
iv. Remain objective. ----------------------
3. Member-oriented remedies ----------------------
i. Make no decisions until all ideas have been evaluated. ----------------------
ii. Go outside the group for opinions and share them afterwards.
----------------------
4. Process-oriented remedies
----------------------
i. Use subgroups to develop alternatives and compare solutions.
ii. Compare other organisations’ solutions. ----------------------
iii. Prior to implementation, hold “second chance” meetings. ----------------------
----------------------
11.8 GROUP MATURITY
----------------------
Group maturity is defined as “the ability and willingness of group members
to set goals and work toward their accomplishment”. ----------------------
Characteristics of a Mature Group ----------------------
The following are the characteristics of a mature group:
----------------------
a) An increasing ability to be self-directed (not dependent on the leader).
----------------------
b) An increased tolerance in accepting that progress takes time.
c) An increasing sensitivity to their own feelings and those of others. ----------------------
d) Improvement in the ability to withstand tension, frustration and ----------------------
disagreement.
----------------------
e) A perception of the common denominators, which bind the group as well
as areas of individual difference. ----------------------
f) A better ability to anticipate realistic results of behaviour and to channel ----------------------
emotions into more socially acceptable ways of expressing these emotions.
----------------------
g) An increased ability to change plans and methods as new situations
develop. ----------------------
h) A decrease in time needed to recover from threatening group situations.
----------------------
Peaks and valleys of emotional group crises become less personal.
Group Dynamics 205

Notes i) Increased efficiency in locating problems, engaging in problem-solving
and providing help to individuals as needed.
----------------------
j) A willingness to face one’s own responsibilities and to assist others when
---------------------- help is needed.
k) An acceptance of the right of the other person to be different.
----------------------
---------------------- 11.9 GROUPS: A SOCIOLOGICAL VIEW

---------------------- Most men and many women work from the ages of 20 to 65, 8-10 hours a
day. So, they must sustain relationships with peers, subordinates, superiors and
----------------------
customers.
---------------------- Work relationships are generally weaker than personal relationships but
take up a lot of time and can be a source of satisfaction as well as dissatisfaction.
----------------------
Types of “workmates”
----------------------
i. Workmates who become friends.
---------------------- ii. Meet for lunch at work but not outside.
---------------------- iii. Quite liked but not seen much of.
---------------------- iv. Disliked.
With the first two categories, we tend to chat casually, joke, help in work,
----------------------
discuss work, tease, ask or give advice, discuss personal life and discuss personal
---------------------- feelings, in that order, but virtually not at all, with last two types.
---------------------- High levels of joking, teasing and “fooling around” are a major source of
job and social satisfaction.
---------------------- Colleagues and superiors can play a major role – more than a spouse − in
---------------------- reducing work stress, because they can “do something about it”.
Most work relationships are not much beyond “easy cooperation” (“Get
---------------------- along…”). Some must be suffered,, i.e., must be sustained despite dislike. So
---------------------- they may erupt into occasional conflict.
Rules of work relationships
----------------------
i. Accept fair share of work.
----------------------
ii. Cooperate in sharing resources.
---------------------- iii. Help when asked.
---------------------- iv. Don’t denigrate superiors.
---------------------- v. Ask for help and advice.
vi. Don’t be over-inquisitive, especially about private life.
----------------------
This perspective has useful pointers, such as:
----------------------
i. Superiors tend to be role models or benchmarks for behaviour at the
---------------------- workplace.

ii. Superiors need more and better behavioural skills than subordinates. Notes
iii. Work stress cannot be “outsourced” to “people at home” for cure/relief.
----------------------
Management professionals would need to have high maturity, and so,
must inculcate it within themselves. The enormous challenge of this must be ----------------------
contrasted with the easy frustration that typically torments young management
----------------------
professionals in their early years at work.
Understanding Groups ----------------------
Group behaviour can be understood across “2x2” dimensions. ----------------------
Table 11.2: 2x2 Group Behaviour Matrix ----------------------
Dimensions Task Social ----------------------
Verbal Information sharing, Chat, jokes, gossip and
discussion of task games, personal problems ----------------------
Non-verbal Performing task and Communicating attitudes, ----------------------

non-verbal feedback on emotions, self- presentation
performance ----------------------
The verbal components are also visible, but do not tell the whole story. ----------------------
The non-verbals add valuable insights into our understanding of the group’s ----------------------
effectiveness, thus enriching our judgment. So, to understand groups in action,
we need to look at both. ----------------------
Group Cohesiveness or Unity ----------------------
Factors that help unite a group are:
----------------------
i. Sharing premises.
----------------------
ii. Similar backgrounds.
iii. Rewarding experiences (shared success). ----------------------
iv. Activities requiring cooperation. ----------------------
v. A skilled leader who preserves harmony. ----------------------
vi. Absence of hostile or disturbed people.
----------------------
Unified groups perform better and have high participation but may socialise
excessively and become clannish and hostile, i.e., favour insiders at the expense ----------------------
of outsiders.
----------------------
In groups, men strive for “hierarchy dominance” (power orientation) and
women strive for “inclusion”. ----------------------
The weak in a group tend to collaborate against the strong. ----------------------
A “deviate”, a member who does not follow group norms, immediately ----------------------
attracts attention of others who first persuade and pressurise the deviate to do
so. The deviate is then rejected if s/he persists. This is intense, if the norm ----------------------
challenged is vital.
----------------------
Group Dynamics 207

Notes But a persistent minority with conviction can change norms.
Small groups – not more than 15 – with small status differences, a
----------------------
collaborative orientation, shared rewards and participative decision-making
---------------------- work best.

----------------------
----------------------
1. The degree of attraction of the members towards each other, desire to
---------------------- remain in a team and their commitment to it is called:
i. Cohesiveness
----------------------
ii. Diversity
---------------------- iii. Empowerment
---------------------- iv. Group
2. An agreement-at-any-cost mentality that results in ineffective team
----------------------
decision-making and poor decisions is called:
---------------------- i. Relationship orientation
---------------------- ii. Power orientation
iii. Groupthink
---------------------- iv. Group maturity
---------------------- 3. The ability and willingness of group members to set goals and work
toward their accomplishment is known as:
----------------------
i. Group think
---------------------- ii. Power orientation
---------------------- iii. Relationship orientation
iv. Group maturity
----------------------
4. Members from which team may be from one or multiple organisations
---------------------- across geographical boundaries?
i. Virtual team
----------------------
ii. Functional team
---------------------- iii. Self-managed team
---------------------- iv. Problem-solving team
5. What emerges when decision-making teams are both conforming and
---------------------- cohesive?
---------------------- i. Leader group
ii. Group maturity
----------------------
iii. Groupthink
---------------------- iv. Context
----------------------

Notes
Activity 4
----------------------
Name any five companies from the IT, Manufacturing and Biotechnology ----------------------
sectors that you feel have reached great heights due to effective teamwork
and due to group cohesiveness. ----------------------
----------------------
11.10 EFFECTIVE TEAM WORKING ----------------------
Teams are becoming important components of modern organizations. ----------------------
Teams add to organisational effectiveness. The peculiarity of effective team
working is as follows: ----------------------
1. Good Teams ----------------------
a) Spend a lot of time together at work and at play.
----------------------
b) Talk, talk, talk.
----------------------
c) Are quick to apologise and quick to appreciate.
d) Never rescue, never lie. ----------------------
e) Never stop trying. ----------------------

2. Good teams follow “learn as we go.” ----------------------
3. Teams need leadership, not necessarily leaders.
----------------------
Collective Leadership is expressed in joint goal setting, individual and
mutual accountability, constant and open communication, regular review ----------------------
and shared rewards enable effective collective leadership.
----------------------
4. There are three ways of decision-making in teams:
----------------------
a) Unanimity
b) Majority ----------------------
c) Consensus, which works best in the long run ----------------------

5. Team performance must be seen as a process and judged over the long ----------------------
run. Often, it may take several short run setbacks for a team to coalesce in
to a high-performance team. Also, often short-run setbacks followed by ----------------------
honest, open and thorough reviews may be useful learning and effective
----------------------
discouragement to loafers in the team.
6. Social Loafing demands a response from other teammates. Tolerating ----------------------
loafers because we are unwilling to risk displeasure/unpopularity only
----------------------
encourages loafers. Often, loafers continue to be tolerated for too long,
eventually forcing the team into a crisis that is avoidable in the first place. ----------------------
7. So, a good way to minimize loafing as well as to accelerate the team’s ----------------------
progress towards high performance is to begin with:
----------------------
Group Dynamics 209

Notes a) Jointly set ground rules of conduct, tasks and responsibilities.
b) Very regular reviews with special encouragement to free expression.
----------------------
c) Immediate action as per agreed ground rules against defaulters/
---------------------- loafers, preferably not disciplinary but of enhanced responsibilities.
---------------------- d) A change in the rules and other decisions only after discussion.
---------------------- 8. The role of a ‘leader’ in a team may progress from teacher to tutor to
coach and colleague.
----------------------
CASE STUDY
----------------------
Total Teamwork - Imagination Ltd.
----------------------
“Teamwork is a harder way of doing the work. But when it clicks, the
---------------------- result is a seamless experience.”
---------------------- The line would be 700 people long. Although they would be waiting to get
into one of Britain’s greatest attractions, most of the people in the line would be
---------------------- restless or tired, irritable or impatient. Everyone would know that the wait would
---------------------- not last for more than 15 minutes. But knowing how long the wait will be often
makes it that much more unbearable.
---------------------- The final irony: The point of waiting in the 700-person line would be to
---------------------- have fun. Everyone would be waiting to take a seat at Skyscape, an attraction
inside Britain’s Millennium Dome, a sprawling, one-year exhibition that is part
---------------------- theme park, part architectural wonder and part edutainment venue. Once inside
Skyscape, visitors would watch a special 30-minute episode of a popular British
---------------------- comedy series, “Blackadder” – a kind of “Seinfeld” meets “Monty Python”.
---------------------- That is the scene that the people at British Sky Television – Skyscape’s
sponsor and a leader in multi-channel entertainment in the UK – foresaw playing
----------------------
out at the attraction, if they did nothing to avoid it. “We knew that the film would
---------------------- be terrific,” says Andrea Sullivan, the director of corporate affairs for Sky who
is running the project. “But to be a truly entertaining experience, it had to be fun
---------------------- from the moment that visitors walked through the door.”
---------------------- The possibility of a long line was a problem. After all, comedy works
better when people start out with a smile on their faces. As it happened, just
---------------------- when Sky was worrying about the line problem, company officials were talking
to an unusual British outfit – a 22-year-old design firm with the daring name
----------------------
Imagination Ltd. Sky needed someone to “manage the line” and, while not many
---------------------- companies would know where to begin with such a project (even Disney, master
of crowds, does little more with its legendary lines than disguise their length),
---------------------- Imagination offered to tackle the job.
---------------------- Imagination does all kinds of design work: graphic design, Web sites,
product introductions, visitor centers – even the dramatic lighting of the famous
---------------------- Lloyd’s building in London. Its 1999 revenues of £101.5 million or about $160
---------------------- million (up 25% from 1998), make it larger than its top two competitors –

Enterprise IG and Interbrand Newell and Sorrell – combined. Recently, the firm Notes
has begun to invent a whole new discipline: creating “brand experiences” that
transcend physical spaces and traditional marketing practices. ----------------------
For Imagination, Sky’s queue problem presented a chance to have some ----------------------
fun. “This work was quite mad, really,” says Ralph Ardill, 35, Imagination’s
director of marketing and strategic planning. “We wanted to push the queue ----------------------
experience to a new place.”
----------------------
In typical Imagination fashion, the firm started with a team of in-house
employees – an architect, a lighting designer, a graphic designer and a film ----------------------
director. Eventually, the core Imagination team brought a choreographer in to ----------------------
join the group. What could a film director possibly contribute to figuring out
how to manage a line? And what might an architect and a choreographer talk to ----------------------
each other about?
----------------------
At Imagination, those questions are not dismissed as silly; they are not
even questions at all. When you are trying to “push the queue experience to a ----------------------
new place,” having a film director, an architect and a choreographer on your ----------------------
team might come in handy.
Imagination easily accomplishes something that most companies struggle ----------------------
with. It creates effective work teams, comprising people with a wide spectrum of ----------------------
talents who not only tackle projects together but also engage in real teamwork. At
imagination, employees know that the talent of the team is greater than the talent ----------------------
of its individual members. The members of each team learn from one another.
----------------------
They transcend the boundaries of their jobs, their functions, their training and
their tenure at the company. ----------------------
Teamwork is how Imagination works. As the company creates interesting ----------------------
experiences for its customers − and for its customers’ customers – it is also
creating a space at its own headquarters in which “the team experience” flourishes. ----------------------
These days, companies in all industries are infatuated with movie- ----------------------
production style management – assembling a loose-knit team of freelance talent
for each project. Imagination has assembled a company of 350 people built on ----------------------
the opposite principle: make sure that your in-house people have a wide range
----------------------
of skills, use those people to assemble diverse teams and do not hesitate to let
the Web-page designers give the architects advice. ----------------------
“When you sit in on our creative meetings,” says Ardill, “you don’t know ----------------------
the writer from the multimedia person from the architect. Our approach involves
relationships, camaraderie, working things through. It’s much different from ----------------------
working with a series of hired guns. Teamwork is a harder way of doing the
----------------------
work. But when it clicks, the result is a seamless experience.”
In 1999, Imagination designers used teamwork to create the interior and ----------------------
exterior lighting for Disney’s two cruise ships, Magic and Wonder. That same year,
----------------------
the company also redesigned the packaging for Ericsson’s cell-phone products
worldwide. It conceived, designed and supervised the creation of two museum- ----------------------
Group Dynamics 211

Notes size exhibits – one about transportation and the other about communication – at
the Millennium Dome. And it managed the line at Skyscape.
----------------------
So how has Imagination mastered the art of teamwork? “The culture at
---------------------- Imagination is this: You can articulate your ideas without fear,” says Adrian
Caddy, 34, the firm’s creative director. That is not to say that no conflict exists
---------------------- within the company. As Caddy says, “Creative opinions are very strongly held.”
---------------------- Imagination’s work style puts a premium on sharing information.
Presentation, production and construction deadlines are constantly looming;
---------------------- sharing ideas, raising problems and offering suggestions only get the work done
faster and better. Some of what makes Imagination so effective is structural in
----------------------
nature. Everyone attends all the creative meetings; the IT guy sits between the
---------------------- lighting designer and the writer. Because so much of the company’s work is done
in-house, the design of a room, the lighting of that room and the multimedia
---------------------- presentation in the room are all intertwined.
---------------------- Imagination is deliberately nonhierarchical – only four people have formal
titles – and on many projects, it is hard to tell who is in charge. However, what
---------------------- looks like diffusion of authority or even lack of authority, is in fact dispersal
of responsibility. Since no one is in charge, everyone feels responsible for a
----------------------
project’s success. The system also diminishes the existence of conventional power
---------------------- struggles. At Imagination, the competition lies in producing work that works,
in coming up with suggestions that are better than those of your colleagues and
---------------------- your clients, in having your ideas taken seriously. Arguments between employees
tend to be about things that matter – as opposed to office size, job title or how
----------------------
many people you supervise.
---------------------- It is an atmosphere that invites metaphor. Staffers offer a variety of
---------------------- examples to describe the interdisciplinary environment that exists at Imagination.
They compare it to an art college, a medieval round table, an idea factory and
---------------------- an Arab bazaar.
---------------------- The most apt metaphor, however, is a circus. The company occupies two
Edwardian-era buildings that the firm bought and restored 10 years ago (the
---------------------- restoration won awards), and the buildings are now connected across a private
alley. A white, Teflon-coated tarp covers the buildings and encloses a six-storey
---------------------- atrium. “It is a bit like a circus,” says Martin Brown, 31, a graphic designer. We
---------------------- have got a lot of performers and a few clowns. Enough to make it funny.
The Total Teamwork Agenda
----------------------
Imagination is funny. The company may be Britain’s largest design firm, but its
---------------------- interdisciplinary approach puts it more on par with a theater troupe or a circus
than with a traditional design company. The official Imagination brochure lists
----------------------
26 disciplines used to attack projects − a range of talent that gives Imagination’s
---------------------- work its special texture. However, creative people are notoriously independent
and notoriously difficult to manage. How does Imagination herd its extraordinary
---------------------- collection of talent into fast-working, high-performance teams?
----------------------

Start the project before there is a project Notes
Because of the kind of work that Imagination does – from corporate-
----------------------
exhibition stands to the dinosaur exhibition at London’s Natural History Museum
– projects are often only loosely defined at the start. However, Imagination teams ----------------------
are assembled early, often before the company and the client have reached a final
agreement about the goals of the project. In that way, the team often defines the ----------------------
project, rather than the project defining the team.
----------------------
Make the brief brief and share it
----------------------
Even for the most complicated projects, Imagination team members
ultimately know exactly what the goal of the project is. All members use the same ----------------------
words and phrases to express that goal, and the goal is usually boiled down to a
sentence or two. Every idea can be tested against what the team and the clients ----------------------
are trying to accomplish. Everyone comes to the table. Imagination projects are
----------------------
managed, in part, through weekly meetings − meetings in which ideas are batted
around, problems are raised and progress on deadlines is assessed. ----------------------
Unlike many firms, Imagination involves everyone in a project by inviting ----------------------
all employees to all meetings. Production people and client-contact people are just
as much a part of the team as creative types. The result is the Company avoids ----------------------
production problems and client-service representatives have the information that
they need to keep clients happy. ----------------------
Responsibility to the People! ----------------------
Imagination has an egalitarian environment – not only within the company’s ----------------------
artistic disciplines but also among its people. On most project teams, no one
is actually “in charge”. The result is not chaos. In fact, it is just the opposite. ----------------------
Dispersing the power also disperses the responsibility.
----------------------
Summary ----------------------
●● Groups are an integral part of any organisation. They influence individuals ----------------------
and therefore, have an impact on organisational behaviour.
----------------------
●● Groups are formed because they fulfill certain needs of their members,
such as task accomplishment, security, affiliation, esteem, status and ----------------------
power.
----------------------
●● A team is “a small number of employees with complementary
competencies (abilities, skills and knowledge) who are committed to ----------------------
common performance goals and working relationships for which they
hold themselves mutually accountable”. There are functional teams, ----------------------
problem-solving teams, cross-functional teams, eelf-managed teams and ----------------------
virtual teams.
●● The five stages of developmental sequence that groups may go through ----------------------
are forming, storming, norming, performing and adjourning.
----------------------
●● Groupthink is an agreement-at-any-cost mentality that results in ineffective
team decision-making and poor decisions. When decision-making teams ----------------------
Group Dynamics 213

Notes are both conforming and cohesive, a phenomenon called “groupthink”
can emerge.
----------------------
---------------------- Keywords
---------------------- ●● Group: An association of two or more humans who interact with one
another, share similar characteristics and collectively have a sense of
---------------------- unity.
---------------------- ●● Teams: Normally have members with complementary skills and generate
synergy through a coordinated effort, which allows each member to
---------------------- maximise his/her strengths and minimise his/her weaknesses.
---------------------- ●● Team diversity: The significant uniqueness of each individual in a team.
Groupthink: A psychological phenomenon that occurs within groups
---------------------- of people in which the desire for harmony in a decision-making group
overrides a realistic appraisal of alternatives.
----------------------

---------------------- 1. Explain the nature and types of group.
---------------------- 2. Define a team. What do you mean by team empowerment?
---------------------- 3. Explain the developmental stages of teams and describe the types of
teams.
---------------------- 4. Explain what you mean by team diversity.
---------------------- 5. Influences on team and group effectiveness are interrelated. Explain.
---------------------- 6. What is groupthink? Suggest some remedies to overcome groupthink.
7. Define group maturity and explain the characteristics of a mature group.
----------------------
8. What are the benefits of effective team working? Explain how teams can
---------------------- be made to work better.
----------------------
----------------------
----------------------
---------------------- 1. In which stage, do members focus on defining or understanding goals and
---------------------- developing procedures for performing their tasks?
iii. Forming
----------------------
2. The termination of work behaviours and disengagement from social
---------------------- behaviours occur during the stage of:
---------------------- iii. Adjourning
----------------------

3. What is created by management to accomplish organisational goals? Notes
i. Task group
----------------------
4. The following develops out of the day-to-day activities, interactions and
sentiments of the members for the purpose of meeting their social needs: ----------------------
i. Informal group ----------------------
5. Individuals who work together daily on a cluster of ongoing and ----------------------
independent tasks are represented by:
iv. Functional teams ----------------------
6. Individuals who bring together the knowledge and skills of people from ----------------------
various work areas to identify and solve mutual problems are known as:
----------------------
ii. Cross-functional teams
----------------------
----------------------
1. The degree of attraction of the members towards each other, desire to ----------------------
remain in a team and their commitment to it is called: ----------------------
i. Cohesiveness
----------------------
2. An agreement-at-any-cost mentality that results in ineffective team
decision-making and poor decisions is called: ----------------------
iii. Groupthink ----------------------
3. The ability and willingness of group members to set goals and work ----------------------
toward their accomplishment is known as:
iii. Group maturity ----------------------
4. Members from which team may be from one or multiple organisations ----------------------
across geographical boundaries?
----------------------
i. Virtual team
----------------------
5. What emerges when decision-making teams are both conforming and
cohesive? ----------------------
iii. Groupthink
----------------------
Suggested Reading ----------------------
1. Feldman, D.C. and H. J. Arnold. Managing Individual and Group ----------------------
Behaviour in Organisations. Mc Graw Hill.
----------------------
2. Robins, Stephen P. Organisational Behaviour. Prentice Hall of India.
----------------------
----------------------
----------------------
Group Dynamics 215

Notes
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----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Stress Management
UNIT
Structure:
12
12.1 Introduction
12.2 Types of Stress and Stressors
12.3 Management of Stress
12.4 Ways to Overcome Stress
Case Study
Summary
Key Words
Suggested Reading
Stress Management 217

Notes
Objectives
----------------------
----------------------
●● Describe stress
---------------------- ●● Explain the types of stress
---------------------- ●● Discuss the symptoms of stress and identify the ways to overcome
stress
----------------------
----------------------
12.1 INTRODUCTION
----------------------
The existence and importance of stress in industry was first recognised
---------------------- in America in 1956. A machine operator named James Carter cracked up while
---------------------- working on the General Motors production line in Detroit. Mr Carter had what
is now commonly known as a nervous breakdown and he sued General Motors,
---------------------- claiming that the stress of his job had contributed to his condition. It was an
important lawsuit. Carter won and from that day onwards most executives and
---------------------- all lawyers and the physicians in America took the relationship between stress
---------------------- and industry very seriously indeed. However, executives around the rest of the
world have been slow to recognise the importance of stress in industry.
---------------------- Indeed, in some ways it is difficult to blame company executives for
---------------------- failing to understand the importance of stress as a trivial problem and laugh
at any suggestion that there could be a link between problems in the mind and
---------------------- problems affecting the body.
---------------------- In the last few years, evidence has been accumulated from around the
world to show that the most common cause of destructive ill health is stress
---------------------- at work. Researchers have not only built up evidence showing links between
industrial stresses in general and ill health but have even accumulated evidence
---------------------- showing that it is possible to link specific occupations with specific types of
---------------------- stress-induced disease. No one is immune. The man or woman on the shop floor
is just as vulnerable as the man or woman on the board of directors.
----------------------
Although there is absolutely no doubt that stress is killing many people,
---------------------- disabling many more and costing the industry crores of rupees every year, there
is one important question that has to be asked. Why are we so susceptible to
---------------------- stress these days?
---------------------- The problem is that our environment has changed far more rapidly than
we have evolved. We have changed our world much faster than our bodies have
---------------------- been able to adapt. At no other time in the history of the world has there been
such a constant progression of ideas and technology. Fashions, themes and
----------------------
attitudes have never changed as rapidly as they have in the last 100 years or
---------------------- so. Never before have expectations and pressures been so great. Revolutionary
changes in agriculture, navigation, medicine, military tactics, design, transport,
----------------------

communications and industrial methods have all transformed our world. However, Notes
our bodies are still the same as they were tens of thousands of years ago. It takes
millennia for the human body to adapt. We have moved far too quickly to be ----------------------
good for our bodies.
----------------------
It is these environmental changes that have made stress more pronounced.
These days stress is ubiquitous. None can escape stress. In fact, stress has its ----------------------
origin in the body chemistry, which has remained unchanged since man came ----------------------
on the earth.
----------------------
Following are some of the changes that occur in the body to protect itself
from danger within a few microseconds. These responses of the body to a ----------------------
situation are known as fight or flight mechanism with, inter alia, the following
bodily responses: ----------------------
●● Release of adrenaline and conversion of glycogen into glucose ----------------------

●● Raised pulse ----------------------
●● Raised blood pressure
----------------------
●● Rapid breathing
●● Dilated pupils ----------------------
●● Slowed digestion ----------------------

Over millions of years, the lifestyle has changed; however, the body ----------------------
chemistry has not changed. With the change in the lifestyle, stressors have
multiplied and diversified in different forms. However, the body chemistry ----------------------
response has remained the same.
----------------------
The theory of “General Adaptation Syndrome” states that when an organism
is confronted with a threat, the general physiological response occurs in three ----------------------
stages, viz., alarm reaction, resistance reaction and state of exhaustion. ----------------------
1. Alarm reaction: The first stage includes an initial “shock phase”
----------------------
in which resistance is lowered, and a “counter shock phase” in which
defensive mechanism becomes active. Alarm reaction is characterised ----------------------
by autonomous excitability, adrenaline discharge, increased heart rate,
muscle tone, blood content and gastro-intestinal ulceration. Depending on ----------------------
the nature and intensity of threat and the conditions of the organism, the ----------------------
severity of the symptoms may differ from a mild invigoration to disease
of adaptation. ----------------------
2. Stage of resistance: Maximum adaptation occurs during this stage. The ----------------------
bodily signs characteristic of the alarm reaction disappear. Resistance
increases to levels above normal. If the stress persists or the defensive ----------------------
reaction proves ineffective, the organism deteriorates to the next stage. ----------------------
3. State of exhaustion: Adaptation energy is exhausted, signs of alarm
----------------------
reaction reappear and resistance level begins to decline irreversibly and
the organism collapses. ----------------------

Notes A diagrammatic view of these stages is shown in the figure below.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 12.1 General Adaptation Syndrome

One of the major shortcomings of this theory is that the related research was
----------------------
carried out on animals where the stressors are usually physical or environmental
---------------------- and this is not always the case in relation to human beings. The concept of General
Adaptation Syndrome is, therefore, not given importance in the present days.
----------------------
Present-day human is experiencing stresses from various sources, such as
---------------------- his own psychological and physical make up, familial demands, social demands,
the demands of the job, etc.
----------------------
Whenever a superior scolds a subordinate, the latter’s body chemistry
---------------------- acts in the same way it did in the cave man when he was threatened by a tiger.
Even all his body functions race up to meet the emergency. However, physical
---------------------- emergency there is none. This additional burst of energy is not only useless for
---------------------- him but is harmful. He can neither fight physically with the superior nor leave
the place of work. The adrenaline is metabolised. These metabolic changes act
---------------------- on various balancing and self-correcting mechanisms of the body. The result is
psychosomatic diseases.
----------------------
Stress: Definitions
----------------------
Dr. Seyles, an expert in stress management, defines stress as a “non-specific
---------------------- response of the body to situation”.
It is important to remember that the body chemistry does not distinguish
----------------------
between the anxiety causing, pleasant or unpleasant situations. In any of these
---------------------- situations, the body response is the same, resulting in fight or fly mechanism.
---------------------- Other definitions of stress

“Stress is a physiological abnormality at the structural or bio-chemical
---------------------- level caused by overloading experiences.”
---------------------- “Stress is an adaptive response to an external situation that results in
physical, psychological and/or behavioural deviations.”
----------------------

12.2 TYPES OF STRESS AND STRESSORS Notes
According to Dr. Pestonjee of IIM, Ahmedabad, stress can be categorised ----------------------

as under:
----------------------
1. Eustress: This stress happens because of sudden overjoy. Fortunately, this
type of stress is not long-lasting. Furthermore, it is a state of happiness. ----------------------
Eustress, therefore, is not harmful, being occasional and fleeting.
----------------------
2. Distress: This is the anti-thesis of eustress. Distress is caused whenever
a person is suddenly very sad or angry. Distress is caused because of the ----------------------
demands of the modern life and anxiety to cope with them. This results in ----------------------
feelings of inadequacy, anxiety, nervousness, loss, etc. This type of stress
is harmful. This stress has caused more havoc in the executives’ life. This ----------------------
stress justifies the saying “Ulcer is the surest sight of executive success”.
----------------------
Since distress takes a heavy toll of executive efficiency, organisations
should try to alleviate it. An atmosphere of objectivity and mutual trust ----------------------
would go a long way in reducing distress.
----------------------
3. Hyper stress: This type of stress is caused because of hyperactivity and
travails of life to meet deadlines, etc. Targets and eleventh hour rush or ----------------------
continuous overwork cause hyperstress. The key, therefore, to deal with ----------------------
hyperstress lies in good planning.
----------------------
4. Hypostress: This type of stress is the opposite of the hyperstress. This
stress is caused by less than optimum activity. The effects of hypostress are ----------------------
slower than other types but are more penetrating and longer lasting. There
are examples when the organisation has deliberately created hypostress ----------------------
by denying legitimate work to their employees. Such situations, beyond
----------------------
creating stress, deprive a person of the fulfillment of self-esteem needs.
More often the retired persons experience this stress. For them it is a ----------------------
transition from hyper to hypostress. This underlines the necessity of
planning the post-retirement period, doing proper time management by ----------------------
planning activities so that an individual remains optimally busy. ----------------------
The above discussion shows that whatever an individual does or does not
----------------------
do, there is always some sort and some amount of stress on him. This is why
stress is known as a “non-specific” response of the body to the situation. ----------------------
A stressor is any event, experience or environmental stimulus that causes ----------------------
stress in an individual. These events or experiences are perceived as threats
or challenges to the individual and can be either physical or psychological. ----------------------
Researchers have found that stressors can make individuals more prone to both
physical and psychological problems, including heart disease and anxiety. ----------------------
Stressors are more likely to affect an individual's health when they are ----------------------
"chronic, highly disruptive, or perceived as uncontrollable". The more stressors,
----------------------
the more severe they are and the longer the exposure to them, the more demands
are placed upon the person to cope. ----------------------

Notes There are three broad categories of stressors:
1. Organisational stressors: Organisational membership is a dominant
----------------------
source of stress. The concept of organisational stress was first evolved in
---------------------- the classic work of Kahn et al. They were the earliest to draw attention to
organisational stress in general and role stress in particular.
----------------------
Some of the organisational stressors are intrinsic to the job. They are
---------------------- boredom, time pressures and deadliness, exorbitant work demands and
technical problems.
----------------------
Some organisational stressors relate to the role in the organisation. They
---------------------- are role ambiguity, role conflict, role overload, etc.
---------------------- Some organisational stressors relate to the organisational structure and

the climate. They are lack of participation in decision-making, lack of
---------------------- responsiveness and appreciation, pressure to conform, etc.
---------------------- 2. Life stressors: Life stressors can be categorised in three classes:

i. Life changes
---------------------- ii. Daily stressors
---------------------- iii. Life trauma
---------------------- Human beings have a tendency to maintain equilibrium. Any change

occurring in life is a reason to get stressed. Research shows that even the
---------------------- minor or the trivial occurrences in life create stress. Various life changes
and a numerical representation of their effect on human beings are shown
---------------------- in the table below:
---------------------- Table 12.1 Life Changes and their Weightage
Death of Spouse 100
----------------------
Divorce 73
---------------------- Jail term 63
---------------------- Death of a close family member 63
Major personal injury or illness 53
---------------------- Marriage 50
---------------------- Fired from work 47
Retirement 45
---------------------- Business re-adjustment 39
---------------------- Change in responsibilities at work 29
Trouble with boss 23
---------------------- Vacation 13
---------------------- Festivals 12
Minor violations of law 11
----------------------
3. Personal stressors: Personal stressors relate to the personal health
---------------------- and the familial life of an individual. They are like menopause or male
menopause, commuting problems, reduced self- confidence because of
---------------------- aging, etc.

According to ancient Indian wisdom, ignorance, ego, i.e., attachment to Notes
self, temptations, envy or hate or jealousy and a state of helplessness are the main
personal stressors. If one applies one’s mind to the reasons one will find that it ----------------------
is impossible to be away from stress.
----------------------
The consequences of personal stress result in an individual finding it
difficult to adjust with others. In extreme cases it results in divorce too. Stress ----------------------
at the individual level also results in medical problems. Most of all it affects an
----------------------
individual’s decision-making capacity.
At the organisational level, the stress of the employees may have negative ----------------------
effect on the job satisfaction, morale, motivation to perform at high levels.
----------------------
Even though stress has multifarious deleterious effects on individual and
the organisation, stress cannot be done away with. Every success has its roots in ----------------------
stress. Stress propels a man to do something that ultimately results in success.
----------------------
Stress is like the voltage on an electric bulb. High voltage fuses the bulb; at the
same time less voltage dims the bulb. Stress is a necessary evil. However, it has ----------------------
bad effects. Therefore, the only thing a man can do is to keep the stress from
harming him. One must manage stress. ----------------------
----------------------
----------------------

1. A non-specific response of the body to a situation is known as: ----------------------
i. Resistance
----------------------
ii. Exhaustion
iii. Stress ----------------------
iv. Distress ----------------------
2. The type of stress that is a state of happiness and is because of the ----------------------
sudden over joy is:
i. Stress ----------------------
ii. Distress ----------------------
iii. Hyper work stress ----------------------
iv. Eustress
----------------------
3. The stress caused because of hyperactivity and travails of life to meet
deadlines etc. is: ----------------------
i. Eustress
----------------------
ii. Hypostress
----------------------
iii. Hyper stress
iv. Distress ----------------------
----------------------

Notes 4. Stress caused by less than optimum activity is known as:
---------------------- i. Hypostress
ii. Eustress
----------------------
iii. Hyper work stress
---------------------- iv. Distress
---------------------- 5. Which of the following is secreted during happy or unhappy situations?
i. Progesterone
----------------------
ii. Oestrogen
---------------------- iii. Adrenaline
---------------------- iv. Glycogen
----------------------
12.3 MANAGEMENT OF STRESS
----------------------
Since stress affects an individual’s body and mind, that individual must
----------------------
do something about his stress.
---------------------- 1. Know your personality type: Stress can affect different people in
different ways. Two types of personalities can be identified in relation to
----------------------
coping stress.
---------------------- Type A people are the people who create unnecessary stress for themselves.
---------------------- On the contrary, type B people are the ones who are mild mannered and
take life as it comes. Type B persons are not stress-prone individuals.
---------------------- However, people are not purely type A or type B; instead people tend
toward one or the other type. Also the relationship between personality
---------------------- and health problems (such as heart disease) is unclear.
---------------------- 2. Recognition is half the solution: One must remember an important
facet of stress. Most of the time a person does not understand that he is
---------------------- under stress. How do you recognise that you are under stress? Self-report
---------------------- measure provides clear indication that people who know us closely and
observe us frequently can say with certain degree of accuracy, whether
---------------------- we are under stress or not. To the question, “Did anyone tell you that
you are under stress?” Most of the executives would agree that it is their
---------------------- wives, friends and colleauges who told them that they are under stress.
---------------------- Correct detection is possible by these people because of some specific
symptoms when stress still operates at behavioural and psychosomatic
---------------------- level. Awareness of these symptoms will help us to recognise when we
are under stress.
----------------------
Some behavioural symptoms of stress are:
----------------------
i. Low productivity, decreased work performance
---------------------- ii. Tendency to remain absent from work
---------------------- iii. Interpersonal conflict

iv. Tendency to remain isolated Notes
v. Sudden change in habit (clothing, eating, drinking)
----------------------
vi. Talking around a subject
----------------------
vii. Poor eye contact while talking
viii. Making others look ridiculous ----------------------
ix. Brooding, feeling worthless ----------------------

x. Frequent references to death, suicide, etc. ----------------------
Some psychosomatic symptoms of stress are: ----------------------

i. Sleep disturbance ----------------------
ii. High blood pressure
----------------------
iii. Stress diabetes
----------------------
iv. Bowel irritation
v. Backache ----------------------
vi. High blood pressure ----------------------

vii. Sexual dysfunction ----------------------
12.4 WAYS TO OVERCOME STRESS ----------------------
The figure below gives the strategies that can be adopted by an individual to ----------------------
cope with stress. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 12.2 Managing Stress ----------------------

1. Love your body: Our body is the vehicle that enables us to perceive, ----------------------
understand the world. It is through our body that we experience the world.
It is only when we love our body that we will take proper care of it. ----------------------
Loving is not pampering. The following are some tips to deal with stress
by making our body strong. ----------------------

Notes i. Have a regular medical checkup: A regular medical checkup
is a preventive measure, especially when one is beyond 40s. It
---------------------- is advisable that if a person is below 40 he must have a medical
checkup at least once a year. Beyond 45 years of age, the health
---------------------- checkup should be at least twice a year.
---------------------- ii. Exercise regularly: To effectively cope with stress, a healthy body
is a must. One can raise defenses against stress by regular exercise.
----------------------
One may take any type of exercise, for example, walking, jogging,
---------------------- swimming, cycling, etc.
iii. Don’t touch tobacco: Medical research has amply demonstrated
----------------------
that tobacco is a carcinogenic substance. Research also says that
---------------------- passive smoking is more harmful than active smoking.
iv. Mind what you eat: One must be careful about what one eats. What
----------------------
we are largely depends on what we eat. As far as possible, oily and
---------------------- pungent food should be avoided. This has tendency to cause more
secretion of digestive acids, which erode the mucus membrane of
---------------------- the stomach. This results in ulceration. It is also better if one avoids
eating non-vegetarian food which is rich in calories and cholesterol
----------------------
and lack fibre.
---------------------- i. Drink adequate water: Drink minimum three to four litres of
---------------------- water daily. Avoid alcoholic beverages. Alcohol contains calories
but has no food value. Especially the use of tobacco with alcohol is
---------------------- injurious to health.
---------------------- 2. Love your mind: We have already said that the happy as well as unhappy
situations cause secretion of adrenaline. The remedy is to keep the mind
---------------------- tranquil. It is realised that keeping the mind tranquil is easier said than
done. The Indian tradition has always been stressing on the importance of
---------------------- meditation. The idea is that in meditation a person takes away his mind
---------------------- for some time from the usual surroundings, which serves as a respite.
In modern times, many new methods of meditation have come into
---------------------- existence Transcendental meditation, Siddha Samadhi Yoga, Sahaj Marg, etc. to
---------------------- name a few. All are intended to initiate a person into the art of meditation, which
results in a peaceful and strong mind.
----------------------
Western countries are so convinced of the utility of meditation as a way
---------------------- of keeping the mind tranquil that some firms have reserved separate rooms for
meditation for their executives. In India, organisations are slow to catch up with
---------------------- this. Nonetheless, it can be practiced at the individual levels.
---------------------- Organisational strategies for managing employee stress are:
---------------------- i. Creating supportive organizational climate.
ii. Convincing employees that their contributions are significant.
----------------------
iii. Rotating employees out of potentially stressful positions and not allowing
---------------------- them to overwork.

iv. Organising training programmes to help employees cope with stress and Notes
providing employee counselling.
----------------------
Remember one who “DARES” stress conquers it. DARES stands for:
D − Diet ----------------------
A − Activity ----------------------
R − Relaxation ----------------------
E −Empathy
----------------------
S – Spirituality
----------------------
Match the following. ----------------------
Types of Stressors Related to ----------------------

i. Organisational stressors a. Changes occurring in the life ----------------------
ii. Life stressors b. Trauma ----------------------
iii. Personal stressors c. Boredom and monotony
----------------------
iv. Life change d. Personal health and the familial
life of an individual ----------------------
----------------------
Activity 1 ----------------------
----------------------
Interview the HRD manager of a big organization to know about how
they identify the need of organizing workshops / programs on Stress ----------------------
Management for their employees.
----------------------
IDENTIFICATION OF STRESS: A CASE EXAMPLE ----------------------
----------------------
Vijay is a 39-year-old Commercial Producer working for a major
broadcasting organization. He has been married to Lesley for 11 years and ----------------------
they have two boys, aged 7 and 4. Vijay describes himself as having Type A
Personality, i.e. he is very driven, works long hours and is a perfectionist. He ----------------------
has worked for the same organization for the past 7 years, and has been very
----------------------
successful and happy.
Recently, there were some changes in the organization and among other ----------------------
things, Vijay's boss was fired and another person, an outsider, got his job. Vijay
----------------------
had a very good relationship with his previous boss. They got along well, both
professionally and personally. They even used to socialize together quite often. ----------------------
When the new boss arrived, he said there were many things that needed to be
changed. He started a process of evaluation whereby he would follow people ----------------------

Notes around and make comments about their work and how they should change their
work. When he reviewed Vijay's work, he was displeased with a few things. He
---------------------- conveyed his dissatisfaction to Vijay in an unfriendly way, sounding displeased
and even threatening. Vijay felt the tension rising inside of him. He felt that
----------------------
everything had changed for the worse and that he did not feel safe in his job
---------------------- anymore. He felt that his performance was constantly being challenged and
criticized and that he was given no credit for his talent and hard work. Vijay has
---------------------- lost the fun, the security and the satisfaction that he used to have in his job. A
---------------------- few weeks after the new boss arrived, Vijay started having headaches, which he
did not suffer previously. He also started having sleep problems, usually falling
---------------------- asleep around midnight only to wake up a couple of hours later and be unable
to fall back to sleep for hours. He started feeling irritable and got impatient with
----------------------
his children and with Lesley. Worst of all, he said, his work performance was
---------------------- affected and he began to fear the worst - getting fired.
---------------------- When Vijay's boss scheduled a private meeting with him, Vijay was sure
he was going to fire him. A few hours before the meeting, Vijay started having
---------------------- chest pain, breathing problems and indigestion. Half an hour before the scheduled
meeting, Vijay was admitted to the ER of the local hospital with a suspected
----------------------
heart attack.
---------------------- On admission, Vijay had high blood pressure and rapid heartbeat, but he
---------------------- did not have a heart attack. "What is wrong with me?" Vijay asked the attending
doctor. "Nothing really," said the doctor, "but tell me what is going on in your
---------------------- life right now…" After they talked for a few minutes, the doctor said, "I believe
you have been having a reaction to ongoing stress. Take it easy for a few days
----------------------
and seek some counselling."
---------------------- Vijay did seek counselling and learned to manage his stress better. He started
---------------------- exercising regularly, learned some new relaxation and breathing techniques and
did some cognitive work with his therapist. Specifically, he learned to identify
---------------------- how his thoughts were related to his feelings and behaviours and vice versa. After
a few weeks in therapy, Vijay reported feeling much better. Things at work had
----------------------
calmed down and his boss even made a couple of positive remarks regarding
---------------------- his performance. His sleep was getting better and his overall mood was good.
There were still times at work when he would feel a little panicky, but using his
---------------------- new tools, he managed to calm himself down and focus on the task. Vijay was
---------------------- well on his way to a full adjustment to the changes in his work place and to a
regained sense of well being.
----------------------
Questions:
---------------------- 1. What was the actual problem of Vijay?
---------------------- 2. How the new boss contributed to the stress level of Vijay?
---------------------- 3. If you are a manager, how would you ensure stress free work environment?
----------------------

Summary Notes
●● Stress takes a heavy toll on a person’s health and his capacity to adjust ----------------------
with others. Modern life is full of stressors. The job life contains many
----------------------
stressors. Some of the stressors are intrinsic to the job life; some relate to
the structure of the job and so on. ----------------------
●● There are stressors in the personal and the social life of an individual. In
----------------------
a nut shell, stress is ubiquitous these days.
●● Stress has become chronic. As a result, an individual faces many ----------------------
psychological as well as psychosomatic disorders.
----------------------
●● One can cope with stress by regular exercise, not using tobacco, taking
the right kind of food and adequate calories, regular medical examination ----------------------
and meditation.
----------------------
Keywords ----------------------
●● Eustress: Stress that happens because of sudden overjoy. ----------------------

●● Stressors: Situations that are experienced as a perceived threat to one’s ----------------------
well-being or position in life, when the challenge of dealing with them
exceeds the person’s perceived available resources. ----------------------
●● Hypostress: The opposite of hyperstress. Hypostress occurs when an ----------------------
individual is bored or unchallenged. People who experience hypostress
are often restless and uninspired. ----------------------
----------------------
----------------------
1. Define stress. What are the types of stress?
----------------------
2. Point out any seven symptoms of stress.
3. How would you overcome stress? Explain in detail. ----------------------
4. Is stress related only to work? Explain. ----------------------
5. Do you think men and women are equally exposed to stress at work?
Support your answer giving three points. ----------------------
6. What remedies should organisations provide to overcome stress? ----------------------
----------------------
Answers to Check Your Progress
----------------------
1. A non-specific response of the body to a situation is known as: ----------------------

iii. Stress ----------------------
----------------------

Notes 2. The type of stress that is a state of happiness and is because of the sudden
over joy is:
----------------------
iv. Eustress
---------------------- 3. The stress caused because of hyperactivity and travails of life to meet
deadlines, etc. is:
----------------------
iii. Hyper work stress
----------------------
4. Stress caused by less than optimum activity is known as:
---------------------- i. Hypostress
---------------------- 5. Which of the following is secreted during happy or unhappy situations?
---------------------- iii. Adrenaline
----------------------
----------------------
i–c
---------------------- ii – b
---------------------- iii – d
---------------------- iv - a
----------------------
Suggested Reading
----------------------
1. Allen, David. Getting Things Done – The Art of Stress free Productivity.
---------------------- Penguin Books.
---------------------- 2. Robins, Stephen P. Organisational Behaviour. Prentice Hall of India.
3. Smith, Jonathan, C. Stress Management - A comprehensive Handbook of
----------------------
Techniques and Strategies. Springer Publishing Company.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Leadership and Business Ethics
UNIT
Structure:
13
13.1 Introduction
13.2 Classic Studies on Leadership
13.3 Leadership Skills
13.4 Leadership Styles
13.4.1 Managerial Grid
13.4.2 Rensis Likert’s Four Systems Management
13.4.3 Leadership Behaviour Continum
13.5 Theories of Leadership
13.6 Business Ethics
Summary
Key Words
Suggested Reading
Leadership and Business Ethics 231

Notes
Objectives
----------------------
----------------------
●● State the importance of leadership
---------------------- ●● Present the background and classic studies of leadership
---------------------- ●● Discuss various leadership styles, theories and their implications to
the followers as well as to the organization
----------------------
●● Examine the relationships that activities have with successful and
---------------------- effective leaders.
●● Note the current thinking on managers in actual work situations and
---------------------- their leadership styles
---------------------- ●● Indicate a view on a leadership style most suited to Indian
organizations
----------------------
----------------------
13.1 INTRODUCTION
----------------------
Organizations depend upon capable leadership to guide them through
---------------------- unprecedented changes. Yet, there is ample evidence in the news and in recent
research reports that even some of the best and most venerable organizations
---------------------- are failing to adapt to change, implement their strategic plans successfully or
---------------------- prepare for a more uncertain future.
More and more people believe the turmoil we are currently observing
----------------------
has something to do with leadership, and that if we do not change our current
---------------------- approach to leadership development, we will see even more of the same.
As well-known companies disappear or are taken over (think of Lucent,
----------------------
Chrysler, Lehman Brothers, Northern Rock, Merrill Lynch) and new forces like
---------------------- the economies of China and India rise, surveys of CEOs show that they believe
the one factor that will determine their fate is the quality of their leadership talent.
---------------------- Yet many top executives bemoan the lack of leadership bench strength in their
companies and wonder what will happen once the baby-boomer generation of
----------------------
leaders finally steps aside.
---------------------- Can we count on the next generation of leaders to step up once they are
in position? Alternatively, are we seeing evidence of a talent gap that cannot be
----------------------
closed and will result in even greater numbers of high-profile failures? What can
---------------------- your organization do to avoid the risks associated with inadequate leadership and
better prepare its current and future leaders for changes that are yet unforeseen?
----------------------
Successful organizations have one major common attribute that sets them
---------------------- apart from unsuccessful organizations: dynamic and effective leadership.
---------------------- Peter F. Drucker points out that managers (Business leaders) are the most
basic and scarcest resources of any business enterprise. Most of the organizational
---------------------- failures can be attributed to ineffective leadership.

On all sides, there is a continual search for persons who have the necessary Notes
abilities to enable them to lead effectively. The shortage of effective leadership
is not confined to business but is evident in the lack of able administrators in ----------------------
government, education, foundations and every other form of organization. Thus,
when we decry the brain drain from India, we are not talking about the drain of ----------------------
people who could have filled administrative “bodies”. What we are agonizing ----------------------
over is a drain of brains willing to assume significant leadership roles in our
society and can get the job done effectively. ----------------------
The significance of leadership arises from the openness of the Organization ----------------------
as a system and from the fact that it operates in a changing environment. There are
numerous instances in the history of organizations showing collapse of enterprises ----------------------
that failed to react suitably to the environmental requirements for change. The
----------------------
effective changeover requires effective leadership because there exists no built-
in stabilizing devices of organization for coping with such altered requirements. ----------------------
The significance of leadership also stems from the nature of human
----------------------
membership in organizational settings. People who form an organization are
members of several institutions – in the sociological sense – at the same time. ----------------------
Numerous extraneous activities and affiliations take up the bulk of an individual’s
time and satiate his needs. These extra-organizational activities influence human ----------------------
behavior at work.
----------------------
Moreover, the environment in which an organization operates is full of
change agents. In the modern time, no organization can afford to be static. It has ----------------------
to change with the environment. Actually, an organization that refuses to change
----------------------
dies in the long run. Management of change has become challenge before every
organization these days. This challenge can be met only with effective leadership. ----------------------
Definition and characteristics of leadership ----------------------
Katz and Kahn have observed: “In the descriptions of organizations, no
word is more often used than leadership, and perhaps no word is used with such ----------------------
varied meanings. The word leadership is sometimes used to indicate that it is
an attribute of personality; sometimes it is used as if it was a characteristic of ----------------------
certain positions, and sometimes as an attribute of behavior.”
----------------------
Leadership is defined as “the relationship in which one person, influences
others to work together willingly on related tasks to attain that which the leader ----------------------
desires.”
----------------------
Keith Davis defines leadership as “the ability to persuade others to seek
defined objectives enthusiastically. It is the human factor that binds people ----------------------
together and motivates them towards goals.”
“Leadership is that outstanding aspect of management which manifests ----------------------
ability, creativeness, initiative and inventiveness, and which gains confidence, ----------------------
co-operation and willing of the people to work by building employee morale.”
“It is the process by which an executive or a manager imaginatively directs, ----------------------
guides and influences the work of others in choosing and attaining specified goals ----------------------
by mediating between the individual and the Organization in such a manner that
both will obtain the maximum satisfaction.” ----------------------

Notes “It is an inter-personal influence, exercised in situations and directed,
through the communication process, towards the attainment of a specified goal
---------------------- or goals.”
---------------------- “Leadership is the process of influencing the activities of an individual or
a group towards the achievement of a goal in a given situation. The leadership
---------------------- process is a function of the leader, the follower and other situational variables.”
---------------------- “Leadership is organizationally useful behaviour by one member of
an Organization family toward another member or members of that same
---------------------- organizational family.”
---------------------- “Leadership is one form of dominance, in which the followers more or less
willingly accept direction and control by another person.”
----------------------
Leadership is an influence process; the dynamics of which are a function
---------------------- of the personal characteristics of the leader and followers, and of the nature of
the specific situations.
----------------------
The importance of leadership being what it is, researchers were interested
---------------------- in knowing what makes a leader and that too what makes a good leader.
---------------------- The phrenological, graphological and demographic studies suffered from
the lack of scientific rigour and cannot be given any credence. They are, at best,
---------------------- guesses. The academic community in various universities got interested in the
studies of leadership in late 1930s.
----------------------
---------------------- 13.2 CLASSIC STUDIES ON LEADERSHIP

---------------------- Unlike many other topics in the field of organizational behavior, there are a
number of studies and a considerable body of knowledge on leadership. A review
---------------------- of the better- known classic studies can help set the stage for the established and
---------------------- emerging theories of leadership.
1) The Iowa Leadership Studies
----------------------
A series of pioneering leadership studies conducted in the late 1930s by
---------------------- Ronald Lippitt and Ralph K. White under the general direction of Kurt
Lewin at the University of Lowa have had a lasting impact: Lewin is
----------------------
recognized as the father of group dynamics and as an important cognitive
---------------------- theorist.
In the initial studies, hobby clubs for ten-year-old boys were formed. Each
----------------------
club was submitted to three different styles of leadership – authoritarian,
---------------------- democratic, and laissez faire.
---------------------- The authoritarian leader was very directive and allowed no participation.
This leader tended to give individual attention when praising and
---------------------- criticizing but tried to be friendly or impersonal rather than openly hostile.
---------------------- The democratic leader encouraged group discussion and decision-making.

He tried to be “objective” in his praise or criticism and to be one of the
---------------------- group spirit.

The laissez faire leader gave complete freedom to the group; he essentially Notes
provided no leadership.
----------------------
Under experimental conditions, the three leadership styles were
manipulated to show their effects on variables such as satisfaction and ----------------------
frustration/ aggression. Some of the results were clear-cut and others
were not. One definite finding was the boys’ overwhelming preference ----------------------
for the democratic leader.
----------------------
The experiments were designed primarily to examine pattern of aggressive
behavior. The researchers found that the boys subjected to the autocratic ----------------------
leaders reacted in one of the two ways: either aggressively or apathetically.
----------------------
Both the aggressive and apathetic behaviors were deemed reactions to the
frustration caused by the autocratic leader. The researchers also pointed ----------------------
out that the apathetic groups exhibited outbursts of aggression when the
autocratic leader left the room or when a transition was made to a freer ----------------------
leadership atmosphere.
----------------------
The laissez faire leadership climate actually produced the greatest number
of aggressive acts from the group. ----------------------
The democratically led group fell between the one extremely aggressive ----------------------
group and the four apathetic groups under the autocratic leaders.
----------------------
Sweeping generalizations based on the Lippitt and White studies are
dangerous. Nevertheless, these leadership studies have extremely ----------------------
important historical significance. Like the Hawthorne studies, the Lowa
studies are too often discounted or at least de- emphasized because they ----------------------
were experimentally crude. The values of the studies were that they ----------------------
were the first to analyze leadership from the standpoint of scientific
methodology, and, more important, they showed that different styles of ----------------------
leadership could produce different, complex reactions from the same or
similar groups. ----------------------
2) The Ohio State Leadership Studies ----------------------

In 1945, the Bureau of Business Research at Ohio State University ----------------------
initiated a series of studies on leadership. An interdisciplinary team
of researchers from psychology, sociology and economics developed ----------------------
and used the Leader Behaviour Description Questionnaire (LBDQ) to
----------------------
analyze leadership in numerous types of groups and situations. Studies
were made of Air Force commanders and members of bomber crews, ----------------------
officers, noncommissioned personnel and civilian administrators in the
Navy Department, manufacturing supervisors, executives of regional ----------------------
cooperatives, college administrators, teachers, principals and school
----------------------
superintendents, and leaders of various student and civilian groups.
In the first step, the LBDQ was administered in a wide variety of situations. ----------------------
In order to examine how the leader was described, the answers to the
----------------------
questionnaire were then subjected to factor analysis. The outcome was
amazingly consistent. The same two dimensions of leadership continually ----------------------

Notes emerged from the questionnaire data. They were ‘consideration’ and
‘initiating structure.’ These two factors were found in a wide variety of
---------------------- studies encompassing many kinds of leadership positions and contexts.
Initiating structure and consideration are very similar to the time honored
---------------------- military commander’s functions of mission and concern with the welfare
---------------------- of the troops. In simple terms, the Ohio State factors are task or goal
orientation (initiating structure) and recognition of individual needs and
---------------------- relationships (consideration).
---------------------- The Ohio State studies were the first to point out and emphasis the
importance of both task and human dimensions in assessing leadership.
---------------------- This two-dimensional approach lessened the gap between the strict
task orientation of the scientific management movement and the human
----------------------
relations emphasis.
---------------------- 3) The Early Michigan Leadership Studies
---------------------- At about the same time that the Ohio State studies were being conducted,
a group of researchers from the Survey Research Center at the University
---------------------- of Michigan USA began their studies of leadership.
---------------------- Twelve high-low productivity pairs were selected for examination. Each
pair represented a high-producing section and a low-producing section,
---------------------- with other variables, such as type of work, conditions and methods, being
---------------------- the same in each pair. Non-directive interviews were conducted with the
24 section supervisors and 419 clerical workers. Results showed that
---------------------- supervisors of high producing sections were significantly more likely to
be general rather than close in their supervisory styles and the employee
---------------------- centered (have a genuine concern for their people).
---------------------- The low producing section supervisors had essentially opposite
characteristics and techniques. They were found to be close, production-
---------------------- centered supervisors.
----------------------
----------------------
---------------------- 1. The word leadership is sometimes used to indicate that it is an attribute

of _______________; sometimes it is used as if it was a characteristic
----------------------
of certain __________, and sometimes as an attribute of __________.
---------------------- 2. A democratic leader encourages ________ and ____________.
---------------------- 3. The _____________ leader essentially provided no leadership.
---------------------- 4. The authoritarian leader was very ______ and allowed no participation.
----------------------
----------------------

Notes
Activity 1
----------------------
Analyse the yearly survey report on ‘Best Place to work with’ available on ----------------------
the internet. Try to analyse the critical factors affecting the leadership and
Management practices of these organization. ----------------------
----------------------
13.3 LEADERSHIP SKILLS
----------------------
Leaders use three different types of skills – technical, human and
conceptual. Although these skills are interrelated in practice, they can be ----------------------
considered separately. ----------------------
100
Conceptual ----------------------
----------------------
----------------------
Human
%
of 50 ----------------------
job
----------------------
----------------------
Technical
----------------------
Supervisor Middle management Top management
----------------------
Fig 13.1: The three different types of Leadership skills
----------------------
1. Technical skills
----------------------
Technical skills relate to person’s knowledge and ability in any
organizational functional area. Examples are the skills learned by ----------------------
accountants, typists. This skill is the distinguishing feature of job
performance at the operating level. ----------------------
2. Human skills ----------------------
Human skill is the ability to work effectively with people and to build ----------------------
teamwork. No leader at any organizational level escapes the requirement
for effective human skill. It is a major part of leadership behaviour. ----------------------
3. Conceptual skills ----------------------
Conceptual skill is the ability to think in terms of models, frameworks
and broad relationships, such as long-range plans. Conceptual skills deal ----------------------
with ideas while human skill concerns people and technical skill is with ----------------------
things.
----------------------
It will be seen from the above diagram that a mix of these three skills
changes as one rises in the organizational hierarchy. At the supervisory ----------------------

Notes level, the requirement of technical skills is the highest. But as the person
moves up the hierarchy to the top management, it is conceptual skills
---------------------- that are more in demands rather than technical skills. However, the
requirement of human skills at all the hierarchical levels continues to be
---------------------- the same.
----------------------
13.4 LEADERSHIP STYLES
----------------------
Leadership is practiced by leadership style, which is the total pattern of
---------------------- leaders’ actions in relation to followers. It represents their philosophy, skills and
attitudes. The styles that are discussed hereunder are used in combination, not
----------------------
separately; but they are discussed separately to clarify differences among them.
---------------------- Negative leadership gets acceptable performance in many situations, but it
has high human costs. Negative leaders act domineering and superior with people.
----------------------
To get work done, they hold over their personnel such penalties as loss of job,
---------------------- reprimand in the presence of others, etc. They display authority in the false belief
that it frightens everyone into productivity. They are bosses more than leaders.
----------------------
Even the most competent leaders will at times have to fall back upon
---------------------- negative leadership. Perfection can never be achieved, but the historical trend
is that managers need more and more positive leadership skills in order to be
---------------------- rated “satisfactory”. Better employee education, greater independence, and other
factors have made satisfactory employee motivation more dependent on positive
----------------------
leadership.
---------------------- The way a leader uses power establishes the type of style. Each style has
---------------------- its benefits and limitations. Leader behavior is the mixture of all three styles over
some time, but one style tends to be the dominant one. Autocratic, Participative
---------------------- and Free rein are the major types of leadership style.
---------------------- 1. Autocratic leadership style

Autocratic leaders centralize power and decision making in them. They
----------------------
structure the complete work situation for their employees, who are
---------------------- supposed to do what they are told. The leaders take full authority and
assume full responsibility. Leadership behavior typically, is negative,
---------------------- based on threats and punishment; but it can be positive, because an
autocratic leader can choose to give rewards to employees, in which
----------------------
the style becomes “benevolent- autocratic”. Some employees have
---------------------- expectations of autocratic leadership. The result is that they feel a certain
amount of security and satisfaction with this type of leader.
----------------------
Some advantages of autocratic leadership style are that it provides
---------------------- strong motivation and reward for the leader. It permits quick decisions,
because only one person decides for the entire group. It is the best style
---------------------- in emergencies. Furthermore, this style gives good results when one is
dealing with unskilled employees doing repetitive tasks.
----------------------
The main disadvantage of autocratic leadership style is that most people
---------------------- dislike it. Frustration, dissatisfaction, fear and conflict develop easily

in autocratic situations. Employees do not involve their “self” in the Notes
organizational activities because their drives and creativity are suppressed.
----------------------
2. Participative leadership style
Participative leadership style is expression of leader’s trust in the abilities ----------------------
of his subordinates. The leader believes that his people are as desirous of
----------------------
contributing to the organizational efforts as well as they have requisite
capacities. Participative leaders decentralize authority. Participative ----------------------
decisions are not unilateral, as with the autocrat, because they arise from
consultation with followers and participation by them. The leader and ----------------------
group are acting as one unit. Employees are informed about conditions
----------------------
requiring decisions, which encourage them to express their ideas and
suggestions. Whereas autocratic leaders control through the authority ----------------------
they possess, participative leaders exercise control mostly by using forces
within the group. ----------------------
Participative style is supposed to be a better style of managing people. ----------------------
However, it is not without its own drawbacks. This style is useless
when the leader is dealing with an emergency. Furthermore, the basic ----------------------
assumption of this style that the people have the skill and will to help
----------------------
organizational effort may not be correct.
3. Free-rein leadership style ----------------------
On the continuum of leadership style, free rein style is the extreme. Free ----------------------
rein leaders avoid power and responsibility. They depend largely upon the
group to establish its own goals and work out its own problems. A free rein ----------------------
leader is the one who abdicates all his decision-making responsibilities ----------------------
and prerogative in favor of his follower. The leader plays only a minor
role. In an organizational setting, such a leader happens to be a bystander, ----------------------
he happens to be there because of his organizational appointment. He
fails to guide, motivate and develop his subordinates. ----------------------
This style tends to permit different units of an Organization to proceed ----------------------

at cross-purposes, and it can degenerate into chaos. For these reasons,
normally it is not used as a dominant style but is useful in those situations ----------------------
where a leader can leave a choice entirely to the group. This style is also ----------------------
good when one is dealing with scientific and professional employees,
who require more job-freedom. ----------------------
13.4.1 Managerial Grid ----------------------
One very popular approach to identifying leadership styles of practicing
----------------------
managers is Blake and Mouton’s managerial grid. The following figure
shows that the two dimensions of the grid are concern for people along ----------------------
the vertical axis and concern for production along the horizontal axis.
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 13.2: The Managerial Grid
---------------------- [Source: R. Blake and J. Mouton, Managerial Façade, Advanced Manage-
---------------------- ment Journal, July 1966, 31]
The five basic styles identified in the grid represent varying combinations
----------------------
of concern for people and production.
---------------------- ●● The 1.1 manager has minimum concern for people and production; this
style is sometimes called “impoverished” style.
----------------------
●● The opposite is the 9.9 manager, who has maximum concern for both
---------------------- people and production. The implication is that the 9.9 is the best style of
leadership and Blake and Mouton have stated so in clear terms.
----------------------
●● The 5.5 manager is the “middle-of-the-roader” and the other two styles
---------------------- represent the extreme concerns of people (1.9 country club manager) and
production (9.1 “task” manager).
----------------------
●● The accommodating (previously, country club) style (1.9): yield and
---------------------- comply. This style has a high concern for people and a low concern for
production. Managers using this style pay much attention to the security
----------------------
and comfort of the employees, in hopes that this will increase performance.
---------------------- The resulting atmosphere is usually friendly, but not necessarily very
productive.
---------------------- ●● The dictatorial (previously, produce or perish) style (9.1): control and
---------------------- dominate. With a high concern for production and a low concern for
people, managers using this style find employee needs unimportant; they
---------------------- provide their employees with money and expect performance in return.
Managers using this style also pressurise their employees through rules
---------------------- and punishments to achieve the company goals. This dictatorial style is

based on Theory X of Douglas McGregor and is commonly applied by Notes
companies on the edge of real or perceived failure. This style is often used
in case of crisis management. ----------------------
13.4.2 Rensis Likert’s Four Systems Management ----------------------
Rensis Likert, the one-time director of the Institute for Social Research
of the University of Michigan, presented the results of years of similar research ----------------------
in his books and is known for his “System 4” leadership styles. Three types of ----------------------
variables characterize the same:
----------------------
a) Casual variables are the leadership styles of management in formal
organizations. They include the variables under the control of management, ----------------------
e.g. organization structure and management’s policies, and decisions and
their leadership styles, skills and behaviour. ----------------------
b) Intervening variables reflect the internal climate of the organization, ----------------------
such as loyalty and motivation, attitudes, perceptions, performance goals
etc. ----------------------
c) End-result variables reflect the objectives of an organization and are the ----------------------
joint product of the casual variables and the intervening variables, such as
productivity, service costs, quality and earnings. ----------------------
Likert’s styles of leadership are classified into four distinct types: ----------------------
1. System 1: Exploitative, Authoritative ----------------------
The leader has no trust or confidence in his subordinates. Communication
----------------------
is entirely formal. Coercion and occasional reward accomplish motivation.
The leader is mostly production oriented, and has virtually no concern for ----------------------
his followers except as an instrument of production. The leader under
System 1 has a strong Theory X philosophy and is highly committed to ----------------------
initiating structure as a means of exercising influence. Power and position
----------------------
authority is the basis of this type of leadership.
2. System 2: Benevolent-Authoritative ----------------------
The leader has confidence and trust in his subordinates. Communication ----------------------
is mostly formal. Reward and some coercion accomplish motivation.
The leader has a limited concern for his subordinates, but is still heavily ----------------------
oriented towards production; System 2 is philosophically committed to
----------------------
Theory X, but occasionally shows consideration within the initiating
structure. Power and positional authority are the primary means of ----------------------
enforcing compliance, although personal authority may be used to
supplement legitimacy, reward and coercion. There is some delegation of ----------------------
authority, but control still resides in the top management.
----------------------
3. System 3: Consultative
----------------------
The leader has a lot of confidence in his subordinates, but still wishes
to retain control of his decision making power. Communication is less ----------------------
formal. Motivation is by reward and coercion, with some involvement in
decision making on the part of subordinates. The leader in system 3 is less ----------------------

Notes committed to Theory X and will, as the situation demands, move towards
Theory Y. Both positional authority and personal authority are used to
---------------------- gain the acceptance of the subordinates and to enforce their compliance.
---------------------- 4. System 4: Democratic
The leader has complete trust and confidence in his subordinates.
----------------------
Communication is both formal and informal, and is open in all direction.
---------------------- Motivation is accomplished by a system of rewards developed with the
participation of leader and followers. The leader has a balanced concern
---------------------- for both people and production, and relies primarily on teamwork
to progress in both directions. System 4 has a strong commitment
---------------------- to Theory Y. The position of power is de-emphasized, and personal
---------------------- authority is predominant. Recourse to positional authority is infrequent.
The responsibility for result still lies with the management; but there is
---------------------- minimal emphasis on control. Participation is used to obtain results.
---------------------- On the basis of the responses received from the managers, Likert found
that “quite consistently, the high producing units fall under system 3 and
---------------------- 4, and the low-producing units fall under system 1 and 2”.
13.4.3 Leadership Behaviour Continuum
----------------------
The originators of this theory are Tannenbaum and Schmidt. They
---------------------- postulate that managers often have difficulty in deciding what type of action is
most appropriate for handling a situation/particular problem. They are not sure
----------------------
whether to make the decision or to delegate the decision-making authority to
---------------------- subordinates. To provide insight into the meaning of leadership behavior with
regard to decision-making these authors suggest a continuum.
----------------------
Leadership actions are related to the degree of authority used by managers
---------------------- and to the amount of freedom available to the subordinates in reaching decisions.
The managerial actions depicted on the left of the continuum characterize
---------------------- managers who maintain a high degree of control, while these on the right designate
managers who delegate decision-making authority.
----------------------
It will be observed that at the one extreme end, the manager makes
---------------------- decision, tells his subordinates and expects them to carry out that decision. At
the other extreme, the manager fully shares his decision-making power with his
---------------------- subordinates, allowing each member of the group to carry an equal voice – one
---------------------- man, one vote. Between these two extremes fall a number of leadership styles. The
selection of a particular style is dependent upon forces in the manager himself,
---------------------- his operating group and the situation.
---------------------- There is a relationship between the degree of authority used and the amount
of freedom available to subordinates in reaching decision. This continuum is
---------------------- seen as a zero-sum game; as one gains, the other loses, and vice versa. The
authors of the theory imply that leaders should not choose a strict “autocratic” or
---------------------- “democratic” style, but should be flexible enough to cope with different situations.
Those leaders would be most effective who are adaptable and who can delegate
----------------------
authority effectively because they consider their capabilities, subordinates and
---------------------- goals be accomplished.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 13.3: The Leadership Behaviour Continuum ----------------------
----------------------
----------------------
i. This skills relate to person’s knowledge and ability a. Technical ----------------------
in any organizational functional area
----------------------
ii. This skill is the ability to work effectively with b. Leadership
people and to build teamwork ----------------------
iii. This skill is the ability to think in terms of models, c. Conceptual
----------------------
frameworks, and broad relationships, such as long
range plans ----------------------
iv. It represents a person’s philosophy, skills, and d. Human
attitudes ----------------------
v. This leaders centralize power and decision making e. Participative ----------------------
in them
vi. This leadership style is expression of leader’s trust f. Autocratic ----------------------
in the abilities of his subordinates ----------------------
----------------------
Activity 2
----------------------
Undertake a survey in nearby organisation to find out the style of ----------------------

organisational leadership. Analyse the critical factors responsible for such
----------------------
leadership style. Try to find out what matters- people or productivity.
----------------------

Notes 13.5 THEORIES OF LEADERSHIP
---------------------- Since leadership makes difference between success and failure, for a
long time, thinkers were trying to see if leadership success could be predicted.
----------------------
They were also trying to find out as to what makes a leader. Graphological,
---------------------- Phrenological and Demographic, studies were made in these directions. However,
these studies had to be discarded because of many flaws. At best, they were
---------------------- guesses.
---------------------- 1. Trait Theories of Leadership
---------------------- The scientific analysis of leadership began with concentration on leaders

themselves. The vital question that this theoretical approach attempted
---------------------- to answer was what characteristic or traits make a person a leader? The
earliest trait theories, which can be traced back to the ancient Greeks and
---------------------- Romans, concluded that leaders are born, not made. The “great man”
---------------------- theory of leadership said that a person is born either with or without the
necessary traits for leadership. Famous figures in history – for example,
---------------------- Napoleon – were said to have had the “natural” leadership abilities to rise
out of any situation and become great leaders.
----------------------
Eventually, the “great man” theory gave way to a more realistic trait
---------------------- approach to leadership. Under the influence of the behaviourist school of
psychological thought, researchers accepted the fact that leadership traits
---------------------- can be acquired through learning and experience. Attention was turned on
---------------------- the search for universal traits possessed by leaders. The research efforts
were generally very disappointing. Only intelligence seemed to hold up
---------------------- with any degree of consistency.
---------------------- In general, research findings do not agree on which traits are generally
found in leaders or even on which ones are more important than others. The
---------------------- numbers of traits required of a successful leader are many. Additionally,
depending on the situation, the leader has to bring in various shades of the
----------------------
same trait. Trait theories also suffer from the problem of semantics.
---------------------- Similar to the trait theories of personality, the trait approach to leadership
has provided some descriptive insight but has little analytical or predictive
----------------------
value. The trait approach is still alive, but now the emphasis has shifted
---------------------- away from personality traits toward job related skill.
2. Fred Fiedler’s Contingency Theory of Leadership
----------------------
After the trait approach was proved to fall short of being an adequate
---------------------- overall theory of leadership, attention turned to the situational aspects of
---------------------- leadership. Fred Fiedler proposed a situation-based or contingency theory
for leadership effectiveness.
---------------------- Fiedler developed what he called a contingency model of leadership
---------------------- effectiveness. This model contained the relationship between leadership
style and the favorableness of the situation. Fiedler described situational
---------------------- favorableness in terms of three empirically derived dimensions:

1. The leader member relationship, which is the most critical variable Notes
in determining the situation’s favourableness.
----------------------
2. The degree of task structure, which is the second most important
input into the favorableness of the situation. ----------------------
3. The leader’s position power obtained through formal authority,
----------------------
which is the third most critical dimension of the situation.
Situations are favourable to the leader if all three of the above dimensions ----------------------
are high. In other words, the leader is generally accepted by followers, if
----------------------
the task is very structured and everything is “spelled out”, and if a great
deal of authority and power is formally attributed to the leader’s position ----------------------
(high third dimension). If the opposite exists, the situation will be very
unfavorable to the leader. ----------------------
Fiedler was convinced that the favourableness of the situation in ----------------------
combination with the leadership style determines the effectiveness.
Through the analysis of research findings, Fiedler was able to discover ----------------------
that under very favorable and very unfavorable situations, the task- ----------------------
directed, autocratic type of leader was most effective. However, when the
situation was only moderately favorable or unfavorable (the intermediate ----------------------
range of favourableness), the human relations, or lenient, type of leader
was most effective. ----------------------
3. Life Cycle Theory ----------------------

It has been assumed that followers are the most crucial factor in any ----------------------
leadership event and that they are important not only because individually
they accept or reject the leader but also because as a group they actually ----------------------
determine whatever personal power he may possess. Theory asserts that
as the level of maturity of followers increases, the leader requires not ----------------------
only less and less structure (task) while increasing consideration but also ----------------------
should eventually decrease socio-emotional support (relationship).
----------------------
Attempts have been made to define maturity by achievement motivation,
the willingness and ability to accept responsibility and task related ----------------------
education and experience. As an individual matures over time, he moves
from a passive state to a state of increasing activity, from dependency on ----------------------
others to relative independence, etc. While age may be a component, it is
----------------------
not directly related to maturity.
The leader behaviour should move through high task low relationship ----------------------
behaviour, to high task-high relationships, and high relationships-low task
----------------------
behaviour, to low task-low relationships behaviour, if followers progress
from immaturity to maturity. ----------------------
The life cycle theory provides appropriate leadership styles according to ----------------------
maturity of one’s followers. This cycle is also distinguishable in various
organizations in the interaction between superiors and subordinates. ----------------------
In working with highly trained and emotionally mature personnel, an
effective leader behavior relates to low task-low relationships. ----------------------

Notes Usually, in a crises-oriented organization such as military or the police,
the most suitable style is the high task-low relationships. However, within
---------------------- the military itself, this style is frequently ineffective in working with
research and development personnel who want limited amount of both
----------------------
structure and emotional support. Even in this group, some deviation from
---------------------- this style is needed.
---------------------- Overall, Life Cycle Theory asserts that with people of below average
maturity, a high task style promises best probability of success while
---------------------- dealing with people of average maturity, the styles of high task and
high relationships and high relationships and low task appear to be most
----------------------
suitable. The low task and low relationship style provides the highest
---------------------- probability of success with people of above average maturity.
---------------------- 4. Path-Goal Leadership Theory

Robert House of the University of Toronto initially developed this theory,
----------------------
and House and Mitchell later refined it. It is called ‘path-goal approach’
---------------------- because its primary concern is the leaders ‘influence on his followers’
perception of their work goals, personal goals and paths to achievement
---------------------- of these goals. It is based on the notion that leader behavior motivates and
---------------------- satisfies his followers to such an extent that it promotes the attainment of
the followers’ goals and clears the path to attainment of these goals. It uses
---------------------- expectancy framework from motivation theory of Vroom. Leadership,
according to this path-goal theory is closely related to motivation, on the
----------------------
one hand, and the power, on the other. In essence, the theory attempts
---------------------- to explain the impact that leader behavior has on followers’ motivation,
satisfaction and performance.
----------------------
According to the authors of the theory, there are four basic or major styles
---------------------- of leadership behaviour:
---------------------- a) Directive Leadership:
Here the subordinates know exactly what is expected of them and
----------------------
the leader gives specific directions. There is no participation by the
---------------------- subordinates. When the demands of task on hand are ambiguous
or when organizational procedures, rules and policies are not
---------------------- clear, a directive leader may complement the task by providing the
---------------------- necessary guidance and psychological structure for his followers.
When the demands of the task are clear to the followers, high level
---------------------- of directive leadership may impede effective performance.
---------------------- b) Supportive Leadership:
---------------------- The leader is friendly and approachable and shows a genuine interest
for subordinates. This style of leadership has its most positive effect
---------------------- on the satisfaction of followers who perform tasks that are full of
stress, and are frustrating and unsatisfactory or unsatisfying.
----------------------

c) Participative Leadership: Notes
The leader asks for and uses suggestions from subordinates but
----------------------
takes the decision by himself.
d) Achievement-oriented Leadership: ----------------------
The leader sets challenging goals for subordinates and shows ----------------------
confidence in them to attain these goals and perform well. For
followers performing ambiguous, non- repetitive tasks the higher ----------------------
the achievement orientation of the leader the more confident they
----------------------
would be that their efforts would pay-off in effective performance.
Contrary would be the case, when followers perform unambiguous ----------------------
and repetitive tasks.
----------------------
The path goal theory suggests that these various styles can be and
actually are used by the same leader depending on the characteristics ----------------------
of the subordinates and the environmental pressures.
----------------------
House has concluded that a high degree of direction in autonomous
or ambiguous situations increases satisfaction by clarifying the ----------------------
path to Goal achievement. In contrast, strongly defined tasks are
performed best with greater employee satisfaction when the leader ----------------------
demonstrates high consideration. The autonomous jobs are most ----------------------
intrinsically satisfying than structured activities are. As a result,
leader behavior will be less relevant to the needs or performance of ----------------------
subordinates than when the path is more difficult to negotiate.
----------------------
----------------------
Fill in the blanks.
1. _____________ developed what he called a contingency model of ----------------------
leadership effectiveness. ----------------------
2. _____________ contained the relationship between leadership style
and the favorableness of the situation. ----------------------
----------------------
Activity 3 ----------------------
----------------------
A successful leader may not necessarily be effective. Agree or disagree
with this statement with the help of examples. ----------------------
----------------------
13.5 BUSINESS ETHICS ----------------------
Let’s start with “what is ethics?” Simply put, ethics involves learning ----------------------
what is right or wrong, and then doing the right thing but “the right thing “is ----------------------

Notes not nearly as straightforward as conveyed in a great deal of business ethics
literature. Most ethical dilemmas in the workplace are not simply a matter of
---------------------- “Should Bob steal from Jack?” or “Should Jack lie to his boss?”
---------------------- The word ethics is derived from the Greek word ‘ethos’, which means
character. It is the discipline dealing with ‘what is good and bad’ and with moral
---------------------- duty and obligation.
---------------------- Ethics is the embodiment of moral values, which describes what, is ‘right’
and what is ‘wrong’ in human behaviour and what ‘ought to be’. Ethics implies
---------------------- good character and morality and refers to generally accepted human character
and behaviour considered as a desirable by contemporary society.
----------------------
The word ‘ethics’ refers to principles of behaviour that distinguish
---------------------- between good and bad; right and wrong. It is a person’s own attitude and beliefs
concerning good behaviour. Ethics reside within individuals and as such are
----------------------
defined separately by each individual in his/her own way. What may be ethical
---------------------- behaviour to ‘X’ may be unethical to ‘Y’.
---------------------- The concept has come to mean various things to various people, but
generally it’s coming to know what is right or wrong in the workplace and doing
---------------------- what’s right-this is in regard to effects of products/services and in relationship
with stakeholders. Wallace and pekel explain that attention to business ethics is
---------------------- critical during times of fundamental change-times much like those faced now
---------------------- by business, both non-profit and for –profit. In times of fundamental change,
values that were previously taken for granted are now strongly questioned.
---------------------- Many of these values are no longer followed. Consequently, there is no clear
moral compass to guide leaders through complex dilemmas about what is right
---------------------- or wrong. Attention to ethics in the workplace sensitizes leaders and staff to how
---------------------- they should act. Perhaps most important, attention to ethics in the workplaces
helps ensure that when leaders and managers are struggling in times of crises
---------------------- and confusion, they retain a strong moral compass. However, attention to
business ethics provides numerous other benefits; as well as listed later in this
---------------------- section. Note that many people react that business ethics, with its continuing
---------------------- attention to” doing the right thing”. Only asserts the obvious (“be good,” “don’t
lie” etc.), and so these people don’t take business ethics seriously. For many
---------------------- of us, these principles of the obvious can go right out the door during times
of stress. Consequently, business ethics can be strong preventative medicine.
---------------------- Anyway, there are many other benefits of managing ethics in the workplace.
---------------------- These benefits are explained later in this unit.
13.5.1 Relationship Between Morality, Business and Ethics
----------------------
Morality refers to the set of standards that enable people to live
---------------------- cooperatively in groups. It’s what societies determine to be “right” and
“acceptable.”
----------------------
Sometimes, acting in a moral manner means individuals must sacrifice
---------------------- their own short-term interests to benefit society. Individuals who go against
these standards may be considered immoral.
----------------------

Some morals seem to transcend across the globe and across time, however. Notes
Researchers have discovered that these seven morals seem somewhat universal:
----------------------
●● Be brave
●● Be fair ----------------------
●● Defer to authority ----------------------
●● Help your group ----------------------
●● Love your family
----------------------
●● Return favors
●● Respect others’ property ----------------------
Some scholars don’t distinguish between morals and ethics. Both have to ----------------------
do with “right and wrong.” But some people believe morality is personal while
ethics refer to the standards of a community. ----------------------
For example, your community may not view premarital sex as a problem. ----------------------
But on a personal level, you might consider it immoral. By this definition, your
morality would contradict the ethics of your community. ----------------------
Examples of Morals ----------------------
●● Most morals aren’t fixed. They usually shift and change over time. ----------------------
●● Ideas about whether certain behaviors are moral—such as engaging in pre-
marital sex, entering into same-sex relationships, and using cannabis— ----------------------
have shifted over time. While the bulk of the population once viewed ----------------------
these behaviors as “wrong,” the vast majority of the population now finds
these activities to be “acceptable.” ----------------------
●● In some regions, cultures, and religions, using contraception is considered
----------------------
immoral. In other parts of the world, some people consider contraception
the moral thing to do, as it reduces unplanned pregnancy, manages the ----------------------
population, and reduces the risk of STDs.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Functional Area Ethics: Functional areas of business are likely to confront ----------------------
ethical issues. Accounting is a critical function of any business. Accounting
----------------------
statement reveal to the managers and owners about the financial soundness of a
company. Managers, investors, regulating agencies, tax collectors and absolute ----------------------

Notes requirements of the accounting function. Professional accounting organizations
have evolved generally accepted accounting standards whose purpose is
---------------------- to establish uniform standards for reporting accounting data. When they are
followed, these standards ensure a high level of honest and ethical accounting
---------------------- disclosures. Rarely are they followed in practice.
---------------------- Ethical dilemmas crop up in purchasing departments where strong
pressure are felt to obtain the lowest possible prices from suppliers and where
----------------------
suppliers and where suppliers too feel a similar need to bag lucrative contracts,
---------------------- Bribes, kickbacks and discriminatory pricing are temptations to both the parties.
Marketing is another area of the ethics issue. Pricing, promotions,
----------------------
advertising, product information, relations between agencies and their clients
---------------------- and marketing research are potential areas of ethical dilemmas. Then there is
the area of sophisticated communication technology which is grossly abused or
---------------------- misused to realize one’s ambitions.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- 13.5.2 Ethics Training Programmes

Nearly all Companies which take ethics seriously provide training in
----------------------
ethics for their manager and employees and employees. Such training programs
---------------------- acquaint company personnel with the official company policy on ethical issues,
and they show how those policies can be translated into the specifics of every day
---------------------- decision making. Often simulated cases based on actual events in the company
are used to illustrate how to apply ethical principles to on-the-job problems.
----------------------
Formulation of Ethical Values
----------------------
Depending on the size of the organization, certain roles may prove useful
---------------------- in managing ethics in the workplace. These can be full-time roles or part-time
functions assumed by someone already in the organization. Small organization
---------------------- certainly will not have the resources to implement each the following roles using
---------------------- different people in the organization. However, the following functions point out
responsibilities that should be included somewhere in the organization.
----------------------

1. The organization’s chief executive must fully support the program Notes
2. Consider establishing an ethics committee at the board level
----------------------
3. Consider establishing an ethics management committee
----------------------
4. Consider assigning/developing an ethics officer
5. Consider establishing an ombudsperson ----------------------
6. One person must ultimately be responsible for ensuring ethical practices ----------------------
in organisation
----------------------
7. Review any values needed to adhere to relevant laws and regulations
----------------------
8. Review which values produce the top three or four traits of a highly
ethical and successful product or service in your company ----------------------
9. Identify values needed to address current issues in your workplace
----------------------
10. Identify any values needed, based on findings during strategic planning
----------------------
11. Consider any top ethical values that might be prized by stakeholder
Examples of ethical values might include: ----------------------
a) Trustworthiness; Honesty, integrity, promise keeping, loyalty. ----------------------

b) Request; Autonomy, privacy, dignity, courtesy, tolerance, acceptance. ----------------------
c) Responsibility; Accountability, pursuit of excellence.
----------------------
d) Caring; Compassion, consideration. Giving, sharing, kindness, loving.
----------------------
e) Justice and fairness; Procedural fairness, impartiality, consistency, equity,
quality, due process. ----------------------
f) Civic virtue and citizenship; Law abiding, community service, protection ----------------------
of environment.
----------------------
13.5.3 Business Ethics Role in Various Management Functions:
i. Ethics in Finance: ----------------------
It deals with various ethical dilemmas and violations in day-to-day ----------------------
financial transactions. An example of ethical violations is data fudging
in which enterprises present a fabricated statement of accounts and other ----------------------
records, which are open to investigation. Ethics in financial transactions
----------------------
gained importance when due to their insufficiency nations suffered
massive economic meltdowns. ----------------------
The following are the ethics in finance: ----------------------
a. Following truthfulness and authenticity in business transactions
----------------------
b. Seeking the fulfillment of mutual interests
----------------------
c. Getting the economies and financial units freed from greed-based
methodologies. ----------------------
----------------------

Notes ii. Ethics in Human Resource Management:
It deals with the enforcement of the rights of employees in an enterprise.
----------------------
Such rights are as follows:
----------------------
a. Having a right to work and be compensated for the same
---------------------- b. Possessing a right for free association and participation
---------------------- c. Enjoying a right for fair treatment in an enterprise
---------------------- d. Holding a right to work in a hazard-free environment
e. Blowing whistle (an activity where an employee can raise voice
----------------------
against any wrong practice of anyone in an enterprise)
---------------------- iii. Ethics in Marketing:
---------------------- Deals with a number of issues, which are as follows:
---------------------- a. Misinforming the customers about the products or services

b. Deciding high prices for the products and services
----------------------
c. Creating false impression on the customers/consumers about the
---------------------- features of products
---------------------- d. Promoting sexual attitudes through advertising; thus, affecting the
young generation and children.
----------------------
iv. Ethics in Production:
---------------------- It deals with the responsibility of an organization to make sure that products
---------------------- and processes of production is not causing harm to the environment.
It throws light on the following issues:
----------------------
a. Avoiding rendering services or producing products that are
---------------------- hazardous to health. For example, tobacco and alcohol
---------------------- b. Maintaining ethical relations with the environment and avoiding
environmental pollution.
----------------------
13.5.4 Major Determinants of Business Ethics
---------------------- Determinant # 1. Family, School and Religion:
---------------------- The formation of ethics begins early in life. As a child one learns about
what is good and bad from parents. Through their reinforcing actions, (rewarding
---------------------- good behaviours), parents incul-cate high or low ethical standards among
---------------------- children. Schools and Religion also greatly influence the formation of ethical
values (such as truthfulness, honesty, sincerity, tolerance, etc.) at an early age.
---------------------- Determinant # 2. Peers, Colleagues and Superiors:
---------------------- In the company of good friends, the child realises the importance of high
ethical standards in life. If he wishes to make friends with peers who steal,
----------------------
smoke and use drugs, he will probably accept those behaviours as ethical.
---------------------- Colleagues in an organisation, too, shape the value system of an individual.

He adopts the attitudes, beliefs and values of the group to which he belongs. Notes
Likewise, most people yield to pressure from superiors in doing things that
many consider unethical otherwise. ----------------------
Determinant # 3. Experiences in Life: ----------------------
Experiences in life teach many lessons. These could be bitter or sweet, ----------------------
depending on the ability of a person to reach goals. If a person is not given a ‘pat
on the back’ for good behaviour while others earn rewards for bad behaviour, ----------------------
the person will probably alter both, ethical standards and behavioural responses,
----------------------
in future.
Determinant # 4. Values and Morals: ----------------------
People who value ma¬terial possessions in life may not have strong ----------------------
ethical standards regarding behaviours that lead to accumulation of personal
----------------------
wealth. On the other hand, people who place a premium on quality of life will
probably have strong ethics while competing with others for var¬ious things in ----------------------
life.
----------------------
Determinant # 5. Threatening Situations:
An employee threatened with losing a permanent job may resort to ----------------------
unethical acts to save his job. To meet pre-determined targets, many Bank ----------------------
managers sanction loans to individuals with practically no creditworthiness.
A housewife may practically beat a thief to death, when threatened with the ----------------------
prospect of losing her ornaments or child. Situations like these, force people to
----------------------
change their ethics and respond in an unexpected manner.
Determinant # 6. Organisational Demands: ----------------------
There is growing research evidence to show that managers at top, ----------------------

middle and first level have compromised their personal princi¬ples to meet an
----------------------
organisational demand. Corporate goals are paramount and ex¬ert considerable
pressure on executives to change their ethical views. ----------------------
Determinant # 7. Legislation: ----------------------
Laws are generally passed in response to social demands. Factors, such as
----------------------
low ethical standards, corruption in public life, absence of social respon¬sibility,
exploitation, sexual harassment, etc., often force people to demand leg¬islative ----------------------
protection. A practice can be made illegal, if society views it as being unethical.
For example, if contributions to political parties by companies are being viewed ----------------------
as excessive and unethical, the practice can be banned. ----------------------
Determinant # 8. Government Rules and Regulations:
----------------------
Government regulation regarding prod¬uct safety, working condition,
statutory warnings (on cigarettes and other harm¬ful products), etc., are all ----------------------
supported by laws. These offer guidelines to managers in determining what are ----------------------
the acceptable standards and practices.
----------------------

Notes Determinant # 9. Industry and Company Ethical Codes of Behaviour:
Many times specific guidelines are provided to managers by the company’s
----------------------
ethical codes of behav¬iour. One important question in such cases is whether
---------------------- individuals within the organisations are really governed by the code of ethics or
provide only lip service to the guidelines.
----------------------
Determinant # 10. Social Pressures:
---------------------- Social forces and pres¬sures have considerable influence on ethics in business.
Society, in the recent past, has demonstrated how a special status can be
----------------------
conferred on backward castes; boycotted products, and severe action to prevent
---------------------- the construction of nuclear power plants. Such actions by different groups in
society may, in fact, force management to alter certain de-cisions by taking a
---------------------- broader view of the environment and the needs of society.
---------------------- 13.5.5 Benefits of Ethics in Management
---------------------- Many people are used to reading or hearing of the moral benefits of
attention to business ethics. However, there are other types of benefits, as well.
---------------------- The following list describes various types of benefits from managing ethics in
the workplace.
----------------------
1. Attention to business ethics has substantially improved society.
---------------------- 2. Ethics program help maintain moral course in turbulent times.
---------------------- 3. Ethics programs cultivate strong teamwork and productivity.
4. Ethics program support employee growth and meaning.
----------------------
5. Ethics programs are an insurance policy they help ensure that organisational
---------------------- policies are legal.
---------------------- 6. Ethics programs help avoid criminal acts ’of omission’ and can lower
fines.
---------------------- 7. Ethics programs help manage values associated with quality management,
---------------------- Strategic planning and diversity management this benefit needs far more
attention.
---------------------- 8. Ethics programs promote a strong public image.
---------------------- Connection between business ethics practiced by companies and their
performance
----------------------
As per the New York City think tank, Ethisphere Institute, All 135
---------------------- companies, which recently made the final cut into the list of the World’s Most
Ethical Companies in 2021, have shown stunning growth in their profit numbers.
----------------------
A look at the list, which represents companies from 22 countries and 47
---------------------- industries, reveals that 97 of them are from the U.S., accounting for 72%. India
is represented by three domestic companies—Infosys, Tata Steel, and Wipro.
---------------------- Tata Steel and Wipro were the only two in the previous year’s list.
---------------------- AT&T, Canon, 3M, Dell Technologies, Hewlett Packard, Honeywell, Intel,
IBM, LinkedIn, Microsoft, and Salesforce are among the leading companies
---------------------- from the U.S. featured in the list.

Types of Ethical Issues in Business Notes
●● Discrimination.
----------------------
●● Harassment. ...
●● Unethical Accounting. ... ----------------------
●● Health and Safety. ... ----------------------
●● Abuse of Leadership Authority. ... ----------------------
●● Nepotism and Favoritism. ...
----------------------
●● Privacy. ...
●● Corporate Espionage ----------------------
How to Avoid Ethical Issues in Business ----------------------
●● Create Company Policies
----------------------
●● Monitor Only Pertinent Information on Laptops and Other Devices
----------------------
●● Provide Ongoing Training
●● Require Employees to Sign a Nondisclosure Agreement ----------------------
●● Create a Meritocracy ----------------------
●● Take an Active Role in Daily Activities
----------------------
●● Double Check Your Books on a Regular Basis
Ethical Issues in Business: Few Examples ----------------------
International: ----------------------
●● Enron: Energy company was submitting inaccurate financial statements. ----------------------
Collusion with the accounting firm Arthur Andersen LLP
●● Fox News: just over a year before the #MeToo movement took off. ----------------------
●● Tyson Foods: for not taking steps to protect employees from COVID-19 ----------------------
Sectors: ----------------------
●● Govt. Organisations
----------------------
●● Telecom companies
●● Banks ----------------------
●● Medical ----------------------
●● Education
----------------------
●● Religious Trusts
----------------------
Summary ----------------------
●● This unit discusses various aspects of leadership. The research studies such
as Iowa leadership studies, Ohio leadership studies and early Michigan ----------------------
studies set the stage for the theoretical development of leadership. ----------------------
●● A leader requires technical, human and conceptual skills. As one goes up
the organizational hierarchy one requires less and less of the technical ----------------------

Notes skill and more and more of conceptual skills. However, the degree of
human skills remains the same, at whatever hierarchy level one is a leader
---------------------- deals with his followers on the basis of leadership styles.
---------------------- ●● There are different leadership styles: autocratic, participative and free
rein. All these styles have positives as well as negatives.
---------------------- ●● The contingency theory says that effectiveness of a particular style of
---------------------- leadership depends on leader-member relations, the task structure and
the leader position power. When all these are very unfavorable or very
---------------------- favorable to the leader autocratic style of leadership is a good style. When
the situation is mildly favorable or mildly favorable to the leader there is
---------------------- always give and take.
---------------------- ●● Hersey and Blanchard’s approach shows how well managers can match
the appropriate style with the maturity level of the group being led, and
---------------------- Likert’s work has implications for organizational effectiveness. Path-
---------------------- goal leadership theory developed by Robert House considers the effort
performance linkages and performance goals satisfaction linkages.
---------------------- However, path-goal theory is a relatively new and warrants further
research to test its applicability.
----------------------
●● Ethics is the embodiment of moral values, which describes what, is ‘right’
---------------------- and what is ‘wrong’ in human behaviour and what ‘ought to be’. Ethics
implies good character and morality and refers to generally accepted
---------------------- human character and behaviour considered as a desirable by contemporary
society.
----------------------
●● Ethical dilemmas crop up in purchasing departments where strong
---------------------- pressure are felt to obtain the lowest possible prices from suppliers and
where suppliers and where suppliers too feel a similar need to bag lucrative
----------------------
contracts, Bribes, kickbacks and discriminatory pricing are temptations to
---------------------- both the parties.
●● Marketing is another area of the ethics issue. Pricing, promotions,
----------------------
advertising, product information, relations between agencies and their
---------------------- clients and marketing research are potential areas of ethical dilemmas.
Then there is the area of sophisticated communication technology which
---------------------- is grossly abused or misused to realize one’s ambitions.
----------------------
Keywords
----------------------
●● Motivation: The internal condition that activates behaviour and gives it
---------------------- direction.
---------------------- ●● Values: Broad preferences concerning appropriate courses of action or
outcomes. As such, values reflect a person’s sense of right and wrong or
---------------------- what ought to be.
----------------------
----------------------

1. Define Leadership. Distinguish between leadership and management. Notes
2. What is leadership? Why is there a need for leadership? Discuss the
----------------------
different styles of leadership.
3. “Leadership is the driving force, which gets things done by others.” ----------------------
Discuss in detail.
----------------------
4. Explain the different approaches to leadership. Discuss the four systems
by Rensis Likert. ----------------------
5. Discuss the significance of leadership in management. ----------------------
6. Write a short note on effective style of leadership in the Indian context. ----------------------
7. Is leadership situational? Comment with examples.
----------------------
8. Write short notes.
----------------------
a. Leadership continuum
b. Classic studies on leadership ----------------------
----------------------
----------------------
----------------------
Fill in the blanks.
1. The word leadership is sometimes used to indicate that it is an attribute ----------------------
of personality; sometimes it is used as if it was a characteristic of certain ----------------------
positions, and sometimes as an attribute of behaviour.
2. A democratic leader encourages group discussion and decision-making. ----------------------
3. The laissez faire leader essentially provided no leadership. ----------------------

4. The authoritarian leader was very directive and allowed no participation. ----------------------
Match the following. ----------------------
i. a.
----------------------
ii. d.
iii. c. ----------------------
iv. b.
v. f. ----------------------
vi. e.
----------------------
Fill in the blanks. ----------------------
1. Fiedler developed what he called a contingency model of leadership ----------------------

effectiveness.
----------------------
2. Contingency model of leadership effectiveness contained the relationship
between leadership style and the favorableness of the situation. ----------------------

Notes Check you progress 4
----------------------
1. Ethics is a person’s own attitude and beliefs concerning good behaviour.
----------------------
2. There is no corelation between morality and ethics.
---------------------- 3. Accounting standards whose purpose is to establish uniform standards for
---------------------- reporting accounting data leads to no financial frauds.
4. Values, Vision and Mission of the organisation are one and the same.
----------------------
Answers to check your progress 4:
----------------------
True or False
---------------------- 1. True
---------------------- 2. False
---------------------- 3. True
4. False
----------------------

----------------------
1. Aswathappa, K. Essentials of Business Environment. Himalaya Publishing
---------------------- House
2. Stogill, Ralph M. Handbok of Leadership. NY: The free press.
----------------------
3. Tannebaum, Robert and Fred Massarik. ‘Leadership: A frame of
---------------------- reference’in leadership and organization – A Behavioural Science
Approach. McGraw Hill.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Management of Organisational Change
UNIT
Structure:
14
14.1 Introduction
14.2 Forces for Change
14.3 Organisational Resistance to Change
14.4 Planning to overcome Change
Case Study
Summary
Keywords
Self-assessment Questions
Suggested Reading
Management of Organisational Change 259

Notes
Objectives
----------------------
----------------------
●● Explain the importance of organisational change
---------------------- ●● Identify why employees as well as the organizations resist change
---------------------- ●● Narrate the steps in introducing change in the organisation
----------------------
----------------------
14.1 INTRODUCTION
---------------------- We live in an age of transition. One of the few things of real permanence
in our world is change. It has become an inescapable fact of life; a fundamental
---------------------- aspect of historical evolution. The amount of technical information available
doubles every ten years. Change is inevitable in a progressive culture. Change,
---------------------- in fact, is accelerating in our present day society. Revolutions are taking place
---------------------- in political, scientific, technological and institutional areas. Sophisticated
communication capabilities have increased. Telemarketing, ‘robotics’ taking
---------------------- over some jobs currently performed by employees are some examples that bear
testimony of the fast paced, rapidly changing organisation. Pressures for change
---------------------- are created both outside and inside the organisation. In fact an organisation that
---------------------- refuses to adapt and adopt change cannot live longer.
Organisations are, of course, learning to cope with the devastating rate
---------------------- of internal and external changes with the help of some fundamental changes in
---------------------- management philosophy and organisational technology.
Characteristics of organisational change:
----------------------
1. Change basically results from stimuli from both outside and inside the
---------------------- enterprise
---------------------- 2. Change takes place in all organisations but at varying rates of speed and
degrees of significance
----------------------
3. Change takes place in all parts of Organisation but at varying rates of
---------------------- speed and degrees of significance
---------------------- 4. Finally, the enterprise changes in several ways. Its technology may
change; its structure, people, procedures and other elements may change
---------------------- Any alteration that occurs in the overall work environment is called change.
---------------------- Change requires new adjustments and new equilibrium. The nature of work
change is so complicated that the management should gain acceptance for the
---------------------- change, and restore the group equilibrium and personal adjustment that change
upsets.
----------------------
----------------------
----------------------

14.2 FORCES FOR CHANGE Notes
Organisations change because of several reasons, some of which are ----------------------

external to the company and others are internal to it. External reasons are too many
----------------------
and therefore, it is difficult to prepare a comprehensive list of all. Sometimes, even
minor and apparently related changes in the external environment can cause major ----------------------
shifts within the organisations. Some important forces of change are as follows:
----------------------
1. Internal Forces
There are some internal forces that cause change in the organisations. ----------------------
They relate to change in machinery, equipment, methods and procedures, ----------------------
work standards, changes in the structure, changes in authority status, and
responsibility etc. ----------------------
The other forces may be like: ----------------------
a. Employees’ desire to share in decision-making
----------------------
b. Employees’ demands for effective organisational mechanism
----------------------
c. Higher employee expectation for satisfying jobs and work environment
d. Change in the mission or the objectives. This may be occasioned as a ----------------------
result of mergers or amalgamations etc. ----------------------
e. Retirements, transfers or promotions
----------------------
f. Changes in the location of the organisation
----------------------
g. Changes in the work force culture, educational level etc.
h. Change in the top management personnel ----------------------
i. Certain Deficiencies in the Existing System ----------------------
Another associated internal pressure that is instrumental to organisational ----------------------
change is the existence of certain loopholes in the system itself. They may be like
unmanageable spans of control, lack of coordination between the departments, ----------------------
obstacles in communication, multiplicity of meaningless committees, lack of
uniformity in the policies, non-cooperation between line and staff etc. But ----------------------
normally the need for change in such areas goes unrecognized until some major ----------------------
catastrophe occurs. A rational Organisation thinks in terms of change long before
it turns into changed event. ----------------------
2. External forces ----------------------
Outside the Organisation, environmental conditions are becoming less
----------------------
and less stable day by day. They are even becoming turbulent. These
pressures necessitate the Organisation to change and adapt to meet the ----------------------
new demands and requirements. Organisation cannot afford to be rigid
and inflexible in the wake of environmental pressures. They must be ----------------------
dynamic and viable, so that they survive.
----------------------
Organisations are forced most frequently to introduce changes in response
to environmental pressures. Modern manager should be change conscious ----------------------

Notes and operating in the constantly changing environment. Many external
changes bombard the modern Organisation and make change inevitable.
---------------------- Some of these common forces are the rapidly changing technology,
the economic shocks, changing market situations, social and political
---------------------- changes, changing Govt. policies, changes in labour and taxation laws
---------------------- etc. to name a few. Some are discussed below:
a. Technology
----------------------
Technology is the major external pressure of change. It is perhaps the
---------------------- greatest factor that organisation reckons with. The rate of technological
changes is so fast that we have to run to be where we are. Technological
----------------------
changes are creeping in our private lives too. They are also responsible for
---------------------- changing the nature of jobs performed at all levels in the organisations.
Knowledge explosion, more particularly the computer technology
---------------------- and automation have made a remarkable impact on the functioning of
organisation in the recent times. Technology change has always been
----------------------
equated with the progress in society. Today’s technology has outstripped
---------------------- the imaginations of the science fiction writers of a generation ago. Each
technological alternative results in setting into motion a chain of changes.
---------------------- The technology necessitates an organisation to change its process of
manufacturing, make structural changes, make line and staff adjustments
----------------------
etc. Organisations of the day must equip themselves to absorb rapid
---------------------- extensive change in the technology and the need to deal with the great
ambiguity and uncertainty.
----------------------
b. Economic Shocks
---------------------- i. Increase in the purchasing power of the people. This increases the
---------------------- demand for luxury goods. The consumer also becomes quality-
conscious.
---------------------- ii. Export/import policy of the Government
---------------------- iii. Changes in the interest rates
---------------------- iv. The status of the economy
v. The status of money market
----------------------
c. Market Situation
----------------------
Changing market situations is a seemingly ubiquitous phenomenon.
---------------------- The market changes include rapidly changing tests of consumers, needs
and desires of consumers, suppliers, etc. Competition for new products,
---------------------- designs, changes in quality are growing at a terrific pace. In a nutshell
---------------------- the entire complexion of the market is changing. Modern organisations
are functioning in a highly competitive terrain. If they are to survive they
---------------------- must adapt themselves to the change and adopt the change.
---------------------- d. Social and Political Change

Such environmental pressures as social and political change, as well as
----------------------
the relations between government and business also influence results of

organisational efforts. Many new legal provisions get introduced every Notes
time that affects the organisations. Organisational units literally have
no control over these forces but in order to survive they must adapt to ----------------------
changes.
----------------------
Governmental policies requiring taxation, national economy, foreign
relations etc. are also the factors forcing necessity to change on the ----------------------
organisations. Not only has this but the world politics also affected the
----------------------
organisation.
e. Resistance to Change ----------------------
Many times the change is resisted by employees, even if the change is ----------------------
for the benefit of employees and the organisation. Resistance to change is
perhaps one of the baffling problems a manager encounters because it can ----------------------
assume many forms. The effects of resistance may be overt or implicit,
----------------------
may be subtle and cumulative. Implicit resistance may be manifested
in tardiness, loss of motivation to work, increased absenteeism and the ----------------------
requests for transfer etc. Overt resistance, on the other hand, assumes the
form of wildcat strikes, shoddy work, and reduction in productivity etc. ----------------------
Resistance to change may, further, be individual or organisational. ----------------------
Individual resistance may be due to some personal, economic or social
reasons. Organisational resistance on the other hand, generally centers ----------------------
round the structure, organisational constraints, threats to power and ----------------------
influence and finally, and sunk costs.
f. Individual Resistance ----------------------
One aspect of mankind that has remained more or less constant is his ----------------------
innate resistance to change. By its very nature ‘change’ is against the
tendency towards homeostasis. Unfortunately, many a time, managers’ ----------------------
change-efforts in an organisation run in employee resistance to change. It ----------------------
is because almost all people who are affected by change, experience some
sort of emotional turmoil. Further, individual attaches great preference to ----------------------
maintain status quo. Additionally, positive threats from habit or custom,
fear of unknown, the security and attractiveness of familiar, displacement ----------------------
of skills because of the technological advancement are all the conditions ----------------------
favoring the status quo. In fact, there may be near-infinite reasons why
people resist change in organisation. ----------------------
According to Keith Davis, however, the following are the main reasons ----------------------
for resistance to change:
----------------------
i. Economic Reasons
Keith Davis, remarks “people fear technological unemployment, ----------------------
reduced work hours, demotion, reduced wages and reduced ----------------------
incentives and resist change.” One major reason why some people
resist organisational change is that they perceive they will lose ----------------------
something of value as a result. The greater the expected loss the
greater the resistance. People resist change that opens the possibility ----------------------

Notes of lowering their income directly or indirectly. That is to say whenever
the employee perceives the inexorable consequences of change in
---------------------- terms of unfavorable pay, he has the tendency to resist it. Of course,
change resulting in a reduction of pay is a rare phenomenon. Many
---------------------- workers are justifiably afraid of being phased out of their jobs by
---------------------- automation. They resist change, and their resistance to change can
be quite effective.
----------------------
ii. Obsolescence of Skills
---------------------- Sometimes, however, introduction of new technology throws
people away from doing important jobs (or demanding works) to
----------------------
less important or dead-end ones, where less or no skills are required
---------------------- to exhibit. More realistically, when people perceive psychological
degradation of the job they are performing they resist such a change.
----------------------
The rate at which the knowledge is exploding is incredible. As a
---------------------- result, knowledge in any particular field quickly becomes obsolete.
Whenever people sense that new machinery (change) poses a threat
---------------------- of replacing or degrading them they simply resist such a change.
A twenty years’ experienced accountant is quite likely to resist the
----------------------
introduction of a computer for preparing the wage bill because he
---------------------- feels that might affect his position and pay. The introduction of new
methods also throws a need for retraining which an individual hates.
---------------------- This kind of phenomenon is commonly found in those managers
who possess no real marketable skills and whose knowledge is
----------------------
obsolete and out-dated. These people strongly resist change and try
---------------------- their best to maintain status quo.
---------------------- iii. Preference for Status Quo

Perhaps the biggest and the soundest reason for the resistance
---------------------- to change is the preference for status-quo. People have vested
---------------------- interest in the status quo. Change may pose disturbance to the
existing comforts of status quo. Venturing the change may involve
---------------------- uncertainty and risk, may be at the cost of the convenience and
happiness of the employees. Most of the people are comfortable
---------------------- with status quo and strongly resist change. It is because people
---------------------- typically develop patterns for coping with or managing the current
structure and situation.
---------------------- iv. Fear of the unknown
---------------------- Change presents unknown, which causes anxiety. Whenever people
do not know exactly what is likely to happen they are likely to
----------------------
resist it. The unknown poses a constant threat. People change and
---------------------- its consequences. Uncertainty in the situation arises not from the
change itself, but from the consequences surrounding change. To
---------------------- avoid making decision and fear of unknown, people may refuse
promotion entailing transfer. Further any gap in the information
----------------------

renders the mind of the employee wandering over uncertainty about Notes
the future and he thinks the better way would be to oppose change.
----------------------
v. Social Reasons
Economic and personal reasons for the resistance apart, some ----------------------
social reasons may also be accountable for the possible resistance
----------------------
to change. Social displacements and peer pressure are among those
social reasons that are very important for the manager to consider ----------------------
when dealing with resistance to change.
----------------------
vi. Social Displacements
Introduction of change often results in breaking up of work groups. ----------------------
People in the working environment develop informal relationships. ----------------------
When the friendship with fellow- members is interrupted then there
is a possibility for the employees to experience psychological let ----------------------
down. When the social relationships develop, as normally is the
case, people try to maintain them and fight social displacement by ----------------------
resisting change. ----------------------
vii. Peer Pressure
----------------------
Situations are not rare where individuals are prepared to accept
change at their individual level, but refuse to accept it for the sake ----------------------
of the group.
----------------------
Activity 1 ----------------------
----------------------
‘Change is needed in order to cope with the problems of growth and
competition’. Support your views with suitable examples by interviewing ----------------------
the Managers of Manufacturing and Service Organisation. Compare and
analyse the outcomes. ----------------------
----------------------
14.3 ORGANISATIONAL RESISTANCE TO CHANGE ----------------------
The resistance to change from the organisation comes because of following ----------------------
reasons:
----------------------
1. The structural resistance: Some organisational structures have inbuilt
mechanism for resistance to change. For instance, consider a typically ----------------------
bureaucratic structure where jobs are narrowly defined, lines of authority
are clearly spelled out, the flow of information is stressed from top to ----------------------
bottom. In such organisations the channels of communication make the ----------------------
new idea difficult to travel and eventually it increases the probability that
the new ideal/innovation will be screened out because it is not suitable for ----------------------
the structure of the Organisation.
----------------------
Some organisations are so designed that they resist innovations. For
example, those that perform narrowly prescribed assortment of functions ----------------------

Notes oppose change. They also sometimes create strong defense against
changes.
----------------------
2. Resource constraints: Organisations, many a times, operate under some
---------------------- resource constraints. If the resources with which to operate are available
in abundance, there will be no problem of introducing change. But the
---------------------- necessary financial, material and human resources may not be available
---------------------- to the organisation to make the needed changes.
3. Sunk costs: The plight of some companies is such that the heavy capital is
----------------------
blocked in the fixed or permanent assets. Even though the management in
---------------------- such organisations is convinced of the necessity of change, they may face
resource constraints because of the money already sunk in the purchase
---------------------- of block capital assets.
---------------------- Sunk costs are not restricted to physical things alone. They can be
expressed in terms of people also overcoming resistance to change.
----------------------
4. General Apathy: Apathy is the lack of emotion, motivation or enthusiasm.
---------------------- Apathy is a psychological term for a state of indifference, where an
individual is unresponsive or “indifferent” to aspects of emotional, social
----------------------
or physical life. It is an important organisational resistance to change
---------------------- which is not suitable for any large organization. Mixing with peers is a
good way of keeping oneself enthusiastic and motivated because they can
---------------------- discuss their work amongst themselves. However, organizations, in order
---------------------- to keep their employees active and de-stressed, organise various camps
and provide various recreation facilities to overcome this resistance.
----------------------
The employees’ resistance to change can be overcome by:
---------------------- a. Force field analysis: For every change there are certain forces in
---------------------- favor of the change; there are certain forces against the change. A
manager should analyse the strength of each of these and reduce the
---------------------- strength of the restraining forces and increase the strength of driving
forces. This he can do by proper communication and convincing the
----------------------
people of the necessity of change.
---------------------- b. Communication: It is always desirable that the manager takes
---------------------- people, especially those who are likely to be affected by the
change in confidence before the change is set up. A communication
---------------------- intended to overcome the resistance should have the following
characteristics:
----------------------
i. It should be at an appropriate time.
----------------------
ii. It should be addressed to those who are likely to be affected
---------------------- by the change. If, however, for any reason it is not possible
to communicate to all, at least the people who have influence
----------------------
over the employees should be communicated.
----------------------

iii. Communication should be honest. It should state: Notes
● What change?
----------------------
● Why change?
● How change? ----------------------
● How the change will benefit the organisation?
----------------------
● How the change will benefit the employees?
● How the change will affect an employee? ----------------------
What In order to reduce the rigours of change on employees, the ----------------------
organisation proposes to appeal to all employees to co-operate in setting
up the change, and deciding what management style to use. ----------------------
c. Proper Management Style: The following management styles are ----------------------

available to the manager for overcoming the resistance to change:
----------------------
Negotiations: convincing the employees about the necessity of change.
At this stage, some give-and-take may be required. Participation of the ----------------------
employees in setting up the change. If these fail, forcing the employees to
accept the change. ----------------------
----------------------
----------------------
1. Decentralization of power, team structure, and flattening of the ----------------------
hierarchy are examples of which type of organisational change? ----------------------
i. People change
----------------------
ii. strategic change
iii. structural change ----------------------
iv. technological change
----------------------
2. Exhaustive study of organisational goals, principles, practices and
performance at the macro level: ----------------------
i. Change analysis ----------------------
ii. Diagnosis
----------------------
iii. Organisation analysis
iv. Changing task ----------------------
3. The ______ necessitates an organization to change its process ----------------------
or manufacturing, make structural changes, make line and staff
adjustments etc. ----------------------
i. Economic Shock ----------------------
ii. Market situations
iii. Technology ----------------------
iv. Social and political changes ----------------------

Notes
----------------------
1. A rational organization thinks in terms of change long before it turns
---------------------- into changed event
---------------------- 2. Almost all people who are affected by change, experience some sort of
emotional turmoil.
----------------------
3. People have vested interest in the status quo and change may pose
---------------------- disturbance to the existing comforts of status quo.
----------------------
Activity 2
----------------------
---------------------- Study organisations that are restructured because of Mergers, Acquisition,

Takeover etc. Talk to older employees to find out the difference in the past
---------------------- and present culture.
----------------------
---------------------- 14.4 PLANNING TO OVERCOME CHANGE

---------------------- Management of organisational change is a complex phenomenon involving
formidable exercises on the part of the management. Before a particular change
---------------------- is shaped and implemented effectively in an organisation, certain minimum
---------------------- number of steps need be followed:
1) Recognize the forces demanding change
---------------------- 2) Recognize the need for change
---------------------- 3) Diagnose the problem
4) Plan the change
----------------------
5) Implement the change
---------------------- 6) Follow-up or feedback
---------------------- 1. Recognize the forces demanding change: Whenever a manager intends
introducing change, he should proceed in a logical sequential order.
---------------------- Manager should, first of all, identify the forces demanding change.
Change is the reaction to the pressures created both within and outside
----------------------
the organisation. These forces thus, may be internal or external. The
---------------------- managerial strategy to introduce the change will depend upon the nature
of the change agent as well as the strength of the forces.
----------------------
2. Recognize the Need for Change: All forces certainly do not demand
---------------------- change but some do require careful attention on the part of the
management. Manager should identify the discrepancy between what is
---------------------- and what should be. He must analyze the forces that contribute to this gap
through evaluation or performance reports. Management then must try
----------------------
to separate unnecessary forces and keep a close eye on next step in the
---------------------- process known as diagnosis.

3. Diagnose the Problem: Next observable phase in management of change Notes
is a thorough and careful diagnosis of the problem. This involves the
identification of the root cause. ----------------------
It is advisable that the work of diagnosing the problem be entrusted to ----------------------
an outside consultant. Generally the services of an outsider are useful at this
stage because he is not restrained by the internal inhibitions. He can afford to ----------------------
call a spade. Various diagnostic techniques such as interviews, questionnaires,
----------------------
observation and secondary data/unobtrusive measure, etc., are used in this
stage. The manager or change agent depending on the nature of the problem and ----------------------
capabilities of the enterprise employs these diagnostic techniques.
----------------------
The following table gives a bird’s eye view of the major advantages and
the problems associated with these techniques. ----------------------
After collection and analysis of the data an insider manager is associated
----------------------
with the outsider consultant. The consultant, being an outsider, is unaware of the
organisation culture, climate, traditions etc. This being so the recommendations ----------------------
he gives may not be implementable.
----------------------
The following table provides a bird’s eye view of the various techniques that are
used in diagnosis, their potential benefits and disadvantages. ----------------------
Table 14.1: Techniques used for Diagnosis ----------------------
Method Major advantages Potential problem
Interviews Adaptive - allows data Expensive ----------------------
collection on a range of Interviewer can be biased ----------------------
possible subjects. Source of (for example, he can bias
rich data the responses). Coding/ ----------------------
Emphatic Interpretation problems ----------------------
Builds rapport Self-report basis
----------------------
Questionnaires Responses can be qualified Non-emphatic, Pre-
and easily summarised; determined questions may ----------------------
easy to use with big miss some issues Response-
samples bias may be there ----------------------
relatively in expensive can ----------------------
obtain large volume of data
Observations Collects data on behaviour Interpretation problem ----------------------
rather than reports of the Sampling problems ----------------------
behaviour real-time, not
retrospective, adaptive Observer bias costly exercise ----------------------
Secondary data Non-reactive Access/retrieval possibility
----------------------
unobtrusive Non-response bias High problems. Potential validity
measures face validity Easy for problems. Interpretation ----------------------
qualification problems.
----------------------
Source: David Nadler. “Feedback and Organisation Development using Data-
based methods”. Reading, Addison-Wesley. ----------------------

Notes The breadth of diagnosis depends on the seriousness of the problem.
Sometimes a problem involves only one department or group or individual
---------------------- and hence diagnosis primarily focuses on the particular area. Some
other times, if the problem is deep-seated, then organisational analysis
---------------------- may be called for. Organisation analysis includes exhaustive study of
---------------------- organisational goals, principles, practices and performance at macro
level.
----------------------
The major decision in this phase is whether the stimulus for change should
---------------------- be responded to: Three questions are asked in order to determine this,
viz. What is the problem, as distinct from its symptoms? What should be
---------------------- changed to resolve the problem?
---------------------- What outcomes are expected and how will these outcomes be measured?
By answering these questions organisation becomes aware of the problems
----------------------
that suggest the inadequacy of the preset state. Diagnosis also enables the
---------------------- managers to perceive the gap between desired and actual performance
and take necessary course of action. Without an accurate-diagnosis, a
---------------------- manager can easily get bogged down during the change process with very
costly problems. Having done the diagnosis, a change agent, or manager
----------------------
proceeds to the next phase called planning the change.
---------------------- 4. Plan the Change: The diagnosis would tell the manager if the change has
---------------------- to be adopted; it might also give him a cue as to the manner and the phases
in which it is to be introduced.
---------------------- According to Harold Leavitt “all organisational changes can be classified
---------------------- as change in structure, task, technology or people. Changing structure
involves reorganisation of the departments, re-specification of span of
---------------------- control, decentralization etc. Changing task includes job enrichment, job
specification and specialization and job redefinition or any other changes
---------------------- concerned with the task of employees. Changing technology involves
---------------------- introduction of new lines of production, installing new control system,
instituting new selection and recruitment etc. And finally, changing people
---------------------- comprises of training, meeting, development activities etc.
---------------------- Steps in planning change: Planning is perhaps the most crucial phase
in the management of change. It involves answering three vital problems
---------------------- what, how and when to change. Change agent must consider the following
steps before he plans the change:
----------------------
a. Make clear the need for change or provide a climate in which group
---------------------- members feel free to identify such needs.
---------------------- b. Permit and encourage relevant group participation in clarifying the
needed changes.
----------------------
c. State the objectives to be achieved by proposed changes.
---------------------- d. Establish the broad guidelines for achieving the objectives.
----------------------

e. Leave the details for implementing the proposed changes to the Notes
group in the organisation or to the personnel who will be affected
by change. ----------------------
f. Indicate the benefits or rewards to the individuals or groups that are ----------------------
expected to accrue from the change.
----------------------
g. Keep the promises made to those who made the change.
Selection of appropriate strategy is an essential part of planning. In solving ----------------------
organisational change problem, a manager pursues different strategies
----------------------
differently to solve a wide variety of problems.
5. Implement the Change: Having identified the focal points of ----------------------
concentration, the manager’s immediate job is to implement change. Here ----------------------
he confronts a biggest challenge through resistance by the employees.
Nadler and Tushman assert that any change encounters three problems in ----------------------
implementation. They are resistance, power and control. These problems,
their implications and the various action steps are presented in the table ----------------------
below. ----------------------
Table 14.2: Implementing change
----------------------
Problem Implication Action steps
----------------------
Resistance Need to motivate Participation in change. Change reward
for behaviour in participation in change. ----------------------
Rewards for behaviour in support of change
----------------------
Control Need to manage Use multiple and consistent leverage
the transition points. ----------------------
Develop organisational arrangements for ----------------------
transition.
Build-in feedback mechanisms. ----------------------
Power Need to shape Assure the support of key power groups. ----------------------
the political Use leader behaviour to generate energy
dynamism in support of change. Use symbols and ----------------------
language. Build-in stability. ----------------------
Having taken into account the problems at this stage of implementation of
----------------------
change, the manager can think of implementing change by changing the
structure and or by changing the technology and or by changing people. ----------------------
a. Implement the change by changing structure ----------------------
The changing technology and especially computer has profound
influence on the organisation structure and its employees. It results ----------------------
in more mechanistic organisation structure. Since departments tend ----------------------
to be consolidated, work span is reduced; functional departmentation
replaces divisions, resulting in a centralized control. At the other ----------------------
rungs it results in more routine jobs as well as more automated jobs
in which workers’ interaction is less and infrequent. ----------------------

Notes Structure-focused change efforts changes primarily include:
i) Changing the number of organisational levels
----------------------
ii) Altering the span of management
----------------------
iii) Changing from one base of departmentation to another base
---------------------- iv) Altering the line and staff, and functional authority
---------------------- relationships
b. Implement the change by Changing Technology
----------------------
Automation is the thing in today’s organisations. Also the automation
---------------------- may relate not only to the manufacturing processes but it would
also affect the technology relating to decision making process and
---------------------- other internal processes, practices, procedures etc.
---------------------- Technology focused changes comprise:
---------------------- i) Changing problem solving and decision-making procedures.
---------------------- ii) Introduction of computer to facilitate managerial planning

and control.
---------------------- iii) Converting from unit production to mass production
---------------------- technology.
c.
Implement the change by changing people
----------------------
A change in the organisation requires a corresponding change in
---------------------- the individual’s personality. Changing personality is a challenging
task because the basic personality factors are usually formed and
---------------------- developed in the early childhood of the employee. A commonly
accepted model for bringing about change in people was suggested
----------------------
by Kurt Lewin in terms of three-phase process: unfreezing, moving
---------------------- i.e. changing, refreezing.
Lewin’s model provides a useful vehicle for understanding change
----------------------
process in the organisation:
---------------------- i. Unfreezing
It refers to making individual aware that the present behavior
----------------------
is inappropriate, irrelevant, inadequate and hence unsuitable
---------------------- to the changing demands of the present situation.
Unfreezing is the breaking down of the existing mores, old
---------------------- taboos and traditions, the habitual ways of doing things, so that
---------------------- the people are ready to accept new alternatives. It involves,
discarding the orthodox and conventional methods and
---------------------- introducing a new dynamic behavior that is most appropriate
to the situation.
----------------------
ii. Moving i.e. changing
---------------------- It is the phase where new learning occurs. When the individuals
are convinced that their behaviour is inappropriate they come
---------------------- forward to accept the change.

In order to change, it is not enough to sense that the current Notes
behavior is inadequate. The necessary condition is that various
alternatives of behaviour must also be made available in order ----------------------
to fill the vacuum created by unfreezing phase. During this
phase of ‘changing’, individuals learn to behave in new ways; ----------------------
the individuals are provided with alternatives out of which to ----------------------
choose the best one.
----------------------
Kelman elaborately explains this ‘moving’ phase in terms of
compliance, identification and internalization: ----------------------
Compliance occurs when individuals are forced to change
----------------------
wither by rewards or by punishment.
Internalization occurs when individuals are forced to ----------------------
encounter a situation that calls for new behaviour.
----------------------
Identification occurs when individuals recognize one among
various models provided in the environment, which is most ----------------------
suitable to their personality. ----------------------
iii. Refreezing
----------------------
Refreezing refers to the stage where the change becomes an
integral part of the system. It also refers to discarding the ----------------------
throwing away the old practices, procedures, technology etc.
During this phase individuals internalize the new beliefs, ----------------------
feelings and behavior learned in the ‘changing’ phase. That is ----------------------
to say a person accepts the new behavior as a permanent part
of his behavior. He has to practice and experiment with the ----------------------
new methods of behavior and see that the behavior effectively
blends with his other behavioral attitudes. It is very important ----------------------
for the manager concerned with introducing change to ----------------------
visualize that the new behavior is not extinguished soon.
----------------------
People focused changes can also be made through the
following techniques: ----------------------
i) Sensitivity training
----------------------
iv. Transactional analysis
----------------------
v. Assertiveness training
iv) Team-building workshops ----------------------
v) Job training programs ----------------------

vi) Leadership and supervisory training ----------------------
6. Follow-up on the Change: Management of change is incomplete without
----------------------
proper follow-up. Organisation must evaluate the effects of change.
Objectives must be present and be compared with the performance to see ----------------------
the degree of success in change. End results should be operationally defined
and measurements must be done both before and after the implementation ----------------------

Notes of change. This enables the manager or change agent, to monitor and
evaluate the performance after the introduction of change with the one
---------------------- prior to it. The manager must make sure that the change is implemented
in such a fashion as to maximize the benefits to the organisation.
----------------------

----------------------
Multiple choice Single Response
---------------------- 1. Which of the following refers to making individual aware the present
---------------------- behaviour is inappropriate and hence unsuitable to the changing
demands of the present situation?
---------------------- i. Moving
---------------------- ii. Refreezing
iii. Unfreezing
---------------------- iv. Freezing
---------------------- 2. When individuals are forced to change whether by rewards or by
punishment is termed as:
----------------------
i. Internalisation
---------------------- ii. Resistance
---------------------- iii. Compliance
iv. Identification
----------------------
3. The following refers to the stage where the change becomes an
---------------------- integral part of the system:
i. Moving
----------------------
ii. Unfreezing
---------------------- iii. Refreezing
---------------------- iv. Freezing
4. Mixing with _________ in the organisation is a good way of keeping
----------------------
oneself enthusiastic and motivated.
---------------------- i. Peers
ii. Subordinates
----------------------
iii. Management
---------------------- iv. Superiors
----------------------
---------------------- Activity 3
----------------------
Collect information of the organizations that have witnessed transforma-
---------------------- tions recently in India.
----------------------

CASE STUDY Notes
Legacies of the Dot-Com Revolution ----------------------

Net culture really has changed business. Organisational structure, ----------------------
management style and office dress may never be the same again.
----------------------
Before the rise of the dot-coms, the pecking order at Morrison & Foerster
pretty much resembled that at other high-powered law firms. Senior partners ----------------------
reeled in clients, chatting or gossiping with them up over drinks or on the links.
Young associates holed up at the office, doing the grunt work required to keep ----------------------
clients happy. And that was that. ----------------------
Then a revolution occurred. In the mid-1990s, as Internet startups began
----------------------
sprouting like chanterelles on a dewy log, MoFo’s junior associates started
bringing in business too. Net-company founders wanted to deal with go-getters ----------------------
they’d gone to school with or young attorneys who knew technology. Suddenly,
the unthinkable happened. Freshly minted law-school grads began hobnobbing ----------------------
with CEO clients, developing strategy, and having a say in the direction of the ----------------------
firm. Somewhere along the way, Morrison & Foerster’s buttoned-down New
York branch office went to casual dress every day of the week. ----------------------
Systematic Upheaval ----------------------
“It was sort of the equivalent of lobbing a Molotov cocktail,” says John ----------------------
Delaney, co-chair of Morrison & Foerster’s New Media practice group. “The
system was turned on its head. We realized that if we wanted to work with dot- ----------------------
com entrepreneurs, we would have to start acting more like them.”
----------------------
The Net sector continues to shake out and the firm’s clients have not been
immune. But Delaney thinks the new order of things at MoFo is here to stay. ----------------------
After all, the entrepreneurial spirit that took hold as Net companies flocked to the ----------------------
San Francisco firm has turned out to be good for the bottom line. “The partners
are much more receptive to associates being involved in business development, ----------------------
strategy, and the direction of the firm”, Delaney, 36, says. “It was an awakening,
----------------------
[the idea] that everyone should have the opportunity to bring in business. Although
many dot-coms have fallen by the wayside, I think that lesson has been retained.” ----------------------
It isn’t just law firms that learned from the dot-com era. Net culture has
----------------------
helped transform the workplace in businesses of all shapes and sizes. Consider
Goldman Sachs. The storied Wall Street investment bank finally started letting ----------------------
employees dress down in early 2000, shortly before dot-com fever peaked.
I-bankers at the time were grumbling about having to show up for meetings at ----------------------
dot-coms in pinstripes when their clients were traipsing about in khaki. ----------------------
While a few companies switched back to coat-and-tie attire after dressing
----------------------
casually became confused with dressing crassly, fashion gurus generally believe
most companies will stay the casual course. “Certainly dot-coms have helped loosen ----------------------
dress codes for employers,” says Amy Jones, a spokeswoman for Nordstrom, the
upscale retailer based in laid-back Seattle. “It’s a trend that’s continuing. ----------------------

Notes Radically Accelerated
To be fair, many of the hallmarks of the Net workplace – from tieless dress
----------------------
and funky office space to telecommuting and team-based management – were
---------------------- around well before eBay and Amazon.com. What the Net wave did was spread
these trends to bricks-and- mortar companies – where “they were radically
---------------------- accelerated,” says Haim Mendelson, a management professor at Stanford
University’s Graduate School of Business and co- director of the school’s Center
----------------------
for Electronic Business & Commerce. With the Web, he adds, “we had a chance
---------------------- to try out a lot of things that needed to be tested. Clearly, some trends won’t
survive the test. They’ll disappear along with the notion that growth matters
---------------------- more than profits. With the Nasdaq market – where the fortunes of so many dot-
coms were made and lost, sinking faster than Chairman Greenspan’s reputation
----------------------
for infallibility – many things on the Net have already lost their appeal. In fact,
---------------------- even the “.com” on a company name almost is considered declassé today, with
the online delivery service formerly known as Kozmo.com going so far as to lop
---------------------- off the suffix to become plain old Kozmo.
---------------------- Fads such as the oft-cited staff masseuse – a symbol of dot-com excess
– also will peter out. Likely to fade away as well are the so-called team-
---------------------- building exercises that managers at startups rationalized as necessary to create
esprit de corps among employees who often worked ridiculously long hours.
----------------------
AbsoluteAdventures, a San Francisco company specializing in employee retreats
---------------------- for Silicon Valley’s proletariats during the Net’s spend-now budget-later heyday,
reports that its business of organizing yachting expeditions and snow-mobile
---------------------- treks is half what it was a year ago. “We don’t believe in forced fun,” says
Wayne Willis, CEO of visual search-engine company ditto.com, who echoes the
----------------------
prevailing sentiment. “Forced fun is not fun. We have a holiday party around
---------------------- Christmas and Hanukkah, but that’s about it.”
Boosting Productivity
----------------------
While culture mavens may bicker over whether this or that development
---------------------- will outlive the dot-coms’ rise and fall, there’s wide agreement on one point:
---------------------- Trends with the most staying power are ones that help companies respond better
to the ever-quickening pace of business. There’s also a consensus that changes that
---------------------- give employees more say over their work – what they do, when, and with whom
– will stick. The reason? Experts say that given greater autonomy, employees
---------------------- get more creative, which usually boosts productivity. And most companies like
---------------------- getting more output from their worker bees.
“I think what companies have found is that telecommuting, nonhierarchical
---------------------- management, and so on has enhanced productivity because creative people
---------------------- are motivated intrinsically,” says Richard Florida, a professor of economic
development at Carnegie Mellon University. “You can’t motivate people by
---------------------- telling them what to do”.
---------------------- Thus, the nonhierarchical management style, which was particularly

suited to stretched- thin startups, is gaining traction in executive suites. With
---------------------- the all-hands-on-deck atmosphere at dot-coms, the typical org chart often was

compressed or discarded. Job titles didn’t matter as much as how well someone Notes
could do the job: Net companies often assigned workers to small teams to solve
problems rather than sticking them in functional departments where they had ----------------------
scant interaction with employees in other divisions. “If we’re trying to decide a
sales issue and an engineer has a point of view, we pull him right into the meeting, ----------------------
and he helps us figure out the answer,” says ditto.com’s Willis. ----------------------
Fluidity and Flexibility
----------------------
More companies are likely to go this route, says Stanford’s Mendelson. In a
1995 survey of 64 information-technology companies, he found they lost precious ----------------------
time if they let a decision to shift allocations in their research-and-development
----------------------
budgets cycle through the corporate decision chain. For example, companies on
average took 5.7 weeks if a 10% change in the R&D budget had to be vetted at ----------------------
the corporate level. The same change took 3.1 weeks if it could be approved in
the business unit, and only 1.95 weeks if the head of R&D approved it. “In high ----------------------
tech, products have a very short shelf life,” Mendelson says. “A delay of even
----------------------
one month is a big deal. The dot-com era has highlighted the importance of being
fluid and flexible with a new control structure that isn’t tight and hierarchical.” ----------------------
Part of being fluid and flexible is accepting good ideas whatever their
----------------------
source. Like Morrison & Foerster, many companies are moving away from
structuring management along strict seniority lines and toward giving smart ----------------------
young employees more say. True, Wall Street at the height of dot-com fever may
have thrown far too much cash at callow entrepreneurs – some barely old enough ----------------------
to buy a six-pack. But the fact that the dot-com era allowed so many twenty-
----------------------
somethings to nurture ideas into companies has cast doubt on the argument that
would-be entrepreneurs have to pay dreary dues in order to contribute. . ----------------------
“The dot-coms showed us that young people can have great ideas that can ----------------------
succeed, vs. the old days when all young people had to earn their stripes,” says
Alan Hu, 45, the founder of Collabria, a software company in San Mateo, Calif. ----------------------
“Just because someone is 28 doesn’t mean he or she doesn’t have a good idea.”
----------------------
Rewards vs. Role-Playing
Net culture has also affected how employees regard their jobs. For many, ----------------------
being at a dot- com was more an “experience” than simply a way to get from ----------------------
month to month. In fact, dot-coms encouraged workers by the tens of thousands
to ditch mainstream positions in the quest for more interesting work – and riches. ----------------------
Whatever the reason, each departure from an Old Economy job was an assault
on the notion that a career is a series of better roles in a set profession. Post-Net ----------------------
boom, at least some employees still would rather have jobs that provide rewarding ----------------------
experiences than gigs that place them on a slow track to the top.
----------------------
“I don’t look for jobs,” declares Christie Cunningham, a 26-year-old
Pittsburgh resident who turned down offers from nonprofits and consulting firms ----------------------
to take a position helping to manage new ventures at Venture Beginnings, a Net-
technology company. “I ask myself- what kind of experiences can I build around ----------------------
my core values?’ Cunningham, who has a Master’s in public administration from ----------------------

Notes the University of Pittsburgh, says she sought a role that involved working with
a team and valued creative thought and innovation. “My approach to finding
---------------------- work is more based on experiences and challenge,” she adds. Indeed, Eileen
Appelbaum, research director at the Economic Policy Institute, a Washington
----------------------
think tank, says dot-com culture popularized the notion that jobs could have
---------------------- more of a design-it- yourself quality.
---------------------- Controlling Work

That shift in attitude could be permanent, Appelbaum says. After all, the
----------------------
notion that employees have to report for work at a set place for a set period of
---------------------- time is an artifact of the Industrial Revolution, when workers had to show up
to run assembly lines. As the U.S. continues to migrate from a manufacturing
---------------------- economy to a service one, where and when people put in their hours matters less.
---------------------- “If there’s one thing that will be lasting, it’s the idea that people want to have
more control over their work,” Appelbaum says.
----------------------
For a growing number of Americans, that has meant staying at home,
---------------------- or at least not shuttling to the mother ship every morning (though it also can
mean spending all day at work, then working much of the night at home).
---------------------- Telecommuting predates dot-com mania, but the Net prompted more companies
---------------------- to let employees do their work wherever they wanted. At insurer The St. Paul
Cos., more than 475 employees, or about 5% of the company’s total, don’t have
---------------------- permanent desks. Equipped with cell phones, laptops, and other telecommuting
gadgets, they work out of their homes or in sites spread across the country. “If
----------------------
you focus on results, you can be relatively innovative in terms of the process,”
---------------------- says Diane Cushman, the company’s manager of work/life. “Dot-coms really
stretched this way of thinking.”
----------------------
The change in attitude – abetted by the technology that makes it practical –
---------------------- is now changing work practices at plenty of old-line companies, not only because
it makes employees happier but also because it can save time and money. Houston
----------------------
employees at oil multinational BP can now monitor 24/7 offshore drilling from
---------------------- home on laptops. This spares employees a trip that can take two days, because
they no longer have to travel to a helicopter field, take a chopper flight to rigs
---------------------- more than 100 miles off the coast of Louisiana, and spend time on the structure
---------------------- getting information. It’s all available in real time on the Net. Basically, geologists
and petrophysicists can have a better life while still doing their jobs. “They don’t
---------------------- have to take off their pajamas and go to the office at three in the morning,” says
Hugh Depland, a BP spokesman. “The cost of transportation [to the rig] would
----------------------
pale in comparison to the lost productivity while the worker is traveling from
---------------------- point A to point B.”
Cube Cities
----------------------
While helping create virtual workplaces, dot-coms changed the bricks-and-
---------------------- mortar variety. Open office spaces – cube cities built with zeal by dot-coms – are
---------------------- increasingly becoming the norm. They foster the easy exchange of information,
loosen up the work atmosphere – and often cost less than traditional offices. The
office-as-frat-house, replete with pool tables, will no doubt wane, along with the Notes
dot-com mentality – borrowed from law firms and investment banks – of pulling
all-nighters to get projects done. But a growing number of non-Net companies ----------------------
are dot-commizing their office space – adding features such as couches, gyms,
and health-food bars – as a cheap way to keep their workforces motivated. . ----------------------
“Workplaces were feeling a little bit stodgy before the Internet,” says Lewis ----------------------
J. Goetz, chief executive and president of Group Goetz Architects in Washington,
----------------------
which has designed many interiors for dot-coms.” What the dot-coms did was
bring fun to the workplace. ----------------------
The new glass, steel, and aluminum offices that Goetz’ firm designed
----------------------
for Lucent Technologies in Washington include a coffee bar, a fixture of San
Francisco’s dot-com ghetto. The 80,000-square-foot spread won’t have any game ----------------------
rooms. But reflecting another dot-com influence, the offices will feature bright
colors and plenty of open areas where employee teams can gather. ----------------------
In the dot-com world, employees for whom work became a way of life ----------------------
developed an attitude that “‘our workplace has to adapt more to our values,’”
says Carnegie Mellon’s Florida. “‘We don’t want to check our lives at the door.’” ----------------------
For companies that want to get the most from their employees, that may be the
----------------------
rallying cry of the new millennium.
[Source: Fastcompany.com] ----------------------
----------------------
Summary
----------------------
●● In today’s fast pace of life the only factor that is permanent is the change
itself. An organisation’s ability to manage change decides whether the ----------------------
organisation will prosper or perish.
----------------------
●● A change is any deviation from the set rules, policies, practices and
procedures. ----------------------
●● There are forces that make an organisation to accept, adopt and to adapt to ----------------------
the change. Some of these forces are internal as well as some are external.
----------------------
●● The internal forces for change include change in the mission of an
organisation, which might be occasioned by mergers, amalgamations or ----------------------
take-over. The change in the location, change in the work force, their
aspirations, their education levels etc. also force an organisation change. ----------------------
●● Of the external forces for change, technology occupies a place of ----------------------
prominence.
●● Also, there are other factors in the external environment, which make ----------------------
an organisation change. In a nut shell they are the economic shocks, ----------------------
the changes in the Governmental policies etc. Not only this but also the
relations of the mother country with the other countries and world politics ----------------------
make an organisation change.
----------------------
●● Even though the change is in the interests of the organisation, many a time
the change is resisted by the employees as well as by the organisation. ----------------------

Notes ●● Employees resist change because of the economic reasons or personal
and social reasons. Most importantly, many a times, a change throws
---------------------- up the necessity retraining. Generally people do not like to be retrained.
Because, they take a pride in their existing skills, People also feel that
---------------------- retraining means that their skills are obsolete.
---------------------- ●● An organisation resists change because of the structural inertia, resource
constraints, sunk costs or the general apathy.
----------------------
●● An organisation can overcome the resistance to change by force field
---------------------- analysis, communication, or by negotiations, involving employees in the
process of setting up the change. After the change is introduced there
---------------------- must be a follow up of the change
----------------------
Keywords
----------------------
●● Organisation Change: Company or Organisation going through a
---------------------- transformation. Organization change occurs when business strategies or
---------------------- major sections of an organization are altered; also known as reorganization,
restructuring and turnaround.
---------------------- ●● Change management: It is an approach to shifting/transitioning
---------------------- individuals, teams and organizations from a current state to a desired
future state.
---------------------- ●● Resistance to change: It is the action taken by individuals and groups
---------------------- when they perceive that a change that is occurring as a threat to them. Key
words here are 'perceive' and 'threat'. The threat need not be real or large
---------------------- for resistance to occur.
----------------------
SELF-ASSESSMENT QUESTIONS
----------------------
1. Define Organisational change. What are the internal and external forces
---------------------- causing organisational change?
---------------------- 2. What do you mean by organisational resistance to change?
3. Explain the steps involved, in bringing about an organisational change.
----------------------
Give suitable examples of companies that have undergone technological
---------------------- changes.
4. Write short notes
----------------------
a. Unfreezing
----------------------
b. Force field analysis
---------------------- c. Obsolescence of Skills
----------------------
----------------------
----------------------

Answers to Check your Progress Notes

1. Decentralization of power, team structure and flattening of the hierarchy ----------------------
are examples of which type of organisational change?
----------------------
iii. Structural change
2. Exhaustive study of organisational goals, principles, practices and ----------------------
performance at the macro level:
----------------------
iii. Organisation analysis
----------------------
3. The ______ necessitates an organization to change its process or
manufacturing, make structural changes, make line and staff adjustments ----------------------
etc.
----------------------
iii. Technology
State True or False: ----------------------
1. True ----------------------
2. True ----------------------
3. True ----------------------
----------------------
----------------------
Multiple choice Single Response
1. Which of the following refers to making individual aware the present ----------------------
behaviour is inappropriate and hence unsuitable to the changing demands
----------------------
of the present situation?
iii. Unfreezing ----------------------
2. When individuals are forced to change whether by rewards or by ----------------------
punishment is termed as:
----------------------
iii. Compliance
3. The following refers to the stage where the change becomes an integral ----------------------
part of the system: ----------------------
iii. Refreezing
----------------------
4. Mixing with _________ in the organisation is a good way of keeping
oneself enthusiastic and motivated. ----------------------
i. Peers ----------------------
----------------------
----------------------

Notes
Suggested Reading
----------------------
1. Beer, M. Organisational Change and Development, A system View. Good
---------------------- Year Publishing Company.
2. French and Bell. Organisational Development. Prentice Hall India.
----------------------
3. Moorehead and Griffin. Organisational Behaviour. Jaico Publications.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Organisational Culture
UNIT
Structure:
15
15.1 Introduction
15.2 Development and Levels of Organisational Culture
15.3 Types of Organisational Culture
15.3.1 Performance and Organisational Culture
15.3.2 Benefits of a Strong Organisational Culture
15.4 Managing Cultural Diversity
15.5 How Employees Absorb an Organisational Culture
15.6 Matching People with Cultures
15.7 Concept of Organisational Socialisation
Summary
Key Words
Suggested Reading
Organisational Culture 283

Notes
Objectives
----------------------
----------------------
●● Discuss how organisational cultures are developed, maintained and
---------------------- changed in the corporate world
●● Identify the potential relationships between organisational culture
----------------------
and employee performance
---------------------- ●● List important points for managing cultural diversity
---------------------- ●● State the concept of organisational socialisation
----------------------
15.1 INTRODUCTION
----------------------
Organisational culture is still a controversial and a little understood
---------------------- management concept. However, a lot of research in the area proves that an
inherent relationship exists between organisational culture and people’s behaviour
----------------------
in the organisation. To understand this relationship and then link it back to
---------------------- Organisational Behaviour – understand, predict and control behaviour – is the
purpose of this unit.
----------------------
Organisational culture is a pattern of beliefs and expectations shared by the
---------------------- members of the organisation. These beliefs and expectations produce norms that
powerfully shape the behaviour of individuals and groups in the organisations
---------------------- (Schwartz & Davis).
---------------------- Organisational culture represents a complex pattern of beliefs, expectations,
ideas, values, attitudes and behaviours shared by the members of the organisation.
----------------------
More specifically, organisational culture includes:
---------------------- 1. Routine behaviours when people interact, such as organisational rituals
and ceremonies and the language commonly used.
----------------------
2. The norms that are shared by the teams throughout the organisation, such
---------------------- as “all meetings shall be attended on time”.
---------------------- 3. The dominant values held by the organisation, such as “product quality”
or “price leadership”.
----------------------
4. The philosophy that guides an organisation’s policies towards its
---------------------- employees and customers.
5. The rules of the game for getting along in the organisation or the “ropes”
---------------------- that a newcomer must learn in order to become an accepted member.
---------------------- 6. The feeling or climate conveyed in an organisation by the physical layout
and the way in which managers and employees interact with customers
---------------------- and others outside.
---------------------- None of these components individually represent the culture of the
organisation. They need to be looked at and experienced in combination with
---------------------- one another to give meaning to the concept of organisational culture.

Table 15.1 Characteristics of Organisational Culture Notes
Sr. No Characteristic Function
----------------------
1. Innovation and The degree to which employees are encouraged to
risk-taking be innovative and take risks. ----------------------
2. Attention and The degree to which employees are expected to
detail exhibit precision, analysis and attention to detail. ----------------------
3. Outcome The degree to which management focuses on ----------------------
orientation results or outcome rather than on the techniques
and processes used to achieve the outcome. ----------------------
4. People The degree to which management decisions take ----------------------
orientation into consideration the effect of outcome on people
within the organisation. ----------------------
5. Team The degree to which work activities are organised
----------------------
orientation around teams rather than individuals.
6. Aggressiveness The degree to which people are aggressive and ----------------------
competitive rather than easygoing.
----------------------
7. Stability The degree to which organisational activities
emphasise on maintaining the status quo in ----------------------
contrast to growth.
----------------------
15.2 DEVELOPMENT AND LEVELS OF ----------------------
ORGANISATIONAL CULTURE
----------------------
Organisational culture exists on different levels, which differ in terms of
visibility and resistance to change. ----------------------
The least visible or deepest level is that of basic shared assumptions, which ----------------------
represent beliefs about the organisational purpose of existence.
----------------------
The next level of culture is that of cultural values, which represent collective
beliefs, assumptions and feelings about what things are good, normal, rational, valuable, ----------------------
and so on. These values tend to persist over time even when organisational membership
----------------------
changes.
The next level is that of shared behaviours, including norms, which are more ----------------------
visible and somewhat easier to change than values.
----------------------
The most superficial level of organisational culture consists of symbols. Cultural
symbols are words (jargon or slang), gestures and pictures or other physical objects ----------------------
that carry a particular meaning with the culture. ----------------------
Developing organisational culture
----------------------
An organisational culture is formed in response to the following major
challenges that confront every organisation. ----------------------
1. External adaptation and survival: It has to do with how the organisation will ----------------------
find a niche in and cope with its constantly changing external environment. It
involves addressing the following issues: ----------------------

Notes a. Mission and strategy: Identifying the primary purpose of the
organisation; selecting strategies to pursue this mission.
----------------------
b. Goals: Setting specific targets to achieve.
---------------------- c. Means: Determining how to pursue goals, including selecting an
organisational structure and reward systems.
----------------------
d. Measurement: Establishing criteria to determine how well
---------------------- individuals and teams are accomplishing their goals.
---------------------- 2. Internal integration: It has to do with the establishment and maintenance
of effective working relationships among the members of the organisation.
---------------------- Internal integration involves addressing the following issues:
---------------------- a. Language and concepts: Identifying the methods of communication
and developing a shared meaning for important concepts.
----------------------
b. Group and team boundaries: Establishing criteria for membership
---------------------- in groups and teams.
---------------------- c. Power and status: Determining rules for acquiring, maintaining
and losing power and status.
----------------------
d. Rewards and punishments: Developing systems for encouraging
---------------------- desirable behaviours and discouraging undesirable ones.
---------------------- An organisational culture emerges when members share knowledge and

assumptions as they discover or develop ways of coping with issues of
---------------------- external adaptation and internal integration.
---------------------- The national culture, customs and societal norms of the country also
shape the culture of the organisations operating in it.
---------------------- According to David Drennan, the twelve key causal factors that shape a
---------------------- company’s culture are:
i. Influence of a dominant leader
----------------------
ii. Company history and tradition
----------------------
iii. Technology, products and services
---------------------- iv. The industry and its competition
---------------------- v. Customers
---------------------- vi. Company expectation
vii. Information and control systems
----------------------
viii. Legislation and company environment
----------------------
ix. Procedures and policies
---------------------- x. Reward systems and measurements
---------------------- xi. Organisation and resources
---------------------- xii. Goals, values and beliefs

3. Maintaining organisational culture Notes
The ways in which an organisation functions and is managed may have
both intended and unintended consequences for maintaining and changing ----------------------
organisational culture.
----------------------
One of the most powerful methods of maintaining organisational culture
involves processes and behaviours that managers, individual employees, ----------------------
and teams pay attention to; that is the events that get noticed and commented
on. The ways of dealing with these events send strong messages to the ----------------------
employees on expected behaviours and important approaches.
----------------------
Methods involved in maintaining organisational culture are:
a. Handling crises: The manner in which the crises are dealt with can ----------------------
either reinforce the existing culture or bring out new values and
----------------------
norms that change the culture in some way.
b. Role modelling, teaching and coaching: Aspects of organisational ----------------------
culture are communicated to employees by the way managers
fulfill their roles. In addition, managers and teams may specifically ----------------------
incorporate important cultural messages into training programmes ----------------------
and day-to-day coaching on the job.
c. Allocation of rewards and status: Employees also learn about the ----------------------
organisational culture through its reward systems. What is rewarded
and what is punished convey to employees the priorities and values ----------------------
of both individual managers and the organisation. ----------------------
d. Recruitment, selection, promotion and removal: One of the
fundamental ways in which the organisation maintains its culture ----------------------
is through recruitment. In addition, the criteria used to determine
who is assigned to specific jobs or positions, who gets raises and ----------------------
promotions and why, who is removed from the organisation by ----------------------
firing or early retirement and so on, reinforce and demonstrate
aspects of organisational culture. ----------------------
e. Rites, ceremonies and stories: Rites and ceremonies and rituals
----------------------
are planned activities that have important cultural meaning. Many
of the underlying beliefs and values of an organisation’s culture ----------------------
are expressed as stories that become a part of its folklore. These
stories transmit the existing culture from old to new employees and ----------------------
emphasise important aspects of that culture.
----------------------
4. Changing organisational culture: The same basic methods used to
maintain an organisation’s culture can be used to modify it. Changing ----------------------
organisational culture is difficult primarily because assessing accurately
the existing culture is itself a tough proposition. Most large, complex ----------------------
organisations actually have more than one culture. GE, for example,
has distinctly different cultures in different parts of its multi-divisional, ----------------------
worldwide operations. These multiple cultures are called sub-cultures. ----------------------
Every organisation will have at least three cultures – an operating culture
(line employees), an engineering culture (technical and professional ----------------------
people), and an executive culture (top management) stemming from the
very different views and perceptions held by these groups of people. ----------------------

Notes To successfully change an organisational culture, the following are required:
a. Understanding the old culture first because a new culture can’t be
---------------------- developed unless managers and employees understand where they are
---------------------- starting.
b. Setting realistic goals that impact the bottom line.
----------------------
c. Providing support for employees and teams who have ideas for a better
---------------------- culture and are willing to act on those ideas.
d. Finding the most effective sub-culture in the organisation and using it as
----------------------
an example from which employees can learn.
---------------------- e. Making changes from the top down, so that a consistent message is
delivered from all management team members.
----------------------
f. Including employees in the process – “People support what they help
---------------------- create”.
---------------------- g. Removing all trappings that remind employees of the old culture.
h. Not attacking culture head- on, but finding ways to help employees and
---------------------- teams do their job more effectively.
---------------------- i. Treating the vision of a new culture as a guiding principle for change, not
as a miracle cure.
----------------------
j. Recognising that making significant changes take time.
---------------------- k. Living the new culture because actions speak louder than words.
---------------------- Indeed, any comprehensive change programme in an organisation, in some
sense, is an attempt to change the organisational culture.
----------------------
Resistance to cultural change = Magnitude of change × Strength of the
---------------------- prevailing culture Therefore, cultural change involves tremendous amount of
efforts and time and also needs skillful people to manage this change successfully.
----------------------

---------------------- 1. Organisational culture is a pattern of _________ and __________
shared by members of the organisation.
----------------------
2. Organisational culture includes the philosophy that guides an
---------------------- organisation’s policies towards its ________ and __________.
---------------------- 3. _________ represent collective belief, assumptions and feelings about
what things are good, normal and valuable in the organisation.
----------------------
4. Shared behaviours including _________ are more visible and easier to
---------------------- change then values.
---------------------- 5. _____________ indicates how the orgnisation will find a niche in and
cope with its constantly changing external environment.
----------------------

Notes
Activity 1
----------------------
Resistance to cultural change = Magnitude of change × Strength of the prevailing ----------------------
culture. Try to study the culture of those Indian organizations, which are in
existence for more then 50-60 years in the light of today’s organization ----------------------
culture. Support the equation with explanation.
----------------------
----------------------
15.3 TYPES OF ORGANISATIONAL CULTURE
----------------------
Cultural elements and their relationships create a pattern that is distinct
to an organisation. However, organisational cultures have some common ----------------------
characteristics. In a culturally homogenous organisation like Southwest Airlines,
----------------------
one of the cultures will be predominant. At PepsiCo and other fragmented
organisations, multiple cultures are likely not only to coexist but also to compete ----------------------
for superiority.
----------------------
As is true of organisational designs, different organisational cultures may
be appropriate at different times and situations, with no one type of culture being ----------------------
ideal for every situation.
----------------------
However, some employees prefer one culture to the other. Employees who
work in organisations with culture that fits their own view of an ideal culture tend ----------------------
to be committed to the organisation and optimistic about its future.
----------------------
1. Bureaucratic culture: An organisation that values formality, rules,
standard operating procedures and hierarchical coordination has a ----------------------
bureaucratic culture. Long-term concerns of bureaucracy are predictability,
efficiency and stability. Behavioural norms support formality over ----------------------
informality. Managers view their role as good coordinators, organisers ----------------------
and enforcers of written rules and standards. Tasks, responsibilities and
authority of employees are clearly defined. The organisation’s rules and ----------------------
processes are spelled out in manuals and employees believe their duty is
to follow them. ----------------------
2. Clan culture: Tradition, loyalty, personal commitment, extensive ----------------------

socialisation, teamwork, self-management and social influence are
----------------------
attributes of a clan culture. Its members recognise an obligation
beyond the simple exchange of labour for a salary. They understand ----------------------
that contributions to the organisation exceed beyond the contractual
agreements. Loyalty is rewarded by security. Since the individuals ----------------------
believe that organisation will treat them fairly in all respects and aspects,
----------------------
they hold themselves accountable to the organisation for their actions.
Long-time clan members serve as mentors and role models for the newer ----------------------
members. These relationships perpetuate the organisation’s norms and
values over successive generations of employees. In this type of a culture, ----------------------
members share a sense of pride in membership. They have a strong sense
----------------------
of identification and recognise the interdependence.

Notes Depending on the types of norms, the culture may or may not generate
risk-taking behaviours or innovation.
----------------------
3. Entrepreneurial culture: High levels of risk taking, dynamism and
---------------------- creativity characterise an entrepreneurial culture. There is a commitment
to experimentation, innovation and being on the leading edge. This
---------------------- culture doesn’t just quickly react to change in the environment – it creates
change. Effectiveness means providing new and unique products and
----------------------
rapid growth. Individual initiative, flexibility and freedom foster growth
---------------------- and are encouraged and well rewarded.
4. Market culture: The achievement of measurable and demanding goals,
----------------------
especially those which are financial and market based (for example, sales
---------------------- growth, profitability and market share) characterise a market culture.
Hard-driving competitiveness and profit orientation prevail throughout
---------------------- the organisation.
---------------------- In a market culture, the relationship between an individual and the
organisation is contractual. There is a clear agreement on what one
---------------------- can expect from the other and the formal control orientation is quite
stable. The individual is responsible for some level of performance and
----------------------
the organisation promises a specified level of rewards. However, the
---------------------- organisation does not promise (or imply) security and the individual
does not promise (or imply) loyalty. In this culture, superior’s interaction
---------------------- with subordinates largely consists of negotiating performance – reward
agreements and/or evaluating requests for resource allocation. The
----------------------
absence of a long-term commitment of both the parties results in a weak
---------------------- socialisation process. Social relations among coworkers aren’t officially
emphasised, and few economic incentives are tied to directly cooperating
---------------------- with peers. The pure official relationships shared by the members with
each other may not result in personal network. The market culture is often
----------------------
tied to monthly, quarterly and annual performance goals based on profits.
---------------------- 15.3.1 Performance and Organisational Culture
---------------------- Organisational culture has the potential to enhance organisational
effectiveness, individual satisfaction, the sense of certainty about how problems
---------------------- need to be handled, and so on. However, if the culture gets out of step with the
---------------------- changing expectations of the internal and external stakeholders, the organisation’s
effectiveness can be hindered.
---------------------- An underlying assumption is that an organisation’s culture and its
---------------------- performance is directly related. Thus, the rationale for attempting to change the
culture is to create a more effective organisation.
----------------------
It is observed and also experienced that a strong and well-developed culture
---------------------- is an important characteristic of organisations that have outstanding performance
records. The term “strong culture” implies that most managers and employees
---------------------- share a set of consistent values and methods of doing business and conducting
themselves.
----------------------

15.3.2 Benefits of a Strong Organisational Culture Notes
1. A strong organisational culture facilitates goal alignment. The idea is that
----------------------
because all employees share the same basic assumptions, they can agree
not just on what goal to pursue, but also on the means by which they should ----------------------
be achieved. As a result, employee initiative, energy and enthusiasm are
all channelled in the same direction. In these organisations, there are ----------------------
few problems of coordination and control, communication is quick and
----------------------
effective and resources are not wasted in internal conflicts. All this means
organisational performance is likely to be healthy. ----------------------
2. A strong culture leads to high levels of employee motivation. There
----------------------
are two main arguments here. First, it has been suggested that there is
something intrinsically appealing about the strong cultures that encourage ----------------------
people to identify with them. Second, it is sometimes thought that strong
culture organisations incorporate practices, which make working for ----------------------
them rewarding. These practices tend to include employee participation
----------------------
in decision-making and various recognition schemes.
3. A strong culture is better able to learn from it’s past. The idea is that strong ----------------------
cultures characteristically possess agreed norms of behaviour, integrative
----------------------
rituals and ceremonies and well-known stories. These reinforce consensus
on the interpretation of issues and events based on the past experience, ----------------------
provide precedents from the organisation’s history, which help decide
how to meet the new challenges, and promote self-understanding and ----------------------
social cohesion.
----------------------
Activity 2 ----------------------
----------------------
Visit nearby organizations to identify some of the rites and rituals
that employees believe exist in the organisation they work for such as ----------------------
Vishwakarma pooja, Saraswati pooja, Founder’s day etc. or celebration of
----------------------
specific festivals to sustain culture.
----------------------
----------------------
15.4 MANAGING CULTURAL DIVERSITY
----------------------
Organisations are becoming increasingly diverse in terms of gender, race,
ethnicity and nationality. This growing diversity can bring substantial benefits, ----------------------
such as more successful strategies, improved decision-making and greater
creativity and innovation. ----------------------
However, along with the benefits, cultural diversity also brings with it costs ----------------------
and concerns. These include communication difficulties, intra-organisational
conflicts and turnover. There are no easy answers to managing a culturally ----------------------
diverse workforce. However, research has revealed some common characteristics ----------------------
of employee values, managerial philosophy and organisational culture that are
present in organisations having effective diversity management programmes. ----------------------

Notes Here are some guidelines for managing cultural diversity successfully:
1. Managers and employees must understand that a diverse workforce will
----------------------
embody different perspectives and approaches to work and must truly
---------------------- value variety of opinion and insight.
2. The leadership of the organisation must recognise both the learning
----------------------
opportunities and challenges that this diversity presents to the organisation.
---------------------- 3. The organisational culture must create an expectation of high performance
from everyone.
----------------------
4. The organisational culture must stimulate personal development.
----------------------
5. The organisational culture must encourage openness.
---------------------- 6. The organisational culture must make its members feel valued.
---------------------- 7. The organisation must have a well-articulated and widely understood
mission.
----------------------
8. The organisation must have a relatively non-bureaucratic structure.
----------------------
---------------------- 15.5 HOW EMPLOYEES ABSORB AN

ORGANISATIONAL CULTURE
----------------------
There are four basic points that need to be exercised in order to inculcate
---------------------- a typical organisational culture amongst the employees of the organisation:
---------------------- 1. Stories: Companies usually have impressive stories (history) about its
creation and development. These stories typically contain a narrative of
---------------------- events about the organisation’s founders, rule breaking, rags-to-riches
---------------------- successes, reductions in the workforce, relocation of employees, reactions
to past mistake, and organisational coping. They anchor the present in the
---------------------- past and provide explanations and legitimacy for current practices.
---------------------- 2. Rituals:
a) Repetitive sequences of activities that express and reinforce the key
----------------------
values of the organisation, which goals are most important, which
---------------------- people are important, and which are expendable.
E.g. Work in Maruti Udyog starts every morning with all employees
----------------------
assembling and doing Yoga. Many Public Sector Undertaking
---------------------- felicitate employees for successfully completing every five years of
service
----------------------
3. Perks: Some corporations provide their top executives with a variety of
---------------------- expensive perks, for example, luxuary cars, golf club membership, mid-
level housing, etc. These symbols convey to employees:
----------------------
i. Who is important?
---------------------- ii. What is desired by top management?
---------------------- iii. What kinds of behaviour are appropriate?

4. Language: Many organisations and units use language as a way to Notes
identify members of a culture or subculture. Organisations, over time,
develop unique terms to describe objects, people and events. By learning ----------------------
this language, members attest their acceptance of the culture and help to
preserve it. ----------------------
----------------------
15.6 MATCHING PEOPLE WITH CULTURES
----------------------
Organisations attempt to select new members who fit well with the
organisation’s culture. Most candidates looking for jobs also try to find ----------------------
organisations where their values and personality will fit in. ----------------------
Managers are concerned about how best to manage the culture of their
organizations. Culture is essentially learnt. Organisational members tend to ----------------------
internalize cultural practices and like to indoctorinate newcomers into such ----------------------
mores. Here, sociability and solidarity plays very important role.
----------------------
Goffee Robert and Gereth Jone provided interesting insight into the two
dimensions underlying organizational culture i.e. Sociability and Solidarity. ----------------------
Sociability means:
----------------------
i. A measure of friendliness
ii. People orientation, high team orientation and focus on processes rather ----------------------
than outcome
----------------------
Solidarity means:
----------------------
i. A measure of task orientation
ii. Overlooking personal biases and rallying behind common interests and ----------------------
common goals
----------------------
iii. High attention to detail and high aggressiveness
Goffee Robert and Gereth Jone identified four types of distinct culture: ----------------------
1. Networked culture: ----------------------
i. High on sociability and low on solidarity.
----------------------
ii. Views members as family and friends.
iii. People know and like each other. ----------------------
iv. People willingly give assistance to others and openly share ----------------------
information.
v. Focus on friendship can lead to a tolerance for poor performance ----------------------
and creation of political cliques. ----------------------
2. Mercenary culture
----------------------
i. Low on sociability and high on solidarity.
ii. Goal focused. ----------------------
iii. People are intense and determined to meet goals. ----------------------
iv. Focusing on goal and objectivity leads to minimal degree of politicking.
----------------------
v. The downside is inhuman treatment of low performers.

Notes 3. Fragmented culture
i. Low on sociability and solidarity.
----------------------
ii. Made up of individualists.
---------------------- iii. Little or no identification with the organisation.
iv. Employees are judged solely on their productivity and the quality of
----------------------
their work.
---------------------- v. Lack of collegiality.
---------------------- 4. Communal cultural
i. High on sociability and solidarity.
----------------------
ii. People have a feeling of belonging but there is still a ruthless focus
---------------------- on goal achievement.
iii. Leaders tend to be inspirational and charismatic, with a clear vision
---------------------- of the organisation’s future.
---------------------- iv. The downside is charismatic leaders frequently look to create
disciples rather than followers.
----------------------

---------------------- 1. Which of the following factors do not help in shaping a company’s
culture?
----------------------
i. Company’s history and tradition
---------------------- ii. Influence of dominant leader
iii. Technology, product and service
----------------------
iv. Turnover rate
----------------------
2. Which of the following aspect is not involved in maintaining
---------------------- organisational culture?
i. Changing technology and consumers’ expectations
---------------------- ii. Recruitment, selection, promotion and removal practices
---------------------- iii. Celebrations and ceremonies
iv. Role modelling, teaching and coaching of employees
----------------------
3. Tradition, loyalty, personal commitment, extensive socialisation,
---------------------- teamwork, self- management and social influence are attributes of
which culture?
----------------------
i. Bureaucratic culture
---------------------- ii. Clan culture
---------------------- iii. Entrepreneurial culture
iv. Market culture
----------------------
----------------------

Notes
Activity 3
----------------------
In today’s work environment, should a company try to establish a culture ----------------------
that focuses heavily on employee satisfaction and well-being? What are the
benefits and detriments of doing so? Study the top revenue generating IT / ----------------------
ITES / MNCs in the light of the above.
----------------------
----------------------
15.7 CONCEPT OF ORGANISATIONAL SOCIALISATION
----------------------
The general meaning of socialisation is the process by which an older
member of the society transmits to younger members the social skills and ----------------------
knowledge needed to function effectively in that society.
----------------------
Similarly, organisational socialisation is the systematic process by which an
organisation brings a new employee into its culture. In other words, it involves the ----------------------
transmission of organisational culture from senior to new employees, providing
----------------------
the social skills and knowledge needed to perform the organisational roles and
tasks successfully. ----------------------
It is the process by which the new employee learns the ropes. It includes ----------------------
learning workgroup, departmental and organisational values, rules and procedures
and norms; developing social and working relationships; and developing the ----------------------
competencies needed to perform a job.
----------------------
Summary ----------------------
●● An inherent relationship exists between organisational culture and ----------------------
people’s behaviour in an organisation. Organisational culture is a set of
beliefs and expectations held by the members of an organisation. It is ----------------------
a combination of organisational rituals and ceremonies, organisational
----------------------
norms, organisational values, organisational philosophy and organisational
climate. ----------------------
●● Organisational culture is developed through external adaptation and
----------------------
internal integration. External adaptation involves mission and strategy
of the organisation, goals, means and accomplishment criteria. Internal ----------------------
integration seeks to bring about establishment and maintenance of
effective working relationships among all members through language ----------------------
and concepts of the organisation, group and team boundaries, power and
----------------------
status, rewards and punishments.
●● Organisational culture is maintained through the organisation’s reaction ----------------------
to incidents and crises, role modelling, teaching and coaching, allocation
----------------------
of rewards and status, recruitment, selection, promotion and removal,
rites, ceremonies, and stories of the achievements of the organisation. ----------------------
●● The four main types of organisational culture are: bureaucratic, clan,
----------------------
entrepreneurial and market.

Notes ●● Organisational socialisation is the systematic process by which an
organisation brings a new employee into its culture through stories,
---------------------- rituals, perks and language.
----------------------
Keywords
----------------------
●● Organisational culture: The collective behaviour of humans who are
---------------------- part of an organisation and the meanings that people attach to their actions.
Culture includes the organisational values, visions, norms, working
----------------------
language, systems, symbols, beliefs and habits.
---------------------- ●● Cultural diversity: The quality of diverse or different cultures, as
opposed to monoculture.
----------------------
●● Cultural values: The commonly held standards of what is acceptable
---------------------- or unacceptable, important or unimportant, right or wrong, workable or
unworkable, etc. in a community or society.
----------------------

---------------------- 1. What do you mean by organisational culture? Describe the levels of
organisational culture.
----------------------
2. Describe the various types of corporate culture.
----------------------
3. What do you mean by cultural diversity? Explain in brief.
---------------------- i. Organisational socialisation.
---------------------- ii. Cultural Shock
iii. Entrepreneurial Culture
----------------------

1. Organisational culture is a pattern of belief and expectations shared by
----------------------
members of the organisation.
---------------------- 2. Organisational culture includes the philosophy that guides an organisation’s
---------------------- policies towards its employees and customers.
3. Cultural values represent collective belief, assumptions and feelings
---------------------- about what things are good, normal and valuable in the organisation.
---------------------- 4. Shared behaviours including norms are more visible and easier to change
then values.
----------------------
5. External adaption indicates how the orgnisation will find a niche in and
---------------------- cope with its constantly changing external environment.

Check your Progress 2 Notes
----------------------
1. Which of the following factors do not help in shaping a company’s
culture? ----------------------
iv. Turnover rate ----------------------
2. Which of the following aspect is not involved in maintaining organisational ----------------------
culture?
i. Changing technology and consumers’ expectations ----------------------
3. Tradition, loyalty, personal commitment, extensive socialisation, ----------------------

teamwork, self- management and social influence are attributes of which
culture? ----------------------
i. Clan culture ----------------------
----------------------
Suggested Reading
----------------------
1. Khandwalla, Pradeep N. Organisational Designs for Excellence. Tata
McGraw Hill. ----------------------
2. Kilmann, Ralph H. et al. Issues in Understanding and Changing Culture. ----------------------

California Management Review.
----------------------
3. Robins, Stephen P. Organisational Behaviour. Prentice Hall of India.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
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Workplace Psychology: Understanding human
Behaviour at the Workplace UNIT
Structure:
16
16.1 Introduction
16.2 The Origins of Work Psychology
16.3 Areas of Workplace Psychology
16.4 Incorporating Psychology at Work
16.5 Impact of Good Psychology at Work
16.6 2022 Onwards Workplace Trends: Organizational Experimentation
16.7 What Managers Can Do?
Summary
Key Words
Suggested Reading
Workplace Psychology: Understanding human Behaviour at the Workplace 299

Notes
Objectives
----------------------
----------------------
●● Describe important features of the history of work psychology.
---------------------- ●● Specify the areas covered by work psychologists at workplace.
---------------------- ●● Analyse the impact of workplace psychology on various aspect of
HR functionality
----------------------
●● Assess the impact of good psychology at workplace
----------------------
----------------------
16.1 INTRODUCTION
----------------------
This unit begins with a brief look at the roots and history of work
---------------------- psychology, including the Hawthorne studies which you have studied in
initial units and other key milestones. Attention then turns to modern work
---------------------- psychology: the topics it covers, the relationship between theory and practice,
---------------------- and professional affairs. The issue of whether work psychology is more useful
than so-called common sense is examined. If it is to be useful, work psychology
---------------------- must be based on sound information and appropriate techniques.
---------------------- When we talk about psychology at work, we refer to the application of
psychological principles within the work setting. Studies have shown that using
---------------------- psychology at work can help solve problems and create improvements in the
workplace. Psychology at work is known under many names such as work
----------------------
psychology, industrial organizational psychology, organizational psychology,
---------------------- and the like.
---------------------- 16.2 THE ORIGINS OF WORK PSYCHOLOGY

---------------------- Work psychology has at least two distinct roots. One resides in a pair
---------------------- of traditions that have often been termed ‘fitting the man to the job’ (FMJ)
and ‘fitting the job to the man’ (FJM). The FMJ tradition manifests itself in
---------------------- employee selection, training and vocational guidance. These endeavours have
in common an attempt to achieve an effective match between job and person by
---------------------- concentrating on the latter. The FJM tradition focuses instead on the job; and in
---------------------- particular the design of tasks, equipment and working conditions which suit a
person’ s physical and psychological characteristics.
----------------------
Much early work in these traditions was undertaken in response to the
---------------------- demands of two world wars. In the UK, for example, there was concern about
the adverse consequences of the very long hours worked in ammunitions
---------------------- factories during the First World War and again in the Second World War
(Vernon, 1948). The extensive use of aircraft in the Second World War led to
----------------------
attempts to design cockpits which optimally fitted pilots’ capacities. In both the
---------------------- UK and the USA, the First World War highlighted the need to develop methods

of screening people so that only those suitable for a post were selected for it. Notes
This need was met through the development of tests of ability and personality.
One important source of such work in the UK was the National Institute of ----------------------
Industrial Psychology, which was established by the influential psychologist
C. S. Myers between the two wars, and survived in various forms until 1971. ----------------------
The UK civil service began to employ a considerable number of psychologists ----------------------
after the Second World War. Their brief was, and largely still is, to improve
civil service procedures, particularly in selection. Especially from the 1960s ----------------------
onwards, some other large organizations have also employed psychologists,
and many independent consultants also work in these areas. ----------------------
The FMJ and FJM traditions essentially concern the relationship between ----------------------
individuals and their work. The other root of work psychology can be loosely
----------------------
labelled human relations.
It is concerned with the complex interplay between individuals, groups, ----------------------
organizations and work. It therefore emphasizes social factors at work much
----------------------
more than FMJ and FJM. The importance of human relations was highlighted
in some famous research now known as the Hawthorne experiments. These ----------------------
experiments were conducted at the Hawthorne plant of Western Electric Co.
(USA) between 1927-1932. These experiments were made to find out the effect ----------------------
of working conditions (illumination) on productivity. However, the study failed
----------------------
to establish any relation between the two. So a study was started to find out
some other factors which influenced the output. ----------------------
The main conclusions of these experiments were as under:
----------------------
1. Informal groups. The behaviour of the individual worker is very much
influenced by the informal social groups which are formed amongst them. ----------------------
2. Social factors. This means that an organisation is a social system. Workers ----------------------
are social beings and factors, such as non-economic rewards facilities etc.
have an important impact upon their performance. ----------------------
3. First Line Supervisors. Supervisory climate should be cooperative and ----------------------

friendly. The immediate or first line supervisors hold the key to employees’
morale. ----------------------
4. Communication and feedback. These help in seeking workers’ co- ----------------------

operation in decision-making. Workers must be given a chance to
----------------------
participate in decision-making.
5. Leadership. Democratic leadership helps in getting more productivity. ----------------------
An informal leader can be helpful rather than a formal or autocratic one.
----------------------
6. Pay. Pay or emoluments should be integrated into the social needs of the
employees. ----------------------
7. It is also necessary to recognise the social responsibilities of the business. ----------------------
These experiments were conducted under the leadership of George Elton ----------------------
Mayo of the Harvard Business School.
----------------------

Notes We all have to admit that the workplace can be quite a stressful setting.
Employers search for ways to deal with this stress because it is a crucial part
---------------------- of employee productivity and job satisfaction. Remember, if your workers are
discontented, they may choose not to work as hard as your workers who are
---------------------- satisfied.
---------------------- Moreover, the discontented workers might choose to miss work, resulting
in unscheduled leaves and absences, even calling in sick. You as a business
----------------------
owner can take several steps to improve the inner workings of your current
---------------------- and future employees. When you use psychology at work, you will eventually
see its substantial impact in positively lifting your employees and the general
---------------------- working environment.
---------------------- Note that the application of psychology at work touches many aspects of
the workplace. This unit in particular will discuss psychology at work in terms of
---------------------- how important it is in recruitment, employee training, performance evaluation,
salaries, and productivity and motivation. Afterwards, this section will also
----------------------
focus on impacts of good psychology in the workplace, such as good work
---------------------- outputs, the fit of personnel with the company, performance and engagement,
teamwork/team building, conflict resolution, and creativity and innovation.
----------------------
---------------------- 16.3 AREAS OF WORKPLACE PSYCHOLOGY
---------------------- We use the term work psychology because of its simplicity, and because
to us it encompasses both the individual and organizational levels of analysis.
---------------------- A reading of the previous units should have given you the reasonable idea of
what work psychology is. In order to be more specific, we now list twelve areas
----------------------
in which work psychologists operate as teachers, researchers and consultants.
---------------------- This list is adapted from the British Psychological Society (1986) register of the
Division of Occupational Psychology members.
----------------------
1. Selection and assessment: For all types of job by a variety of methods,
---------------------- including tests and interviews.
2. Training: Identification of training needs; the design, delivery and
----------------------
evaluation of training.
---------------------- 3. Performance appraisal: Identification of key aspects of job performance;
---------------------- design of systems for accurate performance assessment; training in
appraisal techniques.
---------------------- 4. Organizational change and development: Analysis of systems and
---------------------- relationships with a viewto possible change; implementation of any such
change (e.g. new technology).
---------------------- 5. Ergonomics and equipment design: Analysis and design of work equipment
---------------------- and environments to fit human physical and cognitive capabilities.
6. Career choice, development and counselling: Analysis of a person’s
----------------------
abilities, interests and values, and their translation into occupational
---------------------- terms.

7. Interpersonal skills: Identification and development of skills such as Notes
leadership, assertiveness, negotiation, group working and relationships
with other individuals. ----------------------
8. Equal opportunities: Monitoring, and if necessary, enhancing, ----------------------
opportunities for minority groups at work.
----------------------
9. Occupational safety and health: Examination of causes of accidents and
introduction of measures to reduce their frequency of occurrence. ----------------------
10. Work design: Allocation of tasks so that jobs are as satisfying and
----------------------
motivating as possible.
11. Attitude surveys: Design, conduct and analysis of surveys (e.g. by ----------------------
questionnaire or interview) of employee opinions and experiences at ----------------------
work.
12. Well-being and work: Investigation of factors which lead to stress in work ----------------------
and unemployment, and identification of ways to prevent and manage ----------------------
stress.
----------------------
State True or False ----------------------

1. Psychology at work is known under many names such as work ----------------------
psychology, industrial organizational psychology and organizational
psychology. ----------------------
2. Organisation is a social system. Workers are social beings and factors, ----------------------
such as non-economic rewards facilities etc. have an important impact
upon their performance. ----------------------
3. Employers search for ways to deal with workplace stress because it is ----------------------
a crucial part of employee productivity and job satisfaction.
----------------------
----------------------
16.4 INCORPORATING PSYCHOLOGY AT WORK
----------------------
Recruitment
----------------------
Psychology in the workplace can help you indicate the important skills,
educational attainment, and work experience that you would need from your ----------------------
employees. By knowing these characteristics, you can compose the most
suitable job descriptions and advertisements. ----------------------
This also orients your interview process because you can already ----------------------
correctly assess the characteristics you need. The principles of psychology in
the workplace help you understand how to choose particular characteristics ----------------------
from job candidates. At the same time, you are ensured that you are not being ----------------------
discriminatory.
----------------------

Notes Employee Training
Workplace psychology can also help you indicate the possible training
----------------------
needs of your staff. It can also guide you towards delivering on the required
---------------------- training in a manner that is interesting and engaging for your employees.
Note that training in the workplace usually has regulatory / organisational
----------------------
required occupational health and safety training. This is critical if you have a
---------------------- workplace that would need safety precautions, for example. Your employees
should be able to undergo these kinds of required training.
----------------------
Evaluation of Performance
---------------------- It is a standard in workplace psychology to conduct performance appraisals
---------------------- of employees. Performance evaluations were created to offer employees the
feedback and critique on their performance. This feedback and critique must
---------------------- lead to more productivity on the part of your employee.
---------------------- Theoretically, this helps facilitate clear communication lines among you
and your employees and management. Performance evaluation can also help
---------------------- establish professional goals and identify training needs.
---------------------- Salaries/Compensation
Salaries or compensation is a critical portion of employee satisfaction
----------------------
and of course, psychology at work. Incorporate psychology at work when you
---------------------- create a compensation strategy. This is especially important when you want to
pay based on performance.
----------------------
Productivity and Motivation
---------------------- Studies have indicated that increased employee motivation usually
results in more productivity. The reverse – that higher productivity leads to
----------------------
more employee motivation – is also true. Psychology at work underscores
---------------------- those techniques such as performance appraisals, contests, commission pay
(if applicable), and sales quotas (if also applicable) may enhance motivation
---------------------- generally, resulting in higher productivity.
---------------------- Eliminating Intimidation. No matter what the business environment may
be, employees are always the most significant asset of a company. The present
---------------------- economic environment and the tight job markets have actually raised the stress
---------------------- of employees at work. Some employers are using this negative downturn to
their advantage – through intimidation or uncertainty to trigger productivity.
---------------------- However, this is only good in the short run. Many academicians have actually
warned against using intimidation to motivate staff.
----------------------
Based on a number of reports, employees who are satisfied, happy, and
---------------------- find value at work usually do better than those who are overlooked or disgruntled
over their work situations. Because of these reports, many company decision
---------------------- makers implement positive psychology tactics in the workplace. Although some
---------------------- of these tactics would need professionals, most of them can be accomplished by
anyone, within any company set-up.
----------------------

Creating Happy Employees for Better Productivity and Innovativeness. Notes
What drives positive psychology in the workplace is the belief that employees
who are happier produce more, are increasingly innovative, and contribute ----------------------
towards a more pleasing work setting. Many psychology professional suggest
wide-ranging staff trainings as well as retreats prior to implementing a positivity ----------------------
campaign. Initiating this positive campaign does not need to be overarching nor ----------------------
dramatic. Business leaders, who take it one day at a time by introducing small
initiatives every week, customarily achieve solid results through the span of a ----------------------
year.
----------------------
Showing Gratitude. Obviously, employees can feel motivation based
on many things. However, all employees need praise and recognition. By ----------------------
committing to showing gratitude in the workplace, you are able to focus on the
encouraging things in your life and you can persuade your employees to do the ----------------------
same. ----------------------
In an ideal world, your thankfulness should be introduced by yourself, your
supervisors, or your managers. However, this must be done subtly. By forcing ----------------------
your employees to say things that they are grateful for or to say something ----------------------
positive about a peer, can appear insincere. A manager who habitually sends
an email a day that recognizes a person’s contributions or company leaders ----------------------
who begin meetings by concentrating on exceptional contributions or positive
developments, typically find that a positive feel follows almost naturally. The ----------------------
feeling of appreciation, as the experts state, normally is the first step towards ----------------------
true satisfaction.
If you have a business that takes a positive working atmosphere seriously, ----------------------
you should think of employing a “happiness trainer” for your retreats, seminars, ----------------------
or regular counseling. Note that the techniques of these trainers are different
from the typical skills coaches. Happiness trainers use psychological research as ----------------------
well as ancient traditions to teach employees thankfulness, peace, kindness, and
strength in facing adversity. These are all important in the current workplace. ----------------------
You should note, however, that hiring happiness trainers could be expensive, at ----------------------
least in the beginning. However, if the techniques they teach your business stay
on permanently in your head and in your employees’ heads, your company can ----------------------
see the improvements flourish.
----------------------
Embracing Creativity, Change, and Innovativeness. Many, if not all,
businesses need some kind of employee innovation or creativity. Whenever ----------------------
employees are given the opportunity to offer their thoughts, new products and
services crop up; business processes become streamlined; and communication ----------------------
lines get clearer. In addition, workers whose voices are heard are happier in
----------------------
general.
Even though it might seem ambiguous to encourage creativity, it all begins ----------------------
with simple communication. Mention to your employees that you want to hear ----------------------
their ideas. Of course, give them ample space and time to get their creative juices
started. Psychology Today actually recommends that you give them around 30 ----------------------
minutes of time to brainstorm and explore their thoughts. Creativity should be
valued no matter where, when, or how the ideas come about. ----------------------

Notes Introducing Health and Wellness Activities. It has been proven that
physical activities reduce stress. Businesses that incorporate exercise and
---------------------- fitness in their company benefits usually register higher employee satisfaction
of their work-life balance. For a few businesses, this can be as straightforward
---------------------- as providing gym memberships at a discounted price or sponsoring wellness
fairs in your office.
----------------------
In order to feel the full benefits of wellness when it deals with everyday
---------------------- psychology, many companies are improving their situations by making sure
health is available at their offices. This encourages employees to have short
----------------------
workouts even while working. There have been universities that have researched
---------------------- the advantages of having low-impact meditation or yoga in business settings.
More often than not, participating in these activities do not even need a change
---------------------- of clothes.
---------------------- There was once a 2009 yoga and meditation test group in the workplace
and the results were very positive. Actually, the averages show that mindfulness
---------------------- was raised by 9.7% and perceived stress went down by 11%, for the group
that received the intervention. The participants also said that they feel asleep
---------------------- quicker, had fewer disturbances during sleep, and had less dysfunction during
---------------------- the day.
Note that this is in comparison with the group that had no intervention.
---------------------- There seems to be credence to these numbers, no matter what kind of intervention
---------------------- or exercise is sponsored by a company. There was also a 2012 CNBC report
on wellness programs in the workplace that discovered that employees who
---------------------- participated regularly in healthful activities showed the following: 50% were
increasingly more productive; 40% stated they would stay in the company; and
---------------------- 30% reported fewer sick days. The same could be good for your company,
especially if it is part of a larger effort towards employee satisfaction (which is
----------------------
truly at the centre of positive psychology).
---------------------- Enabling Mentoring Programs. For the past decades, employees have
been expected to stay in just one company throughout their careers. However,
----------------------
the workforce of today is increasingly more mobile. Hence, it is currently more
---------------------- important to have positive psychology in the workplace. An employee who
feels that his or her company invested in his or her development and progress
---------------------- is typically more productive and would most probably stay with the company.
---------------------- This is in diametric opposition to someone who only feels like a cog in the
bigger scheme of things. Creating mentoring relationships for new employees
---------------------- is probably one of the best ways to begin this kind of camaraderie between the
company and the employer right from the very start.
----------------------
Management experts have been increasingly seeing that mentoring is
---------------------- not merely one on one, but it is a part of social networking, wherein mentees
receive valuable information through the interaction with many experienced
---------------------- persons. A mentoring relationship shows that an employee can be relaxed and
receive honest critique and feedback. Overall, the mentoring setting is where
----------------------
employees can receive social and psychological support, especially in the face
---------------------- of stressful situations.

Notes
----------------------
Match the following: ----------------------
Organizational change and Analysis of systems and relationships ----------------------
development with a view to possible change; imple-
mentation of any such change ----------------------
Ergonomics and equipment Analysis and design of work equip-
design ment and environments to fit human ----------------------
physical and cognitive capabilities ----------------------
Career choice, development Identification of key aspects of job per-
and counselling formance; design of systems for accu- ----------------------
rate performance assessment; training
in appraisal techniques ----------------------
Interpersonal skills Identification and development of ----------------------
skills such as leadership, assertiveness,
negotiation, group working etc. ----------------------
Analysis of a person’s abilities, inter-
----------------------
ests and values, and their translation
into occupational terms ----------------------
Examination of causes of accidents
and introduction of measures to reduce ----------------------
their frequency of occurrence
----------------------
----------------------
16.5 IMPACT OF GOOD PSYCHOLOGY AT WORK
----------------------
Good Work Outputs
----------------------
One of the most vital features to the success of your company is the
production of high-quality products and services. You would need employees ----------------------
who are highly effective, with good judgment, and high performance. All these
falls under the category of employees that have good work outputs. ----------------------
Good work has been defined by psychologists as of truly high quality, ----------------------
meaningful to the person who accomplishes it, and is socially responsible.
There have been extensive studies at Harvard University on the full nature of ----------------------
good work – how to implement it and how to promote it. These have been many ----------------------
produced publications on the subject of good work. Overall and at any rate,
good psychology in the workplace also produces good work outputs. ----------------------
Fit of Personnel with the Company ----------------------
Selecting the right employees for your business is obviously a pivotal
----------------------
portion of having your company succeed. But whom should you hire? You have
to consider a few factors. This includes their personality, the complementarities ----------------------
of their strengths and capabilities with your business, and their fit with your
company’s strategy, structure, mission, and goals. ----------------------

Notes Businesses have the advantage of much research in positive psychology,
especially as it is connected to job design, strengths, and work identity (as
---------------------- linked to business fit).
---------------------- Employee characteristics derived from good psychology can be pivotal
in decreasing employee turnover. This is important, as high employee turnover
---------------------- can be very expensive to your business because it decreases your intellectual
capital and raises your financial burden.
----------------------
Performance and Engagement
----------------------
One of the main causes of high employee turnover is burnout. Burnout
---------------------- could come from any number of variables, including boredom and stress.
Researchers of psychology in the workplace, particularly positive psychology,
---------------------- have studied a couple of solutions about meaning, engagement, self-efficacy,
and optimal experience.
----------------------
These are all connected to higher job satisfaction, decreased sick leaves,
---------------------- lowered turnover rates, and increased job performance. More research evaluates
---------------------- the characteristics of the job that activates these solutions. It includes topics
such as job crafting and person-job fit. Research that is more recent has shown
---------------------- some factors on what contributes to happiness in a job.
---------------------- Teamwork/Team Building

Since there is a lot of research available out there and the intensity of a
---------------------- lot of projects, teamwork or team building has become typical in the corporate
---------------------- world. Although the effectiveness of a team has been researched throughout the
years, many researchers of psychology at work have been assessing team flow,
---------------------- since research indicates that maximum experiences create better team dynamics
as well as outputs that are more creative.
----------------------
Team flow dynamics, however, are still under research; so many
---------------------- discoveries can still be made. Nevertheless, good psychology at work can
enhance team cohesiveness.
----------------------
Conflict Resolution
----------------------
Although a solution to an employee conflict or concern may appear
---------------------- reasonable to you, this can still be met with resistance from the employee.
If you are bothered by actually resolving conflicts, you may want to hire an
---------------------- organizational psychologist that can assess your particular situation.
---------------------- However, unlike a mediator, a psychologist will not concentrate solely on
the problems, but will incorporate other psychological issues such as the need
---------------------- for dignity, effectiveness, respect, and empowerment.
---------------------- Creativity and Innovation
---------------------- One of the main objectives of the workplace is to create a unique,
competitive, and high-quality product or service. This means that a company
---------------------- must have the ability to establish creativity in order to develop innovations and
value to their end user.
----------------------

Since this is very much a basic contribution to a business’s bottom line, Notes
organizations would have to get the research findings from positive psychologists
who are looking for ways to harness, develop, and apply creativity in the ----------------------
workplace.
----------------------
Current research has assessed the processes wherein group members
can work together that would produce creative work, the characteristics of ----------------------
very creative and field changing persons, and the probability that people may
----------------------
progress towards these characteristics more or less. Thus far, research has
shown that a more positive psychology at work triggers employees’ creativity ----------------------
and innovation.
----------------------
16.6 2022 ONWARDSWORKPLACE TRENDS:
----------------------
ORGANIZATIONAL EXPERIMENTATION
During this transformative time, many organizations plan to expand their ----------------------
hybrid work model, where employees will work on-site in the office some of the ----------------------
time and work remotely some of the time. And while this idea of hybrid work
is gaining widespread traction, it is imperative to understand that not all hybrid ----------------------
workers are the same. Some team members might only work in the office a few
days a month, while others may come in regularly four days a week. While both ----------------------
hybrid workers, their needs vary greatly. ----------------------
At this point, most remote employees have effectively navigated their
home office set-up and have the proper technology in place to productively ----------------------
complete their work. But have organizations successfully developed their ----------------------
hybrid management strategies? For progressive companies, 2022 onwards will
be a time to systematically design and test many of the operational components ----------------------
of their hybrid work system. In addition to determining how their hybrid work
is designed, this could also include management tools, team schedules and ----------------------
meeting protocols. ----------------------
Historically, “management by wandering around” (MBWA) had been a
widely adopted and largely accepted management style. Over the course of the ----------------------
pandemic, as work transitioned from the office to individuals’ homes, leaders ----------------------
could no longer physically see or hear their employees, thus rendering the
MBWA technique obsolete. For the hybrid work model to be both successful ----------------------
and sustainable, organizations must learn how to effectively guide both in-
person and remote workers–simultaneously. ----------------------
Fail Fast. Iterate. Experiment. ----------------------

Whatever process or language an organization chooses, the philosophy ----------------------
remains unchanged and iterative. Strategically try new approaches, then
carefully evaluate, retest, and refine them yields better outcomes more quickly. ----------------------
This experimentation mindset is particularly valuable during times of large
----------------------
uncertainty. Given how rapidly our workplaces have transitioned, this iterative
process could prove useful to help companies transform and produce their best ----------------------
work. Models for this type of reasoning include the scientific method and the
design thinking process. ----------------------

Notes Remote Work Isn’t Going to Fix Work
While some of us have been back to the workplace, either fully or in
----------------------
a hybrid fashion, for a while (and some never left), many organizations are
---------------------- starting to grapple with what it means to “return to work.”
Whether it’s Elon Musk telling people at Tesla that “anyone who wishes to
----------------------
do remote work must be in the office for a minimum (and I mean *minimum*)
---------------------- of 40 hours per week” or quit, or stories of managers taking attendance to ensure
people are keeping their butts in their seats, there are plenty of examples of how
---------------------- not to do management effectively.
---------------------- COVID exposed many things about our lives, including how people feel
about work. It’s no great revelation that many would rather hang out at house or
---------------------- in front of their TV than go into an office every day.
---------------------- However, previously, what may have been unquestioned is now open for
debate. People have options, and they know it. And the manager ignores this
---------------------- newfound awareness at their peril. Sure, people can be replaced. But it’s no
---------------------- secret that the cost of turnover is significant, both in time and money. From the
“great resignation” to the “great burnout,” the work of management just got a
---------------------- whole lot harder.
---------------------- Everybody’s Burned out

It’s easy to focus on remote work as both the problem (for organizations)
---------------------- and the solution (for individuals) to our current work crisis. While many people
---------------------- see the ability to work from anywhere as key to happiness, if organizations only
focus on that, it will not fix our larger issues with work in this country. Whether
---------------------- they’re working from the couch, in a coffee shop, or the office, if your people
are feeling burned out and disconnected from meaning and purpose, they aren’t
---------------------- going to be motivated to do work well.
---------------------- The problem with work isn’t where it’s happening. It’s how it’s expected
to get done. After all, the idea that we’re figuring out how to “bring people back
----------------------
to work” in itself conflates the act of working with the location. People didn’t
---------------------- stop working over the past three years. If anything, lots of people worked even
more. They just did that work from a different place.
----------------------
---------------------- 16.7 WHAT MANAGERS CAN DO?
---------------------- Short of changing society, what can you do as a manager to fix this issue
where you are? Whether you’re considering remote, hybrid, or fully in-person
---------------------- expectations for your workplace, great managers recognize that their people are
people first and employees second. And that means there is a burden of care that
---------------------- you accept when you take on the role of manager. Here are four things you can
---------------------- do to perform that role well.
●● Talk to your people. Your people bring challenges and stresses with
----------------------
them to work every day. Their motivation to work is deeply personal and
---------------------- may or may not align with your own. They have goals and dreams, and

this work may or may not fit into those aspirations. All of this impacts Notes
how they show up and do work every day. And the only way for you to
effectively manage their work, and support their paths, is to get to know ----------------------
them. And that means having intentional, ongoing conversations with
them. Your job as a manager is not to be their therapist or fix everything ----------------------
for them. Your job is to be a decent human being who cares about your ----------------------
people and understands that there aren’t clear lines of separation between
work and life. ----------------------
●● Provide clarity of direction, expectations, and accountability ----------------------
measures. A recent study by McKinsey about the future of work notes
that lack of clarity is a key driver of workers’ anxiety and stress, with ----------------------
nearly 50 percent reporting feeling symptoms of burnout at work. Great
managers provide clear direction for the work, set clear expectations for ----------------------
success, and uphold accountability towards meeting those expectations. ----------------------
You can’t control a global pandemic, societal injustice, or many of the
other external factors impacting your people at this time. You can provide ----------------------
clarity of direction to reduce the amount of uncertainty at work.
----------------------
●● Be flexible and realistic. Look for opportunities to provide increased
flexibility for your people but be realistic and honest about how and where ----------------------
work needs to happen. If your people spend all day managing spreadsheets
and accounts on a computer, do they really need to be in a cubicle all day? ----------------------
Is there value in bringing your people together for community-building ----------------------
and connection, and how can you effectively communicate that? If your
work is service-oriented or people-facing, what are the expectations for ----------------------
people to be in the office, and how can you share the why behind those
expectations? Remote work is just one tool in your toolbox. Recognizing ----------------------
that your people have full lives that don’t neatly fit into 8:00-5:00 work ----------------------
schedules is part of bringing humanity into work.
●● Take care of yourself and ask for what you need. Finally, as you are ----------------------
doing the important work of care and feeding your people, don’t forget ----------------------
about yourself. You role model behavior each and every day, and if
you are working at all hours and to the point of exhaustion, that just ----------------------
communicates that those are the expectations for success for your people,
too. As the saying goes, you need to put your oxygen mask on first before ----------------------
you help others with theirs. Remember why you work. Is it to sacrifice ----------------------
yourself on the altar of exhaustion? Or is it to add real, meaningful value
to yourself and others? Intentionally choose how and why you show up to ----------------------
work every day to motivate your people to do the same.
----------------------
Summary ----------------------
●● Work psychology concerns both the interaction between an individual ----------------------
and their work, and the relationships between people in the work
setting. This includes staff selection, training, vocational guidance, ----------------------
management development, ergonomics, organizational development,
----------------------
equal opportunities and job redesign among other things.

Notes ●● Introducing, enhancing, and improving psychology at work, particularly
employee satisfaction, is straightforward. Small steps and little
---------------------- improvements are typically required to find some kind of improvement in
the overall workplace.
----------------------
●● More often than not, consider that happy feelings are usually contagious.
---------------------- What begins with one person would soon overflow to a different division,
department, floor, etc. Not for long, the whole attitude of the company
---------------------- will alter.
---------------------- ●● Good Psychology at work has impact on work outputs, fit of personnel
with the company, performance and engagement, teamwork and team
---------------------- building, conflict resolution, creativity and innovation.
---------------------- ●● Managers need to talk to people, provide clarity of direction, expectations
and accountability measures and has to be flexible and realistic
----------------------
---------------------- Keywords
---------------------- ●● FMJ: termed ‘fitting the man to the job’ (FMJ)
---------------------- ●● FJM: ‘fitting the job to the man’ (FJM).

●● MBWA: Management by wandering around
----------------------
●● Work psychology concerns both the interaction between an individual
---------------------- and their work, and the relationships between people in the work setting.
----------------------
----------------------
1. Explain the corelation between Howthorne experiments and Workplace
---------------------- Psychology.
---------------------- 2. What were the key findings of Howthorne Experiments?

3. Enlist the areas of HR functionality where workplace psychology is
----------------------
predominantly applicable.
---------------------- 4. How workplace psychology helps in create happy employees for better
productivity and innovativeness.
----------------------
5. Discuss the significance of workplace psychology post pandemic.
----------------------
6. How managers can influence the employees at workplace
----------------------
Answers to Check your Progress 1
----------------------
----------------------
1. True
----------------------
2. True
---------------------- 3. True
----------------------

Answers to Check your Progress 2 Notes
----------------------
1. Organizational change and development: Analysis of systems and
relationships with a view to possible change; implementation of any such ----------------------
change (e.g. new technology).
----------------------
2. Ergonomics and equipment design: Analysis and design of work equipment
and environments to fit human physical and cognitive capabilities. ----------------------
3. Career choice, development and counselling: Analysis of a person’s ----------------------
abilities, interests and values, and their translation into occupational
terms. ----------------------
4. Interpersonal skills: Identification and development of skills such as ----------------------
leadership, assertiveness, negotiation, group working and relationships
with other individuals. ----------------------
----------------------
Suggested Reading
----------------------
●● Influence: The Psychology of Persuasion by Robert Cialdini
----------------------
●● Made to Stick: Why Some Ideas Survive and Others Die by Chip Heath
----------------------
●● Drive: The Surprising Truth About What Motivates Us by Daniel Pink
●● The Inner Winner: Performance Psychology Tactics That Give You An ----------------------
Unfair Advantage by Simone Hazeldine
----------------------
●● Emotional Intelligence: Why It Can Matter More Than IQ by Daniel
Goleman ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
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Organisational Power and Politics
UNIT
Structure:
17
17.1 Introduction
17.2 Dependency Theory of Power
17.3 Dependency, Power and Bargaining Outcomes
17.4 Bases and Sources of Power
17.5 Effective use of Power
17.6 Political Behaviour and Organisational Politics
17.7 Personality and Political Behaviour
Case Study
Summary
Key Words
Suggested Reading
Organisational Power and Politics 315

Notes
Objectives
----------------------
----------------------
●● Define power and explain the theory of dependency
---------------------- ●● Identify various sources of power in an organisation
---------------------- ●● Differentiate between effective and ineffective use of power
●● Determine the phenomenon of organisational politics
----------------------
●● Identify some personality factors which lead to political behaviour
---------------------- in an organisational setting
----------------------
17.1 INTRODUCTION
----------------------
During discussions of leadership, the question often arises: “Why or how
---------------------- are leaders able to get followers to follow?” We have already discussed the notion
that followers follow if they perceive the leader to be in a position to satisfy their
----------------------
needs. However, our discussion also includes frequent reference to the concept
---------------------- of “power”. So, what is power?
Definitions of power abound. German sociologist, Max Weber, defined
----------------------
power as “the probability that one actor within a social relationship will be in a
---------------------- position to carry out his own will despite resistance.” Along similar lines, Emerson
suggests, “the power of actor A over actor B is the amount of resistance on the
---------------------- part of B which can be potentially overcome by A.” Power appears to involve one
person changing the behaviour of one or more other individuals particularly if
----------------------
that behaviour would not have taken place otherwise. Power refers to A’s ability
---------------------- to influence B, not A’s right to do so; no right is implied in the concept of power.
---------------------- A related concept is authority. Authority does represent the right to expect
or secure compliance; authority is backed by legitimacy.
---------------------- For purposes of differentiating between power and authority, let us
---------------------- examine the relationship between the manager of a sawmill and her subordinates.
Presumably, the manager has the authority – the right – to request that the sawyer
---------------------- cut lumber to certain specifications. On the other hand, the manager would not
have the right to request that the sawyer wash her car. However, that sawyer
---------------------- may well accede to her request that he washes her car. Why? It is possible that
---------------------- the sawyer responds to the power that the manager has over him — the ability
to influence his behaviour.
---------------------- People continually attempt to influence the behaviour of others in the
---------------------- normal course of everyday living. Also, people attempt to punish undesirable
behaviour (perhaps in a subtle way) so that it will not be repeated. The behaviours
---------------------- of people at work are no different in this respect than the behaviours of people
in general.
----------------------
----------------------

Power relationships are the medium within which business is conducted. Notes
Power issues in organisations often focus on interpersonal relationships between
members of the organisation. ----------------------
----------------------
17.2 DEPENDENCY THEORY OF POWER
----------------------
It appears reasonable to assume that if a given behaviour is not something
the employees would voluntarily engage in, then efforts by someone else to ----------------------
engage them in that behaviour would be met with resistance.
----------------------
Any discussion of power begs the question: “Where does this ability to
influence another’s behaviour come from?” ----------------------
While much of the literature on power appears to concentrate on the ----------------------

exercise of power by some party, it may be equally useful to ask how people
----------------------
respond to someone else’s exercise of power. People are not by nature compliant.
It appears reasonable to assume that, if a given behaviour is not something they ----------------------
would voluntarily engage in, then efforts by someone else to engage them in that
behaviour would be met with resistance. ----------------------
Recent research has focused on the attempts people make to nullify or ----------------------
moderate the extent to which such influence is successful. In other words, the
question being asked is: “What can account for people’s abilities to resist attempts ----------------------
at influence?” The answer appears to lie in dependency. ----------------------
Actor A will have power over actor B if actor B is dependent on actor A.
----------------------
This leads to the question: “What can account for this dependence?” In a general
sense, we can conclude that dependency is related to resources. We use the term ----------------------
“resources” in a rather broad sense.
----------------------
For actor A to have power, the resources he/she controls must meet certain
criteria (note the similarities to basic economic conditions): ----------------------
1. Important: If, for example, money is very important to B, and A is in ----------------------
a position to dispense money, then B is very likely to be open to A’s
influence. ----------------------
2. Scarce: If promotions are unlikely to occur on a frequent basis—they are ----------------------

scarce —then B, wishing to be promoted, may accede to A’s power if it
----------------------
can be shown that A has control over this scarce “resource”.
3. Non-substitutable: If B cannot gain access to a desired resource other ----------------------
than through A, then A has power over B. A salesperson may attempt to ----------------------
gain power over a buyer by claiming that only the product she is offering
can satisfy the client’s needs. ----------------------
The exercise of power need not necessarily be a unilateral act. Both parties ----------------------
to a relationship may have dominion over resources that the other party desires.
----------------------
This conceptualisation of the power relationship between parties is also
useful because it permits us to examine the reciprocal nature of that power. ----------------------

Notes In industrial relations, management, through its inherent right to manage
the enterprise has control over the operation of that enterprise – it controls the job
---------------------- resource. However, the employees, represented by unions, control the resource
of labour. Each of these parties controls some resource that the other requires.
---------------------- Dependency works both ways. Hence, there is reciprocal use of power. What is
---------------------- not clear, in this case, is which party has more power.
The industrial relations example leads us to an examination of the potential
----------------------
behaviours of parties under different conditions of power balance.
---------------------- 1. Consider one extreme; B is significantly dependent on A (A has significant
power over B) and there is no reciprocal or countervailing power. In this
---------------------- case, we would expect B to comply with A’s wishes.
---------------------- 2. If the dependency relationship is more modest, then B might try to bargain
with A.
----------------------
If your boss asked you to work overtime, you might attempt to negotiate a
---------------------- deal whereby you would get compensatory time off at a later date. In this
case, assuming no union, the power balance lies with the boss. However,
---------------------- because she needs you to work (you control a needed resource), you
---------------------- have a degree of power. You are in a position to request a gain—time off
later—because of your power.
---------------------- 3. Where the power distribution is more evenly divided, the parties may be
---------------------- inclined to cooperate.
Negotiations over a labour contract may be characterised as cooperation
---------------------- in the sense that the parties work toward some mutual accommodation
over the conditions of their working relationship.
----------------------
4. If B has more power than A, then B may be inclined to fight any attempts
---------------------- by A to influence behaviour.
---------------------- 5. In the event that B’s power is absolute, B may simply ignore A’s attempts
at influence.
----------------------
Companies that have made large contributions to the election campaign
---------------------- of the political party in power may ignore directives from civil servants. For
example, such a company may be faced with a directive to act in a more
---------------------- environment friendly manner. Recognising that the ruling government needs
financing for an upcoming election campaign (the company controls an important
----------------------
resource), the company may decide to ignore the directive.
----------------------
17.3 DEPENDENCY, POWER AND BARGAINING
---------------------- OUTCOMES
---------------------- The Dependency Theory of Power also yields considerable insight into
bargaining strategies. The outcomes of negotiations are determined, in part, by
---------------------- the perceived power balance between the parties involved. The key word in the
previous sentence is “perceived”.
----------------------
Party B’s response to party A’s influence will be a function of party A’s
---------------------- power (the degree to which B is dependent on A). We would expect, for example,

absolute compliance if party A has absolute power over party B. On the other hand, Notes
party B may be expected to ignore party A if party B holds the balance of power.
----------------------
Between these extremes, the relative power position may be more
indeterminate. How can the parties determine the nature of the existing power ----------------------
balance? In most cases, this relative power balance will be a matter on conjecture.
----------------------
Example of Dependency Theory of Power and Bargaining
In this bargaining relationship, party A will try to convince party B that A ----------------------
is more powerful. In other words, A will attempt to convince B that the resources
----------------------
controlled by A are important to B.
Jose, in dire need of a new car (his current car has just broken down and ----------------------
his mechanic informs him that it cannot be repaired), enters the showroom at ----------------------
ACME Motors. As he enters, he is greeted by Barb, ACME’s premier salesperson.
Barb hopes to gain the upper hand –power–in the relationship. Barb asks, “I see ----------------------
you’re walking. I guess your car must be broken down. Will you need a car to
get to work?” ----------------------
Strategy: Try to determine how important the resource is to the other ----------------------
person—how much power you have over the other person?
----------------------
Power is also a function of the scarcity of the resource in question.
----------------------
Jose (an astute Organisational Behaviour student who paid attention during
the lecture on power) recognises Barb’s strategy. If he admits that getting to ----------------------
his job in Maple Ridge from his home in Kerrisdale is difficult without a car,
then Barb will know how important the purchase of a car is to him. She will ----------------------
then know that she has a degree of power in their relationship. Jose says, “My
----------------------
car is in great shape. I’m just shopping around for a car that I might give to my
girlfriend for her birthday.” ----------------------
Barb notices that Jose is attracted to 4X4 pickup truck. She says to Jose,
----------------------
“Those 4X4’s are really popular. If you’re interested in buying one of them,
you’d better act now. The one you’re looking at here is the last one we have in ----------------------
stock. I hear, through the grapevine, that the manufacturer has stopped making
this model. Would you be interested in putting a down payment on this vehicle?” ----------------------
Strategy: Try to convince the other person that the resource they desire is ----------------------
scarce. The scarcer the resource, the more power you have. Scarcity is a matter
of perception. ----------------------
If the resource desired by the other party is non-substitutable, then you ----------------------
have power over that party.
----------------------
Again, Jose sees through Barb’s strategy; she wants him to believe that
the 4X4 he’s been looking at is scarce. In order to restore the power balance ----------------------
Jose responds, “Actually, I happened to see this very model at a dealership in
Maple Ridge.” ----------------------
Barb responds by saying, “There are plenty of dealerships in the ----------------------

metropolitan area selling this brand. However, our dealership is the only one
----------------------
that will give you a 100% service warranty for the first three years that you own

Notes the car. I can say, with considerable pride, that our service department cannot be
equaled anywhere. Yes sir, we’re one of a kind!”
----------------------
Strategy: Try to convince the other person that there is no substitute for
---------------------- the resource they desire.
If what Barb had said about the warranty were true, she would have shifted
----------------------
the relative power balance – the resource Jose desires becomes a non-substitutable
---------------------- commodity. Jose, not sure of his facts, but feeling uncomfortable that the power
balance seems to have shifted, lies, “Oh, come on, I happen to know that the
---------------------- three year warranty is standard with all dealerships selling this brand of car!”
---------------------- The verbal sparring between Barb and Jose continues as they attempt to
establish power in their relationship. The relationship ends when Barb makes the
---------------------- sale or when Jose decides that he will not deal with ACME Motors. The nature
of the deal, if Jose buys, will also be a function of the relative power balance
----------------------
as perceived by Jose and Barb. It is important to note that this is a matter of
---------------------- perception, not reality. Barb, for example, may never know how important the
purchase of a car really was to Jose. On the other hand, Barb may ascertain that
---------------------- Jose is not sure about the warranty issue – she thus convinces him about the
non-substitutability of her resource.
----------------------
---------------------- 17.4 BASES AND SOURCES OF POWER

---------------------- Power is the ability to secure the compliance of others. On what is this
power based?
----------------------
A number of efforts have been made at identifying the types of power.
---------------------- One such classification scheme was proposed by Social Psychologists John R.
P. French and Bertram Raven, who identified the following sources of power.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 17.1 Bases and Sources of Power
----------------------

Where does the power come from? Why can some individuals prevail upon Notes
others in the allocation of resources or in the hiring and promotion of personal
friends? In short, how are some able to acquire power and use it successfully to ----------------------
achieve their own goals? The answer to the above question is that the power can
be derived from interpersonal sources and structural sources. ----------------------
1. Interpersonal Sources of Power ----------------------

i. Coercive power: It is an individual’s ability to influence others’ ----------------------
behaviour by punishing their undesirable behaviour. Punishments
may take the form of reprimands, undesirable work assignments, ----------------------
closer supervision, tighter enforcement of work rules, etc. Coercive
----------------------
power is the capacity to dispense punishments to those who do not
comply with requests or demands. According to Psychologist David ----------------------
Kipnis: “Individuals exercise coercive power through reliance upon
physical strength, verbal facility or the ability to grant or withhold ----------------------
emotional support from others. These bases provide the individual
----------------------
with the means to physically harm, bully, humiliate or deny love to
others.” Examples of coercive power in organisations include the ----------------------
ability (implied or real) to fire, demote and transfer to undesirable
positions or strip subordinates of preferred perquisites. ----------------------
Coercive methods have also been linked to a number of dysfunctional ----------------------
group processes, including (a) dislike and rejection, (b) anger and
reciprocal conflict, (c) revolutionary coalitions, (d) reactance, (e) ----------------------
reductions in intrinsic motivation and (f) self-blame.
----------------------
ii. Reward power: Professor Ram, as an Organisational Behaviour
instructor, has reward power over his students; he can assign grades ----------------------
and determine whether a student acquires the requisite credits to ----------------------
move on in the next semester at the B-school. Students will work
well into the night to finish Organisational Behaviour assignments ----------------------
because of Professor Ram’s reward power.
----------------------
Rewards (reward power) are seen to be effective when employees see
a direct connection between performance and reward (Expectancy ----------------------
Theory of Motivation). However, in most work environments,
managers have limited control over the nature of the rewards ----------------------
granted to employees. ----------------------
iii. Legitimate power: Legitimate power stems from an authority’s
legitimate right to require and demand compliance. For example, ----------------------
legitimate power exists when Srikanth complies with the security ----------------------
person’s request that he will be frisked while entering and exiting
from the organisation’s premises. Srikanth agrees that the security ----------------------
has the right—they have been granted authority to frisk all
employees. Legitimate power depends on the official position held ----------------------
by the person exercising it. Legitimate power may be derived from ----------------------
three sources:
----------------------

Notes ● Prevailing cultural values can assign legitimate power to
some individuals (for example, elders).
----------------------
● Accepted social structure may grant legitimate power to some
---------------------- people (for example, royalty).
● Being promoted into a given position may confer legitimate
----------------------
power.
---------------------- iv. Expert power: Expert power is derived from group members’
assumption that the power holder possesses superior skills and
----------------------
abilities.
---------------------- Lucy, for example, has power over James because of her expertise
---------------------- (relative to his) in an area critical to their team’s success. Presumably,
the business mathematics instructor at a school has power over his
---------------------- students due his expertise in that subject. Frequently, expert power
may be exercised in a rather narrow domain.
----------------------
v. Referent power: Referent power is based on group members’
---------------------- identification with, attraction to, or respect for, the power holder.
As with reference groups, group members gain a sense of intrinsic
---------------------- personal satisfaction from identification with the referent power
---------------------- holder. Charismatic leaders generally possess both legitimate and
referent power.
---------------------- If, for example, Manish looks up to or admires Mahesh, he may follow
---------------------- him because of Mahesh’s personal qualities, characteristics or reputation.
Mahesh uses referent power (also known as charismatic power) to
---------------------- influence Manish.
---------------------- Advertising that uses celebrities is an example of the use of referent
power.
----------------------
2. Structural Sources of Power
---------------------- Organisations have hierarchies, departments, teams and other structures,
---------------------- often each with its own rules as well as the rules that govern the action
within the organisation as a whole. Many people do not know all of these
---------------------- rules, which makes them a source of power for those who care to take
time to learn their detail.
----------------------
Power can also be gained from quoting rules that do not exist or misquoting
---------------------- rules by overstating or understating their meaning. In many organizations,
employees are found to use / misuse the policies, procedures and practices
---------------------- to their benefits. Following points elaborate on structural sources of
---------------------- power:
i. Knowledge as power: Organisations are information processors
---------------------- that must use knowledge to produce goods and services. The
---------------------- concept of knowledge as power means that individuals, teams
or departments that possess knowledge crucial to attainment of
---------------------- organisational goals have power. Those in a position to control

information about current operations develop information about Notes
alternatives or acquire knowledge about future events and plans,
have enormous power to influence the behaviour of others. ----------------------
ii. Resources as power: Organisations need various resources to ----------------------
conduct its operations and achieve its goals. The importance of these
resources and the difficulty of obtaining them vary. The concept of ----------------------
resources as power suggests that those who can provide essential or
----------------------
difficult-to- obtain resources acquire power in the organisation.
iii. Decision-making as power: Decision-making is inherent to any ----------------------
organisation. The decision- making process creates additional
----------------------
power differences. The concept of decision-making as power
recognises that individuals, teams or departments acquire power to ----------------------
the extent that they can affect the decision-making process. They
might influence the goals being developed, premises being used to ----------------------
evaluate an issue, alternatives being considered, outcomes being
----------------------
projected, etc.
iv. Networks as power: The existence of structural and situational ----------------------
power not only depends on access to information, resources and
----------------------
decision-making but also on the ability to get cooperation in
carrying out tasks. Managers and departments that have connecting ----------------------
links with other managers and departments in the organisation will
be more powerful than those who don’t. The concept of networks ----------------------
as power implies that various affiliations, channels of information
----------------------
and coalitions, both inside and outside the organisation, represent
sources of power. ----------------------
----------------------
Fill in the blanks.
----------------------
1. _______ is the capacity to dispense punishments to those who do not
comply with requests or demands. ----------------------
2. _______ stems from an authority’s legitimate right to require and ----------------------
demand compliance.
----------------------
3. _______ derives from group member’s assumption that the power
holder possesses superior skills and abilities. ----------------------
4. Charismatic leaders generally possess both legitimate and _______ ----------------------
power.
----------------------
----------------------
----------------------
----------------------

Notes
Activity 1
----------------------
---------------------- ‘In organizations few people dominate the entire functioning of the
department’. Can you think of examples of interpersonal sources of power
---------------------- in typical IT or projects organizations? Visit such organizations / department
and note down some important aspects to validate this statement.
----------------------
----------------------
17.5 EFFECTIVE USE OF POWER
----------------------
When employees, managers or teams face a situation where they have
---------------------- to influence the behaviours of others, they must choose a strategy. Influence
---------------------- strategies are the methods by which individuals and groups attempt to exert power.
Out of the various strategies discussed below, research shows that rational
----------------------
persuasion, inspirational appeal and consultation are the most effective in a
---------------------- variety of circumstances.
The least effective seem to be pressure, legitimising and coalition. However,
----------------------
to assume that certain strategies will work always and certain will always fail
---------------------- is misleading. More often than not, using various strategies in conjunction
with one another is better than using any of them in isolation. The process is
---------------------- complex and to understand fully the effectiveness of various strategies requires
an understanding of sources of power, the direction of attempts to influence (i.e.,
----------------------
upward, downward or lateral) and the goals being sought.
---------------------- Table 17.1 Making effective use of Power
---------------------- Influence Strategy Decision
---------------------- Rational persuasion Use logical arguments and factual evidence.
---------------------- Inspirational appeal Appeal to values, ideals or aspirations to arouse

Consultation enthusiasm. Seek participation in planning a strategy,
---------------------- Ingratiation activity or change. Attempt to create a favourable
mood before making a request.
----------------------
Exchange Offer an exchange of favours, share of benefits or a
---------------------- promise to reciprocate at a later time.
---------------------- Personal appeal Appeal to feelings of loyalty or friendship.
Coalitions Seek aid or support.
----------------------
Legitimising Seek to establish legitimacy of a request by claiming
---------------------- authority or by verifying consistency with policies,
practices or traditions.
----------------------
Pressure Use demand, threats or persistent reminders.
----------------------
The effective use of power is a difficult challenge for managers and
---------------------- employees alike. The goal is to influence the behaviours of others in ways that are

consistent with both the needs of the organisation and its employees. If the use of Notes
power is not carefully managed, it can be disastrous. This can be dysfunctional
not just in achieving the goals of the organisation but also in terms of infecting ----------------------
the organisational culture and its ability to attract and retain talent.
----------------------
17.6 POLITICAL BEHAVIOUR AND ORGANISATIONAL ----------------------
POLITICS
----------------------
Political behaviour involves actions to influence the behaviour or decisions
----------------------
of others in order to satisfy personal interests, own needs and to advance their
own goals. Labeling behaviour as political generally implies that someone is ----------------------
gaining something at the expense of others or the whole organisation. However,
we need to get a more balanced perspective about political behaviour. ----------------------
Organisational Politics ----------------------
This involves actions by individuals, teams or departments to acquire, ----------------------
develop and use power and other resources in order to obtain preferred outcomes
when uncertainty or disagreement about choices exists. When people share power, ----------------------
but differ about what must be done, many decisions and actions quite naturally
will be the result of a political process. ----------------------
Employees are often concerned about office politics. There is a general ----------------------
understanding that political behaviours are negative and influence the growth
and development of both the individuals and the organisation. There are however ----------------------
researches which prove that this is not entirely true. Politics in organisations can ----------------------
also lead to personal and professional growth, better decisions, recognition for
contributions made by the members of the organisation and giving people what ----------------------
they deserve. It can also lead to achievement of the defined organisational goals.
----------------------
Whether it leads to positive or negative results, it is important for managers
and employees to understand this phenomenon because political behaviour will ----------------------
definitely exist in an organisation. Eliminating political behaviour is not possible,
it can only be managed. ----------------------
Forces creating political behaviour ----------------------

The probability of political behaviour typically increases in proportion to ----------------------
disagreement over goals, unclear goals, different ideas about organisation and
its problems, different information about situation, the need to allocate scarce ----------------------
resources, etc. Thus, political behaviour will naturally occur as individuals,
----------------------
teams and departments will constantly attempt to attain their preferred outcomes.
Managers shouldn’t try to prevent the inevitable but should try to ensure that ----------------------
the outcomes do not lead to negative consequences for the organisation and the
employees. ----------------------
Managers are more likely to act in a political manner when: ----------------------
i. Decision-making procedures and performance measures are ----------------------
uncertain and complex.
ii. Competition for scarce resources is very intense. ----------------------

Notes Even though personality of individuals affects their political behaviours,
more often than not, it is the situation that impacts this phenomenon more than
---------------------- any other factors. Organisations make engaging in political behaviours easier
when they provide few rules and policies. Ambiguous circumstances allow
---------------------- individuals to define situations based on their personal needs and desires. If, for
---------------------- example, performance measures are unclear, a non-performing employee is likely
to blame it on the bad market situation rather than take personal responsibility
---------------------- and work towards improvement.
----------------------
17.7 PERSONALITY AND POLITICAL BEHAVIOUR
----------------------
Research and experience prove that some individuals are more likely to
---------------------- engage in political behaviour than others. Several personality traits are related
to willingness to use power and engage in political behaviour.
----------------------
We will discuss four such personality traits here.
----------------------
1. The need for power: This is the basic desire in an individual to influence
---------------------- and lead others and to control his environment. As a result, individuals with
high needs for power are more likely to engage in political behaviours.
---------------------- Successful managers often have a strong need for power. The desire to
have an impact, to control events and to influence others often is attributed
----------------------
to effective managerial behaviour. However, some aspects of strong need
---------------------- for power may take different forms. The manager might dominate others
and will demand loyalty to self than the organisation.
----------------------
2. Machiavellianism: Machiavellians are people who view and manipulate
---------------------- others for their own purposes. They often are able to influence others,
particularly in face-to- face contacts and tend to initiate and control social
---------------------- interactions. As a result, they tend to be more political in their behaviours.
These people agree with statements like:
----------------------
● The best way to handle people is to tell them what they want to hear.
----------------------
● Anyone who completely trusts others is asking for trouble.
---------------------- ● Never tell anyone the real reason for what you have done, unless it
---------------------- is useful to do so.
● It is wise to flatter important people.
----------------------
3. Locus of control: Locus of control refers to the extent to which individuals
---------------------- believe that they control events that affect them. Individuals with high
internal locus control believe they control their own fate. Individuals with
----------------------
high external locus control believe that powerful others, fate or chance
---------------------- primarily determine what happens to them. Internals are likely to be
more political because they believe they control their own lives and are
---------------------- therefore likely to attempt harder to influence others and assume that their
efforts will be successful.
----------------------
4. Risk-seeking propensity: Individuals differ in their willingness to
---------------------- take risks. Some are risk avoiders and some are risk seekers. Engaging

in political behaviour is not without risks because it can have negative Notes
impacts on the individual, personally and professionally. Therefore, risk
seekers are more likely to engage in political actions than risk avoiders. ----------------------
----------------------
----------------------
----------------------
1. Rational Persuasion uses logical arguments and factual evidence.
----------------------
2. Coalition uses demand, threats or persistent reminders.
3. Ingratiation attempts to create favourable mood before making a ----------------------
request. ----------------------
----------------------
CASE STUDY
----------------------
The New Face of Office Politics ----------------------
Sure, the new world of business values what you know over whom you
know. However, argues influential teacher and consultant John Eldred, you still ----------------------
have to navigate the political realities of your organisation. ----------------------
In the New Economy, many of the basics of traditional business get turned
upside down: bureaucracy gets banished, meetings get reinvented and memos ----------------------
get abolished. But if you think that the rise of fast-paced competition means ----------------------
the demise of organisational politics, well, think again. “Politics is simply how
power gets worked out on a practical, day-to-day basis,” says John Eldred, 56, ----------------------
a teacher and a consultant. “People in organisations demonstrate power in every
conversation, every decision and every interaction.” ----------------------
For 11 years, Eldred has taught “Mastering Organisational Politics and ----------------------
Power,” a popular course that is part of the University of Pennsylvania’s master’s
----------------------
programme in organisational dynamics. He recently added a second course,
“Politics of the Virtual Organisation”. He works with students and with clients ----------------------
of his consulting firm − Transition One Associates − in Ambler, Pennsylvania
which includes managers from labour unions and family businesses as well as ----------------------
from such companies as Bell Atlantic, MCI and Comcast.
----------------------
“The more change there is, the more the political quotient goes up,”
says Eldred. “I try to help people live amid competing agendas and imperfect ----------------------
information. Politics is not about defeating others; it’s really about tapping into
----------------------
possibilities for action that solve problems.”
In an interview with Fast Company, Eldred shared his strategies for ----------------------
becoming a political activist at work.
----------------------
● Isn’t it the promise of the new economy that we can all just get down to
work? ----------------------
----------------------

Notes The biggest political mistake is to assume that organisational politics
doesn’t exist. It’s often a question of language. When we win on an issue,
---------------------- we call it leadership. When we lose, we call it politics.
---------------------- Practicing politics simply means increasing your options for effective
results.
----------------------
● Does politics change in an era of grassroots leadership and distributed
---------------------- organisations?
Only in that it becomes more important. We’re all in free-agent mode now.
----------------------
Work is not so much about “managing” people as it is about guaranteeing
---------------------- the performance of peers and peer organisations on whom you depend.
You need skills in dealing with conflicting agendas, shifting power grids
---------------------- and environmental forces for which you have only partial information.
---------------------- But the ultimate form of politics is what I call “intrapsychic” politics. It
involves knowing who you are, what your goals are and how to handle
---------------------- yourself in the midst of conflict. That kind of knowledge helps you decide
---------------------- which battles are worth fighting.
● Is politics still about power?
----------------------
Politics is a practice. Dealing well with it requires preparation and learned
---------------------- skills. My students keep a weekly journal of moments in their own lives
that have a high political quotient, so they can examine their actions and
---------------------- reactions. What political mistakes did they make? Where did they shut
---------------------- down conversation, and where did they open options for themselves?
Politics also involves skills like networking. You can’t wait until you’re
----------------------
in a bind to create networks. I have my students create two columns on
---------------------- a piece of paper. One is labeled “What I need help on” and the other is
labeled “What I can help others with.” We post everyone’s lists so that
---------------------- students can get and give one another help. Do this at work, and you’ll
learn three things: You don’t really know the people you work with.
----------------------
Everybody has something to contribute. And everybody − even your boss
---------------------- − needs help.
Then it comes down to preparation. A 30-second talk can change the
----------------------
outcome of a situation if you have the right information and skills on hand.
---------------------- A salesman who took my class learned this lesson well. He brought his
regional manager with him to renegotiate a contract with a big customer,
---------------------- who was a tough negotiator with a lot of leverage. They were sitting in this
guy’s office, getting nowhere, when the salesman said to the customer, “I
----------------------
need to speak with my boss. Would you step outside?” He kicked this guy
---------------------- out of his own office!
---------------------- The second the door closed, his boss yelled, “Are you crazy?” The
salesman said, “No, calm down. The only language this guy understands
---------------------- is power. Let’s just sit here for 10 minutes, flip some numbers around, but
keep the offer the same.” He brought the customer back in, told him what
---------------------- they would agree to, and the guy shook on it right there.

● But isn’t that playing the game? What about doing the right thing? Notes
Effective politics is about reaching mature compromises. One of my
----------------------
students is a young manager at a big company. Her boss asked her to
interview a candidate for a new job. When the candidate asked whether ----------------------
the company encouraged trips to conferences, she felt compelled to
respond with an honest answer, which was no. Her boss was irate, and she ----------------------
immediately began defending herself. So what was her political mistake?
----------------------
It wasn’t that she told the truth to the candidate. Rather, she failed to use
her truthfulness in a way that would change her boss’s thinking. ----------------------
In speaking with her boss, she could have said, “That question presented
----------------------
me with a dilemma. Do I tell this hot job candidate a disappointing truth,
or do I paint a rosy picture? How do you think I should have handled it?” ----------------------
Instead of issuing a verdict, you’re asking for help. Politics isn’t about
winning at all costs. It’s about maintaining relationships and getting ----------------------
results at the same time.
----------------------
Summary ----------------------
●● Definitions of power indicate that power is a prerogative by which a ----------------------

person changes the behaviour of one or more individuals regardless of
----------------------
resistance, if any.
●● An individual is able to influence another’s behaviour on the strength of ----------------------
one’s dependency on another. This dependency is related to resources that
are important, scarce and non- substitutable. ----------------------
●● Power is based on interpersonal sources and structural sources. ----------------------
Interpersonal sources are reward power, coercive power, legitimate
power, expert power and referent power. Structural sources are knowledge ----------------------
power, resource power, decision-making power and network power.
----------------------
●● Organisational politics involves actions by individuals, teams or
departments to acquire, develop and use power and other resources to ----------------------
obtain preferred outcomes when uncertainty or disagreement about
choices exists. ----------------------
●● People who possess the following personality traits are more prone ----------------------
to use power and engage in political behaviour: the need for power,
Machiavellianism, high internal locus of control and high risk-taking ----------------------
propensity.
----------------------
Keywords ----------------------
●● Power: The ability to influence the behaviour of others with or without ----------------------
resistance.
----------------------
●● Dependency theory: A body of social science theories predicated on the
notion that resources flow from a “periphery” of poor and underdeveloped ----------------------
people to a “core” of wealthy people, enriching the latter at the expense of
the former. ----------------------

Notes ●● Coercive power: The authority or power that is dependent on fear,
suppression of free will, and/or use of punishment or threat, for its existence.
---------------------- Legitimate power: The power derived from a job, position or status and
held as belonging to the person in such a position.
----------------------

---------------------- 1. What is power? How does it manifest in an organisation?
---------------------- 2. What are the different sources of power?
---------------------- 3. With the help of an example, explain the difference between authority and
power.
---------------------- 4. Explain what you mean by “political behaviour”. What are the forces that
---------------------- create such type of behaviour?
5. Bring out the ethical issues involved in power and politics.
----------------------

1. Coercive power is the capacity to dispense punishments to those who do
----------------------
not comply with requests or demands.
---------------------- 2. Legitimate power stems from an authority’s legitimate right to require
and demand compliance.
----------------------
3. Expert power derives from group member’s assumption that the power
---------------------- holder possesses superior skills and abilities.
---------------------- 4. Charismatic leaders generally possess both legitimate and referent power.

---------------------- State True or False
1. True
----------------------
2. False
----------------------
3. True
----------------------

---------------------- 1. Burton and Thakur. Management Today. Tata McGraw Hill.
---------------------- 2. Robins, Stephen P. Organisational Behaviour - Concepts, Controversies,

and Applications. Prentice Hall of India.
---------------------- 3. Wintzberg, Henry. The Organisation as Political Arena.
----------------------

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Organisational Behaviour

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ORGANIZATIONAL

(FOR PRIVATE CIRCULATION ONLY)

COURSE DESIGN AND REVIEW COMMITTEE

Published by Symbiosis Centre for Distance Learning (SCDL), Pune

Copyright © 2022 Symbiosis Open Education Society

Prof. Vishwanath Joshi

2 Understanding Organisational Behaviour 19-30

10 Conflict Management 177-194

15 Organisational Culture 283-298

16 Workplace Psychology: Understanding human Behaviour at the Workplace 299-314

Historical Evolution of Organisational Behaviour 1

---------------------- 1.1 INTRODUCTION

Historical Evolution of Organisational Behaviour 3

Check your Progress 1 ----------------------

Historical Evolution of Organisational Behaviour 5

Historical Evolution of Organisational Behaviour 7

Historical Evolution of Organisational Behaviour 9

Historical Evolution of Organisational Behaviour 11

Historical Evolution of Organisational Behaviour 13

---------------------- Multiple Choice Single Response.

---------------------- 1.5 EMERGING CONCERNS IN ORGANISATIONAL

Historical Evolution of Organisational Behaviour 15

1. The application of psychological facts concerning human beings within ----------------------

iii. Control ----------------------

Historical Evolution of Organisational Behaviour 17

---------------------- Suggested Reading

Understanding Organisational Behaviour 19

---------------------- 2.1 INTRODUCTION

---------------------- ii. The people in an organisation must be motivated to work effectively.

---------------------- Fred Luthans defines organisational behaviour as “understanding, predicting

Teams, Conflict, Leadership, ----------------------

Individual Perception, Personality, ----------------------

Understanding Organisational Behaviour 21

---------------------- Table 2.1 Goals of Organisational Behaviour

---------------------- Individual Motivation, performance, retention

Understanding Organisational Behaviour 23

Understanding Organisational Behaviour 25

---------------------- 2.3.1 SOBC MODEL

• The various definitions of Organisational Behaviour attempt to describe ----------------------

Understanding Organisational Behaviour 27

---------------------- Self-Assessment Questions

---------------------- Answers to Check your Progress

---------------------- Check your Progress 1

Understanding Organisational Behaviour 29

---------------------- 3.1 INTRODUCTION

---------------------- 5. Consequence: Perception ends in reaction or response, which may be in

1. The process which involves the physiological mechanism including ----------------------

---------------------- 3.3 PRINCIPLES OF PERCEPTUAL SELECTION

---------------------- Turn off

---------------------- Leniency is a personal characteristic

---------------------- Is the tendency to avoid all extreme

---------------------- The tendency to evaluate people or

Multiple Choice Multiple Response. ----------------------

---------------------- Self-Assessment Questions

---------------------- a. Perceptual constancy

iii. Registration ----------------------

State True or False. ----------------------

iii. Central tendency ----------------------

4.2 DEFINITION OF PERSONALITY ----------------------

A well-known personality theorist Salvatore Maddi proposed the following ----------------------

---------------------- 4.3 DETERMINANTS OF PERSONALITY

---------------------- Research on animals has showed that physical and psychological

---------------------- 4.4 PERSONALITY THEORIES

---------------------- 4. Social learning theory

---------------------- ii. Seeing a group of employees causing damage to the employer’s