OB Note For B. Tech

5/17/2018
Organizational Behaviour
B. Tech
A Chiranjibi Rambabu Achary

GIMS, GUNUPUR
Unit 01
ORGANIZATIONAL BEHAVIOUR:
OB refers to the behavior of individual & group within organizations & the interaction between
organizational members & their external environments.
There are three features of OB:
 OB is the study of human behavior
 The study is about behavior in organization; and
 Knowledge about human behavior would be useful in improving an organization’s effectiveness.
Scope of OB:
The scope of OB integrates three concepts respectively
 Intrapersonal behavior
 Interpersonal behavior
 Organizations
Intrapersonal behavior: It is the study of individual’s personality, learning, attitudes, motivation, and job
satisfaction
Interpersonal behavior: It is the study of people’s leadership qualities, group dynamics, group conflicts,
power and politics.
Organizations: It studies the formation of organization, structure of organization and effectiveness of

organization. In short, it is the way how a group behaves.
Importance of OB
 OB provides a road map to our lives in organizations
 OB uses scientific research to help us understand and predict organizational life
 OB theories and concepts will help us influence organizational events
i.e. Manage conflict, make better decisions etc
 OB helps an individual understand himself/herself and other better
 OB will help the manager understand the basis of motivation.
 It is useful for maintaining cordial industrial relations
A Chiranjibi Rambabu Achary, Asst. Professor

Faculty of Operations Management
GIMS, Gunupur Page 1
 It is also useful to learn how to predict behavior and apply it in some meaningful way to make
organizations more effective
i.e. it provides people skills to manager that is the ability to understand employee and use
this knowledge effectively to make them more efficient
Relations between OB and the individual:
While it is much easier to buy technology and to borrow and get resources, both financial and material, it
is impossible to buy human processes (such as faster decision-making, effective negotiation, strategy
formulation, and leadership development)
The understanding of human dynamics has become more complex as well as more crucial. With the help
of OB one can study the behavioural science related to the dynamics of organizations and their various
human units (individuals, roles, teams, inter-teams, organizations and the organization-environment
interface).
Individual come to work in an organization and get integrated as per the roles they occupy in the
organization. The roles, therefore, require separate attention.
For most tasks, people work in teams. Enough attention, therefore, needs to be given to the formation of
teams, their dynamics, and ways of making them more effective.
The effectiveness of an organization also depends on inter-team collaboration – the collaboration of teams
in an organization with other internal teams as well as with external teams.
Evolution of OB
The leading contributors in the evolution of OB are discussed:
Robert Owen
Robert Owen, a British industrialist of the early nineteenth century, attended to the various needs of
workers:
 he improved working conditions
 prevented child labor
 shortened working hours
 and provided meals for employees

Fredrick Taylor
At the turn of the twentieth century, Fredrick Taylor popularized the concept of scientific management
using studies of time and motion. The managers applied the scientific method to their problems and they
thought that effective management at all levels was the key to organizational success.
Hawthorne Studies
The beginning of OB may be said to lie in the Hawthorne studies. In 1920's Elton Mayo an Australian
born Harvard Professor and his colleagues conducted productivity studies at Western Electric's
Hawthorne Plant. With this epoch making study the focus of organizational studies shifted to analysis of
how human factors and psychology affected organizations.
Human Relations Movement
The Hawthorne Studies led to the human relations movement, which started in the 1950s. Human
Relations Movement focused on teams, motivation, and the actualization of goals of individuals within
organizations. Studies conducted by prominent scholars like Chester Barnard, Henri Fayol, Mary Parker
Follett, Frederick Herzberg, Abraham Maslow, David Mc Cellan and Victor Vroom contributed to the
growth of Organizational Behaviour as a discipline.
Theoretical Framework of OB
Even though OB is a study of behavior which is not visible some theories are developed which will give a
framework to understand, predict & manage the behavior of the human being in the organization.
Even though, one cannot see or observe thinking, still developing concepts related to thinking & using the
concepts to explain behavior is required in psychology.
Three frameworks are developed majorly for this purpose.
 Cognitive framework
 Behavioristic framework
 Social cognitive framework
Cognitive framework of OB
Cognition means the mental action or process of acquiring knowledge & understanding through thought,
experience & the sense. As per cognitive framework of OB, before the behaviour of a person cognition

starts & giving input to thinking perception & problem solving of the person. This framework is based on
the concept of expectancy, demand & intention of the human being.
According to Edward Tolman, learning consists of the expectancy that a particular event will lead to
particular consequence. If we use this to represent cognitive framework it simply means every individual
set his goal and he also know the behavior will we take him to achieve the goal.
This cognitive framework is useful in analyzing perception, personality, motivation, decision making of
human in the organization.
Behaviouristic framework of OB
Pioneer behaviorists Ivan Pavlov and Jon B. Watson stressed the importance of studying observable
behaviors instead of the elusive mind. They advocated that behavior could be best understood in terms of
stimulus and response (S-R). They examined the impact of stimulus and felt that learning occurred when
the S-R connection was made. Modern behaviorism, that marks its beginning with B.F. Skinner,
advocates that behavior in response to a stimulus is contingent on environmental consequences. Thus, it is
important to note that behaviortistic approach is based on observable behavior and environmental
variables (which are also observable).
Social cognitive framework in OB

Social learning theory takes the position that behavior can best be explained in terms of a continuous
reciprocal interaction among cognitive, behavioral, and environmental determinants. The person and the
environmental situation do not function as independent units but, in conjunction with behavior itself,
reciprocally interact to determine behavior. It means that cognitive variables and environmental variables
are relevant, but the experiences generated by previous behavior also partly determine what a person
becomes and can do, which, in turn, affects subsequently behavior. A person’s cognition or understanding
changes according to the experience of consequences of past behavior.
Bandura developed social learning theory into the more comprehensive social cognitive theory (SCT).
Bandura identified five basic human capabilities as a part of SCT.
1. Symbolizing: People process visual experiences into cognitive models. They help in future action.
2. Forethought: Employees plan their actions.

3. Observational: Employees learn by observing the performance of the referent group (peers,
supervisors and high performers) and the consequences of their actions.
4. Self-regulatory: Employees self regulate their actions by setting internal standards (aspired level
of performance).
5. Self-reflective: Employees reflect back on their actions (how did I do?) and perceptually
determine how they believe then can successfully accomplish the task in the future given the
context (probability of success between 0 to 100% is estimated)
Limitation of Organizational Behaviour
 Managing workforce diversity
 Changing demographics of work force or duality of OB are baffling (mysterious)
 Focusing on improving ethical behavior
 Technology Transformation: Due to automation, the task becomes much more passive and
much less involving and the worker is more likely to become bored and alienated and the
consequence can be poor quality and low productivity.
 Changing demographics of workforce: Employees who are young and fresh, ambitious,
enthusiastic and emotive.
 Changed employee expectations: With the changes in workforce demographics, employee

expectations and attitudes have also changed.
 Globalization: Growing internationalization of business has its impact on people management.

The management required to cope with problems of unfamiliar laws, languages, practices,
competitors, attitudes, management styles, work ethics, and more
 Law of diminishing returns: It says that beyond a certain point, there is a decline in output even
after each additional good or positive factor.
 Unethical practices and manipulation of people: Knowledge of motivation and communication

acquired can be used to exploit subordinates in an Organization by the manipulative managers.

Unit 02
ATTITUDES
Attitudes are understood as a beliefs, feelings, and action tendencies of an individual or group of
individual towards objects, ideas & people.
Components of Attitude:
Attitudes consist of three basic components: emotional, informational, and behavioural.
 The emotional component involves the person’s feelings, or affect- positive, neutral, or negative-
about an object. Thus, emotion is given the greatest attention in the organizational behaviour
literature in relation to job-satisfaction.
In addition, the expression of emotions positive, like a customer service representative; negative,
like a bill collector or a police officer; or neutral, like an academic administrator or public
servant- is also important to work behaviour.
 The informational component consists of the beliefs and information the individual has about the
object. A supervisor may believe that two weeks of training is necessary before a worker can
operate a particular piece of equipment.
In reality, the average worker may be able to operate the machine after only four days of training.
Yet the information the supervisor is using (that two weeks is necessary) is the key to his attitude
about training.

 The behavioural component consists of a person’s tendencies to behave in a particular way

toward an object. For example the supervisor in the above paragraph may assign two weeks of
machine training to all his new people.
It is important to remember that of the three components of attitudes; only the behavioural component can
be directly observed.
One cannot see another person’s feelings (the emotional component) or beliefs (The informational
component). These two components can only be inferred.
For example, when the supervisor assigns a new employee to two weeks training on the equipment, it is
only inferred that the 1) the supervisor has strong feelings about the length of training required and the
individual believes that this length of training is necessary.
Importance of Attitude in an Organization:
A positive attitude in the workplace helps employees to accomplish tasks faster and in a better manner.
The performance of employees to a great extent depends on the good relationship they share with their
colleagues. A good relationship can be established only when employees demonstrate a positive attitude
towards their work and colleagues. Through positive energy, work becomes a pleasure and employees
find it easier to achieve their goals.
A positive attitude has significant benefits for an individual in many aspects. Let’s look at some of them
below.
1. Career success: Employees’ success in the workplace is measured through their performance.
Employees with a positive attitude will always think of ways to accomplishing their task in a well-defined
manner instead of complaining or finding excuses for non-performance. This results in success either
through promotion or increased compensation.
2. Productivity: With a positive attitude, employees tend to take more interest in what they do and
deliver. Consequently, they produce better quality work with minimum errors. This improves their overall
output as well as productivity.
3. Leadership: Working in an organization is all about managing a diverse workforce. Some employees
earn respect easily and people often follow and listen to them. This is possible through the positive
attitude demonstrated by leaders.
4. Team work: Good relationships among employees help them to build effective teams where all the
members are united and work for a common cause. A positive attitude helps employees to appreciate each
other’s competencies and work as a team for achieving common objectives instead of being overly
perturbed by inadequacies of team members.
5. Decision making: Having a positive attitude helps employees to take better decisions, in an objective
manner. It triggers a healthy thought process, enabling employees to choose wisely and logically.

6. Motivation: Having a positive attitude helps in motivating employees to overcome obstacles that they
may face during the course of their job. It also determines the way they see the world around them. The
moment they are successful in overcoming obstacles, they are motivated to move forward.
7. Interpersonal relations: Customers prefer to deal with someone who is positive in nature. A positive
attitude enables employees to share a better rapport with customers, earning valuable customer loyalty.
8. Stress management: Stress has a detrimental effect on the health of employees. So how can
employees cope with it? Stress can be reduced through positive thinking; and with reduced stress,
employees will enjoy better health and take fewer sick leaves.
In conclusion, a positive attitude at work is beneficial not only to the organization, but also to the
employees on an individual basis.
Relationship between Attitude & Behavior
Attitude: In psychology, attitude is the internal mindset of an individual. It is shelled within the man,
which nobody can approach until a person doesn’t show it.
Behaviour: Behaviour is the inborn attribute of an organism controlled by the nervous system, which
diffuse and come outside in the form of actions of an individual. It’s external which everyone can see.
Well! Psychologists say that what you think is attitude and what you do is behaviour. In other words we
can say that it is the attitude which shapes the behaviour.
Attitude is what and how we react to stimuli in society. Attitude develops with our experiences and
observation. We set our attitude on the basis of judgments on different statements. It’s totally internal and
individual is dealing with it.
Whereas, Behaviour is something which is diffused form of attitude, what we think (attitude) when
perform in actions is considered to be the behaviour of a stimuli. Behaviour is a natural action and they
are highly dependent upon others. What others give, It automatically reflects in the behaviour.
Attitude Behaviour
Attitude is a way of thinking, feeling, belief, or Behaviour is an action or reaction that occurs in
opinion of approval or disapproval towards response to an event or internal stimuli (i.e.,
something. thought).
Attitude is internal sense Behaviour is external in sense
Attitude is shelled within the mind of the individual Behaviour can very well be seen by others as it is
and hence cannot be seen by others immediately external
Attitude is what you think Behaviour is what you do
Attitude is thought-oriented Behaviour is action-oriented

Emotional Intelligence in the Workplace
It is the capacity of individual to
 Recognize their own, and other people’s emotions
 Discriminate & label different feelings appropriately
 Use emotional information to guide thinking & behaviour
Mixed model by Danial Goleman
Self Awareness
It is ability to know one’s emotions strengths, weakness, drives, values & goals & recognize their impact
on others while using gut feeling to guide decision
 Emotional awareness
 Accurate self-assessment
 Self confidence
Self Regulation
This involves controlling or redirecting one’s disruptive emotions and impulses & adapting to changing
circumstances
 Self control
 Trustworthiness
 Adaptability
 Innovation
Motivation
It is being driven to achieve for the sake of achievement
 Achievement drive
 Commitment
 Initiative
 Optimism

Empathy
It is about considering other people’s feelings especially when making decisions
 Understanding others
 Developing others
 Service orientation
 Leverage diversity
Social skills
It is about managing relationships to more people in the desired direction
 Influence
 Communication
 Conflict management
 Leadership
 Team capabilities
Job Attitude:
A job attitude is a set of evaluations of one's job that constitute one's feelings toward, beliefs about, and
attachment to one's job
The Aspects of Job Attitude

While it can be said that some people can be classified by overall attitude, there are aspects of jobs that
can impact the attitude a person has about their position and company.
Job Satisfaction: How much satisfaction a person gets from doing their job can directly relate to their
attitude about it. Job satisfaction is a very personal aspect of work as satisfaction, in many ways, reflects
how the person views not only how they do their job but also how the company views how they do their
job and who they are as a person. There are several components that are associated with job satisfaction,
and they are: recognition, equitable compensation, ability to grow in the position and responsibility
commensurate with compensation.
Job Involvement: This aspect of attitudes relates to how engaged a person is with doing their job and the
level of enthusiasm they have for doing it. We have all experienced individuals who did not seem to care
about their jobs (like a waiter bringing you your meal, it is cold, and they don't really care) and people
that seemed to go above and beyond the call of duty. These are direct reflections of the level of job
involvement a person has, and it reflects in their attitude towards doing their job.

Organizational Commitment: Employees not only show attitudes by how well or how poorly they do
their jobs but also by how engaged they are with the company. Organizational commitment is the degree
to which an employee is connected to all aspects of the company and works to help the organization grow
and reach its goals. For this aspect, individuals might volunteer in company-sponsored events to help the
needy, or they might recommend cost savings ideas that they see as they do their job. This type of
engagement is a godsend for companies as it shows how involved the employee is beyond just doing their
job.
BARRIERS TO CHANGING ATTITUDES
Employees’ attitudes can be changed and sometimes it is in the best interests of managements to try to do
so. For example, if employees believe that their employer does not look after their welfare, the
management should try to change their attitude and help develop a more positive attitude in them.
However, the process of changing the attitude is not always easy. There are some barriers which have to
be overcome if one strives to change somebody’s attitude. There are two major categories of barriers that
come in the way of changing attitudes:
1. Prior commitment when people feel a commitment towards a particular course of action that has
already been agreed upon and thus it becomes difficult for them to change or accept the new ways of
functioning.
2. Insufficient information also acts as a major barrier to change attitudes. Sometimes people see no
reason why they would change their attitudes. The boss may not like a subordinate’s negative attitudes,
but the latter may be quite pleased with his behavior. Unless the boss can show the individual why a
negative attitude is detrimental to career progress or salary increases or some other personal objective, the
subordinate may continue to have negative attitude

PERSONALITY
Personality refers to the attributes of an individual which make him or her different from others.
Determinants of Personality
The determinants of personality can be grouped into the three broad categories.
 Heredity: Heredity is the transmission of the qualities from the parents to children through a
biological mechanism. Generally heredity characteristics such as physical stature, facial
attractiveness, temperament, intelligence influenced by who one’s parents are.
 Environment: The environment, i.e. one’s early conditions, the family norms, friends & social
group exerts pressure on one’s personality formation. The cultural environment in which people
are raised plays a major role in shaping personality.
 Situation: An individual’s personality does change depending on the situation. This is because
the different demands of the different situations call forth different aspects of one’s personality.
In certain cases, how one will behave is not determined by what kind of person one is; but by in
kind of situation one is placed. Hence personality needs to be looked at situational context, not in
isolation.
Types of Personalities
There are so many personalities as many are persons. Personalities differ in traits. A trait is any
distinguishable, relatively enduring way in which one individual differs from another. Popular human
characteristics include shy, aggressive, submissive, lazy, loyal etc.
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There are sixteen primary traits of personalities. The sixteen traits serve as basis for classifying
personalities into types.
Importance of Personality for performance:
Evoke Development uses a variety of assessment tools to help our clients on an individual level:
 Increase awareness of self and others.
 Work more effectively with co-workers and customers.
 Become more effective leaders.
 Help target the ideal job.
 Create individual developmental plans to optimize targeted competencies.

And, we use assessments to help our clients on an organizational level:
 Develop trait profiles to use in the selection process that help maximize department and company
performance by improving the accuracy of candidate selection.
 Link identifying job competencies with targeted job profiles.
 Identify traits and behaviors of team members and discuss optimal interactions (relationships) to
improve individual and team performance.
 Help managers identify different motivations and belief systems of their staff members so they
can manage to the individual, not the group.
Myers-Briggs Type Indicator

MBTI is the most widely used instrument for personality analysis. Sixteen personality types are generated
by the instrument (a person can be of any one type). These 16 types are based on a combination of four
basic elements of psyche (see graphic below)
 Extraversion: The natural focus of Extraversion is the external world. Vs. Introversion: The
natural focus of Introversion is the internal world
 Sensing: Taking in and presenting information in a sequential, step-by-step way. Vs. Intuition:
Taking in and presenting information in a snapshot or big-picture way
 Thinking: Making decisions by stepping back from the situation, taking an objective view. Vs.
Feeling: Making decisions by stepping back from the situation, taking an empathetic view.

Judging: A planned approach to meeting the deadline in a scheduled way. Vs. Perceiving: A
spontaneous approach to meeting the deadline with a rush of activity.
Combining these four aspects, we get the following sixteen types of personality. Each type has its own
dynamics.
Self-assessment tool will help you to understand your personality type.
In assessment there are some number of statements with two choices A and B. You need to choose one
out of the two. Generally your first reaction is the most accurate. Sometimes you may not like either of
the choices or you may like both choices, but you have to choose one of the alternatives.

The Big Five Model
The five basic dimensions of the Big Five Model underlie all others and encompass most of the
significant variations in human personality. The Five Big factors are:
Conscientious (Measure of one’s reliability): A personality dimension that describes someone who is
responsible, dependable, persistent and organized. Those who score low on this dimension are easily
distracted, disorganized and unrealizable.
Agreeableness (One’s propensity to defer to others): A personality dimension describing someone who
is softhearted, good-natured, cooperative and trusting. People who score low on agreeable are cold,
disagreeable, and antagonistic.
Emotional Stability (One’s ability to withstand stress): A personality dimension describing someone
who is calm, self-confident, secure. Those with high negative scores tend to be nervous, anxious,
depressed and insecure.
Openness to Experience (One’s range of interests and fascination): A personality dimension that
describes someone who is imaginative, sensitive and curious. Those at the other end of the openness
category are conventional and find comfort in the familiar.
Extroversion (One’s comfort level with relationships): A personality dimension describing someone
who is sociable, talkative, open to establishing new relationships and assertive. On the other hand,
introverts tend to be reserved, timid, and quiet.

Personality–Job fit theory

John Holland has proposed a “personality—job fit” theory of personality. This theory makes a case for
job-specific personality types. He has suggested six personality types and has prepared an instrument
containing 160 occupational titles. Based on respondents’ preferences, their personality profiles are
prepared.
According to John Holland's theory, most people are one of six personality types: Realistic, Investigative,
Artistic, Social, Enterprising, and Conventional.
PERSONALITY and OB
Some of the personality attributes that influence organizational behaviour are:
 Locus of Control: Locus of control refers to one’s belief that what happens is either within one’s
control or beyond one’s control. The former is called internal and the latter is called externals.
Those who have internal locus of control believe that they are masters of their own fate. On the
contrary, those who have external locus of control see themselves as pawns of fate and believe
that what happens to them in their lives is due to luck or factors beyond their control.
A larger amount of research comparing internals with externals have proved that externals are
less satisfied with their jobs and have higher absenteeism rates than internals. But, the dissatisfied
internals are more likely to quit a dissatisfying job.

 Machiavellianism: Machiavellianism refers to an individual’s propensity to manipulate people

for solving his/her interest. An individual higher in Machiavellianism tends to be cool, logical and
assessing the system around him, pragmatic, maintains emotional distance, tries to control people,
events and situations by manipulating the system to his advantage. In sum, “if it works, use it” is
consistent with a high Machiavellianism. They manipulate more, win more, are persuaded less
and persuade others more than do individuals having low Machiavellianism. However, these high
outcomes are moderated by situational factors.
However, the Machiavellianism can be considered as good in jobs that need bargaining skills (for
example, labor negotiations) or in jobs offering substantial rewards for winning (such as
commissioned sale). But, in jobs where ends cannot justify the means, i.e. in jobs ethical
consideration is involved, the Machiavellianism cannot perform better.
 Self-Esteem: An individual’s liking oneself is called self-esteem. This trait is bound to vary from
individual to individual. Self-esteem is related to aspects individuals regard themselves as capable
to achieve success. The research on self-esteem has revealed that individuals with high self-
esteem tend to take one more challenging assignments and of unconventional nature. People with
low self-esteem, on the contrary, are characterized by their susceptibility to external influences
and approval seekers from others. They depend on the receipt of positive evaluations from others.
As regards job satisfaction, individuals with high self-esteem are found more satisfied with their
jobs than those with low self-esteem.
 Self-monitoring: Self-monitoring is a personality trait that has recently received increasing

attention. Simply speaking, self-monitoring is an individual’s ability to adjust his/her behaviour to
external factors/situations. Individuals with high self-monitoring trait show greater adaptability to
adjust themselves with external situations. They can behave differently in different situations.
Hence, there is very less behavioural consistency between who they are and what they do. It can
be hypothesized that individuals high in self-monitoring are likely to be more successful
managers who at times are required to play multiple, and even contradicting roles to perform their
managerial activities. In other words, individuals with high self-monitoring are capable of
showing different faces for different audiences as per the requirements of the situations.
 Risk-taking: Individuals differ in taking risks. The propensity to assume or avoid risks affects a
manager’s behaviour in making decisions. Research has shown that mangers with high risk-
taking managers. In practice, the propensity to assume risks varies depending upon the nature of
the job. For example, a high risk-taking propensity may be good for a stock trader in a brokerage
firm which demands rapid decision-making. But, the same personality trait may not be considered
as good in auditing activities which require concentration and low risk-taking propensity.
 Type A Personality: Type A people are impatient and aggressive to achieve more and more in
less and less time. These characteristics result in some specific behavioural outcomes. Working
fast, emphasizing quantity over quality, working for long hours, making quick decisions, etc. are
some of the behavioural examples of type A people.
In organizations, great salespersons are usually type A’s. The reason is, sales occur in a
competitive market which requires rigorous and aggressive efforts to sell one’s product. But,
senior executives are usually type B’s. The answer lies in the fact that promotions in corporate
organizations usually go to those who are wise, tactful and creative rather than to those who are
merely hasty and hostile in doing things.

PERCEPTION
Perception is a process of by which individuals organize & interpret their sensory impressions in order to
give meaning to their environment.
Eye activate us to see an object is sensation and what is being seen is perception
Factors Influencing Perception
Perceiver: When an individual looks at the object and attempts to interpret the same, what he or she sees
it is largely influenced by the personal characteristics. Perception is a matter of attitude that can be
positive or negative. Some workers would feel and perceive that the prevailing working conditions in the
organizations are congenial for work and it contributes positively while for others, it would be inadequate
and demand improvement. This is indicative of positive and negative attitude patterns. Motive is another
factor that plays an important role in perception.
Perceived: Objects, events that are similar to each other tend to group together and have a tendency of
perceiving them as common group for example. Blacks, Whites or Indians etc irrespective of their
different characteristics. Physical and time proximity also leads us to perceiving a situation in a different
form than actual reality.
The Situation: Change in situation leads to incorrect perception about a person. Time is one factor,
which influences the perception. Time is related to work setting and social setting. A person decked up
for party may not be noticeable but the same dress in office would be noticed distinctly, though the person
has not changed. You would have very frequently heard people say that their manager is different during
working hours and 1800 opposite while in social setting. In fact person is the same but the perceiver
perceives the manager as per business like setup while on work, while the person is observed on a private
or a personal platform when meeting him in the club or at home.

PERCEPTUAL PROCESS
As the definition reveals, perception is a six-step process. They are:
1. Receiving of Stimuli
The perception process starts with the reception of stimuli. The stimuli are received from the various
sources. Through the five organs, we see things/objects, hear sounds, smell, taste and touch things. In this
way, the reception of stimuli is a physiological aspect of perception process. Sometimes we may not be
able to report the existence of certain stimuli but our behaviour reveals that we are often subject to their
influence.
2. Selecting Stimuli
People, in their everyday life, are bombarded by myriads of stimuli. They cannot assimilate all what they
observe or receive from the environment at a time. Hence, they select some stimuli for further
proceedings to attach meanings to them while the rest are screened out. Selection of stimuli is not made at
random, but depending on the two types of factors, namely, external factors and internal factors.
External Factors Influencing Stimuli
 Nature: The object may be visual or auditory; it may also involve pictures, people or animals. It
is well-known that pictures attract attention more readily than word, that a picture with human
beings attracts attention more than a picture of inanimate objects alone, and that a rhyming
auditory passage attracts attention more readily than the same passage presented as a narrative.
 Location: The best location of a visual stimulus for attracting attention is directly in front of the
eyes in the centre of a page. The other positions in order of attracting attention are: upper portion,
lower portion, left and right.
 Intensity: Stimuli of higher intensity are perceived more than the objects with low intensity. A
loud noise, strong odour, or bright light will be noticed more than a soft sound, weak odour, or
dim light.
 Size: Objects of larger size generally attract more attention than the smaller ones.

Contrast: The contrast principle states that external stimuli which stand out against the background
or which are not what people are expecting, will receive their attention. The figure given below
illustrates this principle.
Answer: The one in the black square seems lighter, but actually all three small squares are the
exact same shade of gray. The one in the center only appears lighter because of the optical
illusion created by the contrast effect
 Movement: A moving object receives more attention than an object that is standing still. In a
workplace, the attention will be focused more on a conveyer belt than on painting on walls.
 Repetition: A repeated external stimulus is more attention drawing than a single one. This is why
supervisors have to give directions to workers over and over again for even simple tasks.
 Novelty and Familiarity: Either a novel or a familiar external situation can serve as an attention
getter. New objects in familiar settings or familiar objects in new settings draw more attention.
Internal Factors influcing stimuli
 Psychological Needs: Needs play a significant role in selecting stimuli. Unreal things often look
real because of deprived needs. A thirsty person in a desert, for instance, gets the illusion of water
seeing sand from distance.
 Age: The generation gap influences in selecting stimuli. For instance, older and senior executives
complain about the inability of the new young to take tough decisions concerning terminating or
resigning people and paying attention to details and paper work.
 Interest: Selection of stimuli is unconsciously influenced by the interests of the perceiver. For
instance, an architect will notice many details of building that he passes by only once.
 Paranoid perception: When a person’s is so selective that he can find little common ground for
communication with others, he is likely to be paranoid. It is the characteristic of the emotionally
disturbed person that his perceptual field differs from that of most of other persons.

3. Organizing Stimuli
Having selected stimuli or data, these need to be organized in some form so as to assign some meanings
to them. Thus, organizing the bits of information into a meaningful whole is called “organization.” There
are four dimensions to the perceptual organization, viz., figure ground, perceptual grouping, perceptual
constancy and perceptual context.
 Figure Ground: Figure-ground is usually considered to be the most basic form of perceptual
organization. The figure-ground principle means simply that perceived objects stand out as
separable from their general background. At first glance, one probably perceives the below figure
as a jumble of black, irregular shapes against a white background. Only when the white letters are
perceptually organized against a black background will the word FLY literally jumps out with
clarity.
 Perceptual Grouping: The groping principle of perceptual organization states that there a
tendency to group several stimuli together into a recognizable pattern. This principle is very basic
and seems to be largely inborn. There are certainly underlying uniformities in grouping. When
simple constellations are presented to people, will tend to group them together by closure,
continuity, proximity and similarity.
 Closure: The closure principle of grouping is that a person will sometimes perceive a
whole when one does not exactly exist. The person’s perceptual process will close the
gaps that are unfulfilled from sensory input. In the formal organization, participants may
either see a whole where none exists or not be able to put the pieces together into a whole
that does exist.

 Continuity: The continuity principle says that a person will tend to perceive continuous
lines or patterns. This type of continuity may lead to inflexible or noncreative, thinking
on the part of organizational participants. On the obvious, continuous patterns or
relationships will be perceived.
 Proximity: The principle of proximity, or nearness, states that a group of stimuli that are
close together will be perceived as a whole of pattern of parts belonging together. For
example, several employees in an organization may be identified as a single group
because of physical proximity.
 Similarity: The principle of similarity states that the greater the similarity of the stimuli,
the greater the tendency to perceive them as a common ground.
 Perceptual Constancy: A more subtle part of perceptual organization is constancy, our ability to
perceive certain characteristics of an objective as remaining constant, despite variations in the
stimuli that provide us with conflicting information. Such constancy amidst changing stimuli is
indispensable if we are to adjust to our world.
There are several aspects of constancy i.e.: Shape constancy, Size constancy, Color constancy etc.
 Perceptual Context: It gives meaning and value to simple stimuli, objects, events, situations and
other persons in the environment. The organization culture and structure provide the primary
context in which workers and managers do their perceiving. Thus, a pat on the back takes on
special meaning and value when placed in the context of the work organization.

4. Interpreting Stimuli
Interpretation is giving meaning to stimuli received and organized. It is influenced by the following
factors:
 Perceptual Set: It is the previously held beliefs about objects influence an individual’s
perceptions of similar objects. For example, a manager may have developed general beliefs and
attitudes that workers are lazy. The manager tends to interpret the behaviour of the workers
according to his mental set.
 Stereotyping: It is the tendency to assign attribute to someone solely on the basis of a category of
people to which that person belongs. In perceiving another, a person may categorize the other
according to some salient characteristics such as sex, race, religion, nationality, occupation, or
organizational affiliation. An example may be: Older workers can’t learn new skills; workers are
anti-management etc.
 Halo Effect: Halo effect refers to the tendency of perceiving people in terms of good or bad and
assigning all good qualities to one who is good and bad qualities to one who is bad.
An example of the halo effect is a professor awarding more marks to a student that he likes.
In organizations, the halo effect occurs when superior rate subordinates in a formal appraisal. In
this context, a manager evaluating one of his employees on certain dimensions may assume that
someone who is good in one dimension must also be good at other things and rate the person
highly on other aspects.
5. Action
It is the resultant behaviour emerging from the perceptual process. The perceiver indulges in some action
in relation to his/her perception. When the perception is favorable, the action will be positive. On the
other hand, if the perception is unfavorable, the action will be negative.
Attribution theory
Attribution theory seeks to explain why people behave as they do. This theory suggests that we observe
behaviour and then attribute causes to it; that is, we attempt to explain why people behave as they do.
For example, is someone angry because they are bad-tempered or because something bad happened?
People tend to see cause and effect relationships, even where there is none!
This theory postulates that the behaviour of others can be examined on the basis of its distinctiveness,
Consistency and consensus.
 Distinctiveness is the degree to which a person behaves similarly in different situations.

 Consistency is the degree which a person engages in the same behaviour at different times.
 Consensus is the degree to which other people are engaging in the same behaviour.
Fritz Heider classified the attribution theory into two types as
1. Internal Attribution: The process of assigning the cause of behaviour to some internal
characteristic, rather than to outside forces. When we explain the behavior of others we look for
enduring internal attributions, such as personality traits. For example, we attribute the behavior of
a person to their personality, motives or beliefs.
2. External Attribution: The process of assigning the cause of behaviour to some situation or event
outside a person's control rather than to some internal characteristic. When we try to explain our
own behavior we tend to make external attributions, such as situational or environment features.

MOTIVATION
Motivation refers to the set of forces that causes people to behave in certain ways
A basic principle is that the performance of an individual in an organization depends on his or her ability
backed by motivation stated algebraically the principle is
Performance = f (ability x motivation)
Ability alone is not enough. The person’s desire to accomplish the task is also necessary. Organizations
become successful when employees have abilities & desire to accomplish given tasks.
Motivational Models
As given motivational model, early theories is no gainsaying the fact that for motivating employees.
Therefore managers use contemporary theories as a tool to motivate their subordinates.
 Content theories explain the dynamics of employee needs, such as why people have different
needs at different times. By understanding an employee’s needs, we can discover what motivates
that person.
 Process theories do not explain how needs emerge. Rather, they describe the process through
which needs are translated into behavior. Specially, process theories explain why someone with a
particular need engages in a particular direction, intensity and persistence of effort to satisfy the
need.

CONTENT THEORIES
MASLOW’S NEEDS HIERARCHY THOERY
Maslow Abraham proposed his theory in the 1940s. This theory, popularly known as the Hierarchy of
Needs assumes that people are motivated to satisfy five levels of needs: physiological, security,
belongingness, esteem and self actualization needs. Maslow suggested that the five levels of needs are
arranged in accordance with their importance, starting from the bottom of the hierarchy. An individual is
motivated first and foremost to satisfy physiological needs. When these needs are satisfied, he is
motivated and 'moves up' the hierarchy to satisfy security needs. This 'moving up process continues until
the individual reaches the self-actualization level.
 Physiological needs represent the basic issues of survival such as food, sex, water and air. In
organizational settings, most physiological needs are satisfied by adequate wages and by the work
environment itself, which provides employees with rest rooms, adequate lighting, comfortable
temperatures and ventilation.
 Security or safety needs refer to the requirements for a secure physical and emotional
environment. Examples include the desire for adequate housing and clothing, the need to be free
from worry about money and job security and the desire for safe working conditions. Security
needs are satisfied for people in the work place by job continuity, a grievance resolving system
and an adequate insurance and retirement benefit package.
 Belonging or social needs are related to the, social aspect of human life. They include the need
for love and affection and the need to be accepted by one's peers. For most people these needs are
satisfied by a combination of family and community relationships and friendships on the job.
Managers can help ensure the 'satisfaction of these important needs by allowing social interaction
and by making employees feel like part of a team or work group.

 Esteem Needs: The esteem needs are concerned with self-respect, self-confidence, a feeling of
personal worth, feeling of being unique, and recognition. Satisfaction,
 Self –actualizations Needs: Self- actualization is the need to maximize one’s potential, whatever
it may be. This is related with the development of intrinsic capabilities which lead people to seek
situations that can utilize their potential. This includes competence which implies control over
environmental factor, both physical and social, and achievement. A man with high intensity of
achievement needs will be restless unless he can find fulfillment in doing what he is fit to do. As
Maslow has put it, “this need might be phrased as the desire to become more and more what one
is, to become everything that one is capable of becoming”.
HERZBERG’S MOTIVATION— HYGIENE THEORY (Two factor theory)
Fredrick Herzberg and his associates developed Motivation Theory based on two main factors in late
1950’s. This theory is also known as Two Factor Theory. Herzberg carried out research in nine different
organizations where 200 respondents comprising accountants and engineers were subjects. A structured
interview was carried out.
The respondents were essentially asked two questions:
 When did you feel particular good about your job?
 When did you feel exceptionally bad about your job?
Result
Intrinsic Factors
 Achievement
 Advancement
 Possibility of Growth
 Recognition.
 Work Itself
 Responsibility
These factors are variously know as motivators
Extrinsic Factors
 Company Policy and administration.

 Technical supervision.
 Interpersonal relationship with superiors.
 Interpersonal relationship with peers.
 Interpersonal relationship with subordinates.
 Salary.

 Job security.
 Personal Life.
 Working condition.
 Status.
These factors are known as hygiene factors
According to Herzberg, satisfaction & dissatisfaction are not opposite pole of one dimension, they are two
separate dimensions.
 Satisfaction is affected by motivators
 Dissatisfaction is affected by Hygiene factors
He believes that the opposite of “satisfaction” is “no satisfaction” & the opposite of “dissatisfaction” is
“no dissatisfaction”
He says that removal of dissatisfying characteristic from a job may bring about peace but does not
necessarily make the job satisfying/motivation
If we want to motivate people on their jobs Herzberg suggested emphasizing on Intrinsic factor
To achieve motivation, managers should cope with both satisfiers & no satisfiers
But by improving hygiene factors dissatisfaction is removed from the mind of employees.

PROCESS THEORIES
VROOM'S EXPECTANCY THEORY
The expectancy theory is commonly used the management theory for explain why the people engaged in
certain behavior when they have a series of alternatives available to them.
It is developed by Vroom in 1964. And essentially it stated that the expectancy was the sum of
motivational force.
Motivational Force = Expectancy X Instrumentality X ∑ (Valence(s))
Motivational Force: it the extent to which a person is likely to engage in a certain course or action.
Expectancy: It is belief that an increase in effort will result in an increase in performance.
Instrumentality: It is belief that increased performance will lead to certain outcomes
Valence: The extent to which the outcome is desirable or the value or importance one places on a
particular reward.
The expectancy model is useful in as much as it serves as a heuristic decision tools to guides managers in
dealing with the complexity of motivation in organizations.
These principles can be used to guide managers in designing organizational rewards, work systems,
management by objective & goal setting.
PORTER - LAWLER MODEL OF MOTIVATION
Porter and Lawler's theory is an improvement over Vroom's expectancy theory. They say that motivation
does not equal satisfaction or performance. The model suggested by them encounters some of the
simplistic traditional assumptions made about the positive relationship between satisfaction and

performance. They proposed a multivariate model to explain the complex relationship that exists between
satisfaction and performance. What is the main point in Porter and Lawler's model is that effort or
motivation does not lead directly to performance. It is, in fact, medicated by abilities and traits and by role
perceptions. Ultimately, performance leads to satisfaction.
The Various Elements of Porter and Lawler Model
1. Effort,
2. Performance and
3. Satisfaction.
Let us briefly discuss the main elements of the model:
Effort: Effort refers to the amount of energy an employee exerts on a given task. How much effort an
employee will put in a task is determined by two factors: (i) value of reward and (ii) perception of effort-
reward probability.
Value of Reward
First of all people try to figure out whether the rewards that are likely to be received from doing a
job will be attractive to them. This is referred to as valence in Vroom’s theory. A person who is
looking for more money, for example, extra vacation time may not be an attractive reward. If the
reward to be obtained is attractive or valent then the individual will put extra efforts to perform
the job. Otherwise he will lower his effort.
Perceived Effort Reward Probability:

In addition, before people put forth any effort, they will also try to assess the probability of a
certain level of effort leading to a desired level of performance and the possibility of that
performance leading to certain kinds of rewards. Based on the valence of the reward and the
effort reward probability, people can decide to put in certain level of work effort.
Performance: One's effort leads to his/her performance. Both may be equal or may not be. However, the
amount of performance is determined by the amount of labour and the ability and role perception of the
employee. Thus, if an employee possesses less ability and/or makes wrong role perception, his/her
performance may be low in spite of his great efforts.
Rewards: It may be of two kinds - intrinsic and extrinsic rewards.
Intrinsic rewards are the positive feelings that the individual experiences from completing the task e.g.
satisfaction, sense of achievement.
Extrinsic rewards are rewards emanating from outside the individual such as bonus, commission and pay
increases.
Satisfaction: Performance leads to satisfaction. The level of satisfaction depends upon the amount of
rewards achieved. If the amount of actual rewards meet or exceed perceived equitable rewards, the
employee will feel satisfied. On the contrary, if actual rewards fall short of perceived ones, he/she will be
dissatisfied.
Adams Equity Theory of Motivation
Motivation is the function of perceived equity-equity (or fair balance) of input (effort) with output
(recognition), and equity of one’s output with others’ output of the same input. Individual assess the
equity or fairness of the outcome. Equity is individuals’ beliefs that they are being treated fairly relative to
their inputs and relative to the treatment of others
Inequity occurs when a person perceives that the ratio of his or her outcomes to inputs and the ratio of a
relevant other’s outcomes to inputs are unequal.
Equity occurs when both the inputs and the outputs of the person and other are based on the person’s
perceptions
Inputs typically include effort, loyalty, hard work, commitment, competence, adaptability, flexibility,
tolerance, determination, enthusiasm, trust in superiors, supporting colleagues, personal sacrifice etc.
Output typically include financial rewards (salary, benefits, perks etc.), recognition, reputation,
responsibility, sense of achievement, praise, sense of advancement/growth, job security etc.
Manager should seek to find a fair balance between the inputs that and employee gives and the outputs
received. They will feel satisfied and motivated when they perceive these to be in balance.

Unit 03
What is A Group?
A group refers to two or more people who share a common meaning and evaluation of themselves and
come together to achieve common goals. In other words, a group is a collection of people who interact
with one another; accept rights and obligations as members and who share a common identity.
Factors Affecting Group Behaviour:

The success or failure of a group depends upon so many factors. Group member resources, structure
(group size, group roles, group norms, and group cohesiveness), group processes (the communication,
group decision making processes, power dynamics, conflicting interactions, etc.) and group tasks
(complexity and interdependence).
1. Group Member Resources:
The members’ knowledge, abilities, skills; and personality characteristics (sociability, self- reliance, and
independence) are the resources the group members bring in with them. The success depends upon these
resources as useful to the task.
2. Group Structure:
Group Size:
Group size can vary from 2 people to a very large number of people. Small groups of two to ten are
thought to be more effective because each member has ample opportunity to take part and engage actively
in the group. Large groups may waste time by deciding on processes and trying to decide who should
participate next.
Evidence supports the notion that as the size of the group increases, satisfaction increases up to a certain
point. Increasing the size of a group beyond 10-12 members’ results in decreased satisfaction. It is
increasingly difficult for members of large groups to identify with one another and experience cohesion.
Group Roles:
Group members play various roles that develop naturally to meet the needs of the groups.
Group roles can be classified into
 Task facilitating roles
 Group building roles
 Hindering roles
Task facilitating roles are task-oriented activities that involve accomplishing the group’s goal and
objectives. Following are some of the important task facilitating roles:
 Initiator: Takes initiative in defining problems and suggesting solutions
 Information seeker: Tries to get maximum information out of the group
 Information giver: Shares maximum information with the group to help in solving problems
 Summarizer: Summarizes discussions / decisions to help the group to help in solving problems
 Time keeper: Helps the group to decide how they would like to utilize their time, and distributes
the available time
Group building roles are social-emotional activities that help the group to function as a cohesive and
mutually supportive group.
 Gate keeper: Invites one by one all group members to speak, and encourage people to participate.
 Supporter: Encourages silent or shy members to contribute to the discussion.
 Process reviewer: Review from time to time what has been done and how the group has
functioned.
 Harmonizer: Reduces tension in the group, reconciles differences, and explores opportunities.
 Encourager: Encourage group members to share their views, opinions, and feelings about
decision-making and other activities.
Hindering roles are activities that block the group by resisting the group’s ides, disagreeing with group
members for personal reasons, and having some hidden agendas. Following are some of the important
hindering roles:
 Dominator: Dominates discussion and decisions
 Conflict avoider: Avoids conflict and disagreement by diverting the conversation to a

subject not related to the goal
 Comedian: Uses humor to dissolve to serious discussions

Group Norms
 Group cannot work effectively to accomplish their goals if they do not establish norms according
to which they will operates, that is behavioral rules of conduct.
 Norms define the acceptable standard or boundaries of acceptable and unacceptable behavior,
shared by group members.
 They are typically created in order to facilitate group survival, make behaviour more predictable,
avoid embarrassing situations, and express the values of the group.
 The norms often reflect the level of commitment, motivation, and performance of the group.
 The majority of the group must agree that the norms are appropriate in order for the behaviour to
be accepted. There must also be a shared understanding that the group supports the norms.
 It should be noted, however, that members might violate group norms from time to time.
 If the majority of members do not adhere to the norms, then they will eventually change and will
no longer serve as a standard for evaluating behaviour.
 Group members who do not conform to the norms will be punished by being excluded, ignored,
or asked to leave the group.
Group Cohesiveness:
Cohesiveness refers to the bonding of group members or unity, feelings of attraction for each other and
desire to remain part of the group.
 Many factors influence the amount of group cohesiveness –
 agreement on group goals
 frequency of interaction
 personal attractiveness
 inter-group competition
 favorable evaluation etc.

 The more difficult it is to obtain group membership the more cohesive the group will be.
 Groups also tend to become cohesive when they are in intense competition with other groups or
face a serious external threat to survival.
 Smaller groups and those who spend considerable time together also tend to be more cohesive.
 Cohesiveness in work groups has many positive effects, including worker satisfaction, low
turnover and absenteeism, and higher productivity.
What is Group Dynamics?
Group dynamics deals with the attitudes and behavioral patterns of a group. Group dynamics concern how
groups are formed, what is their structure and which processes are followed in their functioning. Thus, it
is concerned with the interactions and forces operating between groups.
3. Group Processes:
Group decision making process can be defines as the process of choosing a best course of action among
alternatives.
It is important to understand in an organizational behavior because choice process plays a vital role in
communication, motivation, leadership & other aspects of individual, group & organizational interfaces.
There are several group decision making techniques:
 Brainstorming
 Nominal Group Technique
 Delphi Technique
Brainstorming:
 It is a process of generating ideas without any criticism.
 It encourages all weird, unusual, and impractical ideas, because the purpose behind brainstorming
is to allow the brain to wander freely.
 Every idea or suggestion is recorded without any criticism
 Group members are encourages to think creatively and differently from the normal.
 A collective decision is then made after analyzing each of the ideas.
Nominal Group Technique:
 Group members independently write alternative solutions to the problem on their own without
consulting or interacting with each other, so that groupthink can be eliminated.
 The group coordinator either collects these written ideas/solutions or writes on the board and
invites each group member to answer any questions raised by the group about his/her solution and
make clarifications.
 Then all ideas/solutions are discussed and are evaluated for their advantages and disadvantages,
and all members individually assign a rank on the basis of priority for each alternative solution.
 The most popular idea/solution with the highest ranking is chosen as the final decision.
Delphi Technique
 It is implemented through questionnaires sent to the members located at different places.
 Initially, a problem or decision to be made is identified, and q questionnaire is designed which is

sent to the group members, who then send back the filled form for compilation of the responses.
 The results of questionnaires are compiled at a central location and the central coordinator
prepares a second questionnaire to help clear certain issues.
 All the members are sent a copy of the results along with the second questionnaires to review the
results and are asked to respond to the second questionnaire.
 The results of second questionnaire may generate new solutions.
 The process is repeated until a consensus is reached.

Types of Groups:
One way to classify the groups is by way of formality – formal and informal. While formal groups are
established by an organization to achieve its goals, informal groups merge spontaneously. Formal groups
may take the form of command groups, task groups, and functional groups.
1. Command Groups:
Command groups are specified by the organizational chart and often consist of a supervisor and the
subordinates that report to that supervisor. An example of a command group is a market research firm
CEO and the research associates under him.
2. Task Groups:
Task groups consist of people who work together to achieve a common task. Members are brought
together to accomplish a narrow range of goals within a specified time period. Task groups are also
commonly referred to as task forces. The organization appoints members and assigns the goals and tasks
to be accomplished.
Examples of assigned tasks are the development of a new product, the improvement of a production
process, or designing the syllabus under semester system.

3. Functional Groups:
A functional group is created by the organization to accomplish specific goals within an unspecified time
frame. Functional groups remain in existence after achievement of current goals and objectives. Examples
of functional groups would be a marketing department, a customer service department, or an accounting
department.
i. Interest Group:
Interest groups usually continue over time and may last longer than general informal groups. Members of
interest groups may not be part of the same organizational department but they are bound together by
some other common interest.
The goals and objectives of group interests are specific to each group and may not be related to
organizational goals and objectives. An example of an interest group would be students who come
together to form a study group for a specific class.
ii. Friendship Groups:

Friendship groups are formed by members who enjoy similar social activities, political beliefs, religious
values, or other common bonds. Members enjoy each other’s company and often meet after work to
participate in these activities. For example, a group of employees who form a friendship group may have
a yoga group, a Rajasthani association in Delhi, or a kitty party lunch once a month.
iii. Reference Groups:

A reference group is a type of group that people use to evaluate themselves. The main objectives of
reference groups are to seek social validation and social comparison. Social validation allows individuals
to justify their attitudes and values while social comparison helps individuals evaluate their own actions
by comparing themselves to others. Reference groups have a strong influence on members’ behavior.
Such groups are formed voluntarily. Family, friends, and religious affiliations are strong reference groups
for most individuals.

Five stages of group development
Forming
 In this stage there is a great deal of uncertainty about group’s purpose, structure and leadership.
 Members are concerned about exploring friendship and task potentials. They don’t have a
strategy for addressing the group’s task.
 As awareness increases, this stage of group development is completed when members accept
themselves as a group and commit the group goals.
Storming
 At this stage of group development conflict arises because of the need to clarify roles and
behavioral expectations.
 One objective at this stage is to resolve the conflict about power and task structure.
 Another is to work through the accompanying hostility and replace it with a sense of acceptance
and belongingness that it necessary to reach to the next stage.
Norming
 At this stage a single leader emerges and this may bring about group cohesion.
 There is now a strong sense of group identity and camaraderie.
 New group standard roles and behavior expectations are formed for members.
 Desired outcomes for this stage of group development are increased member involvement and
mental support as group harmony emerges.

Performing
 This stage is marked by teamwork, role clarity and task accomplishment.
 Group energy moves from conflict to task accomplishment.
 Productivity is at its peak
Adjourning
 The groups disband on after the task has been accomplished.
 The leader can facilitate positive closure at this stage by recognizing and rewarding group
performance.
 Ceremonial events bring closure to the desired emotional outcome of a sense of satisfaction and
accomplishment.
TEAM
A team is a small number of people having shared goals and have and approach for which they hold
themselves mutually accountable
Team vs. Group
Group Criteria Team
Formal established Leadership shared roles
Individual Accountability shared & individual
Sum of individual outputs Performance collective & synergistic
Diverse Skills complementary
Common goal Orientation common commitment
Work Teams:
Work team are primarily concerned with the work done by the organization such as developing &
manufacturing new products, providing services for customers & so on
Their principal focus is on using the organization’s resources effectively
Work Teams in Organizations:
Work teams in an organization have several benefits. They are
 Enhanced performance
 Employee benefits
 Reduced costs
 Organizational enhancement
Enhanced performance
It including
 Increased productivity
 Improved quality
 Improved customer service
Employee benefits
 Better quality of work life & reduced stress
 Teams give employees freedom to grow & gain respect
 Making decision about their work
Reduced costs
 Team results in reduced scrap
 Fewer errors
 Fewer remuneration claims
 Reduced absenteeism
Organizational enhancement
 Increased innovation, creativity & flexibility
 Solve problems creativity
 Employees will have better access to top management
Team effectiveness & Team Building
The effectiveness can be understood in term of
 Team functioning
 Team empowerment

Team functioning
There are three main characteristics of team functioning
 Cohesion (among members of the team)
 Confrontation
i.e. solving problems as they arise rather than shying away from them
 Collaboration
i.e. working together & giving to and receiving help form each other
Team empowerment
The four main characteristics of team empowerment are
 Clarity of roles for different member of the team
 Autonomy of the team
 Support provided to the team in terms of resources
 Accountability of the team for achieving the goals to which a commitment has been made
Team Building
The process of making teams effective is called team building
There are several approaches to team building
 Johari window approach
 Role Negotiation approach
 Team roles approach
 Myer-Briggs Type Indicator approach
 Behaviour modification approach
 Simulation approach
 Action research approach
 Appreciative inquire approach

Johari window approach
According to this approach
 Team building involves helping individuals to take risks & frankly express their opining &
reactions
 Helping them to accept feedback from others with enough opportunities to explore the issues
raised further
Mayer-Briggs Type Indicator Approach
Utilizing the MBTI approach encourages the team in helping co-workers understand each other. Instead
of butting head over personality differences
Using MBTI one can
 Identity strengths, resources, & potential weakness within a team
 Improve communication throughout the team
 Help leaders identify an action plan to improve team effectiveness
 & resolve, prevent & manage conflicts & stress among team members
Behaviour modification Approach
According to this approach
Some psychological tests are used to help individuals examine their styles & orientations and then
increase their own effectiveness by modifying their behavior.
This is seen as an important way to enhance individuals potential for collaboration & team building.
Steps in Team Building
There are following steps suggested for team building
 Projection into future
A specific future scenario will help to inspire individuals to move towards it
 Linkage with individual goals
The vision of the team’s future should be linked with the individual’s aspirations & goals
 Force field analysis
The team may identify the forces that are positive & are helping the team to move towards the
desirable future

 Strengthening positive forces
They can take each positive force & workout plans to strengthen it further
 Reducing negative forces
The team can take up all the restraining or inhibiting forces & can plan specific action steps to
reduces, if not eliminate them
 Monitoring
The responsibility of monitoring can be taken up by one or two member & the team may meet
from time to time to review the progress.
LEADERSHIP
Definitions of Leadership
Leadership can, however, be simply defined as the act of making an impact on others in a desired
direction.
Concepts of Leadership
Good leaders are made, not born. If you have the desire and willpower, you can become an effective
leader. Good leaders develop through a never ending process of self-study, education, training, and
experience
To inspire your workers into higher levels of teamwork, there are certain things you must be, know, and,
do. These do not often come naturally, but are acquired through continual work and study. Good leaders
are continually working and studying to improve their leadership skills; they are NOT resting on their
past laurels.
Traditional and Contemporary leadership?
The importance of understanding the models and techniques of leaderships are increasing due to the
increase of complexity, diversity and rapid changes in today’s organizations.
It is important to understand, the different models of leadership styles since the leadership style which
suits for one organization might not suitable for another organization.
The leadership styles or models have changed from time to time. For this purpose it needs to identify the
differences between traditional leadership and contemporary leadership.
 Traditional leadership models
 Contemporary leadership models

Traditional leadership models
The main feature of a traditional leadership model is, which “stresses on supervisory control over
employees.”
Examples: trait model of leadership, behavioral model of leadership & Contingency model
The Trait theory of Leadership:
The trait leadership theory believes that people are either born or are made with certain qualities that will
make them excel in leadership roles.
That is, certain qualities such as intelligence, sense of responsibility, creativity and other values puts
anyone in the shoes of a good leader.
The trait theory of leadership focused on analyzing mental, physical and social characteristic in order to
gain more understanding of what is the characteristic or the combination of characteristics that are
common among leaders.
Behavioral theory of leadership:
According to this, leadership can be described in terms of “what leaders do rather than what they are”
Behavioural theories have been presented mostly on the basis of research studies.
The two important behavioural theories are Ohio state university studies & University of Michigan
Studies.
Behavioral leadership model emphasize the behaviors of the leaders or according to differences in the
level of the authority given to their followers or subordinates.
Behavioral leadership has three styles called autocratic, democratic and laissez-faire.
Styles of Leadership
There are different styles of leadership, in particular, regarding decision-making
Autocratic
 The autocratic leadership style allows managers to make decisions alone without the input of
others.
 Managers possess total authority and impose their will on employees.
 No one challenges the decisions of autocratic leaders.
 This leadership style benefits employees who require close supervision.
 Creative employees who thrive in group functions detest this leadership style.

Democratic
 Democratic leader involve their people in decision-making.
 They function as collectors of opinion and take a vote before making a decision.
 Democratic leaders delegate full authority to subordinates.
Laissez-Faire /Free-rein
 Laissez-faire leaders have minimum involvement in decision-making.
 They allow people to make their own decisions.
 The employees are responsible for the outcome of their decision.
 Laissez-faire leadership is successful when people are capable and motivated to make their own
decision.
It is discovered by Lewin, that the democratic style was the most effective style of leadership. Excessive
autocratic styles led to revolution, while under a laissez-faire approach, people were not coherent in their
work, and did not put in enough energy in their work.
Contingency Theory of Leadership
The success of leadership depends upon the situation in which the leader operates which signifies that
there are certain people who perform at the maximum level in certain places; but at minimal performance
when taken out of their element.
It is generally accepted within the contingency theories that leader are more likely to express their
leadership when they feel that their followers will be responsive.
 Fiedler’s theory of Contingency
 Cognitive Resource Theory
Fiedler’s Theory:
According to this a leader’s effectiveness depends upon the following three situational factors:
 Leader-member relations: The extent to which the leader has the support and loyalties of
follower. The relations with them are friendly and cooperative.
 Task Structures: The extent to which tasks are standardized, documented, and controlled.
 The Status power: The extent to which the leader has authority to assess follower performance
and give reword of punishment.

Cognitive Resource Theory
It predicts that
 Leader’s Cognitive Ability: A leader’s cognitive ability contributes to the performance of the
team only when the leader’s approach is directive
 Effect of Stress: Stress affects the relationship between intelligence and decision quality
 Experience and Decision Quality: experience is positively related to decision quality under high
stress
Contemporary theories of leadership
Two types of leadership functions have been contrasted: transactional and transformational
 Transactional leaders maximize efficiency
 Transformational leaders emphasize on creativity
Transactional leadership:
The basic beliefs of transactional leaders are that
 People are motivated by reward and punishment
 Social systems work best with a clear chain of command
 When subordinates agree to do job, they cede (surrender) all authority to their manager
Transformational leadership:
Transformational leadership attempts to change the whole organization from one “style” or “culture” to
another.
Charismatic leaders have supernatural powers over their followers.
Charismatic leaders use their own personal power instead of position power to influence followers in
order to achieve their goals.
There are six main characteristics of transformational leaders:
Empowering, Risk taking, Clarity of mission, Team building, Equanimity (calmness), & Evolving trust
The transformational leadership is well explained through:
 Burns’ Theory
 Bass’ Theory

Burns’ Theory:
Burns assumed that people associated with a higher moral position will be motivated by a leader who
promotes this quality. Such people are better off working collaboratively than working individually.
Burn defined transformation leadership as a process in which leaders and followers engage in mutual
process of raising one another to higher levels of morality and motivation.
Bass’ Theory:
Bass defined transformational leadership in terms of how the leader affects followers, who are intended to
trust, admire, and respect the transformational leader.
He identified three ways in which leaders transform followers:
 Increasing their awareness of task importance & value
 Getting them to focus first on team organizational goals, rather than their own interests
 Activating their higher-order needs

Unit 04
ORGANIZATIONAL CULTURE
Organizational Culture is the
 Shared values
 Principles & traditions
 & way of doing things
that influence the way organizational members act.
Examples of
Shared values: FedEx stands for overnight delivery of packages entrusted to it
Perceived meaning: Citibank transferred money to customers account without losing single minute when
it encountered discrepancy in ATM transaction.
Way of doing things around:
The McDonald’s stands for QSCV: quality, service, cleanliness, & value
Proctor & Gamble stands for outstanding product quality
Sony Corporation “lives & breaths” new product development.
Infosys Technologies stands for ethics etc.
Features of Culture
Four features are distinct to culture:
 Beliefs, arts, customs
 Passed on from generation to generation
 Shared phenomenon
 Normative value
Creating Organizational Culture
Organizational culture generally comes from

 Critical incidents
 Leaders
 Property rights

 Organizational structure
 Organizational ethics &
 Characteristics of employees
Cultural formation around critical incidents:
Norms & beliefs arise around the way members respond to critical incidents something emotionally
charged or anxiety producing may happen such as an attack by a member on the leader. Because everyone
witnesses it and because tension is high when the attack occurs the immediate next set of behaviours
tends to create a norm
Identification with the leaders
The founders own behaviours acts as a role model that inspires employee to get along internalizing their
beliefs, values & assumptions.
Example: The late J.R.D typifies this type of culture creation in Tata. (i.e. his belief on professionalism,
and assumption that only honesty and fair dealing will pay have made the vast Tata empire what it is
today)
Property rights
The distribution of property rights has a direct effect on the employee behaviour and performance. It also
determines the culture that emerges in the organization. Where property distribution is fair, stakeholders
cultivate bondage to the organization and develop strong culture.

Organizational Structure
Organizational structure is the formal system of tasks and authority relationships that an organization
established to control it activities.
Organizational Ethics
Organizational ethics outline the right and wrong ways to behave in a situation.
Example: Bribery and corruption are discouraged by an ethically strong organization, such as Tata’s.
Characteristics of People within Organization
People differ in their personalities, values and ethics. Naturally, organizations which hire and retain
people tend to develop distinctly different cultures.
Sustaining the Culture
Having created culture, it needs to be kept alive in the organization. There are strategies which
organizations employ t sustains their cultures.
There are strategies which organizations employ to sustain their cultures
Selecting and socializing Employees
Selecting or hiring right people for right jobs. By identifying candidates who can jell with the
organization culture, selection helps sustain culture considerably.
In socialization, the new employee masters the skills required for his or her new roles, and makes the
adjustment to his or her workgroup’s value & norms.
Action of Leaders and Founders
The founder’s cultural imprint often remains with the organization for decades.
Transformational leaders strengthen organizational culture by communicating & enacting their vision of
the future.
Culturally consistent Rewards
Reward systems strengthen corporate culture when they are consistent with cultural values.
Managing the cultural Network
Organizational culture is learned, so an effective network of cultural transmission is necessary to

strengthen the firm in underlying values & beliefs.
Company magazines & other media can also strengthen organizational culture by communicating cultural
values & beliefs more effectively
Maintaining a Stable workforce
The organizations culture can literally disintegrate during periods of high turnover & downsizing because
the corporate memory leaves with these employees.
Types of Organizational Culture

Organizational culture can vary in a number of ways. It is these variances that differentiate one
organization from the others. Some of the bases of the differentiation are presented below:
1. Strong vs. weak culture: Organizational culture can be labeled as strong or weak based on
sharedness of the core values among organizational members and the degree of commitment the
members have to these core values. The higher the sharedness and commitment, the stronger the
culture increases the possibility of behavior consistency amongst its members, while a weak
culture opens avenues for each one of the members showing concerns unique to themselves.
2. Soft vs. hard culture: Soft work culture can emerge in an organization where the organization
pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few
objectives which serve personal or sectional interests.
A typical example of soft culture can be found in a number of public sector organizations in India
where the management feels constrained to take action against employees to maintain high
productivity. The culture is welfare oriented; people are held accountable for their mistakes but
are not rewarded for good performance. Consequently, the employees consider work to be less
important than personal and social obligations.
Sinha (1990) has presented a case study of a public sector fertilizer company which was
established in an industrially backward rural area to promote employment generation and
industrial activity. Under pressure from local communities and the government, the company
succumbed to overstaffing, converting mechanized operations into manual operations, payment of
overtime, and poor discipline. This resulted in huge financial losses (up to 60 percent of the
capital) to the company.
3. Formal vs. informal culture: The work culture of an organization, to a large extent, is
influenced by the formal components of organizational culture. Roles, responsibilities,

accountability, rules and regulations are components of formal culture. They set the expectations
that the organization has from every member and indicates the consequences if these expectations
are not fulfilled.
How to Create a Positive Work Culture

A positive workplace culture leads to increased productivity, better employee morale and the ability to
keep skilled workers.
Step 1
Create a clear vision statement for your company.
Employees like to know that the job they are doing is making a difference. By creating a vision statement
about where you want your company to be in the future and how you want it to make the world a better
place creates an air of striving for betterment in the workplace. This lays the foundation for a positive
work culture.
Step 2
Look for positive attitudes while hiring.
Negative people can quickly sour an entire workplace. When hiring employees, look for a friendly smile
and an upbeat disposition. Ask questions of new hires to determine how they handle conflict and
interactions with others. If you already have negative employees on staff, take them aside to discuss their
attitudes and make it clear that you are creating a positive work culture and negativity will not be
tolerated.
Step 3
Make an open-door policy.
When the boss is inaccessible and distant to employees, they may not feel as though their opinions matter.
Establish an open-door policy and encourage interaction with employees. Ask their opinions, listen to
what they have to say and remember to be positive in your dealings with them.
Step 4
Engage your employees in daily operations of the company.
Employees may not realize the good that the company is doing behind closed doors. Keeping them
informed about exciting new changes or new horizons will help them stay engaged in the company and
feel more positive about the future. Be honest and open with your employees.

Step 5
Let your employees know they are appreciated.
Employees who are not recognized for the work they do can feel as though their work is unappreciated.
Establish reward systems for excellent performance and never forget to thank an employee for a job well
done.
Workplace Spirituality
Organizations that recognize workplace spirituality realize that people have an inner life, that they must
find meaning in their work and that their work must take place in the context of community.
The Desire to Be Part of a Community
Organizations that provide a culture that embraces workplace spirituality realize that their employees
want to feel like a valued member of their community. Spiritual organizations provide ways for their
members to make positive contributions to the places they work and live.
The Desire to Connect to Other People
Spiritual organizations realize the importance of providing their members with an environment that
fosters positive relationships with coworkers. In the course of performing their jobs, they have
opportunities to work with other organizational members and feel like they are part of a team that is
working towards the same goal.
The Pursuit of Meaning and Purpose
While making profits is important, they are not the primary goal of a spiritual organization. Spiritual
organizations have clearly defined goals that every member of the organization can measure and
understand. Keeping organizational members focused on the same purpose:
 Gives them meaning in their jobs
 A way for them to feel like their work is important
 Helps the organization achieve its goals
Workplace spirituality is not about organized religious practices. It’s not about God or theology.
Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by
meaningful work that takes place in the context of community. Organizations that promote a spiritual
cultural recognize that people have both a mind and a spirit, seek to find meaning and purpose in their
work, and desire to connect with other human beings and be part of a community.

Unit 05
ORGANIZATIONAL CHANGE
Meaning
Change is inevitable in the life of an organization. Change poses formidable challenges and heralds new
opportunities. Organizations that learn and cope with change will thrive and flourish and others which fail
to do so will perish.
Defining Organizational Change
Organizational change is the process by which organizations move from their present state to some
desired future state to increase their effectiveness
General Concepts
The study of organizational change is interdisciplinary in nature and draws from the fields of psychology,
sociology, political science, economics, and management.
Nature of Organizational Change
Change is understood as doing things differently
Change is
 Vital if a company were to avoid stagnation
 Fast and is likely to increase further in the present competitive business
 Is ‘natural’, that is, evolutionary or ‘adaptive’, that is, a reaction to external circumstances and
pressures
 Is ‘incremental’, that is continuous small changes or ‘step’, that is, radical shift from current to
new processes; and
 Is interdependent on organizational environment or culture
Types of Organizational Change
Change falls in two broad categories
 Evolutionary change: which is gradual, incremental, and specifically focused
 Revolutionary change: which is sudden, drastic and organization-wide
Evolutionary change:
Evolutionary change involves not a drastic or sudden change in the basic nature of and organization’s
strategy and structure but the constant attempt to incrementally improve, adapt, and adjust strategy and
structure to better match the change that are taking place in the environment.

Total quality management is a type of change process through which organizations attempt to manage
incremental improvement in the way work gets done. TQM is a technique to improve the efficiency of
flexible work teams. The broad goal of TQM is continuous improvement.
Revolutionary change
It is more likely to result in a dramatic shift that involves a whole new way of doing things, new goals and
new structure.
An organization can employ re-engineering to implement revolutionary change to bring about quick
results.
Re-engineering involves rethinking and redesign of business processes to increase organizational

effectiveness.
Forces that acts as stimulants to change
Change has become the norm in most organizations. Business failures, plant closures, mergers and
acquisitions, downsizing, r-engineering, productivity improvement, globalization, cycle-time reduction
and other efforts for survival are common among most Indian companies.
There are two stimulants to change
 External forces (Globalization, workforce diversity, technology change, managing ethical

behavior, government policies, competition and scarcity of resources)
 Internal forces (change in leadership, change in employee and customer expectations, human
resource problems/prospects, managerial behavior decisions)
External forces:
Globalization
Globalization is the process of economic integration at the international level. It has made organizations
to rethink the boundaries of their markets and to encourage their employees to think globally.
While globalization has opened up opportunities for products, services, and people to travel to different
parts of the world, it has also created pressure on organizations to manufacture high-quality products and
provide high-quality services at low cost.
Example: entry of international retail stores such as Marks & Spencer and Wal-Mark has forced Indian
companies to change their policies and produce equally good products as their foreign competitors. So
companies are forced to enter into partnership with their suppliers in order to deliver higher quality
products at lower prices
Workforce Diversity
Related to globalization is workforce diversity which is a powerful external force invoking change.

Technological change
Technological advancement has brought about major changes in organizations. It has not only changed
the way the work is performed, but has also changed work relationship and organizational structure.
Example: Advancement in technology has forced Indian Railways to start internet reservations for
booking tickets in place of manual bookings.
Government policies
Changes in the government rules and regulations necessitate changes in organizations.
Example: revision in laws regarding control of air pollution or dumping of chemical wastes and
economical changes like inflation rate constitute as source of change for organization. Air pollution laws
force manufacturing companies to use machinery that does not create pollution.
Internal forces:
Change in leadership
Leadership brings changes in culture and values of organizations.
Example: Ratan Tata brought many changes to Tata Group of Industries after the death of J.R.D. Tata.
Human resource problems/prospects
Organizations are forced to change, which arise due to employee perceptions about how they are treated
at work and the match between individual and organization needs and desires.
Example: after a strike at Maruti Udyog Limited in 2011, the management changed the department of
many workers, which was perceived by workers as unfair treatment. As a result workers started
neglecting work.
Resistance to change
The forces which resist changes are
 Organizational forces
 Sub-unit forces
 Group forces &
 Individual forces

Organizational forces
Organizational structure
Every time and organizational structure becomes self-maintaining that is people come and go, but the task
relationships remain unchanged, it becomes resistant to change.
Organizational culture
Generally employees stay with an organization because the work helps them meet their life goals &
beliefs fit into the organization culture. They feel threatened by efforts to make radical changes in the
organizations culture. Hence, the resistance to change.
Organizational strategy
Managers are often biased by previous commitments & they stick to a course of action even if it is not
working.
Over determination
Organizations have several systems designed to maintain stability.
For example:
Organizations control employee performance to ensure that as employees they will do the job the
organization desires, job seekers must meet specific requirements in order to be hired.

Once he or she joined in an organization he/she performed the same per training, coaching & counseling
to get rewards, punishment or maintain discipline.
Such a system is characterized by over determined or structural inertia.
It may be achieved with fewer procedures & safeguards. But he/she is doing this for the sake of stability
of organizations.
Sub-unit forces
There are obstacles to change even at the functional or department level.
Differences in sub-unit orientation are another major resistance to change & source of organizational
inertia.
Example:
If declining sales is the problem that must be solved, what changes should the organization make?
The sales function may lobby for an increase in the size of the sales budget & the hiring of more sales
people.
R & D may lobby for more money for new product development.
Production function may lobby for new low cost machinery so that the organization can obtain a low cost
advantage.
It is easy to see how different viewpoint can be obstacle to change.
Power & conflict
Change usually benefits some people & divisions at the expense of others.
For example
A change in purchasing practices will help materials management achieve its goal of saving on cost, but
which will adversely affect manufacturing’s ability to reduce production cost.
While the materials function will push for change, manufacturing will resist it. The conflict between the
two functions will slow down the process of change & perhaps prevent it from occurring.
Group level forces
Group Norms
Group develops their own norms to promote desirable behaviours.
Any change that disrupts group norms will invoke resistance from group members.

Group cohesiveness
A highly cohesive group may resist attempt by management to change what it does or even who is a
member of the group.
Groupthink
Groupthink occurs in a cohesive group. When group processes are operating, it becomes difficult to bring
about a change.
Individual-Level forces
Individual-level obstacles to change are many and are powerful too.
Uncertainty
Uncertainty about the outcome of change make people resistant to change. 'Fear of the unknown' is a
strong obstacle to change.
Fear of Loss
When change is impending, employees may fear losing their jobs and the fear becomes acute when
advanced technology is introduced.
Selective perceptions
Perception plays a significant role in shaping employees attitudes and behaviors. There is a tendency for
people to selectively perceive information that is consistent with their existing views of their
organizations. Thus, when change takes place, workers tend to focus only on how it will personally affect
them or their function of division; if they perceive few benefits they may reject the purpose behind the
change.
Habit
Habits, employees' preferences for familiar actions and events, are also an important source of resistance
to change. Habits die hard because people have a built in tendency to return to their original behaviours, a
tendency that prevents change.
How to overcome the Resistance to change:

1. Overcome opposition
Regardless of how well companies manage a change, there is always going to be resistance. Companies
should engage those who are opposed to a change. By doing this, they can actively see what their
concerns are and possibly alleviate the problem in a timely manner. By allowing employees time to give
their input, it assures them that they are part of a team that actually cares about its employees.
2. Effectively engage employees

If there is another piece advice that a company should take, it’s to receive and respond to the feedback
that is provided by the employees. They are the ones making sure that all the clients are happy and that all
the work gets done, so keeping them in the loop is vital. Ask employees probing questions: Is the change
working? What can we do to make it work better? Do employees have any questions or concerns? These
are all great questions to ask, but if feedback is going to be collected, it actually needs to be read and
utilized. These answers can be used to change the plan accordingly, and show employees that their ideas
and concerns are being heard.
3. Implement change in several stages

Change doesn’t happen all at once. Companies should first prepare for the change, then take action on the
change and make a plan for managing the change, and third, support the change and assure that all is
going as planned.
4. Communicate change effectively

The best way that you as an employer can communicate change is to explicitly tell employees what is
going on. Using a blend of formal and informal communication allows you to ensure that all employees
receive the news about the change in some way or another. With all the communication outlets such as
email, company intranets, town halls, and face-to-face meetings, the message is going to get across the
company. Employing several different ways to communicate change helps explain the vision, goals and
expectations for what needs to happen and why.
Kurt Lewin's- Three step model
The three stage theory of change is commonly referred to as Unfreeze, Change, Freeze (or Refreeze).
Stage 1: Unfreezing
The Unfreezing stage is probably one of the more important stages to understand in the world of change
we live in today.
 This stage is about getting ready to change.
 It involves getting to a point of understanding that change is necessary and getting ready to move
away from our current comfort zone.

 The more we feel that change is necessary, the more urgent it is, the more motivated we are to
make the change
 The first 'Unfreezing' stage involves moving ourselves, or a department, or an entire business
towards motivation for change
Stage 2: Change - or Transition
 Change is not an event, but rather a process called a transition.
 Transition is the inner movement or journey we make in reaction to a change.
 People are 'unfrozen' and moving towards a new way of being.
 Moving implies developing new behaviours, values and attitudes
 That said this stage is often the hardest as people are unsure or even fearful.
 Support is really important here and can be in the form of training, coaching, and expecting
mistakes as part of the process.
 Keep communicating a clear picture of the desired change and the benefits to people so they don't
lose sight of where they are heading.
Stage 3: Freezing (or Refreezing)
 This stage is about establishing stability once the changes have been made.
 The changes are accepted and become the new norm.
 People form new relationships and become comfortable with their routines.
 The Change becomes permanent
 New attitudes, values and behaviours are established as the new status quo
 The new ways of operating are cemented and reinforced

Seven Stage model of Change
Stage 1 – Shock. This reaction is usually immediate and from experience, it can be within a few hours.
Even if you have planned this change, the fact that it is actually upon you will give you a strange feeling
of disorientation. This stage will last longer if it is unexpected.
Stage 2 – Disbelief/Denial. You have usually managed to get back to everyday life at this point.
Intellectually, you know that the change has happened and what may happen, however emotionally, you
may block out the new reality from daily life. You will probably be processing this new reality in your
sub-conscious mind. Cognitive Dissonance usually occurs at this stage, and you are more likely to get
stuck in this phase if you are change resistant.
Stage 3 – Self doubt. This is a very uncomfortable stage. Old habits and beliefs are no longer relevant, as
are some of the things that used to be important to you. Your sense of identity will be shattered. You feel
a sense of nothingness until you develop a new way of ‘being’. Your confidence will be low, and you
may be fearful of the future, become angry, depressed, and have an overwhelming sense of guilt. I have
personally felt doubt as to whether I have made the right decision or whether I am up for the job. You also
may want to seek isolation to mull it over further, and at the same time feel unmotivated.
Stage 4 – Acceptance. You have come to the decision to accept the change and face the future. By letting
go of the past reality, the pain goes away and finding your new way of being becomes exciting and a
challenge rather than a loss. Your energy levels will be going up, as this stage usually begins just after
rock bottom on the emotional scale. You still might not know what you are going to do, but at least you
know that your reality has changed.
Stage 5 – Experimentation. You try something new from the new paradigm, but don’t be surprised if
you can’t stick to the plan. You could be all over the place, trying little changes to fit with your new
reality. You will still be working it out in your mind; however your energy levels continue to rise. Try
little things before attempting any major change at this stage, because you may slip back to self-doubt if a
large experiment goes pear shaped.

Stage 6 – Search for meaning. When you have embarked on your journey towards your new reality, you
may start to appraise where you were before the change occurred, what has happened since, and why.
You will begin to fit your experience into your “life story” and re-examine your view of yourself and the
world around you. You will start to make sense of it all.
Stage 7 – Integration. At the end of the change process, and all being well, you will be comfortable,
confident, and a feeling that you belong or are seeking belonging in your new way of life.
Kotter’s Eight-Step plan for Implementing Change
70% of all major change efforts in organizations fail – John Kotter
We live in a world where "business as usual" is change. New initiatives, project-based working,
technology improvements, staying ahead of the competition – these things come together to drive ongoing
changes to the way we work.
We know that the change needs to happen, but we don't really know how to go about delivering it. Where
do we start? Whom do we involve? How do we see it through to the end?
Kotter introduced his eight-step change process in his 1995.
Step 1: Establishing a sense of Urgency
 Express the need for change
 Show the risks if change does not happen
 Get a good discussion going on about how to make change and what needs to be changed to get
people talking and thinking
 Get outside perspective to add merit to the need for change
Step 2: Creating the guiding coalition
 Put together a group of 3-5 people to be the leaders of the coalition
 The group must trust each other and be moving in the same direction
 Select intelligent leaders and respected people in the organization
 Make sure there is a mix of members from different departments
Step 3: Developing a Vision & Strategy
 Determine the key reasons for change.
 Develop a 2-3 sentence vision statement that explains how you see the future of the organization.
 Know how this vision can be executed.
 Be able to explain the vision easily.

Step 4: Communicating the change Vision
 Talk often about the vision of change.
 Openly and honestly address peoples about their concerns and anxieties.
 Apply your vision to all aspects of operations.
 Lead by example
Step 5: Empowering employees for broad-based action
 Identify, or hire, change leaders whose main roles are to deliver the change.
 Look at your organizational structure, job descriptions, and performance and compensation
systems to ensure they're in line with your vision.
 Recognize and reward people for making change happen.
 Identify people who are resisting the change, and help them see what's needed.
 Take action to quickly remove barriers (human or otherwise).
Step 6: Generating short-term wins
 Look for sure-fire projects that you can implement without help from any strong critics of the
change
 Don’t choose early targets that are expensive.
 Thoroughly analyze the potential pros and cons of your targets.
 Reward the people who help you meet the targets.
Step 7: Consolidating gains & producing more change
 After every win, analyze what went right, and what needs improving.
 Set goals to continue building on the momentum you've achieved.
 Learn about kaizen, the idea of continuous improvement and its application.
 Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

Step 8: Anchoring new approaches in the Culture
 Talk about progress every chance you get. Tell success stories about the change process, and
repeat other stories that you hear.
 Include the change ideals and values when hiring and training new staff.
 Publicly recognize key members of your original change coalition, and make sure the rest of the
staff – new and old – remembers their contributions.
 Create plans to replace key leaders of change as they move on. This will help ensure that their
legacy is not lost or forgotten.


OB Note For B. Tech

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OB Note For B. Tech

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5/17/2018

A Chiranjibi Rambabu Achary

There are three features of OB:

 OB is the study of human behavior

 The study is about behavior in organization; and

 Knowledge about human behavior would be useful in improving an organization’s effectiveness.

The scope of OB integrates three concepts respectively

Organizations: It studies the formation of organization, structure of organization and effectiveness of

 OB provides a road map to our lives in organizations

 OB uses scientific research to help us understand and predict organizational life

 OB theories and concepts will help us influence organizational events

i.e. Manage conflict, make better decisions etc

 OB helps an individual understand himself/herself and other better

 OB will help the manager understand the basis of motivation.

 It is useful for maintaining cordial industrial relations

A Chiranjibi Rambabu Achary, Asst. Professor

Relations between OB and the individual:

The leading contributors in the evolution of OB are discussed:

 he improved working conditions

 prevented child labor

 shortened working hours

 and provided meals for employees

A Chiranjibi Rambabu Achary, Asst. Professor

Human Relations Movement

Three frameworks are developed majorly for this purpose.

 Social cognitive framework

A Chiranjibi Rambabu Achary, Asst. Professor

Social cognitive framework in OB

Bandura identified five basic human capabilities as a part of SCT.

2. Forethought: Employees plan their actions.

A Chiranjibi Rambabu Achary, Asst. Professor

Limitation of Organizational Behaviour

 Managing workforce diversity

 Changing demographics of work force or duality of OB are baffling (mysterious)

 Focusing on improving ethical behavior

 Changed employee expectations: With the changes in workforce demographics, employee

 Globalization: Growing internationalization of business has its impact on people management.

 Unethical practices and manipulation of people: Knowledge of motivation and communication

A Chiranjibi Rambabu Achary, Asst. Professor

Attitudes consist of three basic components: emotional, informational, and behavioural.

A Chiranjibi Rambabu Achary, Asst. Professor

 The behavioural component consists of a person’s tendencies to behave in a particular way

Importance of Attitude in an Organization:

A Chiranjibi Rambabu Achary, Asst. Professor

Relationship between Attitude & Behavior

A Chiranjibi Rambabu Achary, Asst. Professor

Emotional Intelligence in the Workplace

It is the capacity of individual to

 Recognize their own, and other people’s emotions

 Discriminate & label different feelings appropriately

 Use emotional information to guide thinking & behaviour

Mixed model by Danial Goleman

It is being driven to achieve for the sake of achievement

A Chiranjibi Rambabu Achary, Asst. Professor

It is about considering other people’s feelings especially when making decisions

It is about managing relationships to more people in the desired direction

The Aspects of Job Attitude

A Chiranjibi Rambabu Achary, Asst. Professor

BARRIERS TO CHANGING ATTITUDES

A Chiranjibi Rambabu Achary, Asst. Professor

Importance of Personality for performance:

 Increase awareness of self and others.

 Work more effectively with co-workers and customers.