Introduction

• The knowledge and information explosion, global competition, total quality and diversity
are some of the bitter realities that the managers are facing today.
• Management have three major dimensions—technical, conceptual and human.
• But the practicing managers ignore the conceptual and human dimensions of their jobs.
• Most managers think that their employees are lazy. (relatively easy to solve problems)
• But human behaviour at work is much more complicated and diverse.
• The new perspective assumes that employees are extremely complex

• Hence the need to study

Organizational Behaviour (OB)
HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR
Scientific Management Approach
• This theory supported the use of certain steps in scientifically studying each element of a job,
selecting and training the best workers for the job arid making sure that the workers follow the
prescribed method of doing the job.
• Scientific management focusing on the interaction between workers and the task. To increase
output, Taylor advised managers to pay monetary incentives to efficient workers.
• Critics worried that the methods took the humanity out of labor, reducing workers to machines
responding to management incentives. (assumption Lazy workers)
Bureaucratic Approach Max Weber
• Naive assumption that one structure would work best for all organizations.
• How to structure organization more effectively.
• Henry Ford, Henry Fayol and Frederick W. Taylor, did not emphasize the human dimensions.
Hawthorne Studies
• The real beginning of organizational behaviour started with Hawthorne Experiments.
• The findings of these studies were given the name 'human relations'
• It usher in a more humanity centered approach to work.
 APPROACHES TO ORGANIZATIONAL BEHAVIOUR
We are going to discuss 4 approaches
1) Human Resources Approach
• Concerned with the growth and development of people towards higher levels of
competency, creativity and fulfilment.
• This approach help employees become better in terms of work and responsibility and then it
tries to create a climate in which they can contribute to the best of their improved abilities.
• This approach is also known as 'supportive approach
 
2) A Contingency Approach
• Implies that different situations require different behavioral practices for effectiveness
instead of following a traditional approach for all situations.
• Analysis of each situation prior to action.
3) Productivity Approach
Productivity is a ratio that compares in terms of economic inputs and outputs.
Productivity is considered to be improved, if more outputs can be produced from
the same amount of inputs. But besides these human and social inputs and
outputs are also important.
 4) Systems Approach
A system is an interrelated part of an organization or a society that interacts with
everyone related to that organization or society and functions as a whole.
Within the organization 'people' employ 'technology' in performing the 'task' that
they are responsible for, while the 'structure' of the organization serves as a basis
for co-ordinating all their different activities.
The systems view emphasizes the interdependence of each of these elements
within the organization, if the organization as a whole is to function effectively.
it emphasis on the interaction between the organization and its broader
environment, which consists of social, economic, cultural and political
environment within which they operate.
 MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR
Management is "Getting work done through other people".
According to Gary Johns, "Organisations are social inventions for accomplishing goals through group
efforts". This definition covers wide variety-of groups such as businesses, schools, hospitals,
fraternal groups, religious bodies, government agencies and so on. There are three significant
aspects in the above definition, which require further analysis. They are as follows:
Social Inventions: The word "social" as a derivative of society basically means gathering of people. It
is the people that primarily make up an organisation.
Accomplishing Goals: Primary goal is to make money for its owners, this goal is inter-related with
many other goals. Goal must integrate in itself the personal goals of all individuals associated with
the organisation.
Group Effort: Individuals in themselves have physical and intellectual limitations and these
limitations can only be overcome by group efforts.

From the explanations above OB is concerned with understanding behaviour patterns of individuals,
groups and organisations, to ''predict'" what behavioural responses will be elicited by various
managerial actions and finally to use this understanding and these predictions to achieve "control".
• It is an interdisciplinary (psychology, sociology and anthropology) devoted to understanding
individuals and groups behaviour, interpersonal processes and organizational dynamics.
• OB is "The study of human behaviour in organisational settings, the interface between
human behaviour and the organisational context, and the organisation itself."
• OB offers three ways of understanding People as; organisations, resources and people.
 Organisations are people; and without people there would be no organisations.
 As resources, people are the most valuable assets. Make the decisions, solve the
problems etc.
 People as people - humanistic management. People spend a large part of their lives in ;
organisational settings, mostly as employees. They have a right to expect something in
return beyond wages and benefits. They have a right to expect satisfaction and to learn
new skills.
ELEMENTS OF ORGANISATIONAL BEHAVIOUR
The key elements are
• People: Individuals and groups. May be big or small; formal or informal; official or unofficial.
• Structure: Formal relationships of the people in organisations. Different people perform
different type of jobs and relate in some structural way to be effectively co-ordinated.
• Technology: Machines and work processes provide the resources with which people work
and affects the tasks that they perform. Has a significant influence on working relationships.
• Environment: External environment. Elements such as government, family and other
organisations. All of these mutually influence each other in a complex system that creates a
context for a group of people.
NEED FOR STUDYING ORGANISATIONAL BEHAVIOUR
• Three purposes:
• What causes behaviour?
• Why particular antecedents cause behaviour?
• Which antecedents of behaviour can be controlled directly and which are beyond control?
LEVELS OF ANALYSIS
Organisational behaviour can be viewed from different perspectives or levels of analysis.
• Organisation at the Individual Level: Draws on psychology and explains why individuals
behave and react the way they do to different organisational policies, practices and
procedures. Theories of learning, motivation, satisfaction and leadership are brought to
bear.
• Organisation at the Group Level: Draws on social psychology This frequently results in
people working together in teams, committees and groups.
• Organisation at the Organisational Level: Organisation as a whole. Macro perspective
draws on 'sociology'. Emphasis is placed upon understanding how organisational
structure and design influences the effectiveness of an organisation.
The perspectives are complementary.
FUNDAMENTAL CONCEPTS OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour starts with the following six fundamental concepts revolving around
the nature of people and organisations:
1) The nature of people:
• Individuals are different in their physical and mental traits.
• A whole person: They employ the 'whole person'. Personal life and work life.
• Better person in terms of all round growth and development. The benefit will extend beyond
the firm into the larger society in which each employee lives.
• It is the urge of the individual to satisfy a particular need that motivates him to do an act.
• Value of the person. People are to be treated with respect and dignity.
2) The nature of an organisation
Social system: A group of independent and interrelated elements comprising a unified whole.
Individuals of a society are considered as a system organised by a characteristic pattern of
relationships having a distinctive culture and values. It is also called social organisation or social
structure. It can be further divided into following categories:
• Feudal system: A political and economic system based on the holding of land and relation
of lord to vassal and characterized by homage, legal and military service of tenants, and
forfeiture.
• Patriarchate: male is Family head and title or surname is traced through his chain. In
other words, power lies in his hands.
• Matriarchate: Female is considered to be the family head. In other words, power lies in
her hands.
• Meritocracy: Power vests in the hands of the person with superior intellects.
• Class Structure: This is a social system of different classes.
• Segregation: This is a social system, which provides separate facilities for minority groups
of a society.
Organisational relationships are most likely to be strong if different groups can negotiate
strategies. Individuals who have shared mutual interests are likely to make their organisation
the strongest.
 
 ORGANISATIONAL CULTURE
Definition and meaning
• how things are done around here.
• Collection of traditions, values, policies, beliefs, and attitudes that constitute a pervasive
context for everything we do and think in an organisation.
• Seen through rites and rituals, patterns of communication, the informal organisation, expected
patterns of behaviour and perceptions of the psychological contract.
Schein view organisational culture based on three level of culture;
• Level 1 Artefacts and Creations: the constructed physical and social environment. This
includes physical space and layout, the technological output, written and spoken language and
the overt behaviour of group members.
• Level 2 Values: solutions about how to deal with a new task, issue or problem are based in
convictions of reality. If the solution works the value can be transform into belief. Values and
belief becomes part of the conceptual process by which group members justify actions and
behaviour.
• Level 3 Basic underlying assumptions: They are implicit assumptions that actually guide
behaviour and determine how group members perceive, think and feel about things.
TYPES OF ORGANISATIONAL CULTURE
Handy described four main types of organisational culture (OC).
Power culture: depends on the central power source with rays of influence from the central figure
throughout the organisation. This is often seen in small entrepreneurial organisations and relies on trust,
empathy and personal communications for its effectiveness. Control is exercised from the centre by the
selection of key individuals. There are few rules and procedures, and little bureaucracy. It is a political
organisation with decisions taken largely on the balance of influence.
Role culture: is often stereotyped as a bureaucracy and works by logic and rationality. Role culture rests on
the strength of strong organisational ‘pillar’ – the function of specialists in, eg, finance, purchasing
production. Role culture is based on rules
Task Culture refers all the values, ethics and behaviors an organization tries to inculcate in employees'
minds to create a unique social and psychological environment in which every worker tends to collaborate
with others and focus on reaching common goals and objectives. Is job-oriented or project-oriented.
Person culture: Person Culture. There are certain organizations where the employees feel that they are
more important than their organization. Such organizations follow a culture known as person culture. In
a person culture, individuals are more concerned about their own self rather than the organization. Eg
groups of barristers, architects, doctors or consultants. Management hierarchies and control mechanisms
are possible only by mutual consent. Individual have almost complete autonomy and any influence over
them is likely to be on the basis of personal power.
INFLUENCES ON THE DEVELOPMENT OF CULTURE
History: Reason, and manner in which, organisation is originally formed, its age, and the
philosophy and values of its owners and first senior managers will affect culture. A key event in
the organisation’s history.
Primary function and technology: Determine the nature of the technological processes and
methods of undertaking work, which in turn also affects structure and culture.
Goals and objectives: Influence culture, and may itself be influenced by changes in culture.
Emphasis placed on long term survival or concern for social responsibilities?
Size: A rapid expansion, or decline, in size and rate of growth, and resultant changes in staffing
will influence structure and culture.
Location: Whether an organisation is located in a quiet rural location or a busy city centre. This
can influence the types of customers and the staff employed.
Management and staffing: Sharp the dominant culture of an organisation, irrespective of what
senior management feel. Nature of staff employed and the extent to which they accept
management philosophy and policies or pay only ‘lip service’ also account for culture dev.
The environment: Dynamic environment requires a structure and culture that are sensitive and
readily adaptable to change.
IMPORTANCE OF CULTURE
• It helps to account for variations among organisations and managers, both nationally and
internationally.
• It helps to explain why different groups of people perceive things in their own way and
perform things differently from other groups.
• It helps to reduce complexity and uncertainty.
• It provides a consistency in outlook and values, and makes possible the processes of
decision-making, coordination and control.
• It conveys a sense of identity for organization members
• It facilitates commitment to something larger than individual self-interest
 
CULTURE AS A LIABILITY
Culture is valuable to employees because it spells out how things are done and what’s important.
But we shouldn’t ignore dysfunctional aspect to organizations. The factors are;
1) Institutionalization: The institution becomes valued for itself and not for the goods and services
it produces.
2) Barriers to change: Culture is liability when shared values don’t agree with those that further the
organization’s effectiveness. This is when organization environment is undergoing rapid change.
3) Barriers to diversity: diverse behaviors and unique strengths are likely to diminish as people
assimilate, strong cultures can become liabilities when they effectively eliminate the advantages
of diversity
4) Toxicity and dysfunctions: coherence around negativity and dysfunctional management system
in a corporation can produce downward forces that are equally powerful yet toxic.
5) Barriers to Acquisitions and mergers: Historically merger and acquisition decisions were based
on financial and product synergy. In recent years cultural compatibility has become the primary
concern. Success of mergers and acquisition depends on how well two organisations’ culture
match up. Where they don’t culture of both organization become a liability to the new
organization
 
 ORGANISATIONAL CLIMATE
Management has a responsibility for creating a climate in which people are motivated to work
willingly and effectively.
Applied to organizations, climate can be said to relate to the prevailing atmosphere surrounding the
organization, to the level of morale, and to the strength of feelings or belonging, care and goodwill
among members.
It influence the attitudes which members of the organization bring to bear on their work performance
and personal relationships.
It is an indication of the employees’ feelings and beliefs of what the organization is about. Climate is
based on the perceptions of members towards the organization.
Organizational climate is a relatively enduring quality of the internal environment of an organization
that (a) is experienced by its members, (b) influences their behavior, and (c) can be described in
terms of the values of a particular set of characteristics (or attributes) of the organization.
Climate also relates to the recognition of the organization as a social system and the extent to which
membership is perceived as a psychologically rewarding experience. It can be seen as the state of
mutual trust and understanding among members of the organization. Climate theory is that
organizational members perceive and make sense of organizational policies, practices, and procedures
in psychologically meaningful terms’
 
CHARACTERISTICS OF A HEALTHY ORGANIZATIONAL CLIMATE
Healthy organizational climate might be expected to exhibit such characteristic features as:
• The integration of organizational goals and personal goals;
• The most appropriate organization structure based on the demands of the socio-technical system;
• Democratic functioning of the organization with full opportunities for participation;
• Justice in treatment with equitable HRM and employment relations policies and practices;
• Mutual trust, consideration and support among different levels of the organization;
• The open discussion of conflict with an attempt to avoid confrontation;
• Managerial behaviour and styles of leadership appropriate to the particular work situations;
• Acceptance of the psychological contract between the individual and the organization;
• Recognition of people’s needs and expectations at work, and individual differences and attributes;
• Equitable systems of rewards based on positive recognition;
• Concern for the quality of working life and job design;
• Opportunities for personal development and career progression;
• A sense of identity with, and loyalty to, the organization and a feeling of being a valued 

If organizational climate is to be improved, then attention should be given to the above features.
 STAFF MORALE
Organizational climate will influence the level of morale and attitudes which members of the
organization bring to bear on their work performance and personal relationships. Morale is
mental attitudes which people have towards their tasks and responsibilities.
Four main areas in which to develop the best possible morale in their staff are;
A sense of importance in their job: Staff should have a feeling of meaning in the job,
challenging and reasonably demanding assignments, and a sense of job accomplishment
based on competent performance.
Teamwork among the staff: There should be sense of group pride and self-esteem, high level
of human interactions and good relations with co-workers, team effort and the support of
other staff including supervisors and top management.
Management care about staff welfare: Staff should receive just rewards for their contribution
and fair treatment for their efforts. Clear statement of management goals and efforts to
resolve genuine goal congruence. Management should show concern for staff welfare, and
attempt to create a feeling of mutual trust and respect with staff.
Economic rewards fair and individualized: Attention should be given to payment of sufficient
wages and the fair distribution of wages. There should be opportunities for job advancement
including promotion and cross-job postings.
 EMPLOYEE COMMITMENT
Organizational commitment is individual’s psychological bond to the organization, including a
sense of job involvement, loyalty, and a belief in the values of the organization’.
THREE-PILLAR MODEL OF COMMITMENT
(i) A sense of belonging to the organization.
This builds upon the loyalty essential to successful industrial relations. The sense of belonging is
created by managers through ensuring that the workforce is:
Informed, involved and sharing in success.
(ii) A sense of excitement in the job
Improved results will not be achieved unless workers can also feel a sense of excitement. This
sense of excitement can be achieved by appealing to the higher-level needs of: like Pride, Trust
and Accountability for results.
(iii) Confidence in management
The senses of belonging and excitement can be frustrated if workers do not have respect for, and
confidence in, management. This respect is enhanced through attention to: Authority,
Dedication, Competence.
Creating commitment is hard. It takes time and it requires dedicated managers.
STAGES OR PROCESSES OF EMPLOYEE COMMITMENT
1. Compliance, where a person accepts the influence of others mainly to obtain something from others,
such as pay; this is followed by
2. Identification, in which the individual accepts influence in order to maintain a satisfying relationship
and to feel pride in belonging to the organization; which leads to
3. Internalization, in which the individual finds the values of the organization to intrinsically rewarding
and compatible with personal values.
STEPS TO IMPROVING EMPLOYEE COMMITMENT
4. Clear about the direction in which the organization is going. Goals should be made clear and simple,
and translated into common action at every level of the organization. Employee should understand
the goals and be able to do something about them every day.
5. Management should demonstrate full commitment to carrying through its own stated goals.
Emphasis should be placed on teamwork and the involvement of all staff.
6. Prepared to spend time and effort on training and retraining (for example, as a result of new
technology) for all employees including those doing the lowliest jobs.
7. Managers and supervisors should clearly, visibly and constantly communicate information at every
level on progress and actual performance against stated targets.
8. Employees should be given financial interest in the success of the company, for example, through
share ownership.
 ORGANIZATIONAL CONFLICT
• Conflict is any behaviour intended to obstruct the achievement of some other person’s goals.
• Conflict is based on the incompatibility of goals and arises from opposing behaviors.
• It can be viewed at the individual, group or organization level.
• Misbehavior to refer to anything you do at work which you are not supposed to.
• Common definitions of conflict tend to be associated with negative features and situations which
give rise to inefficiency, ineffectiveness or dysfunctional consequences.
• The traditional view perceive conflict as disruptive and unnatural, and represents a form of deviant
behaviour which should be controlled and changed.
• Current views interpret conflict more broadly than the tradition view. Sees conflict as a sign of a
healthy organization up to a point.
• A good manager does not eliminate conflict. It inevitable feature of organizational life.
CONTRASTING VIEWS OF CONFLICT
Constructive force and in certain circumstances it can be welcomed or even encouraged. It is an
agent for evolution, and for internal and external change. Properly identified and handled, it can help
to minimize the destructive influences of the win–lose situation.
• Students should mention positive and negative outcomes of conflict
 THE SOURCES OF CONFLICT
Differences in perception. Differences in perception result in different people attaching different
meanings to the same stimuli. As perceptions become a person’s reality, value judgments can be
a potential major source of conflict.
Limited resources. The greater the limitation of resources, then usually the greater the potential
for conflict.
Departmentalization and specialization. Differing goals and internal environments of
departments are also a potential source of conflict.
The nature of work activities. Where the task of one person is dependent upon the work of
others; If the work of a department is dependent upon the output of another department a
similar situation could arise
Role conflict. Problems of role incompatibility and role ambiguity arise from inadequate or
inappropriate role definition and can be a significant source of conflict.
Inequitable treatment. A person’s perception of unjust treatment, such as in the operation of
personnel policies and practices, or in reward and punishment systems
Violation of territory. Jealousy may arise over other people’s territory If a person’s territory is
violated this can lead to the possibility of retaliation and conflict.
 STAGES OF CONFLICT
Conflict change over time, passing though different stages of activity, intensity, tension and
violence.
These stages are in order:
PRE-CONFLICT: When there is an incompatibility of goals between two or more parties. There
may be tension in relationships between the parties and / or a desire to avoid contact with each
other at this stage.
CONFRONTATION: More open. If only one side feels there is a problems, its supporters may
begin to engage in demonstrations or other confrontations or other confrontational behavior.
CRISES: This is the peak of the conflict, when the tension are roost intense. This is the period of
war.
Public statements tend to be in the form of accusation made against the other sides
OUTCOME: One might defeat the other(s) or perhaps call a cease-fire. An Authority or other
more powerful third party might impose an end to the levels of tension.
POST – CONFLICT: Finally, the situation is resolved in a way that leads to an ending on any
violence confrontation, to a decrease in tensions and to more normal relationship between the
parties. This stage could eventually lead back into another pre-conflict situation.
 ASSESSING CONFLICT
Thomas and Kilmann examined individual reactions in situations involving conflict and described
their behaviour using two axes, 1) assertiveness, the extent to which the individual attempts to
satisfy his/her interests, and 2) cooperativeness, the extent to which the individual attempts to
satisfy the other person’s interests.
The two was used to define five modes of dealing with conflict. No mode is better or worse than
another
Competing: This mode is assertive and uncooperative. The person pursues his/her own concerns
usually at the other person’s expense, using whatever power seems appropriate towards this
end. Competing may mean standing up for one’s rights, defending a position one believes is
correct, or simply trying to win. Cases where competing would be appropriate include. Eg In
emergency situations where decisive action is required
Accommodating: This is the opposite of competing – unassertive and cooperative. The person
sacrifices his/her own concerns to satisfy the concerns of the other person. This includes selfless
generosity or charity, obeying a command when one would prefer not to, or yielding to another’s
point of view. Cases where accommodating would be appropriate include: eg When one realizes
one is wrong
Avoiding: This mode is unassertive and uncooperative. The person does not pursue his/her
concerns directly nor does s/he yield to the other person. Rather s/he does not address the
conflict. This might take the form of diplomatically side-stepping an issue, postponing an issue
until a better time, or simply withdrawing from a threatening situation. Cases where avoiding
would be appropriate include: eg When an issue is not as important as others at one time
Collaborating: This is the opposite of avoiding – assertive and cooperative. The person attempts
to work with another person to find a solution that satisfies the concerns of both. It attempts to
identify the underlying concerns of both parties and to find an alternative that meets both sets
of concerns. Eg When the concerns of both parties are too important to be compromised
Compromising: This is intermediate to assertiveness and cooperativeness. The person attempts
to find an expedient, mutually acceptable solution that satisfies both parties. It includes
addressing an issue more directly than avoiding, but not exploring this issue in as much depth as
collaborating. It could mean exchanging concessions or seeking a middle ground. Eg When the
goals are not worth the effort of the potential disruption involved in being more assertive
When there is time pressure and an expedient solution must be reached
 CONFLICT IN TEAMS
Some teams are highly effective, while others never seem to get off the ground. Guidelines
regarding what could not be working right that can be used to clarify the situation:
• The team may be lacking the required specialist skills to tackle a project expertly and
confidently
• The team may be lacking one or more vital roles
• Members may feel their personal skills are not appreciated and they may lose motivation
• The team may feel their efforts will not be supported by authorities and funding agencies,
especially if they are working under budget constraints
• A conflict of values or expectations may exist where some team members may expect
different results from the project or the team may be expecting different results from the
management
• The brief describing the objectives and scope of a project may be unclear
• Personal conflicts may hinder the achievement of goals. This is especially true of competitive
environments where people are not accustomed to working cooperatively.
 MANAGING CONFLICT IN TEAMS
A general process for managing conflict involves five steps:
1. Define the problem:
Each conflicting side should describe their perspective on the matter as clearly and as objectively
as possible. In describing the issue, consider if it had objective grounds to escalate into conflict,
or misunderstanding. Are there left-over emotions, grudges from a previous event?
2. Analyze the problem
Succumb to the temptation of listing possible solutions.
3. Generate possible solutions
Brainstorming is usually an effective way to generate ideas that could lead to the resolution of
the conflict.
4. Evaluate and test the various solutions
Each possible resolution should be examined to ascertain its merits and drawbacks.
5. Choose a mutually acceptable solution
From the reduced number of possible solutions the one that seems to be the most effective can
be chosen for a trial period.
 STRATEGIES FOR MANAGING CONFLICT
Although a certain amount of organizational conflict may be seen as inevitable, there are a
number of ways in which management can attempt to avoid the harmful effects of conflict.
Clarification of goals and objectives. The clarification and continual refinement of goals and
objectives, role definitions and performance standards will help to avoid misunderstandings and
conflict. Focusing attention on superordinate goals, that are shared by the parties in conflict, may
help to defuse hostility and lead to more cooperative behaviour.
Resource distribution. Although it may not always be possible for managers to increase their
allocated share of resources, they may be able to use imagination and initiative to help overcome
conflict situations – for example, making a special case to higher management; greater flexibility
to transfer funds.
Human resource management policies and procedures. Careful and detailed attention to just
and equitable HRM policies and procedures may help to reduce areas of conflict. Eg: job analysis,
recruitment and selection, job evaluation; recognition of trade unions and their officials.
Non-monetary rewards. Where financial resources are limited, it may be possible to pay greater
attention to non-monetary rewards. eg: job design; increased delegation or empowerment;
flexible working hours; attendance at courses or conferences; unofficial perks or more relaxed
working conditions.
 STRATEGIES FOR MANAGING CONFLICT cont
Development of interpersonal/group process skills. This may help to encourage a better
understanding of one’s own behaviour, the other person’s point of view, communication
processes and problem-solving. It may also encourage people to work through conflict situations
in a constructive manner.
Group activities. Attention to the composition of groups and to factors which affect group
cohesiveness may reduce dysfunctional conflict. Overlapping group membership with a ‘linking-
pin’ process, and the careful selection of project teams or task forces for problems affecting
more than one group, may also be beneficial.
Leadership and management. A more participative and supportive style of leadership and
managerial behaviour is likely to assist in conflict management – for example, showing an
attitude of respect and trust; encouraging personal self development; creating a work
environment in which staff can work co-operatively together. A participative approach to
leadership and management may also help to create greater employee commitment.
 THE MANAGEMENT OF ORGANISATIONAL CHANGE
As we have seen, people tend to be resistant to change. It is important, therefore, for management
to understand the reasons for, and nature of resistance and to adopt a clearly defined strategy for
the initiation of change.
The successful management of change is an increasingly important managerial responsibility.
Any enterprise that has ever wanted to survive and prosper has always needed to restructure and
innovate.
Christensen and Overdorf suggest a framework to help managers understand what types of change
the organization is capable and incapable of handling.
resources – access to abundant, high quality resources increases an organization’s chances of
coping with change;
processes – the patterns of interaction, co-ordination, communication and decision-making
employees use to transform resources into products and services. Processes may be formal and
explicitly defined and documented, or informal and routines or ways of working that evolve over
time;
values – the standards by which employees set priorities that enable them to judge whether an
order is attractive, whether a customer is more or less important, whether an idea for a new
product is attractive or marginal.
 CAPABILITIES TO COPE WITH CHANGE
• create new organizational structures within corporate boundaries in which new processes can be
developed;
• spin out an independent organization from the existing one and develop new processes and values;
• acquire a different organization whose processes and values match closely the new requirements.
KOTTER AND COHN EIGHT STEPS FOR LARGE-SCALE CHANGE.
• Create a sense of urgency among relevant people, whatever the nature or size of the organization.
• Build a guiding team with the credibility, skills, connections, reputations and formal authority to
provide change leadership.
• Create visions which are sensible, clear and uplifting, and sets of strategies.
• Communicate the vision and strategy in order to induce understanding and commitment.
• Empower action and remove obstacles that stop people acting on the vision.
• Produce short-term wins that help to provide credibility, resources and momentum to the overall
effort.
• Don’t let up but maintain the momentum, consolidate early changes and create wave after wave of
change.
• Make change stick by nurturing a new culture, and developing group norms of behaviour and shared
values.
 RESISTANCE TO CHANGE
The forces against change in work organizations include:
• ignoring the needs and expectations of members;
• when members have insufficient information about the nature of the change;
• or if they do not perceive the need for change.
Resistance to change may either be at individual or organizational level
1) Individual
Selective perception. People’s own interpretation of stimuli presents a unique picture or image
of the ‘real’ world and can result in selective perception. This can lead to a biased view of a
particular situation, which fits most comfortably into a person’s own perception of reality, and
can cause resistance to change.
Habit. Proposed changes to habits, especially if the habits are well established and require little
effort, may well be resisted.
Inconvenience or loss of freedom. If the change is seen as likely to prove inconvenient, make life
more difficult, reduce freedom of action or result in increased control, there will be resistance.
Economic implications. People are likely to resist change which is perceived as reducing either
directly or indirectly their pay or other rewards, requiring an increase in work.
Security in the past. There is a tendency for some people to find a sense of security in the past.
There is a wish to retain old and comfortable ways.
Fear of the unknown. Changes which confront people with the unknown tend to cause anxiety
or fear. A person may resist promotion because of uncertainty over changes in responsibilities or
the increased social demands of the higher position.
2) Reasons for Organization
Organization culture. Culture of an organization may not be easy to change.
Maintaining stability. Organizations pay much attention to maintaining stability and
predictability.
Investment in resources. Change often requires large resources which may already be
committed to investments in other areas or strategies. Eg the use of drones by health services
Past contracts or agreements. Eg organizations operating under a special licence or permit,
agreement with trade unions which limits the opportunity to introduce compulsory
redundancies.
Threats to power or influence. Eg SHS computer placement policy
MINIMISING THE PROBLEMS OF CHANGE
• An important priority is to create an environment of trust and shared commitment, and to involve staff
in decisions and actions which affect them.
• There should be full and genuine participation of all staff concerned as early as possible, preferably
well before the actual introduction of new equipment or systems.
• Team management, a co-operative spirit among staff and unions and a genuine feeling of shared
involvement will help create a greater willingness to accept change. A participative style of managerial
behaviour which encourages supportive relationships between managers and subordinates.
• Carefully designed ‘personnel management action programme’. If job losses are totally unavoidable,
there should be a fair and equitable redundancy scheme and provision for early retirement with
protected pension rights.
• The introduction of incentive payment schemes may help in motivating staff by an equitable allocation
of savings which result from new technology and more efficient methods of work. Incentive schemes
may be on an individual basis, with bonuses payable to each member of staff according to effort
• Maintain the balance of the sociotechnical system. Increased technology and automation may result in
jobs becoming more repetitive and boring, and providing only a limited challenge and satisfaction to
staff.
• Careful attention should be given to job design, methods of work organization, the development of
cohesive groups, and relationships between the nature and content of jobs and their task functions.
 THE ORGANIZATIONAL COMMUNICATION PROCESS
Communication flow in an organization could be analyzed through the model of the
communication process. The concept of communication assumes communication is a pattern of
interconnecting lines. Examples of these networks are as follows:
Chain network: In this type of network, information moves in an upward or downward direction
from top to bottom and vice-versa. In this type of network information flow is not dispersed
throughout the organization – it flows vertically – upwards or downwards and horizontal to the
lower hierarchy.
Circular network: In this type of network information flow is decentralized i.e. diffused
throughout the organization. There is considerable exchange of information among employees in
this network.
One direction network: In this type of network the manager is the focus of the information flow.
Is centralized a moves downwards from the manager to the subordinates and does not flow in the
opposite direction. The type of network is very fast.
Radial network: In this network information flows in one direction only- downwards from the top
hierarchy employees.
Wheel: In this type of communication network, one person dominates information flow. This
network allows exchange of employees but most revolves around one central point.
 FORMAL AND INFORMAL COMMUNICATION
Formal Communication through channels of communication provided in the organization.
Informal Communication through informal channels. Informal communication arises because of the social contacts
among employees in the organization.
MERITS OF INFORMAL COMMUNICATION
• It helps supplement the formal channels of communication
• It reduces the problems associated with rather rigid red tape associated with formal communication channels
• It is faster and sometimes more accurate than formal channels
• It could be used to test the
• reactions of some policies before modifications are made.
The Grapevine
Information transmitted trough informal channels in an organization. Four main classification of grapevine
Single strand grapevine arises when one person transmits information to another person and the latter also passes on
the information to another person
Gossip grapevine arises when one person transmits information to anyone he comes across without any discrimination
Probability grapevine the sender transmits the information at random. The receiver also transmits the information at
random and the chain continues.
Cluster grapevine the sender selectively chooses the receivers. Those who receive the information also pass it on to
others on a selected basis.
 BASIC FEATURES OF THE GRAPEVINE (INFORMAL COMMUNICATION):
• Transmission is faster than the formal communication
• It often operates side by side with the formal information
• It is localized i.e. circulates only within the workplace
• It is selective. Not everyone receives certain kinds of information.
 MEDIUM OF COMMUNICATION
• Company publications: house journals, newsletters, handbooks and organizational manuals. Others
are financial statements and policy statements; Suggestion boxes, Fax, Meetings, Committees, Notice
Board, Television and Telephone
Medium of communication can also be classified into
• Written communication eg letters, reports, telegrams, telexes, memoranda, bulletins, circulars,
suggestion schemes and notice boards.
• Oral communication eg face-to-face meetings, telephone and public address systems
• Visual communication includes television, films, notice boards, photographs, statistical charts, fax;
and the Internet.

 
Medium of communication can also be classified into
• Written communication refers to the transmission of information in written form eg letters,
reports, telegrams, telexes, memoranda, bulletins, circularsand notice boards.
• Oral communication that is by word of mouth. Eg face-to-face meetings, telephone and public
address systems
• Visual communication eg. television, films, notice boards, photographs, statistical charts, fax;
and the Internet.
COMMUNICATION FLOWS IN AN ORGANISATION
Upward Communication, Horizontal Communication and Crosswise Communication
Advantages Upward Communication
• It helps top management to know what is happening at the lower hierarchy the organization.
• It provides information which is used to evaluate the performance of employees.
• It provides an effective medium of resolving employee/management conflict
• It enables employees to take part in decision making process; to put their views across to
management and react to management policies
• It provides data which is used by management to plan, organize, and control the organization.
  Disadvantages Upward Communication
• Is impeded by authority and power differences between supervisors and subordinates
• Messages transmitted upwards are distorted or filtered as they move upwards
• ‘Culture of silence’ and refuses to divulge information on what is happening in the
organization, it maybe impossible for employees to transmit their reactions upwards
• impede by poor organization structures i.e. where the lines of communication and authority
are fuzzy
• Where style is authoritarian and interpersonal relationships poor, upward communication is
impeded
Advantages Downward communication
• to give instructions, and evaluate performance of subordinates.
• It provides general information on “what is happening in the organization
• It helps management to co-ordinate the activities of staff
• It helps management to monitor delegated authority
 Disadvantages Downward communication
• The veiled (covert) threat which usually accompanies instructions, circulars and other
downward communication may not elicit the right response from subordinates
• Downward communication may be impeded by poorly defined lines of authority and
communication and poor management/worker relations
• Downward communication may be distorted as it moves down the organizational hierarchy

Advantages Horizontal Communication

• It facilitates co-ordination of activities of various departments.
• It improves understanding and interpersonal relationship among employees on similar levels
of the organization
• It facilitates exchange of vital information among different departments
• Horizontal communication helps to broaden the outlook and experience of managers – they
get an insight into what is happening in other departments when they exchange information
• It eliminates duplication of efforts because the various departments are aware of each other’s
activities
 Disadvantages Horizontal Communication
• Some department heads are so jealous of the ‘independence’ of their departments that; they
might refuse to transmit some ‘sensitive’ information to rival departments
• Where the right channels or media (e.g. committees; regular meetings/conferences.) do not
exist, interdepartmental communication might be impeded
• Where the relationship among departmental heads is poor or wracked by petty prejudices,
formal and informal horizontal communication is impeded.

Crosswise Communication
This refers to the diagonal flow of information among employees at different levels of the
organization and in different departments. Usually those engaged in crosswise communication
have not direct relationship and the information flow does not follow the chain of command or
line of authority.
Information flow in a large number of organizations in the country is restricted and released on a
‘need to know’ bases. The void is therefore filled by informal communications that tend not to
obey the normal lines of authority or chain of command.
 Advantages Crosswise Communication
• It facilitates co-ordination of work
• It promotes good interpersonal relationship
• It minimizes some of the problems related to upward and downward communication
• It creates room for informal contacts among the staff
• It improves the communication flow with the organization
 
Disadvantages Crosswise Communication
• If not carefully handled, crosswise communication could threaten the established chain of
command and lines of communication
• Some managers feel their authority is threatened when their subordinates “pass over their
head” and communicate with other managers
 IMPORTANCE OF COMMUNICATION
• Required data needed to draw upon policies and arrange for their implementation. Policy-
making requires information from various customers, suppliers, employees, shareholders,
competitors and members of the pubic all these sources provide the data needed
• Establishment and dissemination of organizational objectives
• Public relation: Communication provides and means through which management explains
their plans, policies and activities to employees, customers, suppliers and other members of
the pubic.
• Motivation: Management communication with employees helps to create employees interest
in the job, motivate them and improve their morale
• Means of Control: Information is needed to establish the right standards to help management
to know what is happening
• Improves co-ordination
• Channel of participation: Offers employees a means of channelling their grievances, feelings,
ideas and suggestions to top management. All these help to resolve conflicts
• Recruitment of right labor: Communication helps management to recruit the right human
resources needed to run the organization.
 IMPORTANCE OF COMMUNICATION cont.
• Instruction of staff: It is through communication that management instructs employees,
explain their roles and evaluates their performance
• Improvement in Indiscipline: An efficient communication system helps to improve discipline in
an organization – employees have to be informed (through existing communication channels)
of the firm’s rules and regulations and basic standards of behavior. Furthermore, employees
have to be informed of the consequence of breaking rules. Finally, communication enhances
grievance procedures used to thrash out disciplinary a means to defend themselves.
 PROBLEMS ASSOCIATED WITH INEFFICIENT COMMUNICATION
• In an organization without an efficient communication system several problems arise:
• Poor co-ordination for management to instruct staff on their roles and evaluate their
performance
• It will be difficult for management to instruct staff on their roles and evaluate their performance
• It will be difficult for management to get the required information needed in draw up plans and
policies
• It may not be possible for management to explain its activities and policies to subordinated and
outsiders
• Conflicts in management arise in an organization without an effective communication system
because there will be no avenues for employees to interact meaningfully with management
• Without an effective communication system, it may be difficult to exercise the control function
by monitoring employees activities
• The public image of the firm will be poor because it cannot explain its activities to members of
the public
• Motivation, morale and human relations in the organization will be poor.
 PROBLEM AND BARRIERS OF COMMUNICATION
Semantics: This has do with the use of technical jargons; unfamiliar words; high sounding words;
poor sentence structure etc.
Poor Listening skills: some people may not be able to communicate effectively with others
because of poor listening skills.
Organization climate: where there is poor interpersonal relationship fear and hostility in the
organization, it becomes difficult to communicate effectively.
Differences in background; differences in age, education and social background of people
communicating with each other could impede communication with each other.
Status of receivers and senders: the relative status of the receiver and sender in the organization
could impede the way they send and receive information from each other.
Conflicts: Could impede communication flow in the organization
Emotional problems; such as frustration, poor perception, hostility, anger, lack of empathy, fear,
mistrust might make it difficult for people to communicate with each other
Communication overload: Impeded if managers are “buried” with too much information from
several sources and they find it difficult to process.
 GUIDELINES TO EFFECTIVE COMMUNICATION IN ORGANISATION
Planning before communication;
Removal of Conflict: Impedes free exchange of information among different departments
Democratic Style: Subordinates could ventilate their views upwards without impediments.
Breakdown physical barriers to communication
Providing visual communication: Clearly defined responsibilities and roles; shorter chains of
command; centralized structure; suitable span of management etc.
Reduce Semantics: Minimizing the use of highly technical jargons especially when
communicating with subordinates.
Avoiding stiff legalistic language: All written communications are clear, concise and correct.
Making use of Informal Channels: Use them to complement the formal channels
Use of redundancy (multiplexing)
Development of empathy: Empathy simple means putting oneself in another’s shoes.
Encouraged or trained to develop empathy among managers through regular face-to-face
meetings
Development of effective listening skills: He will build a wall between himself and his receiver 
Keith Davis’s Ten Commandments of good listening
Keith Davis (1972) has proposed “Ten Commandments” of good listening. These are as follows:
Stop talking, Put the talker at ease, Show the individual that you want to listen, Remove distractions, Emphasis
with the person, Be patient, Hold your temper, Go easy on argument and criticism, Ask questions, Stop talking.
 
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