ORGANISATIONAL BEHAVIOUR
MBA 1.2
#1
ORGANISATIONAL BEHAVIOUR
SYLLABUS
UNIT 1 Introduction to Organisational Behaviour, Meaning;
Global scenario.
Elements;
Need; Approaches; Models;
UNIT 2 Individual Behaviour; Personality; Learning; Attitudes; Perception; Motivation; Ability; Their relevant
organizational behaviour.
UNIT
3
Group dynamics; Group norms; Group cohesiveness;
Group Behance to organizational behaviour.
UNIT 4
Leadership Styles; Qualities; Organisational communication; Meaning importance, process, barriers;
Methods to reduce barriers; Principle of effective communication.
UNIT 5
Stress; Meaning; Types; Sources; Consequences; Management of stress. Power and Politics;
Definition; Types of Powers; Sources; Characteristics; Effective use of Power.
UNIT 6
Organisational Dynamics; Organisational design; Organisational effectiveness; Meaning, approaches;
Organisational culture; Meaning, significance; Organisational Climate; Implications on organizational
behaviour.
Organisational Change; Meaning; Nature; Causes of change; Resistance of change; Management of
change; Organisational development; Meaning; OD Interventions.
REFERENCE BOOKS
1. Fred Luthans, Organisational Behaviour, McGraw Hill Book Co., 1995.
2. Stephen P. Bobbins, Organisational Behaviour, Prentice Hall, 1997.
3. Keith Davis, Human Behaviour at Wor/c,.-M.cGraw Hill Book Co.,
1991.
4. Gregory Moorehead and R.S. Griffin, Organisational Behaviours:
Managing People and Organisations, Jaico, 1994.
5. Judith R. Gordon, A Diagnostic Approach to Organisational
Behaviour, Allyn & Bacon, 1993.
#2
CONTENTS
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
LESSON
INTRODUCTION TO ORGANISATIONAL BEHAVIOUR
FOUNDATION OF ORGANISATIONAL BEHAVIOUR
MODELS OF ORGANISATIONAL BEHAVIOUR
GLOBAL SCENARIO OF ORGANISATIONAL BEHAVIOUR
FOUNDATION OF INDIVIDUAL BEHAVIOUR
PERSONALITY
LEARNING AND BEHAVIOUR MODIFICATION
ATTITUDE AND PERCEPTION
MOTIVATION AND BEHAVIOUR
JOB SATISFACTION
GROUP DYNAMICS
GROUP CONFLICT
ORGANISATIONAL COMMUNICATIONS
LEADERSHIP IN ORGANISATIONS
STRESS MANAGEMENT
POWER AND POLITICS
ORGANISATIONAL DESIGN
ORGANISATIONAL CULTURE AND CLIMATE.
ORGANISATIONAL EFFECTIVENESS
MANAGEMENT OF CHANGE CASE ANALYSIS
Pg.no.
4
7
12
16
18
21
25
28
32
44
47
52
56
66
73
77
81
85
87
90
#3
LESSON – 1
INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR
Learning Objectives
After reading this lesson, you should be able to understand:




The major environmental challenges and the paradigm shift that the management
faces today
The management perspective of organizational behaviour
The historical background of modern organizational behaviour
The modern approach to organizational behaviour
The knowledge and information explosion, global competition, total quality and diversity are some of the bitter realities
that the managers are facing today. There are many solutions being offered to deal with these complex challenges. Yet
the simple but most profound solution may be found in the words of Sam Walton, the richest person in the world and
the founder of Wal-Mart. Sam was once asked the key to successful organizations and management. Sam quickly
replied, "People are the key".
The term paradigm comes from the Greek word 'paradigma', which means ''model, pattern or example". First
introduced over thirty years ago, by the philosophy and science historian Thomas Khun, the term "paradigm" is now
used as, a broad model, a framework, a way of thinking, and a scheme for understanding reality. The impact of
information technology, total quality and diversity mentioned earlier has led to a paradigm shift.
NEW PARADIGM
The organizational behaviour has a goal lo help the managers make a transition to the new paradigm. Some of the new
paradigm characteristics include coverage of second-generation information technology and total quality management
such as empowerment, reengineering and benchmarking, and learning organization for managing diversity of work. The
new paradigm sets the stage for the study, understanding, and application of the time-tested micro-variables, dynamics
and macro-variables. One must know why management needs a new perspective to meet the environmental
challenges and to shift to a new paradigm.
A NEW PERSPECTIVE FOR MANAGEMENT
Management is generally considered to have three major dimensions—technical, conceptual and human. The technical
dimension consists of the manager's expertise in particular functional areas. They know the requirements of the jobs
and have the functional knowledge to get the job done. But the practicing managers ignore the conceptual and human
dimensions of their jobs.
Most managers think that their employees are lazy, and are interested only in money, and that if you could
make them happy in terms of money, they would be productive. If such assumptions are accepted, the human
problems that the management is facing are relatively easy to solve.
But human behaviour at work is much more complicated and diverse. The new perspective assumes that
employees are extremely complex and that there is a need for theoretical understanding given by empirical research
before applications can be made for managing people effectively.
MODERN APPROACH TO ORGANIZATIONAL BEHAVIOUR
The modern approach to organizational behaviour is the search for the truth of why people behave the way they do.
The organizational behaviour is a delicate and complex process. If one aims to manage an organization, it is necessary
to understand its operation. Organization is the combination of science and people. While science and technology is
predictable, the human behaviour in organization is rather unpredictable. This is because it arises from deep needs and
value systems of people.
HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR
Scientific Management Approach
Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. 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. It provided a
scientific rationale for job specialization and mass production. His assumption was that employees are motivated
largely by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient workers.
Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of work as
being harder and faster. Critics worried that the methods took the humanity out of labor, reducing workers to machines
#4
responding to management incentives. Therefore, Taylor's view is now considered inadequate and narrow due to the
points given by the critics.
Bureaucratic Approach
While scientific management was focusing on the interaction between workers and the task, me researchers were
studying how to structure the organization more effectively. Instead of trying to make each worker more efficient,
classical organization theory sought the most effective overall organizational structure for workers and managers.
The theory's most prominent advocate, Max Weber, proposed a 'bureaucratic form' of structure, which he
thought would work for all organizations. Weber's idea! bureaucracy was , logical, rational and efficient. He made the
naive assumption that one structure would work best for all organizations.
Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the behavioral
side of management. However, they did not emphasize the human dimensions. Although there were varied and
complex reasons for the emerging importance of behavioral approach to management, it is generally recognized that
the Hawthorne studies mark the historical roots for the field of organizational behaviour.
Hawthorne Studies
Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient productivity, their
views were criticized on the ground that both approaches ignored worker's humanity.
The real beginning of applied research in the area of organizational behaviour started with Hawthorne
Experiments. In 1924, a group of professors began an enquiry into the human aspects of work and working conditions
at the Hawthorne plant of Western Electric Company, Chicago. The findings of these studies were given a new name
'human relations' the studies brought out a number of findings relevant to understanding human behaviour at work. The
Human element in the workplace was considerably more important. The workers are influenced by social factors and
the behaviour of the individual worker is determined by the group.
Hawthorne studies have been criticized for their research methods and conclusions drawn. But their impact on
the emerging field of organizational behaviour was dramatic. They helped usher in a more humanity centered approach
to work.
APPROACHES TO ORGANIZATIONAL BEHAVIOUR
There are mainly four approaches to organizational behaviour. They are:
• Human resources approach '
• Contingency approach
• Productivity approach
• Systems approach
Human Resources Approach
The human resources approach is concerned with the growth and development of people towards higher levels of
competency, creativity and fulfillment, because people are the central resource in any organization. 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' because the
manager's primary role changes from control of employees to providing an active support for their growth and
performance.
A Contingency Approach
A contingency approach to organizational behaviour implies that different situations require different behavioral
practices for effectiveness instead of following a traditional approach for all situations. Each situation must be analyzed
carefully to determine the significant variables that exist in order to establish the more effective practices. The strength
of this approach is that it encourages analysis of each situation prior to action. Thus, it helps to use all the current
knowledge about people in the organization in the most appropriate manner.
Productivity Approach
Productivity is a ratio that compares units of output with units of input. It is often measured 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 economic inputs and outputs, human and social inputs and outputs also arc important.
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
#5
organization as a whole is to function effectively. The other key aspect of the systems view of organization is its
emphasis on the interaction between the organization and its broader environment,, which consists of social, economic,
cultural and political environment within which they operate.
Organizations arc dependent upon their surrounding environment in two main ways: First, the organization
requires 'inputs' from the environment in the form of raw material, people, money, ideas and so on. The organization
itself can be thought of as performing certain 'transformation' processes, on its inputs in order to create outputs in the
form of products or services. Secondly, the organization depends on environment such as, public to accept its output.
The systems view of organization thus emphasizes on the key interdependencies that organizations must manage.
Within themselves the organizations must trade off the interdependencies among people, tasks, technology and
structure in order to perform their transformation processes effectively and efficiently. Organizations must also
recognize their interdependence with the broader environments within which they exist.
CONTEMPORARY ORGANIZATIONAL BEHAVIOUR
A Separate Field of Study
Organizational behaviour can be treated as a distinct field of study. It is yet to become a science. Now efforts are being
made to synthesize principles, concepts and processes in this field of study.
Interdisciplinary Approach
Organizational behaviour is basically an interdisciplinary approach. It draws heavily from other disciplines like
psychology, sociology and anthropology. Besides, it also takes relevant things from economics, political science, law
and history. Organizational behaviour integrates the relevant contents of these disciplines to make them applicable for
organizational analysis. e.g. it addresses issues, which may be relevant to the case, such as the following:
 What facilitates accurate perception and attribution?
 What influences individual, group and organizational learning and the development of individual attitudes
toward .work?
 How do individual differences in personality, personal development, and career development affect individual's
behaviours and attitudes?
 What motivates people to work, and how. does the organizational reward system influence worker's behaviour
and attitudes?
 How do managers build effective teams?
 What contributes to effective decision-making?
 What are the constituents of effective communication?
 What are the characteristics of effective communication?
 How can power be secured and used productively?
 What factors contribute to effective negotiations?
 How can conflict (between groups or between a manager and subordinates) be resolved or managed?
 How can jobs and organizations be effectively designed?
 How can managers help workers deal effectively with change?
An Applied Science
The basic objective of organizational behaviour is to make application of various researches to solve the organizational
problems, particularly related to the human behavioral aspect.
Normative and Value Centered
Organizational behaviour is a normative science. A normative science prescribes how the various findings of
researches can be applied to get organizational results, which are acceptable to the society. Thus, what is acceptable
by the society or individuals engaged in an organization is a matter of values of the society and people concerned.
Humanistic and Optimistic
Organizational behaviour focuses the attention on people from humanistic point of view. It is based on the belief that
needs and motivation of people are of high' concern. Further, there is optimism about the innate potential of man to be
independent, creative, predictive and capable of contributing positively to the objectives of the organization.
Oriented towards Organizational Objectives
Organizational behaviour is oriented towards organizational objectives. In fact, organizational behaviour tries to
integrate both individual and organizational objectives so that both are achieved simultaneously.
A Total System Approach
#6
An individual's behaviour can be analyzed keeping in view his psychological framework, interpersonal-orientation,
group influence and social and cultural factors; Thus, individual's nature is quite complex and organizational behaviour
by applying systems approach tries to find solutions for this complexity.
LESSON –2
FOUNDATION OF ORGANISATIONAL BEHAVIOUR
Learning Objectives
After reading this lesson, you should be able to:



Define and explain the meaning of organizational behaviour
Understand the nature and importance of organizational behaviour
Relate the organizational behaviour to manager’s job
DEFINITION OF MANAGEMENT
Management is commonly defined as "Getting work done through other people". This simple definition explains the
significance of the role of people. The work will not be done unless "people" want to do the work and if the work is not
done then there will be no organisation. Hence, the cooperation of the workers is crucial to the success or failure of the
organisation.
DEFINITION OF ORGANISATION
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: All organisations have reasons for their existence. These reasons are the goals
towards which all organisational efforts are directed. While the primary goal .of any commercial organisation is
to make money for its owners, this goal is inter-related with many other goals. Accordingly, any organisational
goal must integrate in itself the personal goals of all individuals associated with the organisation.
 Group Effort: People, both as members of the society at large and as a part of an organisation interact with
each other and are inter-dependent. Individuals in themselves have physical and intellectual limitations and
these limitations can only be overcome by group efforts.
MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour is concerned with people's thoughts, feelings, emotions and actions in setting up a work.
Understanding an individual behaviour is in itself a challenge, but understanding group behaviour in an organisational
environment is a monumental managerial task.
As Nadler and Tushman put it, "Understanding one individual's behaviour is challenging in and of itself;
understanding a group that is made up of different individuals and comprehending the many relationships among those
individuals is even more complex. Ultimately, the organisation's work gets done through people, individually or
collectively, on their, own or in collaboration with technology. Therefore, the management of organisational behaviour is
central to the management task—a task that involves the capacity to "understand" the 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".
Organisational behaviour can then be defined as: "The study of human behaviour in organisational settings, the
interface between human behaviour and the organisational context, and the organisation itself."
The above definition has three parts—the individual behaviour, the organisation and the (interface between the
two. Each individual brings to an organisation a unique set of beliefs, values, attitudes and other personal
characteristics and these characteristics of all individuals must interact with each other in order to create organisational
#7
settings. The organisational behaviour is specifically concerned with work-related behaviour, which takes place in
organisations.
In addition to understanding; the on-going behavioural processes involved, in 'their own jobs, managers must
understand the basic human element of their work. Organisational behaviour offers three major ways of understanding
this context; people as organisations, people as resources and people as people.
Above all, organisations are people; and without people there would be no organisations. Thus, if managers
are to understand the organisations in which they work, they must first understand the people who make up the
organisations.
As resources, people are one of the organisation's most valuable assets. People create the organisation, guide
and direct its course, and vitalise and revitalise it. People make the decisions, solve the problems, and answer the
questions. As managers increasingly recognise the value of potential contributions by their employees, it will become
more and more important for managers and employees to grasp the complexities of organisational behaviour.
Finally, there is people as people - an argument derived from the simple notion of 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. An
understanding of organisational behaviour can help the manager better appreciate the variety of individual needs and'
expectations.
Organisational behaviour is concerned with the characteristics and behaviours of employees in isolation; the
characteristics and processes that are part of the organisation itself; 'and the characteristics and behaviours directly
resulting from people with their individual needs and motivations working within the structure of the organisation. One
cannot understand an individual’s behaviour completely without learning something about that individual's organisation.
Similarly, he cannot understand how the organisation operates without; studying the people who-make it up. Thus, the
organisation influences and is influenced by individuals.
ELEMENTS OF ORGANISATIONAL BEHAVIOUR
The key elements in the organisational behaviour are people,, structure, technology and the environment in which the
organisation operates.
 People: People make up the internal and social system of the organisation. They consist of individuals and
groups. The groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they
work in the organisation to achieve their objectives.
 Structure: Structure defines the formal relationships of the people in organisations. Different people in the
organisation are performing different type of jobs and they need to be (elated in some structural way so that
their work can be effectively co-ordinated.
 Technology: Technology such as machines and work processes provide the resources with which people
work and affects the tasks that they perform. The technology used has a significant influence on working
relationships. It allows people to do more and work better but it also restricts' people in various ways.
 Environment: All organisations operate within an external environment. It is the part of a larger system that
contains many other 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.
NATURE OF ORGANISATIONAL BEHAVIOUR
Each individual brings to an organisation a unique set of personal characteristics, experiences from other organisation,
the environment surrounding the organisation and1 they also posses a personal background. In considering the people
working in an organisation, organisational behaviour must look at the unique perspective that each individual brings to
the work setting.
But individuals do not work in isolation. They come in contact with other individuals and the organisation in a
variety of ways. Points of contact include managers, co-workers, formal policies and procedures of the organisation,
and various changes implemented by the organisation. Over time, the individual, too, changes, as a function of both the
personal experiences and the organisation. The organisation is also affected by the presence and eventual absence of
the individual. Clearly, the study of organisational behaviour must consider the ways in which the individual and the
organisation interact.
An organisation, characteristically, exists before a particular person joins it and continues to exist after he
leaves it. Thus, the organisation itself represents a crucial third perspective from which to view organisational
behaviour.
#8
NEED FOR STUDYING ORGANISATIONAL BEHAVIOUR
The rules of work are different from the rules of play. The uniqueness of rules and the environment of organisations
forces managers to study organisational behaviour in order to learn about normal and abnormal ranges of behaviour.
More specifically, organisational behaviour serves three purposes:
 What causes behaviour?
 Why particular antecedents cause behaviour?
 Which antecedents of behaviour can be controlled directly and which are beyond control?
A more specific and formal course in organisational behaviour helps an individual to develop more refined and
workable sets of assumption that is directly relevant to his work interactions. Organisational behaviour helps in
predicting human behaviour in the organisational setting by drawing a clear distinction between individual behaviour
and group behaviour.
Organisational behaviour does not provide solutions to all complex and different behaviour puzzles of
organisations. It is only the intelligent judgement of the manager in dealing with a specific issue that can try to solve the
problem. Organisational behaviour only assists in making judgements that are derived from tenable assumptions;
judgement that takes into account the important variables underlying the situation; judgement that are assigned due
recognition to the complexity of individual or group behaviour; judgement that explicitly takes into account the managers
own goals, motives, hang-ups, blind spots and weaknesses.
IMPORTANCE OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour offers several ideas to management as to how human factor should be properly emphasised
to achieve organisational objectives. Barnard has observed that an organisation is a conscious interaction of two or
more people. This suggests that since an organisation is Ihe interaction of persons, they should be given adequate
importance in managing the organisation. Organisational behaviour provides opportunity to management to analyse
human behaviour and prescribe means for shaping it to a particular direction.
Understanding Human Behaviour Organisational behaviour provides understanding the human behaviour in all
directions in which the human beings interact. Thus, organisational behaviour can be understood at the individual level,
interpersonal level, group level and inter-group level.
Organisational behaviour helps to analyse 'why' and 'how' an individual behaves in a particular way. Human
behaviour is a complex phenomenon and is affected by a large number of factors including the psychological, social
and cultural implications. Organisational behaviour integrates these factors to provide* simplicity in understanding the
human behaviour.



Interpersonal Level: Human behaviour can be understood at the level of interpersonal interaction.
Organisational behaviour provides • means for understanding the interpersonal relationships in an organisation.
Analysis of reciprocal relationships, role analysis and transactional analysis are some of the common methods,
which provide such understanding.
Group Level: Though people interpret anything at their individual level, they are often modified by group
pressures, which then become a force in shaping human behaviour, Thus, individuals should be studied in
groups also.. Research in group dynamics has contributed vitally to organisational behaviour and shows how a
group behaves in its norms, cohesion, goals, procedures, communication pattern and leadership. These
research results are advancing managerial knowledge of understanding group behaviour, which is very
important for organisational morale and productivity.
Inter-group Level: The organisation is made up of many groups that develop complex relationships to build
their process and substance. Understanding the effect of group relationships is important for managers in
today's organisation. Inter-group relationship may be in the form of co-operation or competition.
The co-operative relationships help the organisation in achieving its objectives. Organisational behaviour provides
means to understand and achieve co-operative group relationships through interaction, rotation of members among
groups, avoidance of win-lose situation and focussing on total group objectives.

Controlling and Directing Behaviour: After understanding the mechanism of human behaviour, managers
are required to control and direct the behaviour so that it conforms to the standards required for achieving the
organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of
individual interaction. Therefore, organisational behaviour helps managers in controlling and directing in
#9





different areas such as use of power and sanction, leadership, communication and building organisational
climate favourable for better interaction.
Use of Power and Sanction: The behaviours can be controlled and directed by the use of power and
sanction, which are formally defined by the organisation. Power is referred to as the capacity of an individual to
take certain action and may be utilised in many ways. Organisational behaviour explains how various means of
power and sanction can ,be utilised so that both organisational and individual objectives are achieved
simultaneously.
Leadership: Organisational behaviour brings new insights and understanding to the practice and theory of
leadership. It identifies various leadership styles available to a manager and analyses which style is more
appropriate in a given situation. Thus, managers can adopt styles keeping in view the various dimensions of
organisations, individuals and situations.
Communication: Communication helps people to come in contact with each other. To achieve organisational
objectives, the communication must be effective. The communication process and its work in inter-personal
dynamics have been evaluated by organisational behaviour.
Organisational Climate: Organisational climate refers to the total organisational situations affecting human
behaviour. Organisational climate takes a system perspective that affect human behaviour. Besides improving
the satisfactory working conditions and adequate compensation, organisational climate includes creation of an
atmosphere of effective supervision; the opportunity for the realisation of personal goals, congenial relations
with others at the work place and a sense of accomplishment.
Organisational Adaptation: Organisations, as dynamic entities are characterised by pervasive changes.
Organisations have to adapt themselves to the environmental changes by making suitable, internal
arrangements such as convincing employees who normally have the tendency of resisting any changes.
LEVELS OF ANALYSIS
Organisational behaviour can be viewed from different perspectives or levels of analysis. At one level, the organisation
can be viewed as consisting of individuals working on tasks in the pursuit of the organisational goals. A second level of
analysis focuses upon the interaction among organisational members as they work in' teams, groups and departments.
Finally, organisational behaviour can be analysed from the perspective of the organisation as a whole.
 Organisation at the Individual Level: Organisational behaviour can be studied in the perspective of individual
members of the organisation. This approach to organisational behaviour draws heavily on the discipline of
psychology and explains why individuals behave and react the way they do to different organisational policies,
practices and procedures. Within this perspective, psychologically based theories of learning, motivation,
satisfaction and leadership are brought to bear upon the behaviour and performance of individual members of
an organisation. Factors such as attitudes, beliefs, perceptions and personalities are taken into account and
their impact upon individuals’ behaviour and performance on the job is studied.
 Organisation at the Group Level: People rarely work independently in organisations; they have to necessarily
work in coordination to meet the organisational goals. This frequently results in people working together in
teams, committees and groups. How do people work together in groups? What factors determine whether
group will be cohesive and productive? What types of tasks could be assigned to groups? These are some of
the questions that can be asked about the effective functioning of groups in organisations. An important
component of organisational behaviour involves the application of knowledge and theories from social
psychology to the study of groups in organisations.
 Organisation at the Organisational Level: Some organisational behaviour researchers take the organisation
as a whole as their object of study. This j macro perspective on organisational behaviour draws heavily on
theories and concepts from the discipline of 'sociology'. Researchers seek to understand the implications of the
relationship between the organisation and its environment for the effectiveness of the organisation. Emphasis is
placed upon understanding how organisational structure and design influences the effectiveness of an
organisation. Other factors such as the technology employed by the organisation, the size of the organisation
and the organisation's age are also examined and their implications for effective organisational functioning are
explored.
These different perspectives on the study of organisational behaviour are not in conflict with one another. Instead they
are complementary. A full and complete understanding of the nature of organisations and the determinants of their
effectiveness requires a blending of knowledge derived from each perspective.
FUNDAMENTAL CONCEPTS OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour starts with the following six fundamental concepts revolving around the nature of people and
organisations:
The nature of people:
 Individual differences
 A whole person
 Motivated behaviour
#10
 Value of the person
The nature of organisation:
 Social system
 Mutual interest
 Individual Differences: Individuals are different in their physical and mental traits. They are different not only
in the physical appearance such as sex, age, height, weight, complexion and so on but also different in their
psychological trait such as intelligence, attitude, motivation and perception. This belief that each person is
different from all others is typically called the 'Law of Individual Differences'. Individual differences mean that
the management has to treat them differently to get the best out of them.
 A Whole Person: Though the organisation may feel that they are employing only the individual's skill or
intelligence, in fact, they employ the 'whole person'. This means that individual does not have only the skill and
intelligence but he has a personal life, needs and desires as well. In other words, his personal life cannot be
separated from his work life since people function as total human beings.
When management practices organisational behaviour, it is not only trying to develop a better employee but it also
wants to develop a '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.
 Motivated behaviour: It is the urge of the individual to satisfy a particular need that motivates him to do an act.
The motivation could be positive or negative.
Motivation is essential for the proper functioning of organisations. The organisation can show to its employees
how certain actions will increase their need fulfilment.
 Value of the Person: It is more an ethical philosophy. It stresses that people are to be treated with respect and
dignity. Every job, however simple, entitles the people who do it to proper respect and recognition of their
unique aspirations and abilities. Since organisational behaviour involves people, ethical philosophy is involved
in one way or the other.
The nature of an organisation can be understood with the help of tjie description of following two points:

o
o
o
o
o
o

Social System: A system is a group of independent and interrelated elements comprising a unified whole. In
context with an organisation, the 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: This is a social system, which is developed in Europe in the 8th Century. 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: This is social system, in which a male is considered to be the family head and title or surname is
traced through his chain. In other words, power lies in his hands.
Matriarchate: This is social system, in which a female is considered to be the family head and title or surname
is traced through her chain. In other words, power lies in her hands.
Meritocracy: This is a social system, in which power vests in the hands of the person with superior intellects.
Class Structure: This is a social system of different classes with in a society.
Segregation: This is a social system, which provides separate facilities for minority groups of a society.
Mutual Interest: Organisational relationships are most likely to be strong if different groups can negotiate
strategies. This can be defined as the interests that are common to both the parties and are related to the
accomplishment of their respective goals. This space for sharing ideas builds trust. Individuals who have
shared mutual interests are likely to make their organisation the strongest, because even though the views are
different they have a shared concern for similar objectives. It is important for the individuals to think about their
issues openly, and to incorporate the perspectives of their colleagues. This helps to build sustainable and
harmonious activities that can operate in the mutual direct interests of the organisation.
Holistic Organisational Behaviour: When the above six concepts of organisational behaviour are considered
together, they provide a holistic concept of the subject. Holistic organisational behaviour interprets people-organisation
relationships in terms of the whole person, whole group, whole organisation and whole social system.
Thus, the blending of nature of people and organisation results in an holistic organisational behaviour.
#11
LESSON –3
Models of organizational behaviour
Learning Objectives
After reading this lesson, you should be able to understand:




The concept of organizational behaviour system
The different models of organizational behaviour
The importance of organizational behaviour to managers
The future of organizational behaviour
Organizations have undergone tremendous change in the behaviour of their employee's. Earlier employers had no
systematic program for managing their employees instead their simple rules served as a powerful influence on
employees. However, today increasing many organizations are experimenting with new ways to attract and motivate
their employees.
CONCEPT OF ORGANIZATIONAL BEHAVIOUR SYSTEM
Organizations achieve their goals by creating, communicating and operating an organizational behaviour system.
Organizational behaviour system defines organizational structure and culture and explains their impact on employees.
The figure 3.1 shows the major elements of a good organizational behaviour system:
These systems exist in every organization, but sometimes in varying forms. They have a greater chance of being
successful, though, if they have been consciously created, regularly examined and updated to meet new and emerging
conditions. The primary advantage of organizational behaviour system is to identify the major human and organizational
variables that affect organizational outcomes. For some variables managers can only be aware of them and
acknowledge their impact whereas for other variables, managers can exert some control over them. The outcomes are
measured in terms of quantity and quality of products and services, level of customer service, employee satisfaction
and personal growth and development.
These systems exist in every organization, but sometimes in varying forms. They have a greater chance of
being successful, though, if they have been consciously created, regularly examined and updated to meet new and
emerging conditions. The primary advantage of organizational behaviour system is to identify the major human and
organizational variables that affect organizational outcomes. For some variables managers can only be aware of them
and acknowledge their impact whereas for other variables, managers can exert some control over them. The outcomes
arc measured in terms of quantity and quality of products and services, level of customer service, employee satisfaction
and personal growth and development.
#12
ELEMENTS OF THE SYSTEM
The system's base rests in the fundamental beliefs and intentions of those who join together to create it such as owners
and managers who currently administer it. The philosophy of organizational behaviour held by management consists of
an integrated set of assumptions and beliefs about the way things are, the purpose for these activities, and the way
they should be. These philosophies are sometimes explicit and occasionally implicit, in the minds managers.
Organizations differ in the quality of organizational behaviour that they develop. These differences are
substantially caused by different models of organizational behaviour that dominant management's thought in each
organization. The model that a manager holds usually begins with certain assumptions about people and thereby leads
to certain interpretations of organizational events.
The following four models of organizational behaviour are as follows: A. Autocratic model
B. Custodial model
C. Supportive model
D. Collegial model
Autocratic Model
In an autocratic model', the manager has the power to command his subordinates to do a specific job. Management
believes that it knows what is best for an organization and therefore, employees are required to follow their orders. The
psychological result of this model on employees is their increasing dependence on their boss. Its main weakness is its
high human cost.
Custodial Model
This model focuses better employee satisfaction and security. Under this model organizations satisfy the security and
welfare needs of employees. Hence, it is known as custodian model. This model leads to employee dependence on an
organization rather than on boss. As a result of economic rewards and benefits, employees are happy and contented
but they are not strongly motivated.
Supportive Model
The supportive model depends on 'leadership' instead of power or money. Through leadership, management provides
a climate to help employees grow and accomplish in the interest of an organization. This model assumes that
employees will take responsibility, develop a drive to contribute and improve them if management will give them a
chance. Therefore, management's direction is to 'Support' the employee's job performance rather than to 'support'
employee benefit payments, as in the custodial approach. Since management supports employees in their work, the
psychological result is a feeling of participation and task involvement in an, organization.
Collegial Model
The term 'collegial' relates to a body of persons having a common purpose. It is a team concept. Management is the
coach that builds a better team. The management is seen as joint contributor rather than as a boss. The employee
response to this situation is responsibility. The psychological result of the collegial approach for the employee is 'selfdiscipline'. In this kind of environment employees normally feel some degree of fulfillment and worthwhile contribution
towards their work. This results in enthusiasm in employees' performance.
FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR
Basis of Model
Managerialorientation
Employee
psychological
result
Employee needs
met
Performance
result
Autocratic
Power
Supportive
Leadership
Collegial
Partnership
Authority
Custodial
Economic
resources
Money
Support
Teamwork
Dependence on
boss
Dependence on
organization
Participation
Self-discipline
Subsistence
Security
Self-actualization
Minimum
Passive
cooperation
Status
and
recognition
Awakened
drives
Moderate enthusiasm
It is wrong to assume that a particular model is the best model. This is because a model depends on the
knowledge about human behaviour in a particular environment, which is unpredictable. The primary challenge for
management is to identify the model it is actually using and then assess its current effectiveness.
#13
The selection of model by a manager is determined by a number of factors such as, the existing philosophy,
vision and goals of manager. In addition, environmental conditions help in determining which model will be the most
effective model.
IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR TO MANAGERS
Managers perform four major functions such as planning, organizing, directing and controlling. In addition to these
functions there are ten managerial roles, which can be defined as organized set of behaviors identified with the
position. These roles are developed by Henry Mintzberg in 1960s after a careful study of executives at work. All these
roles, in one form or other deal with people and their behaviour. These ten managerial roles are divided into three
categories. The first category called the interpersonal roles arises directly from the manager's position and the formal
authority given to him. The second category, the informational role arises as a direct result of the interpersonal roles
and these two categories give rise to the third category called decisional roles. Figure 3.2 shows the categories of
managerial roles.
The roles, in the context of organizational behaviour, are as follows:
Interpersonal Roles
In every organization managers spend a considerable amount of time in interacting with other people both within their
own organizations as well as outside. These people include peers, subordinates, superiors, suppliers, customers,
government officials and community leaders. All these interactions require an understanding of interpersonal behaviour.
Studies show that interacting with people takes up nearly 80% of a manager's time. These interactions involve the
following three major interpersonal roles:
 Figure/lead Role: Managers act as symbolic figureheads performing social or legal obligations. These duties
include greeting visitors, signing legal documents, taking important customers to lunch, attending a
subordinate's wedding and speaking at functions in schools and churches. All these, primarily, are duties of a
ceremonial nature but are important for the smooth functioning of an organization.
 Leadership Role: The influence of the manager is most clearly seen in the leadership role as a leader of a unit
or an organization. Since he is responsible for the activities of his subordinates therefore he must lead and
coordinate their activities in meeting task-related goals and motivate them to perform better. He must be an
ideal leader so that his subordinates follow his directions and guidelines with respect and dedication.
 Liaison Role: The managers must maintain a network of outside contacts. In addition, they need to have a
constant contact with their own subordinates, peers and superiors in order to assess the external environment
of competition, social changes or changes in governmental rules and regulations. In this role, the managers
build up their own external information system. This can be achieved by attending meetings and professional
conferences, personal phone calls, trade journals and informal personal contacts with outside agencies.
#14
Information Roles
A manager, by virtue of his interpersonal contacts, emerges as a source of information about a variety of issues
concerning an organization. In this capacity of information processing, a manager executes the following three roles.
 Monitor Role: The managers are constantly monitoring and scanning their internal and external environment,
collecting and studying information regarding their organization. This can be done by reading reports and
periodicals, interrogating their liaison contacts and through gossip, hearsay and speculation.
 Information Disseminator Role: The managers must transmit the information regarding changes in
policies or other matters to their subordinates, their peers and to other members of an organization. This
can be done through memos, phone calls, individual meetings and group meetings.

Spokesman Role: A manager has to be a spokesman for his unit and represent his unit in either sending
relevant information to people outside his unit or making some demands on behalf of his unit.
Decision Roles
A manager must make decisions and solve organizational problems on the basis of the environmental information
received. In that respect, a manager plays four important roles.
 Entrepreneur Role: Managers, as entrepreneurs are constantly involved in improving their units and facing the
dynamic technological challenges. They are constantly on the lookout for new ideas for product improvement or
product addition. They initiate feasibility studies, arrange capital for new products and ask for suggestions
from the employees to improve organization. This can be achieved through suggestion boxes, holding
strategy meetings with project managers and R&D personnel.
 Conflict Handling Role: The managers are constantly involved as judge in solving conflicts among the
employees and between employees and management. Mangers must anticipate such problems and take
preventive action and take corrective action once the problem arises. These problems may involve labor
disputes, customer complaints, employee grievances, machine breakdowns, cash flow shortages and
interpersonal conflicts.
 Resource Allocation Role: The managers establish priorities among various projects or programs and make
budgetary allocations to different activities of an organization based on these priorities.
 Negotiator Role: The managers in their negotiator role represent their organization in negotiating deals and
agreements within and outside of an organization. They negotiate contracts with the unions. Sales managers
may negotiate prices with prime customers. Purchasing managers may negotiate prices with vendors.
All these ten roles are important in a manager's job and are interrelated, even though some roles may be more
influential than others depending upon the managerial position. For example, sales manager gives more importance to
interpersonal roles, while the production manager may give more importance to decisional roles.
LIMITATIONS OF ORGANIZATIONAL BEHAVIOUR
 Organizational behaviour cannot abolish conflict and frustration but can only reduce them. It is a way to
improve but not an absolute answer to problems.
 It is only one of the many systems operating within a large social system.
 People who lack system understanding may develop a 'behavioral basis', which gives them a narrow view
point, i.e., a tunnel vision that emphasizes on satisfying employee experiences while overlooking the broader
system of an organization in relation to all its public.
 The law of diminishing returns also operates in the case of organizational behaviour. It states, that at some
point increase of a desirable practice produce declining returns and sometimes, negative returns. The concept
implies that for any situation there is an optimum amount of a desirable practice. When that point is exceeded,
there is a decline in returns. For example, too much security may lead to less employee initiative and growth.
This relationship shows that organizational effectiveness is achieved not by maximizing one human variable but
by working all system variables together in a balanced way.
 A significant concern about organizational behaviour is that its knowledge and techniques could be used to
manipulate people without regard for human welfare. People who lack ethical values could use people in
unethical ways.
FUTURE OF ORGANIZATIONAL BEHAVIOUR
The growing interest in organizational behaviour stems from both a philosophical desire by many people to create more
humanistic work places and a practical need to design more productive work environments. As a result of these forces,
organizational behaviour is now a part of the curriculum of almost all courses including engineering and medical.
The field of organizational behaviour has grown in depth and breadth. The keys to its past and future success
revolve around the related processes of theory development, research and managerial practice.
Although organizational behaviour has certain limitations, it has a tremendous potential to contribute to the
advancement of civilisation. It has provided and will provide much improvement in the human environment. By building
a better climate for people, organizational behaviour will release their creative potential to solve major social problems.
In this way organizational behaviour will contribute to social improvements. Improved organizational behaviour is not
easy to apply but opportunities are there. It should produce a higher quality of life in which there is improved harmony
within each individual, among people and among the organizations of future.
#15
LESSON – 4
GLOBAL SCENARIO OF ORGANIZATIONAL BEHAVIOUR
Learning Objectives
After reading this lesson, you should be able to understand:


The global scenario of organizational behaviour
The barriers to cultural adaptation and measures to overcome those barriers
Due to globalization of economy, many organizations now operate in more than one country. These multinational
operations add new dimensions to organizational behaviour. It is a step into different social, political and economic
environments. Therefore, communication and control becomes difficult. The social, political and economic differences
among countries" influence international organizational behaviour.
SOCIAL CONDITIONS
In many countries due to poorly developed resources, there is shortage of managerial personnel, scientists and
technicians. Hence the required skills must be temporarily imported from other countries, and training programs need to
be developed to train the local workers. Trained locals become the nucleus for developing others, thereby spreading
the training through masses.
Another significant social condition in many countries is that the local culture is not familiar with advanced
technology. A few countries arc agriculture dominated and a few other manufacturing industries dominated. Naturally,
the nature of their culture and work life will be different.
POLITICAL CONDITIONS
Political conditions that have a significant effect on organizational behaviour include instability of the government,
restricting industries to a particular area and nationalistic drives such as self-sufficiency in latest technologies. When
the government is unstable, organizations become cautious about further investments. This organizational instability
leaves workers insecure and causes them to be passive and low in taking any initiatives.
In spite of instability, a nationalistic drive is strong for locals to run their country and their organizations by
themselves without any interference by foreign nationals.
In some nations, organized labor is mostly an arm of the authoritarian state and in some other nations labor is
somewhat independent. In some nations, State tends to be involved in collective bargaining and other practices that
affect workers. For example, workers' participation in management are restricted by law while in other countries they
are permitted.
ECONOMIC CONDITIONS
The most significant economic conditions in less developed nations are low per capita income and rapid inflation.
Inflation makes the economic life of workers insecure when compared to developed countries.
The different socio-economic and political conditions existing in countries influence the introduction of
advanced technology and sophisticated organizational systems. A developed country can easily adopt advanced
technology when compared to a less developed country. These limiting conditions cannot be changed rapidly because
they arc too well established and woven into the whole social fabric of a nation.
MANAGING AN INTERNATIONAL WORKFORCE
Whenever an organization expands its operations to other countries, it tends to become multicultural and will then face
the challenge of blending various cultures together. The managerial personnel entering another nation need to adjust
their leadership styles, communication patterns and other practices to fit their host country. Their role is to provide
fusion of cultures in which employees from both countries adjust to the new situation seeking a greater productivity for
the benefit of both the organization and the people of the country in which it operates.
Barriers to Cultural Adaptation
 Managers and other employees who come into a host country tend to exhibit different behaviors and
somewhat, see situation around them from their own perspectives. They may fail to recognize the key
differences between their own and other cultures. These people are called, 'parochial'.
 Another category of managers called 'individualistic' place greatest emphasis on their personal needs and
welfare. They are more concerned about themselves than the host country.
 Another potential barrier to easy adaptation of another culture occurs, when-people are predisposed to believe
that their homeland conditions are the-best. This predisposition is known as the 'self-reference criterion' or
#16
'ethnocentrism'. This feeling interferes with understanding human: behaviour in other cultures and obtaining
productivity from local employees.
Cultural Distance
To decide the amount of adaptation that may be required when personnel moves to another country, it is helpful to
understand the cultural distance between the two countries. Cultural distance is the amount of distance between any
two social systems. Whatever may be the amount of cultural distance, it does affect the responses of all individuals to
business. The manager's job is to make the employees adapt to the other culture and integrate the interests of the
various cultures involved.
Cultural Shock
When employees enter another nation they tend to suffer cultural shock, which is the insecurity and disorientation
caused by encountering a different culture. They may not know how to act. may fear losing face and self-confidence or
may become emotionally upset. Cultural shock is virtually universal. Some of the more frequent reasons for cultural
shock are as follows:
 Different management philosophies
 New language
 Alternative food, dress, availability of goods
 Attitude towards work and productivity
 Separation from family, friends and colleagues
 Unique currency system
Many expatriates report difficulty in adjusting to different human resource management philosophies, the language,
the different currency and work attitudes in another culture.
Overcoming Barriers to Cultural Adaptation
 Careful selection; of employees, who can withstand/adjust cultural shocks for international assignments* is
important.
 Pre-departure training in geography, customs, culture and political environment in which the employee will be
living will help for cultural adaptation.
 Incentives and guarantees for better position will motivate employees for cultural adaptation in the new country.
 Employees who return to their home country after working in another nation for sometime tend to suffer cultural
shock in their own homeland. After adjusting to the culture of another nation and enjoying its uniqueness, it is
difficult for expatriates to re-adjust to the surroundings of their home country. Hence, organizations need
repatriation policies and programs to help returning employees obtain suitable assignments and adjust to the
'new' environments.
Cultural Contingencies
Productive business practices from one country cannot be transferred directly to another country. This reflects the idea
of cultural contingency that the most productive practices for a particular nation will depend heavily on the culture,
social system, economic development and employee's values in the host country. Hence, the expatriate managers
must learn to operate effectively in a new environment with certain amount of flexibility. Labor policy, personnel
practices and production methods need to be adapted to a different labor force. Organization structures and
communication patterns need to be suitable for local operations.
MANAGEMENT'S INTEGRATING ROLE
Once managers are in a host country, their attention needs to be directed toward integrating the technological
approaches with the local cultures involved.
Motivating and Leading Local Employees
Same motivational tools may not suit the employees of all the nations. Hence, appropriate motivational techniques
need to be implemented depending on the requirement of employees of that particular nation.
Similarly, communication problems may also arise between the expatriate manager and the employees of the
host country. Hence, managers need to make adjustments in their communication suited to< local cultures. If local
culture is ignored, the resulting imbalance in the social system interferes with the productivity.
Eventually, a cadre of employees with cross-cultural adaptability can be developed in organizations with large
international operations. These employees are 'trans-cultural’ employees because they operate effectively in several
cultures. They are low in ethnocentrism and adapt readily to different cultures without major cultural shock. They
usually can communicate fluently in more than one language.
Trans-cultural employees are especially needed in large, multinational firms that operate in a-variety of national
cultures. For a firm to be truly multi-national in character, it should have ownership, operations, markets and managers
truly diversified. Its leaders look to the world as an economic and social unit; but they recognize each local culture,
respect its integrity, acknowledge its benefits and use its differences effectively in their organization.
#17
LESSON – 5
FOUNDATION OF INDIVIDUAL BEHAVIOR
Learning Objectives
After reading this lesson, you should be able to:


Understand the nature of individual differences in organizations
Identify the individual factors affecting organizational behavior
INDIVIDUAL BEHAVIOR
Human behavior, which is; considered a complex phenomenon, is very difficult to define in absolute terms. It is primarily
a combination of responses to external and internal stimuli. These responses would reflect psychological structure of
the person and may be results' of the combination of biological and psychological processes, which interpret them,
respond to them in an appropriate manner and learn from the result of these responses.
Psychologist Kurt Levin has conducted; considerable research into the human behavior and its causes. He
believes that people are influenced by a number of diversified factors, which can be both genetic and environmental.
The influence of these factors determines the pattern of human behavior.
Whenever people buy something, for example, a car, both the buyer and the seller sign a contract that
specifies the terms of the sales agreement. Similarly, most people, when they begin a working relationship with an
organization formulate a psychological contract with their employer. A psychological contract is the overall set of
expectations that an individual holds with respect to his or her contributions to the. organization and the organization's
response to those contributions. A psychological contract is not written down like a legal contract.
An individual makes a variety of contributions to an organization in the form of—efforts, skills, ability, time,
loyalty and so forth. These contributions presumably satisfy various needs and requirements of the organization. In
return for contributions, the organization provides incentives such as pay, promotion, and job security to the employee.
Just as the contributions available from the individual must satisfy the organization's needs, the incentives must serve
the employees' needs in return.
If both the individual and the organization consider the psychological contract fair and equitable, they will be
satisfied with the relationship and are likely to continue it. If either party perceives an imbalance or iniquity in the
contract, it may initiate a change. A major challenge faced by an organization, thus, is to manage the psychological
contracts.
One specific aspect of managing psychological contracts is managing the person-job fit. The 'person-job fit' is
the extent to which the contributions made by the individual match the incentives offered by the organization. In theory,
each employee has a specific set of needs to fulfill and a set of job related behaviors and abilities to contribute. If the
organization can take complete advantage of those behaviors and abilities and exactly fulfill the employee's needs, it
will achieve a perfect person-job fit. Of course, such a precise, level of person-job fit is seldom achieved due to various
reasons such as imperfect selection procedures, differences in individual skills, constant change in the needs and
requirements of people and organization. Thus, the behavior of individuals in organization is the primary concern of
management and it is essential that the managers should have an understanding of the factors influencing the behavior
of the employees they manage. The figure 5.1 identifies five sets of factors that have an impact upon individual
behavior in organizations.
NATURE OF INDIVIDUAL DIFFERENCES
Individual differences are personal attributes that vary from one person to another. Individual differences may be
physical and psychological. The figure 5.2 shows the attributes of physical and psychological differences.
#18





Physical Differences
Height
Weight
Body Shape
Appearance
Complexion
figure
5.2
Psychological Differences
 Personality
 Attitudes
 Perception
 Motivation
 Learning
Whenever an organization attempts to assess the individual differences among its employees, it must consider
the situation in which that particular behavior occurs. Individuals who are satisfied in one context may prove to be
dissatisfied in another context. Assessing both individual differences and contributions in relation to incentives and
contexts, then, is a major challenge for organizations as they attempt to establish effective psychological contracts with
their employees and achieve optimal fits between people and jobs.
Individual differences make the manager's job extremely challenging. In fact, according to a recent research,
"variability among workers is substantial at all levels but increases dramatically with job complexity. Due to these
reasons, growing work force diversity compel managers to view individual differences in a fresh way. Leaders now talk
frequently about "valuing differences" and learn to "manage diversity". So rather than limiting diversity, as in the past,
today's managers need to better understand and accommodate employee diversity and individual differences.
IMPORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES
 Self-concept
 Personality dimensions
 Abilities, and
 Personal values and ethics.
Self-concept
Self is the core of one's conscious existence. Awareness of self is referred to as one's self-concept. Sociologists Viktor
Gecas defines self-concept as "the concept the individual has of himself as a physical, social and spiritual or moral
being". In other words, every individual recognizes himself as a distinct individual. A self-concept would be impossible
without the capacity to think. This brings us to the role of cognitions. Cognitions represent, "any knowledge, opinion, or
belief about the environment about oneself, or about one's behavior". Among many different types of cognitions, those
involving expectation, planning, goal setting, evaluating and setting personal standards are particularly relevant to
organizational, behavior.
Self-esteem
Self-esteem is a belief over one's own worth based on an overall self-evaluation. Those with low self-esteem tend to
view themselves in negative terms. They do not feel good about themselves, tend to have trouble in dealing effectively
with others, and are hampered by self-doubts. High self-esteem individuals, in contrast, see themselves as worthwhile,
capable and acceptable. Although, high self-esteem is generally considered a positive trait because it is associated with
better performance and greater satisfaction, recent research uncovered flaws among those having high self-esteem.
Specifically, high self-esteem subjects tended to become self-centered and boastful when faced with situations under
pressure Hence moderate self-esteem is desirable.
1.
2.
3.
4.
Managers can build employee self-esteem in four ways:
Be supportive by showing concern for personal problems, interests, status and contribution.
Offer work involving variety, autonomy and challenges that suit the individual's values, skills and abilities.
Strive for management-employee cohesiveness and trust building.
Have faith in each employee's self-management ability, reward successes.
Self-efficacy
Self-efficacy is a person's belief about his' or her chances of successfully accomplishing a specific task. According to
one organizational behavior writer, "Self-efficacy arises from the gradual acquisition of complex, cognitive, social,
linguistic, and/or physical skills through experience",
There is strong linkage between high self-efficacy expectations and success in terms of physical and mental
tasks, anxiety reduction, addiction control, pain tolerance and illness recovery. Oppositely, those with low self-efficacy
expectations tend to have low success rates.
#19
Self-efficacy Implications for Managers
Managers need to nurture self-efficacy in them and in their employees. Self-efficacy requires constructive action in
each of the following managerial areas:
 To design recruitment selection procedure.
 To design interview questions to probe applicant's general self-efficacy for determining orientation and training
needs.
 For designing job.
 For systematic self-management training.
 For goal-setting and quality improvement.
 To evolve suitable leadership.
 To design suitable regards.
Personality Dimensions
The big, five personality dimensions are: extroversion, agreeableness, thoroughness, emotional stability and openness
to experience. Ideally, these personality dimensions that correlate positively and strongly with job performance would
be helpful in the selection, training and appraisal of employees. The individuals who exhibit; traits associated with a
strong sense of responsibility and determination generally perform better than those who do not.
PHYSICAL AND INTELLECTUAL QUALITIES
Physical differences among individuals are the most visible of all differences. They are also relatively easy to assess.
Intellectual differences are somewhat more difficult to discern, but they too can be assessed by fairly objective means.
The abilities/skills and competencies of employees are both physical and intellectual qualities.
 Ability refers to an individual's skill to perform effectively in one or more areas of activity, such as physical,
mental or interpersonal work.
Individuals with numerical ability, for example, can be trained to apply their ability in the field of engineering,
accounting and computer science. Abilities develop from an individual's natural aptitudes and subsequent
learning opportunities. Aptitudes are relatively stable capacities for performing some activity effectively.
Learning opportunities translate aptitude into abilities through practice, experience and formal training.
Organizations have to ensure that people possess the necessary abilities to engage in the behaviors required
for effective performance. This can 6e accomplished either by careful selection of people or by a combination
of selection and training.
 Skills are generally thought of as being more task-specific capabilities than abilities. For example, an individual
with numerical ability who goes to school to learn accounting develops a numerical skill specific to that field'.
Thus, when a particular ability is applied to a specialized area, (for example accounting), it becomes a skill.
 Competencies are skills associated with specialization. Competencies are skills that have been refined by
practice and experience and that enable, the-individual to specialize in some field. For example, an accountant
with numerical "ability and accounting skill takes a position in the Taxation Department and as time passes, he
develops more competency as a tax expert.
Physical abilities such as strength, flexibility, endurance and stamina can be developed with exercise and training.
Mental abilities such as reasoning, memory visualization, comprehension and inter-personal abilities can also be
developed through practice and education. Even in the absence of such formal programs, many individuals manage
their own careers in such a way as to continually upgrade their abilities, skills and competencies in order to remain
valuable to their organizations.
PERSONAL VALUES AND ETHICS
According to Milton Rokeach, a value is "an enduring belief that a specific mode of conduct or end-stated of
existence is personally or socially preferable to an opposite or converse mode of conduct are end-state of existence".
Ethics involve the study of moral issues and choices. It is concerned with right versus wrong and good versus
bad. Relative to the workplace, the terms business ethics and management ethics are often heard.
Moral Principles for Managers
 Judge actions by their consequences; achieve the greatest good for the greatest number of people.
 Basic human rights should be respected.
 Rules and rewards should be administered impartially, fairly and equitably.
Improving Organization's Ethical Climate
 Managers are powerful role models whose habits and actual behavior send clear signals about the importance
of ethical conduct. Ethical behavior is a 1 top to bottom proposition.
 Screen potential employees by checking references, credentials, and other information for ascertaining their
ethical behavior.
#20
LESSON - 6
PERSONALITY
Learning Objectives
After reading this lesson, you should be able to:




Understand perceptual clarity about personality
Discuss main determinants of personality
Explain nature and dimensions of personality
Describe personality attributes that are relevant to organizational behavior
Personality is a complex, multi-dimensional construct and there is no simple definition of what personality is. Maddi
defines personality as, “A stable set of characteristics and tendencies that determine those commonalities and
differences in the psychological behavior and that may not be easily understood as the sole result of the social and
biological pressures of the moment".
From the above definition we can infer that all individuals have some universally common characteristics. Yet
they differ in some other specific attributes. This makes it difficult for the managers to assume that they can apply same
reward types or motivation techniques to modify different individual behaviors. The definition, however, does not mean
that people never change. In simple terms, it asserts that individuals do not change all at once. Their thoughts, feelings,
values and actions remain relatively stable over time. Changes in individual's personality can, however, occur gradually
over a period of time. The managers should, therefore, attempt to understand certain dimensions of personality. This
can enable them to predict the behavior of their employees on a daily basis.
Some personality theorists stress the need 6f identifying person-situation as interaction. This is equivalent to
recognizing thd social learning aspects related to personality. Such a social learning analysis is one of the most
comprehensive and meaningful ways included in the overall study of organizational behavior. From this perspective,
personality means the way people affect others. It also involves people's understanding themselves, as well as their
pattern of inner and outer measurable traits, and the person and situation interaction. People affect others depending
primarily upon their external appearance such as height, weight, facial features, color and other physical aspects and
traits.
Personality traits are very important in organizational behavior. In particular, five personality traits especially
related to job performance have recently emerged from research. Characteristics of these traits can be summarized as
follows:
1.
2.
3.
4.
5.
Extroversion: Sociable, talkative and assertive.
Agreeableness: Good-natured, cooperative and trusting.
Conscientiousness: Responsible, dependable, persistent and achievement-oriented.
Emotional Stability: Viewed from a negative standpoint such as tense, insecure and nervous.
Openness to Experience: Imaginative, artistically sensitive and intellectual.
Identifying the above "big five" traits related to performance reveals that personality plays an important role in
organizational behavior. Besides physical appearance and personality traits, the aspects of personality concerned with
the self-concept such as self-esteem and self-efficacy and the person-situation interaction also play important roles.
PERSONALITY FORMATION
The personality formation of an individual starts at birth and continues throughout his life. Three major types of factors
play important roles in personality formation, which are as follows:
 Determinants: The most widely studied determinants of personality are biological, social and cultural. People
grow up in the presence of certain hereditary characteristics (body shape and height), the social context (family
and friends) and the cultural context (religion and values). These three parts interact with • each other to shape
personality. As people grow into adulthood, their personalities become very clearly defined and generally
stable.
 Stages: According to Sigmund Freud human personality progresses through four stages: dependent,
compulsive, oedipal and mature. This concept of stages of growth provides a valuable perspective to
organizational behavior. Experienced managers become aware of the stages that their employees often go
through. This helps them 19 deal with these stages effectively and promote maximum growth for the individual
and for the organization.
 Traits: Traits to personality are also based on psychology. According to some trait theories, all people share
common traits, like social, (political, religious and aesthetic preferences but each individual's nature differentiates that person from all others.
#21
PERSONALITY FACTORS IN ORGANISATIQN5
Some of the important personality factors that determine what kind of behaviors are exhibited at work include the
following:
Need Pattern
Steers and Braunstein in 1976 ^developed a scale for the four needs of personality that became apparent in the 'work
environment. They are as follows:




The need for achievement: Those with a high achievement need engage themselves proactively in work
behaviors in order to feel proud of their achievements and successes.
The need for affiliation: Those in greater need for affiliation like to work cooperatively with others.
The need for autonomy: Those in need for autonomy function in the best way when not closely supervised.
The need for dominance: Those high in need for dominance are very effective while operating in
environments where they can actively enforce their legitimate authority.
Locus of Control
Locus of control is the degree to which an individual believes that his or her behavior has direct impact on the
consequences of that behavior. Some people, for example, believe that if they work hard they will certainly succeed.
They, strongly believe that each individual is in control of his or her life. They are said to have an internal locus of
control. By contrast, some people think that what happens to them is a result of fate, chance, luck or the behavior of
other people, rather than the lack of skills or poor performance on their part. Because- these individuals think that
forces beyond their control dictate the happenings around them, they are said to have an external locus of control.
As a personality attribute, locus of control has clear implications for organizations. For example, certain
individuals have an internal locus of control, which means they have a relatively strong desire to participate in the
management of their organizations and have a' freedom to do their jobs. Thus, they may prefer a decentralized
organization where they have a right of decision-making and work with a leader who provides them freedom and
autonomy. They may like a reward system that recognizes individual performance and contributions.
Conversely, people with an external locus of control, are likely to prefer a more centralized organization where
they need not take any decisions. They may incline to structured jobs where standard procedures are defined for them.
They may prefer a leader who makes most of the decisions and a reward system that considers seniority rather than
merit.
Introversion and Extroversion
Introversion is the tendency of individuals, which directs them to be inward and process feelings, thoughts and ideas
within themselves. Extroversion, on the contrary, refers to the tendency in individuals to look outside themselves,
searching for external stimuli with which they can interact. While there is some element of introversion as well as
extroversion in all of us, people tend to be dominant as either extroverts or introverts. Extroverts are sociable, lively and
gregarious and seek outward stimuli or external exchanges. Such individuals are likely to be most successful while
working in the sales department, publicity office, personal relations unit, and so on, where they can interact face to face
with others. Introverts, on the other Hand, are quiet, reflective, introspective, and intellectual people, preferring to
interact with a small intimate circle of friends. Introverts are more likely to be successful when they can work on highly
abstract ideas such as R&D work, in a relatively quiet atmosphere. Since managers have to constantly interact with
individuals both in and out of the organization and influence people to achieve the organization's goals, it is believed
that extroverts are likely to be more successful as managers.
Tolerance for Ambiguity
This personality characteristic indicates the level of uncertainty that people can tolerate to work efficiently without
experiencing undue stress. Managers have to work well under conditions of extreme uncertainty and insufficient
information, especially when things are rapidly changing in the organization's external environment. Managers who
have a high tolerance for ambiguity can cope up well under these conditions. Managers, who have a low tolerance for
ambiguity may be effective in structured work settings but find it almost impossible to operate effectively when things
are rapidly changing and much information about the future events is not available. Thus, tolerance for ambiguity is a
personality dimension necessary for managerial success.
Self-Esteem and Self-Concept
Self-esteem denotes the extent to which individuals consistently regard themselves as capable, successful, important
and worthy individuals. Self-esteem is an important personality factor that determines how managers perceive
themselves and their role in the organization. Self-esteem is important to self-concept, i.e., the way individuals, define
themselves as to who they are and derive their sense of identity. High self-esteem provides a high sense of self-
#22
concept, which, in turn, reinforces high self-esteem. Thus, the two are mutually reinforcing. Individuals with a high selfesteem will try to take on more challenging assignments and be successful. Thus, they will be enhancing their selfconcept i.e., they would tend to define themselves as highly valued individuals in the organizational system. The higher
the self-concept and self-esteem, the greater will be their contributions to the goals of the organization, especially when
the system rewards them for their contributions.
Authoritarianism and Dogmatism
Authoritarianism is the extent to which an individual believes that power and status differences are important within'
hierarchical social systems like organizations. For example, an employee who is highly authoritarian may accept
directives or orders from his superior without much questioning. A person who is not highly authoritarian might agree to
carry out appropriate and reasonable directives from his boss. But he may also raise questions, express disagreement
and even refuse to carry out requests if they arc for some reason objectionable.
Dogmatism is the rigidity of a person's beliefs and his or her openness to other viewpoints. The popular terms
'close-minded' and 'open-minded' describe people who are more and less .dogmatic in their beliefs respectively. For
example, a manager may be unwilling to listen to a new idea related to doing something more efficiently. He is said to
be a person who is close-minded or highly dogmatic. A manager who is very receptive to hearing about and trying out
new ideas in the same circumstances might be seen as more open-minded or less dogmatic. Dogmatism can be either
beneficial or detrimental to organizations, but given the degree of change in the nature of organizations and their
environments, individuals who are, not dogmatic are most likely to be useful and productive organizational members.
Risk Propensity
Risk-propensity is the decree to which an individual is willing to take chances and make risky decisions. A manager
with a high-risk propensity might be expected to experiment with new ideas and to lead the organization in new
directions. In contrast, a manager with low risk propensity might lead to a stagnant and overly conservative
organization.
Machiavellianism
Machiavellianism is manipulating or influencing other people as a primary way of achieving one's goal. An individual
tends to be Machiavellian, if he tends to be logical in assessing the system around, willing to twist and turn facts to
influence others, and try to gain control of people, events and situations by manipulating the system to his advantage.
Type A and B Personalities
Type A persons feel a chronic sense of time urgency, are highly achievement-oriented, exhibit a competitive drive, and
are impatient when their work is slowed down for any reason. Type B persons are easy-going individuals who do not
feel the time urgency, and who do not experience the competitive drive. Type A individuals are significantly more prone
to heart attacks than Type B individuals. While Type A persons help the organization to move ahead in a relatively short
period of time they may also suffer health problems, which might be detrimental to both themselves and the
organization in the long run.
Work-Ethic Orientation
Some individuals are highly work-oriented while others try to do the minimum Work that is necessary to get by without
being fired on-the-job. The extremely work oriented person gets greatly involved in the job. Extreme work ethic values
could lead to traits of "workahollism" where work is considered as the only primary motive for living with very little
outside interests. For a workaholic turning to work can sometimes become a viable alternative to facing non-work
related problems. A high level of work ethic orientation of members is good for the organization to achieve its goals.
Too much "workahollism", however, might lead to premature physical and mental exhaustion and health problems,
which is dysfunctional for both organization and the workaholic members.
The
above
ten
different personality predispositions
are
important for individual, managerial and
organizational effectiveness.
DESIRED PERSONALITY CHARACTERISTICS FOR EFFECTIVE MANAGERS
Obviously, there arc some personality ^predispositions, which are favourable "to managerial effectiveness and to the
success of managers. Apart from possessing the necessary skills and abilities, managers need to develop a high
tolerance for ambiguity. There are many changes taking place in the internal and the external environment of an
organization.. Naturally, several unpredictable factors are involved in any complex situation, which are beyond the
managers’ control. Therefore, they should be able to, handle situations as they come, without experiencing undue
stress. Thus, a high tolerance for ambiguity is a desired managerial trait. Managers with a good mix of achievements,
affiliations and power will be successful in most situations. This is because they will have the drive to achieve the goals
and the interpersonal orientation to get the job done through others. In sales and other people-oriented roles, extrovert
managers will fit better in their jobs. Similarly, managers with internal locus of control will be more efficient as
intellectual and skilled performers. Managers with good work ethic values, will get more involved in their jobs and make
#23
things happen. They are likely to be more successful in their jobs. Managers with Type A personalities may suit very
well for some jobs, which have inbuilt performance pressures and deadlines, but they need to know how to relax
through exercises and self-monitor their stress levels.
Personality is a relatively stable factor, but our predispositions can be changed through conscious choice. For
instance, our tolerance for ambiguity and ability to handle stress can be considerably enhanced; the attributions we
make for success such as internal versus external-locus of control can be changed. Also, our latent needs can be
activated and our skills in decision-making can be increased through training programs and by deliberately making the
necessary changes. Recognizing the essential ingredients for managerial success is the first step towards making the
changes.
THE SELF-CONCEPT: SELF-ESTEEM AND SELF-EFFICACY
People's attempt to understand themselves is called the self-concept in personality theory. The human self is made of
many interacting parts and may be thought of as the personality viewed from within. This self is particularly relevant to
the concepts of self-esteem and self-efficacy in the field of organizational behavior.
People's self-esteem has to do with their self-perceived competence and self-image. Considerable research
has been done on the role played by self-esteem outcomes in the organizational behavior. Most recently done studies
indicate that self-esteem plays an important moderating role in the areas of emotional and behavioral responses and
stress of organizational members. It was recently noted that, "both research and everyday experience confirm that
employees with high self-esteem feel unique, competent, secure, empowered and connected, to the people around
them"
Self-efficacy is concerned with self-perceptions of how well a person can cope with situations as they arise.
Those with high self-efficacy feel capable and confident of performing well in a situation. In the field of organizational
behavior, self-efficacy is conceptually close to self-esteem. Miner points out the differences by noting that self-esteem
tends to be a generalized trait (it will be present in any situation), while self-efficacy tends to be situation specific. Selfefficacy; has been shown to have an empirical relationship with organizational performance and other dynamics of
organizational behavior.
In summary, personality is a very diverse and complex cognitive process. It incorporates almost everything. As
defined above, personality means the whole person. It is concerned with external appearance and traits, self and
situational interactions. Probably the best statement on personality was made many years ago by Kluckhohn and
Murray, "to some extent, a person's personality is like all other people's, like some other people's, and like no other
people's."
#24
LESSON – 7
LEARNING AND BEHAVIOR MODIFICATION
Learning Objectives
After reading this lesson, you should be able to:



Understand various factors affecting human behavior
Explain implications of behavior modification
Describe reinforcement for inducing positive behavior
Learning is an important psychological process that-determines human behavior. Learning can be defined as “relatively
permanent change in behavior that occurs as a result of experience or reinforced practice". There are four important
points in the definition of learning:
1.
Learning involves a change in behavior, though this change is not necessarily an improvement over
previous behavior. Learning generally has the connotation of improved behavior, but bad habits,
prejudices, stereotypes, and work restrictions are also learned.
2.
The, behavioral change must be relatively permanent. Any temporary change in behavior is not a part of
learning.
3.
The behavioral change must be based oh some form of practice or experience.
4.
The practice or experience must be reinforced in order so as to facilitate learning to occur.
COMPONENTS OF THE LEARNING PROCESS
The components of learning process are: drive, cue stimuli, response, reinforcement and retention.
Drive
Learning frequently occurs in the presence of drive - any strong stimulus that impels action. Drives are basically of two
types -primary (or physiological); and secondary (or psychological). These two categories of drives often interact with
each other. Individuals operate under many drives at the same time. To predict a behavior, it is necessary to establish
which drives are stimulating the most.
Cue Stimuli
Cue stimuli are those factors that exist in the environment as perceived by the individual. The idea is to discover the
conditions under which stimulus will increase the probability of eliciting a specific response. There may be two types i of
stimuli with respect to their results in terms of response concerned: generalization and discrimination.
Generalization occurs when a response is elicited by a similar but new stimulus. If two stimuli are exactly alike, they will
have the same probability of evoking a specified response. The principle of generalization has important implications for
human learning. Because of generalization, a person does not have to 'completely relearn each of the new tasks. It
allows the members to adapt to overall changing conditions and specific new assignments. The individual can borrow
from past learning experiences to adjust more smoothly to new learning situations.
Discrimination is a procedure in which an organization learns to emit a response to a stimulus but avoids making the
same response to a similar but somewhat different stimulus. Discrimination has wide applications in 'organizational
behavior. For example, a supervisor can discriminate between two equally high producing workers, one with low quality
and other with high quality.
Responses
The stimulus results in responses. Responses may be in the physical form or may be in terms of attitudes, familiarity,
perception or other complex phenomena. In the above example, the supervisor discriminates between the worker
producing low quality products and the worker producing high quality products, and positively responds only to the
quality conscious worker.
Reinforcement
Reinforcement is a fundamental condition of learning. Without reinforcement, no measurable modification of behavior
takes place. Reinforcement may be defined as the environmental event's affecting the probability of occurrence of
responses with which they are associated.
Retention
The stability of learned behavior over time is defined as retention and its contrary is known as forgetting. Some of the
learning is retained over a period of time while others may be forgotten.
#25
LEARNING THEORIES
Classical Conditioning
The work of the famous Russian physiologist Ivan Pavlov demonstrated the classical conditioning process. When
Pavlov presented a piece of meat to the dog in the experiment, Pavlov noticed a great deal of salivation. He termed the
food an unconditioned stimulus and the salivation an unconditioned response. When the dog saw the meat, it salivated.
On the other hand, when Pavlov merely rang a bell, the dog did not salivate. Pavlov subsequently introduced the sound
of a bell each time the meat was given to the dog. The dog eventually learned to salivate in response to the ringing of
the-bell-even when there was no meat. Pavlov had conditioned the dog to respond to a learned stimulus. Thorndike
called this the "law of exercise" which states that behavior can be learned by repetitive association between a stimulus
and a response.
Classical conditioning has a limited value in the study of organizational behavior. As pointed out by Skinner,
classical conditioning represents an insignificant part of total human learning. Classical conditioning is passive.
Something happens and we react in a specific or particular fashion. It is elicited in response to a specific, identifiable
event. As such it explains simple and reflexive behaviors. But behavior of people in organizations is emitted rather than
elicited, and it is voluntary rather than reflexive. The learning of these complex behaviors can be explained or better
understood by looking at operant conditioning.
Operant Conditioning
An operant is defined as a behavior that produces effects. Operant conditioning, basically a product of Skinnerian
psychology, suggests that individuals emit responses that are either not rewarded or are punished. Operant
conditioning is a voluntary behavior and it is determined, maintained and controlled by its consequences.
Operant conditioning is a powerful tool for managing people in organizations. Most behaviors in organizations
are learned, controlled and altered by the consequences; i.e. operant behaviors. Management can use the operant
conditioning process successfully to control and influence the behavior of employees by manipulating its reward
system. Reinforcement is anything that both increases the strength of response and tends to induce repetitions of the
behavior. Four types of reinforcement strategies can be employed by managers to influence the behavior of the
employees, viz., positive reinforcement, negative reinforcement, extinction and punishment.
Positive Reinforcement
Positive reinforcement strengthens and increases behavior by the presentation of a desirable consequence (reward). In
other words, a positive reinforce is a reward that follows behavior and is capable of increasing the frequency of that
behavior. There are two typos of positive: reinforces: primary and secondary. Primary reinforcers such as food, water
and sex are of biological importance and have effects, which arc independent of past experiences. For instance, a
primary reinforcer like food satisfies hunger need and reinforced food-producing behavior. Secondary reinforcers like
job advancement, recognition, praise and esteem result from previous association with a primary reinforcer. Primary
reinforcers must be learned. In order to apply reinforcement procedures successfully, management must select
reinforcers that are sufficiently powerful and durable.
Negative Reinforcement
The threat of punishment is known as negative reinforcement. Negative reinforcers also serve to strengthen desired
behavior responses leading to their removal or termination.
Extinction
Extinction is an effective method of controlling undesirable behavior. It refers to non-reinforcement. It is based on the
principle that if a response is not reinforced, it will eventually disappear. Extinction is a behavioral strategy that does not
promote desirable behaviors but can help to reduce undesirable behaviors.
Punishment
Punishment is a control device employed in organizations to discourage and reduce annoying behaviors of employees.
OBSERVATIONAL LEARNING
Observational learning results from watching the behavior of another person and appraising the consequences of that
behavior. It does not require an overt response. When Mr. X observes that Y is rewarded for superior performance, X
learns the positive relationship between performance and rewards without actually obtaining the reward himself.
Observational learning plays a crucial role in altering behaviors in organizations.
Cognitive Learning
Here the primary emphasis is on knowing how events and objects are related to each other. Most of the learning that
takes place in the classroom is cognitive learning. Cognitive learning is important because it increases the change that
the learner will do the right thing first, without going through a lengthy operant conditioning process.
#26
LEARNING THEORY AND ORGANIZATIONAL BEHAVIOR
The relevance of the learning theories for explaining and predicting of organizational behavior is marginal. This does
not mean that learning theories are totally irrelevant. Learning concepts provide a basis for changing behaviors that are
unacceptable and maintaining those behavior that are acceptable. When individuals engage in various types of
dysfunctional behavior such as late for work, disobeying orders, poor performance, the manager will attempt to educate
more functional behaviors.
Learning theory can also provide certain guidelines for conditioning organizational behavior. Managers
know that individuals capable of giving superior performance must be given more reinforces than those with average or
low performance.
Managers can successfully use the operant conditioning process to control and influence the behavior of
employees; by manipulating its reward system.
#27
LESSON – 8
LEARNING AND BEHAVIOUR MODIFICATION
Learning Objectives
After reading this lesson, you should be able to:





Explain the concept of attitude in organizations
Understand the method of formation of attitude
Discuss individual attitude in organizations and indicate their effect on behaviour
Explain the concept of perception and perceptual process
Describe perception attribution in organizations
In simple words, an "attitude" is an individual's point of view or an individual's way of looking at something. To be more
explicit, an "attitude" may be explained as the mental state of an individual, which prepares him to react or make him
behave in a particular pre-determined way.
An attitude is defined as, "a learned pre-disposition to respond in a consistently favourable or unfavorable
manner with respect to a given object".
Attitude is the combination of beliefs and feelings that people have about specific ideas, situations or other
people. Attitude is important because it is the mechanism through which most people express their feelings.
COMPONENTS OF ATTITUDE
Attitude has three components, which are as follows:
 Affective component
 Cognitive component
 Intentional component
The figure 8.1 shows the components of attitude.
The affective component of an attitude reflects 'feelings and emotions' that an individual has towards a
situation. The cognitive component of an attitude is derived from 'knowledge' that an individual has about a situation.
Finally, the intentional component of an attitude reflects how an individual 'expects to behave' towards or in the
situation. For example, the different components of an attitude held towards a firm, which supplies inferior products and
that too irregularly could be described as follows:



"I don't like that company"—Affective component.
"They are the worst supply firm I have ever dealt with"—Cognitive component.
"I will never do business with them again"'—Intentional component.
People try to maintain consistency among the three components of their attitudes. However, conflicting
circumstances often arise. The conflict that individuals may experience among their own attitudes is called 'cognitive
dissonance.
#28
ATTITUDE FORMATION AND CHANGE
Individual attitude are formed over time as a result of repeated personal experiences with ideas, situations or
people. One of the very important ways to understand individual behaviour in an organization is that of studying
attitude, which is situationally specific and learned.
An attitude may change as a result of new information. A manager may have a negative attitude about a new
employee because of his lack of job-related experience. After working with a new person, a manager may come to
realise that he is actually very talented and subsequently may develop a more positive attitude toward him.
Work-Related Attitudes
People in an organization form attitude about many things such as about their salary, promotion possibilities, superiors,
fringe benefits, food in the canteen, uniform etc. Especially some important attitudes are job satisfaction or
dissatisfaction, organizational commitment and job involvement.
Job Satisfaction
Job satisfaction is an attitude reflects the extent to which an individual is gratified or fulfilled .by his or her work.
Extensive research conducted on job satisfaction has indicated that personal .factors such as an individual's needs and
aspirations determine this attitude, along with group and organizational factors such as relationships with co-workers
and supervisors, working conditions, work policies and compensation.
A satisfied employee also tends to be absent less often, makes positive contributions, and stays with the
organization. In contrast, a dissatisfied employee may be absent more often may experience stress that disrupts coworkers, and may keep continually looking for another job.
Organizational factors that influence employee satisfaction include pay, promotion, policies and procedures of
the organizations and working conditions. Group factors such as relationship with co-workers and supervisors also
influence job- satisfaction. Similarly, satisfaction depends on individual factors like individual's needs and aspirations. If
employees are satisfied with their job, it may lead to low employee turnover and less absenteeism and vice-versa.
Organizational Commitment and Involvement
Two other important work-related attitudes arc organizational commitment and involvement. Organizational
commitment is the individual's feeling of identification with and attachment to an organization. Involvement refers to a
person's willingness to be a team member and work beyond the usual standards of the job. An employee with little
involvement is motivated by extrinsic motivational factor and an employee with strong involvement is motivated by
intrinsic motivational factors.
There are a number of factors that lead to commitment and involvement. Both may increase with an
employee's age and years with the organization, with his sense of job security and participation in decision-making. If
the organization treats its employees fairly and provides reasonable rewards and job security, employees are more
likely to be satisfied and committed. Involving employees in decision-making can also help to increase commitment. In
particular, designing jobs, which are interesting and stimulating, can enhance job involvement.
ATTITUDE: IT’S IMPORTANCE IN ORGANIZATIONAL BEHAVIOUR
Attitudes of both workers and management react to each other and determine mutual relationships.
Attitude is an understanding or learning of why employees feel and act the way; they do and help supervisors in
winning cooperation from them. So, it is very essential for the efficient working of an organization.
From a personal perspective, attitudes provide knowledge base or prepare, our mental state, for our interaction
with others, and with the world around us. This directly affects organizational behaviour, and in turn organizational
working.
Perception
Perception is an important mediating cognitive process. Through this complex process, people make interpretations of
the stimulus or situation they are faced with. Both selectivity and organization go 'into perceptual, interpretations.
Externally, selectivity is affected by intensity, size, contrast, repetition, motion and novelty and familiarity. Internally,
perceptual selectivity is influenced by the individual's motivation, learning and personality. After the selective process
filters the stimulus situation, the incoming information is organized into a meaningful whole.
Individual differences and uniqueness are largely the result of the cognitive processes. Although there arc a
number of cognitive processes, it is generally recognized that the perceptual process is a very important one. It is a
process that takes place between the situation and the behaviour and is most relevant to the study of organizational
behaviour. For example, the observation that a department head and a subordinate may react quite differently to the
same top management directive can be better understood and explained by the perceptual process.
In the process of perception, people receive many different kinds of information through all five senses,
assimilate them and then interpret them. Different people perceive the same information differently.
#29
Perception plays a key role in determining individual behaviour in organizations. Organizations send messages
in a variety of forms to their members regarding what they are expected to do and not to do. In spite of organizations
sending clear messages, those messages are subject to distortion in the process of being perceived by organizational
members. Hence, managers need to have a general understanding of the basic perceptual process.
Basic Perceptual Process
Perception is influenced by characteristics of the object being perceived, by the characteristics of the person and by the
situational processes.
 Characteristics of the object include contrast, intensity, movement, repetition and novelty.
 Characteristics of the person include attitude, self-concept and personality.
The details of a particular situation affect the way a person perceives an object; the same person may perceive the
same object very differently in different situations. The processes through which a person's perceptions are altered by
the situation include selection, organization, attribution, projection, stereotyping process, and the halo effect process.
Among these, selective perception and stereotyping are particularly relevant to organizations.
Selective Perception
Selective perception is the process of screening out information that we are uncomfortable with or that contradicts our
beliefs. For example, a manager has a very positive attitude about a particular worker and one day he notices that the
worker seems to be goofing up. Selective perception may make the manager to quickly disregard what he observed.
For example, a manager who has formed a very negative attitude about a particular worker and he happens to observe
a high performance from the same worker. In this case influenced by the selective perception process he too will
disregard it.
In one sense, selective perception is beneficial because it allows us to disregard minor bits of information. But if
selective perception causes managers to ignore important information, it can become quite detrimental.
Stereotyping
Stereotyping is the process of categorizing or labeling people on the basis of a single attribute. Perceptions based on
stereotypes about people's sex exist more or less in all work places. Typically, these perceptions lead to the belief that
an individual's sex determines which tasks he or she will be able to perform. For example, if a woman is sitting behind
the table in the office, she will be very often, perceived as a clerk and not an executive at first. But it would induce
holding an exactly opposite assumption about a man. Stereotyping consists of three steps: identifying categories of
people (like women, politician), associating certain characteristics with those categories (like passivity, dishonesty
respectively) and then assuming that any one who fits a certain category must have those characteristics. For example,
if dishonesty is associated with politicians, we are likely to assume that all politicians are dishonest.
PERCEPTION AND ATTRIBUTION
Perception is also closely linked with another process called attribution. Attribution is a mechanism through which we
observe behaviour and then attribute certain causes to it. According to Attribution theory, once we observe behaviour
we evaluate it in terms of its consensus, consistency and distinctiveness. Consensus is the extent to which other
people in the same situation behave in the same way. Consistency is the degree to which the same person behaves in
the same way at different times. Distinctiveness is the extent to which the same person behaves in the same way in
other situations. The forces within the person (internal) or outside the person (external) lead to the behaviour.
For instance, if you observe that an employee is much more motivated than the people around (low
consensus), is consistently motivated (high consistency), and seems to work hard no matter what the task (low
distinctiveness) you might conclude that internal factors are causing that particular behaviour. Another example is of a
manager who observes that an employee is late for a meeting. He might realize that this employee is the only one whois laic (low consensus), recall that he is often late for other meetings (high consistency), and subsequently recall that
the same employee is sometimes late for work (low distinctiveness). This pattern of attributions might cause the
manager to decide that the individual's behaviour requires a change. At this point, the manager might meet the
subordinate to establish some disciplinary consequences to avoid future delays.
IMPRESSION MANAGEMENT
Social perception is concerned with how one individual perceives other individuals. Conversely, impression
management is the process by which the general people attempt to manage or control the perceptions that others form
about them. People often tend to present themselves in such a way so as to impress others in a socially desirable
manner. Thus, impression management has considerable' implications for activities like determining the validity of
performance appraisals. It serves as a pragmatic, political tool for someone to climb the ladder of success in
organizations.
#30
The Process of Impression Management
As with other cognitive processes, impression management has many possible conceptual dimensions arid has been
researched in relation to aggression, attitude change; attributions and social facilitation, among other things. Most
recently, however, two separate components of impression management have been identified - impression motivation
and impression construction. Especially in an employment situation, subordinates may be; motivated to control how
their boss perceives them. The degree of this motivation to manage impression will depend on factors like the
relevance that these impressions have on the individual's goals, the value of these goals, the discrepancy between the
image one would like others to hold and the image one believes others already hold.
Impression construction, the other major process, is concerned with the specific type of impression people want
to make and how they create it. Although some theorists limit the type of impression only to personal characteristics
others include such things as attitudes, physical status, interests, or values. Using this broader approach, five factors
have been identified as being especially relevant to the] kinds of impression people try to construct: the self-concept,
desired and undesired identity images, role constraints, target values and current social image. Although there has
been a considerable research done on how these five factors influence the type of impression that people try to make,
there is still little known of how they select the way to manage others' perceptions of them.
Employee Impression Management Strategies
There are two basic strategies of impression management that employees can use. If employees are trying to minimize
responsibility for some negative event or to stay out of trouble, they may employ a demotion-preventative strategy. On
the other hand, if they are seeking to maximize responsibility for a positive outcome or to look better than what they
really are, then they lean use a promotion-enhancing strategy.
The demotion-preventative strategy is characterized by the following activities:
 Employees attempt to excuse or justify their actions.
 Employees apologies to the boss for some negative event.
 Employees secretly tell their boss that they fought for the right thing, but were overruled. Employees using this
approach try to disassociate themselves from the group and from the problem.
The promotion enhancing strategies involve the following activities:
 Employees harbor a feeling that they have not been given credit for a positive outcome.
 Employees point out that they did more, but received a lesser credit.
 Employees identify cither personal or organizational obstacles they had to overcome to accomplish an outcome
and expect a higher credit.
 Employees ascertain that they are seen with the right people at the right times.
Coping with Individual Differences
Individual differences and people's perception of them affect every aspect of behaviour in organizations. Managers
must never underestimate, the differences between individuals. Successful managers constantly monitor their own
assumptions, perceptions and attributions, trying to treat each individual as a unique person
#31
LESSON – 9
MOTIVATION AND BEHAVIOR
Learning Objectives
After reading this lesson, you should be able to:




Understand the meaning, nature and importance of motivation
Explain need-based theories of motivation
Discuss expectancy theory of motivation
Explain ways of enhancing employee motivation
The word motivation is derived from ‘motive', which means an active form of a desire, craving or need that must be
satisfied. Motivation is the key to organizational effectiveness. The manager in general has to get the work done
through others. These 'others' are human resources who need to be motivated to attain organizational objectives.
DEFINITION
According to George R. Terry, "Motivation is the desire within an individual that stimulates him or her to action."
In the words of Robert Dubin, it is "the complex of forces starting and keeping a person at work in an
organization". Viteles defines motivation as "an unsatisfied need which creates a state of tension or disequilibrium,
causing the individual to move in a goal directed pattern towards restoring a state of equilibrium, by satisfying the
need."
According to Encyclopaedia of Management. "Motivation refers to the degree of readiness of an organism to
pursue some designated goals and implies the determination of the nature and locus of force inducing a degree of
readiness."
On the basis of above definitions, the following observations can be made regarding motivation:
 Motivation is an inner psychological force, which activates and compels the person to behave in a particular
manner.
 The motivation process is influenced by personality traits, learning abilities, perception and competence of an
individual.
 A highly motivated employee works more efficiently and his level of production tends to be higher than others.
 Motivation originates from the-needs and wants of an individual. It is a tension of lacking something in his mind,
which forces him to work more efficiently.
 Motivation is also a process of stimulating and channelising the energy of an individual for achieving set goals.
 Motivation also plays a crucial role in determining the level of performance. Highly motivated employees get
higher satisfaction, which may lead to higher efficiency.
 Motivating force an^ its degree, may differ from individual to individual depending on his personality, needs,
competence and other factors.
 The process of Motivation helps the manager in analysing and understanding human behavior and finding but
how an individual can be inspired to produce desirable working behavior.
 Motivation may be positive as well as negative. Positive motivation includes incentives, rewards and other
benefits while negative motivation implies some punishment, fear, use of force etc.
 The motivation procedure contributes to and boosts up the morale of the employees. A high degree of
motivation may lead to high morale.
FEATURES OF MOTIVATION
The following are the features of motivation:
 It is an internal feeling and forces a person to action.
 It is a continuous activity.
 It varies from person to person and from time to time.
 It may be positive or negative.
IMPORTANCE OF MOTIVATION
Motivation is an important part of managing process. A team of highly qualified and motivated employees is necessary
for achieving objectives of an organization because of the following reasons:
 Motivated employees make optimum use of available resources for achieving objectives.
 Motivation is directly related to the level of efficiency of employees.
 Motivated employees make full use of their energy and other abilities to raise the existing level of efficiency.
 Motivated employees make goal-directed efforts. They are more committed and cooperative for achieving
organizational objectives.
#32




Motivated employees are more loyal and sincere to an organization. These factors help reduce absenteeism
and labor turnover.
Motivation is considered as a backbone of good industrial relations.
Effectively motivated employees get more job satisfaction and possess high morale.
Motivation also helps in improving the image of an organization.
The motivation process begins with identification of individual needs. For example, when an employee feels
underpaid then what, then he tries to fulfill his needs by asking for a raise or by working harder to earn a raise or by
seeking a new job. He then chooses to pursue one or more of these options for instance, working harder while
simultaneously looking for a job. If his hard work resulted in a pay rise, he probably feels satisfied and will continue to
work hard. But if no raise has been provided he is likely to try another option. Since people have many different needs,
the satisfaction of one need or set of needs is likely to give rise to the identification of other needs. Thus, the cycle of
motivation is constantly repeated.
Understanding human motivation is crucial for managing people. Extensive research has been performed to find
out what makes people work and how to motivate them. This includes managers, social scientists, behaviorists and
psychologists. A number of theories have been developed, even though there is no universally acceptable motivation
theory. Understanding these theories facilitates the managers to get a better insight into the human behavior.
NEED-BASED THEORIES TO MOTIVATION
Need-based theories try to answer the question, "what factor(s) motivate people to choose certain behaviors?" Some of
the widely known need-based theories are as follows:
(a) Maslow's Hierarchy of Needs
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 selfactualization needs. The figure 9.1 shows Maslow's hierarchy of 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 actually comprise of two different sets of needs:
#33


The need for a positive self-image and self-respect.
The need for recognition and respect from others.
Organizations can help address esteem needs by providing a variety of external symbols of accomplishment such
as job titles and spacious offices. At a more fundamental level, organizations can also help satisfy esteem needs by
providing employees with challenging job assignments that can induce a sense of accomplishment.
At the top of the hierarchy are those needs, which Maslow defines the self-actualization needs. These needs
involve realizing one's potential for continued: growth and individual development. Since these needs are highly
individualized and personal, self-actualization needs are perhaps the most difficult for managers to address. Therefore,
an employee should try to meet these needs on his own end. However, an organization can help his employee by
creating a climate for fulfillment of self-actualization needs. For instance, an organization can help in fulfillment of these
needs by encouraging employee’s participation in decision-making process and by providing them with an opportunity
to learn new things about their jobs and organization. This process of contributing to actual organizational performance
helps employees experience personal growth and development associated with self-actualizing.
Maslow's concept of the need hierarchy possesses a certain intuitive logic and has been accepted universally by
managers. But research has revealed several shortcomings of the theory such as some research has found that five
levels of needs are not always present and that the order of the levels is not always the same as assumed by Maslow.
Moreover, it is difficult for organizations to use the need hierarchy to enhance employee motivation.
(b) ERG Theory of Motivation
Clayton Alderfer has proposed an alternative hierarchy of needs - called the ERG Theory of Motivation. The letters E, R
and G stand for Existence, Relatedness and Growth. The figure 9.2 shows ERG theory:
ERG Theory the need hierarchy developed by Maslow into three 9.2. The existence needs in this theory refers
to the physiological and security needs of Maslow. Relatedness needs refers to belongingness and esteem needs.
Growth needs refers to both self-esteem and self-actualization needs.
Although ERG Theory assumes that motivated behavior follows a hierarchy in somewhat the same fashion as
suggested by Maslow, there are two important differences.
 Firstly, ERG theory suggests that more than one kind of need might motivate a person at the same time. For
example, it allows for the possibility that people can be motivated by a desire for money (existence); friendship
(relatedness), and an opportunity to learn new skills (growth) all at the same time.
 Secondly, ERG theory has an element of frustrations-regression that is missing from Maslow's need hierarchy.
Maslow maintained that one heed must be satisfied before an individual can progress to needs at a higher
level, for example, from security needs to belongingness. This is termed as satisfaction—progression process.
#34
Although the ERG theory includes this process, it also suggests that if needs remain unsatisfied at some higher
level, the individual will become frustrated, regress to a lower level and will begin to pursue low level needs
again. For" example, a worker previously motivated by money (existence needs) is awarded a pay rise to
satisfy this needs. Then he attempts to establish more friendship to satisfy relatedness needs. If for some
reason an employee finds that it is impossible to become better friends with others in the work place, he may
eventually become frustrated and regress to being motivated to earn even more money. This is termed as
‘frustration-regression' process.
The ERG theory emphasis on the following key points regarding needs:
o Some needs may be more important than others.
o People may change their behavior after any particular set of needs has been satisfied.
(c) The Dual-Structure Approach to Motivation
Another popular need-based approach to motivation is the dual-structure approach developed by Frederick Herzberg.
This is also known as Two-factor Theory. Herzberg developed this approach after interviewing 200 accountants and
engineers in Pittsburg. He asked them to recall such occasions when they had been dissatisfied and less motivated. He
found that entirely different sets of factors were associated with satisfaction and dissatisfaction. For instance, an
individual who identified 'low pay' as causing dissatisfaction did not necessarily mention 'high pay' as a cause of
satisfaction. Instead, several other factors, such as recognition or accomplishment, were cited as causing satisfaction.
This finding suggests that satisfaction and dissatisfaction are at opposite ends of a single scale. Employees
would, therefore, be satisfied, dissatisfied or somewhere in between. Herzberg argued that attitudes and motivation
consists of a dual structure. One structure involves a set of factors that result in feelings ranging from satisfaction to no
satisfaction. The other structure involves a set of factors that result in feelings ranging from dissatisfaction to no
satisfaction.
Herzberg identified two sets of factors responsible for causing either satisfaction or dissatisfaction. The factors
influencing satisfaction are called motivation factors or motivators, which are related specifically to the job itself and the
factors causing dissatisfaction are called hygiene factors, which are related to the work environment in which the job is
performed.
Motivators
 Achievement
 Recognition
 Advancement
 The work itself
 The possibility of personal growth
 Responsibility
Hygiene or Maintenance Factors
 Company policies
 Technical supervision
 Interpersonal relations with supervisor
 Interpersonal relations with peers
 Interpersonal relations with subordinates
 Salary
 Job security
 Personal life
 Work conditions
 Status
Based on these findings, Herzberg recommended that managers seeking to motivate employees should first make
sure that hygiene factors are taken care of and that employees are not dissatisfied with pay, security and working
conditions. Once a manager has eliminated employee dissatisfaction, Hertzberg recommends focusing on a different
set of factors to increase motivation, by improving opportunities for advancement, recognition, advancement and
growth. Specifically, he recommends job enrichment as a means of enhancing the availability of motivation factors.
Although widely accepted by managers, Hertzberg’s dual structure approach however suffers from certain
drawbacks. Other researchers who measured satisfaction and dissatisfaction based on different aspects reached very
different conclusions. They have also criticized Herzberg's theory for its inability to define the relationship between
satisfaction and motivation and to pay enough attention to differences between individuals. Hence, at present
#35
Herzberg's theory is not held in high esteem by researchers in the field of motivation. The theory, however, had a major
impact on managers and has played a key role in increasing their awareness of motivation and its importance in type
work place.
'X' AND ‘Y' THEORIES OF MOTIVATION
Douglas McGregor observed two diametrically opposing viewpoints of managers 'about their employees; one is
negative called "Theory of X" and another is positive called "Theory of Y". I
Theory of X
Following are the assumptions of managers who believe in the "Theory of X" regarding their employees.
 Employees dislike work.
 Employees must be coerced, controlled or threatened to do the work.
 Employees avoid responsibilities and seek formal direction.
 Most employees consider security of job, most important of all other factors in the job and have very little
ambition.
Theory of Y
Following are the assumptions of managers who believe in the "Theory of Y" regarding their employees.
 Employees love work as play or rest.
 Employees are self-directed and self-controlled and committed to the organizational objectives.
 Employees accept and seek responsibilities.
 Innovative spirit is not confined to managers alone, some employees also possess it.
Applicability of Theories 'X' and 'Y'
Theory 'X' in its applicability, places exclusive reliance upon external control of human behavior, while theory 'Y', relies
heavily on self-control -and self-direction.
Theory 'X' points to the traditional approach of management. Literally, this theory of behavior is related to
organizations that lay hard and rigid standards of work-behavior. Some examples of such organizations are
organizations that break down jobs into specialized elements, establish 'norms of production, design equipment to
control worker's pace of work, have rigid rules and regulations, that are sometimes very vigorously enforced.
Theory 'Y’, on the other hand, secures the commitment of employees to organizational objectives. This
motivational theory places emphasis on satisfaction of employees. While applying this theory, the use of authority, as
an instrument of command and control is minimal. Employees exercise self-direction and self-control.
The concepts of 'Job' Enlargement', 'Participation' and 'Management by Objectives' are quite consistent with
theory ' Y'.
McGregor supports the applicability of motivational theory 'Y', instead of theory ‘X'. Organization should keep in
mind that once theory 'X' is employed for organizational working, it is difficult for the management to shift to theory ' Y',
all of a sudden. However, with systematic, judicious and slow steps, shifting in the practical applicability of theory 'X' to
theory ' Y' usually can be achieved.
MC-CLELLAND's NEED THEORY OF MOTIVATION
David C. McClelland and his associate Atkinson have contributed to an understanding of motivation by identifying three
types of basic motivating needs. These needs have been classified as:
1.
Need for Power
2.
Need for Affiliation
Need for Achievement : :
3.
Need for Power
According to this theory the need for power, which might be defined as the desire to be influential in a group and to
control one's environment is an important motivation factor. Research suggests that people with a strong need for
power, are likely to be superior performers and occupy supervisory positions. Such types of individuals generally look
for positions of leadership, they act effectively, are outspoken, have a stubborn character and exert authority.
Need for Affiliation
The need for affiliation means the desire for human companionship and acceptance. Those with a high need for
affiliation often behave the way they think other people want them to, in an effort to maintain friendship. They prefer a
#36
job that entails a good deal of social interaction and offers opportunities to make friends. The principal characteristics of
such peoples' traits are as follows:
 Desire to like and be liked.
 Enjoy company and friendship.
 Prefer cooperative situation.
 Excel in group task.
 Star attraction in gathering.
 Leadership qualities.
This need is closely associated with the "social-type” of personality, who are sociable, friendly, cooperative and
understanding. Persons with high motivation for power and affiliation have better chances of becoming good managers.
Need for Achievement
People with a high need for achievement, always feel ambitious to be successful; are ever prepared to face challenging
situations and set arduous goals .for themselves. They are prone to take calculated risks; and possess a high sense of
personal responsibility in getting jobs done. These people are concerned with their progress, and feel inclined to put in
longer hours of work" Failures never dishearten them and they are always ready to put in their best efforts for excellent
performance.
PROCESS-BASED THEORIES TO MOTIVATION
The field of organizational behavior has generally moved a way from the needs theories of motivation. Needs theories
are content-oriented - that is, they explain what are the causes leading to motivated behaviors. They do not explain why
or how motivated behavior occurs. These questions relate to behaviors or actions, goals and feelings of satisfaction.,
These concepts are addressed by various process-based theories to motivation.
Process-based theories to motivation are concerned with how motivation occurs. They focus on why people
choose to enact certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have
attained these goals. Two of the most useful process-based approaches to motivation arc expectancy theory and equity
theory.
(a) Expectancy Theory of Motivation
Expectancy theory of motivation was developed by- Victor Vroom. Basically, Vroom's expectancy theory views
motivation as a- process of governing choices. The expectancy theory tries to explain how and why people choose a
particular behavior over an alternative. The theory suggests that motivation depends on two things: how much an
individual desires a particular goal and how likely he thinks he can get it. For instance, a person is looking for a job and
reads an advertisement for a position of Marketing Executive with a starting salary of Rs. 3 lakh per year. Even though
he might want the job, he probably does not apply because he is aware that there is little chance of getting it. Next he
sees an advertisement is for Field Supervisor for a salary of Re. 1 lakh per year. In this case he realizes that he .can
probably get the job, but still doesn't apply simply because he doesn't want it. Then he comes across another
advertisement for a Management Trainee in a big organization with a starting salary of Rs. 2 lakh per year. He chooses
to apply for this job because he wants it and also thinks that he has a reasonable chance of getting it. Figure 9.3 shows
the expectancy theory of motivation.
#37
The expectancy theory rests on four assumptions:
 The theory assumes that behavior is determined by a combination of forces in the individual and in the
environment.
 It assumes that people make decisions about their own behavior in organizations.
 It assumes that different people have different types of needs, desires and goals.
 It assumes that people make choices from among alternative plans of behavior based on their perceptions of
the extent to which a given behavior will lead to desired outcomes.
The above model suggests that motivation leads to efforts and that effort, when combined with individual ability and
environmental factors, result in performance. Performance, in turn, leads to various outcomes—each of which has an
associated value called its 'valence'. According to this model, individuals develop some sense of these expectations
before they exhibit motivated or non-motivated behavior.
Effort-to-Performance Expectancy
The effort-to-performance expectancy refers to an individual's perception of the probability that effort will result in high
performance. When an individual believes that effort will lead directly to high performance, expectancy is quite strong,
that is close to 1.00. For instance, if one feels sure that studying hard for an examination (effort) will result in scoring
high marks (performance), then his effort-to-performance expectancy is high, that is close to 1.0. When an individual
believes that effort and performance are unrelated, the effort-to-performance expectancy is very weak, that is close to
0.0. Usually we are not sure about our expectations, so they fall somewhere between 0.0 and 1.0 with a moderate
expectancy. ;
Performance-to-Outcome Expectancy
The performance-to-outcome expectancy means an individual's perception of the probability that performance will result
in a specific outcome. For example, an individual who believes that high performance will lead to a pay raise has a high
performance-to-outcome expectancy, approaching to 1.00. An individual who believes that high performance may
possibly lead to a pay raise has a moderate expectancy between 1.00 and 0. And an individual who believes that
performance has no relationship to rewards has a low performance-to-outcome expectancy that is close to 0.
Outcomes and Valences
Expectancy theory recognizes that an individual may experience a variety of outcomes as a consequence, of behavior
in an organizational environment. A high performer, for example, may get big pay raises, fast promotions and praise
from the boss. However, he may also be subject to a lot of stress and incur resentment from co-workers. Each of these
outcomes has an associated value or valence that is,, an index of how much an individual desires a particular outcome.
If an individual wants an outcome, its valence is positive. If an individual does not want an outcome, its valence is
negative. If an individual is indifferent to an outcome, its valence is zero. It is this advantage of expectancy theory that
goes beyond the need-based approaches to motivation.
#38
Thus, for motivated behavior to occur on the part of any individual, three conditions must be met, which are as
follows:
 First, the effort-to-performance expectancy must be greater than zero.
 Second, the performance-to-outcome expectancy must also be greater than zero.
 Third, the sum of the valences for all relevant outcomes must be greater than zero.
Expectancy theory maintains that when all of these conditions are met, the individual is motivated to expand effort. The
expectancy theory also has several other important practical implications, which managers should keep in mind. The
managers can perform the following activities in relation to this  Determine what outcomes employees prefer.
 Define, communicate and clarify the level of performance that is desired.
 Establish attainable performance goals.
 Link desired outcomes to performance goal achievement.
Practical Applicability of Expectancy Theory
If a manager wishes to motivate his employees for increased and better performance, then he has to make sure
whether the reward system is highly supportive to hard work or high quality. The manager will particularly see that the
specific system, as applicable in their case, is communicated to them, so as to make them feel confident that their
energized efforts will be rewarded.
Another important point, which should not be ignored by the manger, is that rewards must correspond to the
varying preferences of an individual employee.
In conclusion, no doubt 'expectancy' theory has gained much popularity with theorists, but much more work still
needs to be put in, before it can be accepted for use as an effective instrument of explanation of 'motivation' with all its
implications.
The Porter-Lawer Extension
Porter and Lawler have proposed an interesting extension to the expectancy theory. The human relationists assumed
that employee satisfaction causes good performance but research has not supported such relationship. Porter and
Lawler suggest that there may indeed be a relationship between satisfaction and performance but that it goes in the
opposite direction, that is, superior performance can lead to satisfaction.
Porter-Lawler Model
First, an individual's initial effort is influenced by his perception regarding the value of reward and the likelihood that the
effort will yield a reward. The probability that increased effort will lead to improved performance is affected by an
individual's traits, abilities and perception of his role in an organization. The model also distinguishes between intrinsic
and extrinsic rewards. Finally, the Porter-Lawler model borrows from equity theory the idea that the employee's
satisfaction depends on the perceived equity of the rewards relative to the 'effort expended and the level of
performance attained.
Implications for Managers
Expectancy theory can be useful for organizations attempting to improve the motivation of their employees. Nadler and
Lawler suggest a series of steps for managers in applying the basic ideas of the theory.
1.
They should determine the primary outcomes that each employee likely desires.
2.
They should decide what kind and levels of performance are needed to meet organizational goals.
3.
They should ascertain that the desired levels of performance are attainable.
4.
They should ensure that desired outcomes and performance are linked.
5.
They should also analyze the complete work situation for conflicting expectancies.
6.
They should make sure that the rewards are large enough.
7.
They should make sure that the overall system is equitable for everyone.
The expectancy theory has also its limitations. It is quite difficult to apply, for example, application of this theory in
the work place would require to identify all the potential outcomes for each employee, to determine all relevant
expectancies and then to balance everything somehow to maximize employee motivation. Expectancy theory also
assumes that people are rational - therefore, they will systematically consider all the potential outcomes and their
associated expectancies before selecting a particular behavior. However, few people actually make decisions in such a
precise and rational manner.
#39
(b) Equity Theory
J. Stacy Adams developed equity theory of motivation. The equity theory argues that motivations arise out of simple
desire to be treated fairly. Equity can be defined as an individual's belief that he is being treated fairly relative to the
treatment of others. The figure 9.4 shows the equity process.
2.
3.
4.
A person's perception of equity develops
through a four-step process as shown
below:
1.
First an individual evaluates
the way he is being treated
by an organization.
The next step is for an individual to choose a co-worker who seems to be in a roughly similar situation and
to observe how an organization treats him.
In the crucial step of equity theory an individual 'compares' the two treatments.
In the fourth step he evaluate a sense of equity to see if the two treatments seem similar or if the are
different.
Adam suggests that employees make these comparisons by focusing on input and outcome ratios. An employee's
contributions or input to an organization include time, education, effort, experience and loyalty. Outcomes are what an
individual receives from an organization such as, pay, recognition and social relationships. The theory suggests that
people view their outcomes and inputs as ratio and then- compare their ratio to the ratio of someone else. This other
'person' may be someone in the work group. The comparison may result in three types of attitudes:
 The individual may feel equitably rewarded,
 Under-rewarded.
 Over-rewarded.
An individual will experience a feeling of equity when the two ratios are equal. If an individual has the feeling of
equity then he should maintain the status quo. If he has a feeling of inequity then he is likely to change the input.
The single most important idea for managers to remember about equity theory is that if rewards are to motivate
employees, they must be perceived as being equitable and^ fair. However, managers must remember that different
employees have different sense towards basis for a reward and this may result in problems. Hence, the best way to
avoid such problems is to make all employees aware of the basis for rewards.
Reinforcement Based Approaches to Motivation
A final approach to the motivation process focuses on why some behavior are maintained and changed overtime.
Reinforcement-based approaches explain the role of those rewards as they cause behavior to change or remain the
same over time. Specifically, reinforcement theory is based on the fairly simple assumption that behaviors that result in
rewarding consequences are likely to be repeated, whereas behavior that results in punishing consequences are less
likely to be repeated. There arc similarities between expectancy theory and reinforcement theory. Both consider the
processes by which an individual chooses behaviors in a particular situation. However, the expectancy theory focuses
more on behavior choices and the latter is more concerned with the consequences of those choices.
Reinforcement Contingencies
Reinforcement contingencies are the possible outcomes that an individual may experience as a result of his or her
behaviors. The four types of reinforcement contingencies that can affect individuals in an organizational setting are
positive reinforcement, avoidance, punishment and extinction.
Positive Reinforcement is a method of strengthening behavior. It is a reward or a positive outcome after a
desired behavior is performed. When a manager' observes an employee is doing a good job and offers praise then this
praise helps in positive reinforcement of behavior. Other positive reinforces include pay, promotions and awards.
The other reinforcement, contingency that can strengthen desired behavior is avoidance. This occurs when an
individual chooses certain behavior in order to avoid unpleasant consequences. For instance, an employee may come
to work on time to avoid criticism.
Punishment is used by some managers to weaken undesired behaviors. The logic is that the unpleasant,
consequence will reduce an undesirable behavior again, for example, punishing with fine for coming late.
Extinction can also be used to weaken behavior, specially that has previously been rewarded. When an
employee tells a vulgar joke and the boss laughs, the laughter reinforces the behavior and the employee may continue
#40
to tell similar jokes. By simply ignoring this behavior and not reinforcing it, the boss can cause the behavior to
subside which eventually becomes 'extinct'.
Positive reinforcement and punishment are the most common reinforcement contingencies practiced by
organizations. Most managers prefer a judicious use of positive reinforcement and punishment. Avoidance and
extinction are generally used only in specialized circumstances.
NEW APPROACHES TO MOTIVATION IN ORGANIZATIONS
New approaches are emerging to supplement the established models and theories of motivation. Two of the most
promising are Goal-Setting Theory and the Japanese Approach.
(a) Goal-Setting Theory
This approach to motivation has been pioneered in the USA by Edwin Locke and his associates in 1960s and refined in
1980s. Goal-setting theory suggests that managers and subordinates should set goals for an individual on a regular
basis, as suggested by MBO. These goals should be moderately difficult and very specific and of type that an employee
will accept and make a commitment to accomplishing them. Rewards should be tied directly to accomplished goals.
When involved in goal-settings, employees see how their effort will lead to performance, rewards and personal
satisfaction.
Salient features of this theory are as follows:
 Specific goal fixes the needs of resources and efforts.
 It increases performance.
 Difficult goals result higher performance than easy job.
 Better feedback of results leads to better performances than lack of feedback.
 Participation of employees in goal has mixed result.
 Participation of setting goal, however, increases acceptance of goal and involvements.
 Goal setting theory has defined two factors,' which influences the performance. These are given below:
o Goal commitment
o Self-efficiency.
The mere act of goal setting does not ensure higher levels of motivation among employees. In fact, there seem
to be three important criteria that goals must meet if they are to influence the behavior of organization members. They
are goal specificity, goal difficulty and goal acceptance.
Goal Specificity
Goals must be stated in specific terms if they are to motivate effective performance. Goals must be set in terms of
measurable criteria of work performance, i.e., number of units produced, new sales etc. and must specify a lime period
within which the goal is to be attained. It also gives a sense of personal satisfaction and accomplishment to workers if
he is able to meet the specific goal.
Goal Difficulty/Challenge
There exists a relationship between goal difficulty and work motivation. The more difficult- and challenging the goal is,
the higher the level of motivation and performance. However, it is essential that goals are set at realistic levels. Goals
that are very difficult to achieve are unable to motivate since it is beyond the capacity of the concerned individual.
Goal Acceptance
In order to influence motivation and performance, a goal must be internalized by an individual. In other words, the
person has to feel some personal ownership of the goal and must have commitment to achieve it.
Goal Setting in Practice
The most obvious implication of goal-setting theory is that managers should be helping subordinates to set goals that
are specific and reasonably difficult so that subordinates accept and internalize them as their own goals. Besides this,
there are a number of issues that arise in implementing goal setting in practice.
 Though specificity of goal is essential and measurability is desirable, it should not affect in identifying
meaningful and valid objective of goal attainment.
 The manager can stimulate goal acceptance in at least three ways:
o By involving subordinates in goal-setting process.
o By demonstrating a supportive attitude and approach toward his subordinates.
o By assigning various rewards to the achievement of goals.
#41
Management by Objectives (MBO) is a managerial technique for improving motivation and performance using
goal-setting principles.
Cognitive Evaluation Theory
A researcher 'Charms' reported in 1960 that extrinsic motivation like pay or rewards for a job, which has an intrinsicmotivation content, which is prior to such rewards. It tends to decrease overall level of motivation. This proposal is
called cognitive Evaluation Theory" which has been supported by a large number of research studies conducted
subsequently.
(b) Japanese Approach to Motivation
The Japanese approach to motivation has gained increasing popularity around the world during the past few years.
This approach is rather a philosophy of management than a theory or model. The basic tenet of the Japanese approach
is that managers and workers should perform together as partners. Since both of them see themselves as one group,
ail members are committed and motivated to work in the best interests of an organization. No one is called an
employee; instead everyone is a team member, team leader or coach and everyone owns the 'share' of an
organization. Like goal-setting meow, the Japanese approach is likely to become more common in businesses
throughout the world.
Integration of Motivation Theories
Thus several theories complicate our understanding. Some of these theories are compatible and some are not. The
real challenge that a researcher has to face is integration of all or at least some of these together so that their inter and
intra-relationships are established. This will also improve the understanding of motivation. Certain attempts are made in
USA and elsewhere.
Enhancing Motivation in Organizations
Managers trying to enhance the motivation of their employees can, of course, draw on any of the theories described
above. They may in practice adopt specific interventions derived from one or more theories or they may influence
motivation through the organization's reward system. The organization can enhance motivation in following ways:
 Humanize the work environment: Respect the need to treat each employee as an individual.
 Publicize both short and long-term organizational goals: Encourage personal and departmental goal
setting.
 Promote from within: It's great for morale and simplifies hiring procedures.
 Use incentive programs: Inducing the feeling that 'if you're creative enough, you won't have to rely on
expensive financial bonuses.'
 Establish appropriate deadlines: Every project should have a deadline.
 Be liberal with praise: It's almost impossible to over praise and easy to under praise.
 Be consistent in your own work and in your relations with others.
 Show a personal interest in the people who work for you: Relations are always smoother between people
who know each other on a personal basis than relations between people who merely want something from
each other.
 Admit mistakes: People will respect you for it and will be less likely to hide their own mistakes.
 Don't whitewash unpleasant assignments: Prepare subordinates for unpleasant assignments well in
advance and offer what support you can.
Managerial Approaches for Improving Motivation
A number of approaches can help managers motivate workers, to perform more effectively. The following steps
promote intrinsic motivation:
 Workers Participation in Management (WPM)
 Management by Objectives (MBO)
 Organization Behavior Modification
 Job-Redesign
 Alternative Work Schedules.
Two approaches, however, have been especially effective: linking pay to jot performance and quality of work-life
programs.
Pay and Job Performance
Pay often can be used to motivate employee performance. But a pay plan also must be able to do the following tasks:
 Create the belief that good performance leads to high levels of pay;
 Minimize the negative consequences of good performance; and
 Create conditions in which rewards other than pay are evaluated as related to good performance.
#42
Quality of Work Life Programs
Quality of Work Life (QWL) is defined as an attempt through a formal program to integrate employee needs and well
being with the intention of improved productivity, greater worker involvement and higher levels of job satisfaction.
Programs for QWL improvements range from those requiring minor changes in an organization to those
requiring extensive modifications in structure, personnel and the utilization of resources. There are three types of QWL
programs, which are as follows:
Quality Circles
Quality Circles (QC) are small groups of workers who meet regularly with their supervisor as their 'circle leader' to solve
work-related problems. QCs give an employee an opportunity for involvement, social-need satisfaction, participation in
work improvement and challenge and opportunity for growth. They are, in essence, vehicles for providing employees
with opportunities to satisfy lower and upper-level needs as stated by Maslow, through the motivators described in
'Herzberg's theory.
Alternative Work Schedule
Organizations also frequently use the modified 'work-week' as a way to increase employee motivation. A modified
'work-week' can be any work schedule that does not conform to a traditional 8 hours a day or 5 days a week format.
The modified 'work-week' helps individual satisfy higher-level needs by providing more personal control over one's work
schedule. It also provides an opportunity to fulfil several needs simultaneously.
Job-Redesign
Job-Redesign or changing the nature of people's job is also being used more as a motivational technique. The idea
pursued here is that mangers can use any of the alternatives job rotation, job enlargement, job enrichment as part of
motivational programme. Expectancy theory helps explain the role of work design in motivation.
#43
LESSON – 10
JOB SATISFACTION
Learning Objectives
After reading this lesson, you should be able to understand:



The concept of job satisfaction
The various factors relating to job satisfaction
The methods of enhancing job satisfaction
The term 'job satisfaction' refers to an employee's general happiness with his or her job. Locke defines job satisfaction
as a "pleasurable or positive emotional state resulting from the appraisal of one's job experiences". For our purposes
job satisfaction will be defined as the amount of overall positive affect or feelings that individuals have towards their job.
Job satisfaction is the result of various attitudes the employee holds towards his job, towards related factors
and towards life in general.
The importance of job Satisfaction is that if the people are satisfied with their work, then there is an
improvement in both the quality and quantity of production. If they are not satisfied, then both the quantity and quality of
his output will be low, there will be high absenteeism and employee turnover and increased unionism.
Caldur and Schurr in 1981 suggested that there are three different approaches to evaluating job satisfaction.
The first approach is that work attitudes such as job satisfaction are dispositional in nature, i.e., they are stable, positive
or negative disposition learned through experiences. The second approach is the 'social information processing model',
which suggests that job satisfaction and other work place attitudes are developed or constructed out of experiences
and information provided by others at the work place. The third approach is the if information processing model', which
is based on the accumulation of cognitive information about the -work place and one's job. In a sense, this is the most
obvious approach, as it argues that a person's job satisfaction is influenced directly by the characteristics of their job.
FACTORS RELATING TO JOB SATISFACTION
Some of the most important factors relating to job satisfaction are briefly stated below:
Personal Factors
These factors include the individual employee's personality, age, sex, educational level, intelligence etc.
Most of the evidence on the relation between age and satisfaction seems to indicate that there is generally a
positive relationship between the two variables up to the pre-retirement years and then there is a sharp decrease in
satisfaction.
There is no clear research evidence between educational level and job satisfaction. As regards the relationship
between the intelligence level and job satisfaction, it usually depends upon the level and range of intelligence and the
challenge of the job. There is as yet no consistent evidence as to whether women are more satisfied with their jobs than
men.
Job Factors
These factors include the type of work to be performed, skill required for work performance, occupational status
involved in the job etc.
The type of work is very important, as a number of research studies have shown that varied work generally
brings about more satisfaction than routine work. Where skill exists to a considerable degree it tends to become the
main source of satisfaction to the employee. As regards the relation of occupational status to job satisfaction, research
evidences indicate that employees are relatively more dissatisfied in those jobs, which have less social status or
prestige.
Organizational Factors
These factors include security, wages and salaries, fringe benefits, opportunities for advancement, working conditions
etc. Social and economic security to employees increases job satisfaction, the wages and salaries and fringe benefits
are definitely the main factors that affect job satisfaction of employees. As regards the relation of opportunity for
advancement to job satisfaction, it has been found that this factor is most important to skilled personnel and least
important to unskilled personnel. Desirable working conditions are also important to job satisfaction. Besides, an
effective downward flow of communications in an organization is also important to job satisfaction as employees are
keen to know more about the company and its plans, policies etc.
Basically, job satisfaction is determined by the discrepancy between what individuals expect to get out of their
jobs and what the job actually offers. A person will be satisfied if there is no discrepancy between desired and actual
conditions
Importance of Job Satisfaction
#44
Obviously, job satisfaction significantly contributes to employee productivity and morale. An organization can be
substantially benefited if it develops general attitudes of its employees that can effectively contribute to job satisfaction.
If employees are satisfied, turnover and absenteeism will be less and productivity will be more, Further, satisfaction of
individual expectations results in group integration and cohesiveness.
Measuring Job Satisfaction
There have been many measures of job satisfaction in the work place from the Job Description index to Job
Satisfaction Scales to the more recent job satisfaction scale of the Occupational Stress Indicator (OSI). They all tend to
involve scales, which explore pay, work activities, working conditions, career prospects, and relationship with superiors
and relationship with colleagues. An example of a measure of job satisfaction from the OSI, which contains all of the
elements that usually make up a job satisfaction measure, is given in the Table 10.1.
TABLE 10.1: An Example of a Measure of Job Satisfaction from the OSI
How You Feel About Your Job?
Very much satisfaction 6
Much satisfaction 5
Some satisfaction 4
Some dissatisfaction 3
Much dissatisfaction 2
Very much dissatisfaction 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Communication and the way information flows around your
organization.
The relationships you have with other people at work.
The feeling you have about the way you and your efforts are
valued.
The actual job itself
The degree to which you feel “motivated” by your job
Current career opportunities
The level of job security in your present job
The extent to which you may identify with the public image or
goals of your organization
The style of supervision that your superiors use
The way changes an innovations are implemented
The kind of work or tasks that you are required to perform
The degree to which you feel that you can personally develop or
grow in your job.
The way in which conflicts are resolved in your company.
The scope your job provides to help you achieve your aspirations
and ambitions
The amount of participation which you are given in important
decision making
The degree to which your job taps the range of skills which you
feel you possess
The amount of flexibility and freedom you feel you have in your
job.
The psychological “feel” or climate that dominates your
organization.
Your level of salary relative to your experience
The design or shape of your organization’s structure
The amount of work you are given to do whether too much or too
little
The degree to which you feel extended in your job
6
5
4
3
2
1
6
6
5
5
4
4
3
3
2
2
1
1
6
6
6
6
6
5
5
5
5
5
4
4
4
4
4
3
3
3
3
3
2
2
2
2
2
1
1
1
1
1
6
6
6
6
5
5
5
5
4
4
4
4
3
3
3
3
2
2
2
2
1
1
1
1
6
6
5
5
4
4
3
3
2
2
1
1
6
5
4
3
2
1
6
5
4
3
2
1
6
5
4
3
2
1
6
5
4
3
2
1
6
6
6
5
5
5
4
4
4
3
3
3
2
2
2
1
1
1
6
5
4
3
2
1
MEASURES TO INCREASE JOB SATISFACTION
Although management cannot change the personal factors in job satisfaction, it should appreciate the role-of such
factors and must take care to place the employees where the personal factors of the individual help him in achieving job
satisfaction.
#45
Similarly, the management can use the factors inherent in the job to plan and administer jobs more
advantageously for its personnel. For example, the policy of job rotation, job enrichment, and job enlargement may help
increase job satisfaction. Management should also take necessary steps to raise the occupational status of the
workers.
The management should carefully develop appropriate policies and practices for promotions and transfers,
working conditions, wages, grievance handling, fringe benefits, satisfactory hours of work and adequate rest pausing.
Management should also able to recognize and appreciate the good work done by the employees and give respect for
their creative suggestion. Proper delegation of authority, freedom to do work will also help increase job satisfaction.
Above all, while keeping in view the factors related to job satisfaction, the management must recognize the importance
of the stability of employee attitudes that may lead to high morale and production.
It is evident from the above description that there are many factors that influence job satisfaction and the
managements must be able to work out a broad strategies that may help increase job satisfaction and must also able to
identify the specific factors that causes the individual differences and must evolve appropriate strategies that could
raise the job satisfaction of those particular segment.
#46
LESSON - 11
GROUP DYNAMICS
Learning Objectives
After reading this lesson, you should be able to:



Define the term group and describe types of groups
Understand group formation and development
Discuss group norms and group cohesiveness
A group consists of a number of individuals working together for a common objective. Groups have significant influence
on an organization and are inseparable from an organization. They are useful for the organization as they form
foundation of human resources.
The study of group behavior is essential for an organization to achieve its goals. Individual and group behavior
vary from each other. In 1920, Elton Mayo and his associates conducted the Hawthorne experiments and came to
know that the group behavior has great impact on productivity. The importance of group behavior has been realized
from time to time.
Human behavior consists of individuals, who move in groups. The knowledge of group behavior as well as
individual behavior is necessary for a manager. He must understand group psychology and should also understand
individual behavior in the context of group behavior. The group in which he moves influences individual work, job
satisfaction and effective performance.
DEFINITION OF A GROUP
A group is a two or more individual who interact regularly with each other to accomplish a common purpose or goal.
According to Marvin Shaw, "a group comprises, of two or more persons who interact with one another in such a
manner that each person influences and is influenced by each other person'.
The key parts of this definition are the concepts of interaction and influence, which also limit the size of the
group. It is difficult for members to interact sufficiently in a large group.
Groups or work teams are the primary tools used by managers. Managers need groups to co-ordinate
individual behavior in order to reach the organizational goals. Groups can make a manager's job easier because by
forming a group, he need not explain the task to each and every individual. A manager can easily coordinate with the
work of an individual by giving the group a task and allow them to co-ordinate with each other. But for a group to work
effectively, the interactions between its members should be productive. Therefore, managers must pay attention to the
needs of individuals.
Need for a Group
The reasons for the need, of groups are as follows:
 Management of modern organizations make mutual efforts to introduce industrial democracy at workplace.
They use project teams and work committees where workers get due recognition. They willingly participate in
decision-making.
 The tasks in modern industries are becoming more complex, tedious arid of repetitive nature. Work
committees, work groups and teams are formed to monitor the work. They also make the environment at
workplace more lively.
 Groups help in making participative management more effective.
 Groups of all kinds and types help by cooperating in all the matters related to production and human relations
to work effectively in the organization.
 An individual cannot perform each and every task. Group efforts are required for its completion. For example,
building a ship, making of a movie, construction of a fly-over, etc. All these require coordinated and unified
efforts of many individuals, working in a group.
 A group can judge in a better way as compared to an individual.
 While accomplishing tasks, all members of a group together use their creative and innovative ideas than a
single individual.
 In a group, individuals communicate with each oilier, discuss their work performances and take suggestions
from each other to make it better.
 Group efforts affect an individual, his attitude and behavior.
 Group has the ability to satisfy the needs of its members.
Types of Groups
In an organization, there are three types of groups, which are as follows:
#47

Functional or formal groups
Functional groups are the groups formed by the organization to accomplish different organizational purposes.
According to A L Stencombe, "a formal group is said to be any social arrangement in which the activities of
some persons are planned by others to achieve a common purpose". These groups are permanent in nature.
They have to follow rules, regulations and policy of the organization. A formal organizational group includes
departments such as the personnel department, the advertising department, the quality control department and
the public relations department.
 Task group
Tasks groups are the groups formed by an organization to accomplish a narrow range of purposes within a
specified time. These groups are temporary in nature. They also develop a solution to a problem or complete its
purpose. Informal committees, task forces and work teams are included in task groups. The organization after
specifying a group membership, assigns a narrow set of purposes such as developing a new product, evaluating a
proposed grievance procedure, etc.
 Informal group
Informal groups are the groups formed for the purposes other than the organizational goals. Informal groups
form when individuals are drawn together by friendship, by mutual interests or both. These groups are
spontaneous. According to Keith David, "the network of persons and social relations which is not established or
required form an informal organization". These are the groups formed by the employees themselves at the
workplace while working together. The organization does not take any active interest in their formation.
Informal groups are very effective and powerful. These groups work as an informal communication network
forming a part of the grapevine to the organizations. They are also like a powerful force, which an organization
cannot avoid. Some managers consider them to be harmful to the interest of an organization. They suspect
their integrity and consider as a virtual threat. Some managers do not consider them as threat and seek the
help of group members in getting the organizational task accomplished. Informal groups are of following types:
o Interest group: Interest groups are the groups formed to attain a common purpose. Employees
coming together for payment of bonus, increase in salary, medical benefit and other facilities are the
examples of interest groups
o Membership group: Membership groups are the groups of individuals' belonging to the same
profession and knowing each other. For example, teachers of the same faculty in a university.
o Friendship group: Friendship groups are the groups of individuals belonging to same age group,
having similar views, tastes and opinions. These groups can also be formed outside the plant or office
and can be in the form of clubs and associations.
o Reference group: Reference groups are the group where individuals shape their ideas, beliefs, values
etc. They want support from the group.
GROUP FORMATION AND DEVELOPMENT
Groups can form when individuals with similar goals and motives come, together. Groups are formed voluntarily. The
individuals of a group can join and leave the group any time and they can also change their tasks. Hence,
understanding how groups form and develop is important for managers. There are certain motives because of which,
the individuals join a group, which are as follows:
#48

Organizational motives to join groups: Organizations form functional and task groups because such groups
help the organization in structuring and grouping the organizational activities logically and efficiently.
 Personal motives to join groups: Individuals also choose to join informal or interest groups for unimportant
reasons. Since joining these groups is voluntary, various personal motives affect membership. Some of these
are shown in the figure 11.1:
 Interpersonal attraction: Individuals conic together to form informal or interest group, as they arc also
attracted to each other. The factors that contribute to interpersonal attraction are sex, similar attitudes,
personality and economic standing. The closeness of group members may also be an important factor.
 Interest in-group activities: Individuals may also be motivated to join an informal or interest group because
the activities of the group appeal to them. Playing tennis, discussing current events or contemporary literature,
all these are group activities that individuals enjoy.
 Support for group goals: The individuals may also be motivated goals by the other group members to join.
For example, a club, which is dedicated to environmental conservation, may motivate individuals to join.
Individuals join groups, such as these in order to donate their money and time to attain the goals they believe in
and to meet other individuals with similar values.
 Need for affiliation: Another reason for individuals to join groups is to satisfy their need for attachment.
Retired/old aged individuals join groups to enjoy the companionship of other individuals in similar situation.
 Instrumental benefits: Group membership sometimes also helpful in providing other benefits to an individual.
For example, a manager might join a Rotary/ Lions club if he feels that being a member of this club will lead to
important and useful business contacts.
STAGES OF DEVELOPMENT
Members of new group are unfamiliar with one another's personalities and : hesitant in their interactions. The new
group must pass s of development, which are depicted in the figure 11.2.
Mutual Acceptance
 Making Acceptance
 Sharing Acquaintances

Discussing Subjects
 Testing Each Other
 Being Defensive
Slow Evolution to Next Stage
Communication and Decision-Making
 Expressing Attitudes
 Establishing Norms
 Establishing Goals
 Openly Discussing Tasks
 Being Defensive
Burst of Activities to Next Stage
Motivation and Productivity
 Cooperating
 Working Actively on Tasks
 Being Creative
Slow Evolution to Next Stage
Control and Organization
 Working Independently
 Assigning Tasks Based on Ability
 Being Flexible
Figure 11.2
These different stages of group development are explained as follows:
 Mutual Acceptance
The very first stage of a group development is called "Mutual Acceptance". During this stage, the members of
the group get familiar with one another and check, which inter-personal behavior is acceptable and which is
unacceptable by the other members of the group. This helps all the members of a group to know each other
better and helps the group to move to the next stage easily.
#49



Communication and Decision-making
The second stage of group development is "Communication and Decision-making''. During this stage, group
members share their opinions and formulate the group's goals. Through communication and decision-making,
the structure becomes clear and the group moves to the third stage.
Motivation and Productivity
The third stage is "Motivation and Productivity", which is characterized by a shared acceptance among
members of what the group is trying to do. Each person recognizes and accepts his role as well as to accept
and to understand the roles to others. Members also become more comfortable with each other and develop a
sense of group identity and unity.
Control and Organization
The fourth stage is "Control and Organization", in which the members perform the roles they have accepted
and direct their group efforts toward goal attainment. In reality, this developmental sequence varies from group
to group, depending on the time, personal characteristics of group members and frequency of interaction.
CHARACTERISTICS OF MATURE GROUPS
As groups pass through the stages of development to maturity, they begin show signs of the following four
characteristics: a role structure, behavioral norms, cohesiveness and informal leadership.
 Role Structures
A role is the part that an individual plays in a group to reach its goals. Some individuals are leaders, some
focus on the group's task; some interact with other groups and so on. Role structure is the set of defined roles
and interrelationships among those roles that the group members define and accept. The failure in role
development result in role ambiguity, role conflict and role overload. Managers have to take steps to avoid role
ambiguity, role conflict and role overload.
 Behavioral norms
Although informal groups do not have any specific goals to accomplish, but they must have some goals over a
period of time. These goals are temporary and can be changed in accordance with the needs of the group
members. The goals can be achieved effectively depending on the following factors:
o The extent of cooperation with management.
o Maintenance of an efficient communication system.
o Satisfaction of the needs of group members.
• Informal leadership
Each informal group has one or more leaders. These leaders come forward on the basis of acceptance of all the group
members. Every informal group has one primary leader apart from the secondary: leaders. The primary leader has
more influence on the group members than the secondary leaders.
• Cohesiveness
Cohesiveness is defined as the attractiveness of group members towards the group. It also emphasizes on the
group's ability to satisfy its members needs. It, therefore, helps the group members to work more consistently
and make greater contribution to the achievement of the organizational goals. It is also psychologically more
satisfying to all of its members.
According to Cartwright there are four principal consequences of cohesiveness, which are as follows:
o Ability of a group to retain its members.
o Power of the group to influence its members.
o Degree of participation and loyalty of members.
o Feeling of security on the part of the members.
GROUP NORMS
Norms refer to group behavior standard, beliefs, attitudes, traditions and expectations shared by group members.
According to Michael Argyle, "Group norms are rules or guidelines of accepted behavior which are established by a
group and used to monitor the behavior of its members". They are framed to achieve objectives of the group. They can
be social and fair in nature. Norms define boundaries between acceptable and unacceptable behavior. They make the
members to identify themselves with the group. Norms play a significant role in disciplining the members of a group to
make them to work regularly and properly. This reduces absenteeism and employee turnover. The members of the
group are expected follow the norms strictly. This will make the group more organized
Types of Group Norms
There are two types of group norms, which arc as follows:
 Behavior norms: Behavior norms are rules that standardise how individuals act while working on a day-to-day
basis. Examples are. "do not come to committee meetings unless you have read the reports to be '"discussed"',
"greet every customer with a smile'', etc. These norms tend to reflect motivation, commitment to the
organization and therefore result in high level of performance.
#50

Performance norms: Performance
number of hours worked.
Reasons for Strong Enforcement of Norms
norms
are
rules
that
standardize employee output and
Groups don't have the time or energy, to regulate each and every action of the group members. Only those behaviors
that sound to-be important by group members should be brought under control.
Groups, like individuals, try to operate in such a way that they maximize their chances of task success and
minimize (heir chances of task failure. Groups want to facilitate their performance and overcome barriers to reach their
goals. Moreover, groups want to increase morale and prevent any interpersonal discomfort to their members. Norms
that will help groups meet these aims of performing successfully and keeping morale high are likely to be strongly
enforced.
Conditions where group norms will be strongly enforced are as follows:
 If the norms facilitate group success or ensure group survival,
 If the norms simplify or predict regarding the behavior which is expected from group members.
 If the norms emphasize the roles of specific members within a group and
 If the norms help the group to solve the inter-personal problems themselves.
Uniqueness of Group Norms
The norms of one group cannot be easily mixed with another group. Some differences are primarily due to the
difference in structure of the groups. However, even very similar work groups may develop different norms-. The
members of one group may be friendly with their supervisor whereas those of another group may not
Norm Conformity
Norms have the power to force a certain degree of conformity. There are several factors consist of norm conformity,
which are as follows:
 Some groups may exert more pressure for conformity than others because of the personalities of the group
members.
 The history of the group and its members also plays a part in conformity. For example, if the group has always
been successful by following certain behaviors, new group members are also asked to follow the same. If the
group was not successful in the past, a new group member may have greater freedom to exhibit other
behaviors.
Group Cohesiveness
According to Rcnsis Likert, "cohesiveness is the attractiveness of the members towards the group or resistance of the
members leaving it". It refers to the attachment of members with the group.
According lo K. Aswalhappa, "cohesiveness is understood as the extent of liking each member has towards
others and how far everyone wants to remain as the member of the group". Attractiveness is the key to cohesiveness.
Cohesiveness is the extent to which group members are loyal and committed lo the group and to each other. In a highly
cohesive group, the members work well together, support and trust one another and are generally effective at achieving
their chosen goals.
A group that lacks cohesiveness will not be very much coordinated. Its members will not support one another
and they may face difficulty in reaching their goals.
Managers should develop an understanding of the factors that increase and reduce group cohesiveness.
Advantages of Group Cohesiveness
The advantages of group cohesiveness are as follows:
 The members of cohesive groups have high morale.
 The members don't have conflicting views, which decreases the chances of in clash among the views of group
members at the workplace or elsewhere.
 Individuals of cohesive groups have no anxiety at the workplace.
 Members of cohesive groups are regular at their work.
 Cohesiveness increases productivity.
 Organizations gain from the members of cohesive group because they communicate better they share
ideologies and respect opinions of fellow employees.
The following factors can increase group cohesiveness:
 Competitiveness with other groups.
 Inter-personal attraction.
 Favourable evaluation from outsiders.
 Agreement on goals.
 Frequent interaction. The following factors decrease cohesiveness:
 Large group size.
 Disagreement on goals.
 Competitiveness within group.
 Domination by one or more members.
 Unpleasant experiences.
#51
LESSON - 12
LEARNING AND BEHAVIOR MODIFICATION
Learning Objectives
After reading this lesson, you should be able to understand:


Conceptual clarity about nature and levels of conflicts
The sources and effects of conflicts to manage conflicts
Conflict arises from difference of opinion between the group members while attaining the organizational goals. An
organization is an interlocking network of groups, departments, sections or work teams. In organizations everywhere,
conflict among groups of different interests is unavoidable. According to one survey, managers spend an estimated 20
percent of their time dealing with group conflicts. The success of an organization depends upon the harmonious
relations among all independent groups. Managers may either directly resolve the conflicts or they may act as
mediators between two or more employees. In either case, knowledge and understanding of conflict and the methods
of resolving it are important.
Inter-group conflicts result from the ways in which organizations co-ordinate the work of different groups and
distribute rewards among those groups.
TYPES OF CONFLICT
The levels of group conflict are as follows:
 Personal conflict: Are the conflicts that arise among employees, individuals because of their
competitive roles.
 Group conflict: Are the conflicts arising within two or more groups due to difference in their attitudes and
behavior.
 Infra-organizational conflict: Are the conflict arising between
levels of an organization, which are of two types. Vertical conflict arises between higher and lower level of
management. Horizontal conflict arises among the employees at same level.
Following is the sequence in which a conflict can arise:
Latent conflict: Is a situation when the conditions for conflict arise. For example, two groups competing for
scarce resources.
Perceived conflict: Is a situation when both the groups realize that there exists conflict between them.
Felt conflict: Is a situation when members involved in the conflict feel tense or anxious.
Manifest conflict: Is a situation when both the group try to frustrate each other.
Conflict outcome: Is a situation or consequence arising after the conflict is eliminated.
REASONS FOR CONFLICT
There are many reasons for conflicts among groups and its members. Some of them are related to limited resources,
communication problems, differences in interests and goals, different perceptions, attitudes and lack of clarity about
responsibilities. The reasons for group conflicts are as follows:
 Communication problems: Groups often become very involved with their own areas of responsibility. They
tend to develop their own unique vocabulary. Paying attention to an area of responsibility is a worthy
Endeavour, but it can result in communication problems. The receiver of information should be considered
when a group communicates an idea, a proposal, or a decision. Misinformed receivers often become irritated
and then hostile.
 Incompatible goals: Inter-group conflict arises because of goal incompatibility. In other words, goal attainment
by one group may reduce the level of goal attainment by other groups. This may be due to horizontal
differentiation and task specialization. The conflict between production and marketing departments, line and
staff departments, union and management are few examples of inter-group conflicts that arise because of incompatibility of goals.
 Task interdependence: Task interdependence means to what extent a work, group relies on other
organizational groups to complete its tasks. In simple words, it refers to the dependence of one group on
another for resources or information. It can be said in genera] that as interdependence increases, the potential
for conflict increases.
According to J. Thompson, there are three types of interdependence among groups, which are as follows:
o Pooled interdependence: It arises when groups have little interaction with each other but are affected
by each other's activities. For example, a branch in Delhi does not need to interact with a branch in
#52
o
o
o
o
o
o
o
Chennai. The only linkage between the two is that they share financial resources from a common pool
and the success of each branch contributes to the success of the organization.
Sequential task interdependence: It arises when one group is unable to commence its work until the
work of other group gets completed. In sequential task interdependence, the output of one group
becomes the input of another group. In such situations, the potential for conflict is greater. Life and staff
groups often have conflicts resulting from this type of interdependence.
Reciprocal interdependence: It arises between the groups, which depend on each other for their
respective task such as production department and quality department. The production department
provides the goods to the marketing department to sell and the marketing department prepares the
orders and estimates on the basis of the volume produced by the production department. Inter-group
conflict arises from reciprocal task interdependence over difference in performance expectations. Each
group is dissatisfied will the quality or quantity of work received; from the other group.
Task ambiguity: The lack of clarity over job responsibilities is called task ambiguity and it frequently
leads to aggression between groups. Inter-group conflict also arises when it is not clear which group is
responsible for certain activities. Task ambiguity often arises where the organization is growing quickly
or the organization's environment is changing rapidly. A good example of task ambiguity is inter-group
conflict arising in the recruitment of new employees. It may be the responsibility of either the personnel
department or any of the functional departments such as marketing, finance. The confusion may also
arise regarding who has the final authority to execute the final decisions.
Resource sharing: The relation between two groups can be affected by the degree to which they
make use of a common pool of resources and the degree to which this common pool of resources is
adequate to meet the demands of both the groups. Thus, conflict of this nature; arises because of the
differences between aggregate demand of a group and available resources to meet them. Each party
of the conflict competes with each other to get a larger share. The conflict between management and
the labor union-is the best example. Such conflicts take place in the quantum of wages, amenities,
working conditions and other related matters.
Difference in work orientation: The ways in which employees do their work and deal with others vary
widely with the functional areas of an organization. First, functional groups differ in their time
perspectives. For example, R&D scientists have a longer-range of goals than manufacturing groups.
The range of work of manufacturing group is evaluated on how quickly it can manufacture high-quality
products while the range of R&D scientists can be evaluated on the basis of product development and
testing after a long period of time. Second, the goals of different functional groups vary to a large
extent. The goals of manufacturing groups are more specific and clear-cut than the goals of R&D
groups.
The greater the differences in goal and time between two groups, the more likely it is that conflict will
arise between them while co-ordinating their work efforts. These differences between groups result in
frustration, misinterpretation of the behaviors and activities of other groups.
Conflicting reward systems: Sometimes the ways in which reward systems in organizations arc
designed create a situation in which one group can only. accomplish its goal at the expense of other
groups. For example, staff departments may be rewarded for cutting costs and personnel while line
departments are rewarded for increasing the amount of products sold or services provided. To increase
the amount of products sold, the line group may have to depend even more heavily on staff groups
such as advertising. However the staff groups are being rewarded for cutting costs and personnel
provided the types of services asked for by line groups can prevent them from meeting their own goals.
Conflicting reward systems inevitably result in poor inter-group relations.
Different perceptions and attitudes: The attitudes, values and perceptions of members of various
groups towards each other can be a cause and a consequence of the nature of their relationship. If the
group relations begin with the attitudes of distrust, competitiveness, secrecy and closed
communications, there is a possibility of conflicts, disagreements in their views and among themselves.
This can affect the success of a group to accomplish their work in an effective manner.
DYNAMICS OF INTER-GROUP CONFLICT
The following points are covered in the dynamics of an inter-group conflict:
 Changes within each group: When there is inter-group conflict in an organization, systematic changes take
place in the perceptions, attitudes and behaviors of the participants. They are as follows:
o The group demands more loyalty from individual members while facing an external threat. In the face of
an external threat, past differences and difficulties between group members are forgotten and group
cohesiveness increases.
o In an inter-group conflict, it is important for a group to respond quickly and in a unified manner to the
activities of other groups. In an inter-group conflict, the organization and structure of the work group
becomes more rigid. It leads to more coordination of activities, allocution of responsibilities to
different group members.
#53
o
o
o
o
o
Changes in relation between groups: The nature of the relationships between groups also changes
markedly during inter-group conflicts. Union-Management relationships during contract negotiations are
one of the examples of the group dynamics. It becomes difficult for each group to see the positive
behavior and attitude of the other group. Each party undervalues the interests of the other group. The
changes that occur arc as follows:
There are distortions of perception about one's own group and about the other group.
The interaction and communication between groups' decreases.
There is a shift among the groups from a problem-solving motive to a win-lose motive.
There is increased ill feeling towards the rival group.
GROUP STRATEGIES TO GAIN POWER
There are several strategies that various groups use to gain power in an inter-group conflict situation. Some of these
strategies allow co-operation and sharing between groups while other strategies are more competitive and increase the
power of one group at the expense of others.
 Contracting: It refers to the negotiation or an agreement between two groups. Each group makes some
compromises so that there can be some predictability and stability in their relationships. POT example,
contracting occurs between labor and management at the time collective bargaining.
 Co-opting: It occurs when a group gives some of its leadership positions to members of other groups or
includes them in its policy-making committees. For example, representatives from financial institutions are
included in the Board of Directors of a Company to participate in decision-making activities.
 Forming association: In forming an association, two or more groups cooperate or combine their resources in
order to increase their power over other groups. Members of groups co-operate with each other in order to
compete more effectively with members of other groups.
 Influencing decision criteria: Groups can also sometimes exert power lo change criteria for decision-making
that are selected as the basic for resource distribution.
 Controlling Information: Gaining access to sensitive information and then limiting other group's access lo it
increases the power of" the information-' rich group and other subunits.
 Pressure tactics: These are applied to force other to use the most competitive strategy a group can use to
gain power. For instance, a union might threaten to strike to pressurize management.
Management reaction to disruptive inter-group conflict can take many different forms. But management usually tries
to minimize the conflict indirectly and if this fails, become directly involved.
Methods to Solve Inter-group Conflict Indirectly
The various methods to solve inter-group conflicts indirectly are as follows:
 Avoidance: It is an indirect method often used by the managers. It includes avoidance of direct approaches on
the part of managers to solve among groups. But avoidance does not always minimize the problem. Matters
can get worse if nothing is done and the groups can become more aggressive and unfriendly.
 Encouragement: This is another indirect method to solve the group conflicts. It includes encouragement on
the part of managers to the groups so that they will be able to meet and discuss their differences. By doing so,
they can find out a solution without the involvement of management.
 Bargaining: This is the indirect method, in which the groups agree as to what each of them will get and give
others regarding their work. This makes the accomplishment of the assigned task much easier. For example,
one group may agree to give the other, a quick turn around time on the repairs of needed equipment only if the
Second group agrees to bring complaints about the quality of repairs to it before going to management.
Bargaining between two groups is successful if both groups are comfortable with the agreement between them.
 Persuasion: This is the indirect method, in which the groups find the areas of common interests among
themselves. The groups try to find out those interests levels where they have the same say. Afterwards', the
groups try to show how important it is to each of them in attaining organizational goals. But persuasion is
possible only if there are no clashes between the groups and its members
Methods to Solve Inter-Group Conflict
The various methods to solve inter-group conflicts directly are as follows:
 Ignoring the conflict: This is a direct method used by (he managers to solve inter-group conflicts. Ignoring the
conflict is characterized by the absence of behavior wherein the members of the groups avoids dealing with the
dysfunctional aspects of the conflict. In this, a, group simply refuses to attack the other group. But the
disadvantage of this method is that it ignores the causes of conflicts and as a result, the conflict situation
frequently continues or gets worse over time.
 Domination by the management: This method of solving inter-group conflicts emphasizes on improving the
inter-group relations. To improve the inter-group relations, greater integration or collaboration among groups is
needed. Management can use domination to minimize the conflicts by exercising its authority and power over
the groups and their members.
#54


Removing the key figures in the conflict: This is another direct method to solve the inter-group conflicts. If a
conflict arises because of personality differences between two individuals, removing them is a possible
solution. It includes the removal of the key figures in the conflict. The key figures that are to be removed may
be leaders of the groups and removing them could lead to greater conflict. It is also difficult to pinpoint
accurately the individuals who are the root-cause of conflicts.
Problem solving: Management can also establish a task force with representatives from groups in conflict to
work on problems. The task force develops the ideas 'and procedures for improving group interaction and
thereby attempt to solve the conflicts arising between the groups.
o Appealing to super-ordinate goals. The final method to minimize the conflicts is to find super-ordinate
goals. These are goals desired by two or more groups that can only be accomplished through the
cooperation of the groups. When conflicting groups have to cooperate to accomplish a goal, conflict
can be minimized. For example, a wide profit-sharing plan of a company may encourage groups to
work together. If the profits of a company are distributed among employees at the end of the year, the
conflicts among groups can reduce. The super ordinate goals are as follows: The assignment and coordination of work among groups should be clarified so that the daily disputes over minor issues can be
avoided.
o Managers should monitor reward systems to eliminate any win-lose conflicts among groups.
o The use of co-operative approaches among groups in organizations often leads to more positive results
than does the use of competitive approaches.
o Managers can establish rules and standard procedures to regulate conflict in more constructive and
effective ways.
#55
LESSON-13
ORGANIZATIONAL COMMUNICATIONS
Learning Objectives
After reading this lesson, you should be able to understand:




The meaning and importance of communication
Communication process
Various types of organizational communication
The barriers and the methods of overcoming barriers to effective communication
Communication is one of the most frequently discussed dynamics in the entire field of organizational behavior. In
practice, effective communication is a basic prerequisite for the attainment of organizational goals. Therefore,
communication is considered to be the most important and most effective ingredient of the management process.
Interpersonal communication is fundamental to all managerial activities. All other management functions involve
communication in some form of directions and feedback. Thus, effective management is a function of effective
communication.
DEFINITION OF COMMUNICATION
In modern society, the term communication is frequently and freely used by everyone, including members of
the general public, organizational behavior scholars, and management practitioners.
Communication is the process of transmitting information from one person to another. Broadly, it means who
says what, to whom, through which channel and with what effect. It is a way of reacting to the other person with ideas,
facts, thoughts, feelings and values. Communication experts emphasize the behavioral implications of communication
by pointing out that "the only means by which one person can influence another is by the behaviors he shows that is,
the communicative exchanges between people provide the sole method by which influence or effects can be achieved".
In other words, the behaviors that occur in an organization are vital to the communication process. This personal and
behavioral exchange view of communication takes many forms.
The figure 13.1 can be used to identify the major categories of communication that arc especially relevant to
the study of organizational behavior.
Communication Technology
Interpersonal Technology
Verbal
Technology
Figure 13.1: Chain of Communication in Organizational Behavior
Objectives of Communication
Managements depend upon communication to achieve organizational objectives. Since managers work with and
through other people, all their acts, policies, rules, orders and procedures must pass through some kind of
communication channel. Also there must be channel of communication for feedback. Accordingly, some of the
purposes of communication are:







To discourage the spread of misinformation, ambiguity and rumors, which can cause conflict and tension.
To foster any attitude, that is necessary for motivation, cooperation and job satisfaction.
To develop information and understanding among all workers. This is necessary for group effort.
To prepare workers for a change in methods of environment by giving them necessary information in advance.
To encourage subordinates to supply ideas and suggestions for improving the product or work environment
and taking these suggestions seriously.
To improve labor management relations by keeping the communications channels open and accessible.
To improve social relations among workers by encouraging intercommunication. This would satisfy the basic
human need for a sense of belonging and friendship.
Importance of Communication
Interpersonal roles require managers to interact with supervisors, sub-ordinates, peers and others outside the
organization. Thus, for co-ordinated action, communication is necessary. Communication transforms a group of
unrelated individuals into a team that knows what its goals are and how it will try to reach them.
Communication allows people to co-ordinate with each other by providing them with a way to share information.
The first type of information that needs to be shared is what the goals of the organizations are. People need to knowwhere they are heading and why. They also need directions for their specific tasks.
#56
Communication is especially important for the task of decision-making. Decision-makers must share their views
on what the problem is and what the alternatives are. Once a decision has been made, communication is necessary to
implement the decision and to evaluate its results.
Changes in market or in customer preferences can lead to uncertainty about whether a product Or a marketing
strategy needs to be updated or overhauled. The uncertainty resulted from the lack of information, can be reduced by
communicating that information. Market researchers, for example, can communicate with other groups about changes
in the market place. The greater the uncertainty about a task, the more important the communication of information
becomes.
Communication also allows people to express their emotions. Communication of feelings can be very important
to employee morale and productivity. Employees who feel that they cannot vent their anger or express their joy on the
job may feel frustrated and repressed.
On any given day, a manager may communicate for all the purposes described above. Communication goes
up, down and across the levels of the hierarchy of an organization.
COMMUNICATION PROCESS
The figure 13.2 presents a general view of the communication process, as a loop between the source and the receiver.
In the simplest kind of communication, both the sender and the receiver perform the encoding and decoding functions
automatically.
Source or Sender
The communication cycle begins when one person called the sender wants to transmit a fact, idea, opinion or other
information to someone else. A manager, for instance, might call the research department to send the latest information
on a particular market.
Encoding
The second step is to encode the message into a form appropriate to the situation. The encoding might take the form of
words, facial expressions, gestures, physical actions and symbols such as numbers, pictures, graphs etc. Indeed, most
communication involves a combination of these. The encoding process is influenced by the content of the message, the
familiarity of the sender and receiver and other situational factors.
Transmission
After the message has been encoded, it is transmitted through the appropriate channel or medium. Common channels
or media in organizations include face-to-face communication using the media of sound waves, light, letters and
reports.
Decoding
The person to whom the message is sent, called the receiver interprets the meaning of the message through the
process of decoding. This process may be simple and automatic, but it can also be quite complex. Even when you are
just reading a letter, you may need to use all your knowledge of the language, your experience with the letter-writer and
so on. If the intended message and the received message differ a great deal, there is a communication gap and
misunderstanding is likely to follow.
Receiver
The receiver can be an individual, a group, or an individual acting on behalf of a group. The sender has generally little
control over how the receiver will deal with the message. The receiver may ignore it, decide not to try to decode,
understand it or respond immediately. The communication cycle continues when the receiver responds by the same
steps back to the original sender, which is called the feedback.
#57
Noise
In the communication process, noise takes on a meaning slightly different from its usual one. Noise refers to any type of
disturbance that reduces the clearness of the message being transmitted. Thus, it might be something that keeps the
receiver from paying close attention such as someone coughing, other people talking dosely, a car driving by etc. It can
be a disruption such as disturbance in a telephone line, weak signal due to bad weather etc. It can also be internal to
the receiver such as tiredness or hunger or minor ailments, which may affect the message.
METHODS OF COMMUNICATION
There are mainly three primary methods of communication in an organization, which are written, oral, and non-verbal.
These methods of communication are often combined. Considerations that affect the choice of method include the
audience whether it is physically present, the nature of the message, and the lost of transmission. The figure 13.3 given
below shows various forms each method can take.
Typically organizations produce a great deal of written communication of many kinds. A letter is a formal means
of communication with an individual, generally someone outside the organization. Probably the most common form of
written communication in organizations is the office memorandum, or a memo. Memos usually are addressed to a
person or group inside the organization. They tend to deal with a single topic and are more impersonal, but less formal
than letters. Other common forms of written communication include reports, manuals and forms. Reports generally
summarize the progress or results of a project and often provide information to be used in decision-making. Manuals
have various functions in organizations. Instruction manuals tell employees how to operate machines; policy and
procedure manuals inform them of organizational rules; operations manual describe how to perform tasks and respond
to work-related problems. As such, they represent attempts to make communication more efficient and information
more accessible. A performance appraisal form is an example.
ORAL COMMUNICATION
Oral communication, also known as face-to-face communication is the most prevalent form of organizational
communication. It may be in the form of direct talk and conversation between the speakers and listeners when they are
physically present at one place or through telephone or intercom system conversation. Where one-way communication
is required, then oral communication may include public address system. Informal rumour mill or grapevine is also a
popular form of oral communication. It is most effective for leaders to address the followers via public address system
or audio-visual media. Oral communication is particularly powerful because the receiver not only hears the content of
the message, but also observes the physical gestures associated with it as well as the changes in tone, pitch, speed
and volume of the spoken word. The human voice can impart the message much more forcefully and effectively than
#58
the written words and is an effective way of changing attitudes, beliefs and feelings, since faith, trust and sincerity can
be much better judged in a face-to-face conversation rather than in written words.
Advantages
Some of the advantages of oral communication are:
 It is direct, simple, time saving and least expensive form of communication.
 It allows for feedback and spontaneous thinking, so that if the receiver js unsure of the message, rapid
feedback allows for early detection by the sender so that corrections can be immediately made, if necessary.
 Because the message is conveyed instantaneously, it helps in avoiding delays, red tape and other formalities.
 It conveys personal warmth and friendliness and it develops a sense of belonging because of these
personalized contacts.
Disadvantages
 There is no formal record of communication so that any misunderstood message cannot be referred back to
what was actually said.
 If the verbal message is passed on,the long hierarchical chain of command, then some distortions can occur
during the process. The more people the message is to pass through, the greater is the potential distortion.
 Lengthy and distant communication cannot be conveyed verbally in an efficient way.
 The receiver may receive the message in his own perception and thus misunderstand the intent of the
message.
 Spontaneous responses may not be carefully thought about.
 The spirit of authority cannot be transmitted effectively in verbal transactions.
 Organizational Communications
 More or less or a different meaning might be conveyed by manner of speaking, tone of voice and facial
expressions.
WRITTEN COMMUNICATION
A written communication is put in writing and is generally in the form of instructions, letters, memos, formal reports,
rules and regulations, policy manuals, information bulletins and so on. These areas have to be covered in writing for
efficient functioning of the organization. It is most effective when it is required to communicate information that requires
action in the future arid also in situations where communication is that of general informational nature. It also ensures
that everyone has the same information.
Advantages
 It serves as an evidence of events and proceedings.
 It provides a permanency of record for future references. The message can be stored for an indefinite period of
time.
 It reduces the likelihood of misunderstanding and misinterpretation. The written communications are more likely
to be well considered, logical and clear. The message can be checked for accuracy before it is transmitted.
 It can save time when many persons must be contacted at the same time.
 It is more reliable for transmitting lengthy statistical data.
 It appears formal and authoritative for action.
Disadvantages
 It can be very time-consuming, specially for lengthy reports.
 There is no immediate feedback opportunity to be sure that the receiver has understood the message.
 Confidential written material may leak out before time, causing disruption in its effectiveness.
 It leads to excessive formality in personal relations.
NON-VERBAL COMMUNICATION
Some of the meaningful communication is conveyed through non-verbal ways. Even some of the verbal messages are
strengthened or diluted by non-verbal expressions. These non-verbal expressions include facial expressions and
physical movement. In addition, some of the environmental elements such as building and office space can convey a
message about the authority of the person. According to Tipkins and Mc-Carter, facial expressions can be categorized
as:
 Interest-excitement
 Enjoyment-joy
 Surprise-startle
 Distress-anguish
 Fear-terror
#59
 Shame-humiliation
 Contempt-disgust
 Anger-rage
Physical movements or body language is known as "kinesics". A handshake is probably the most common form of
body language and tells a lot about a person's disposition. Other examples of body language are tilting of head, folding
of arms or sitting position in a chair.
Our facial expressions can show anger, frustration, arrogance, shyness, fear and other characteristics that can
never be adequately communicated through written word or through oral communication itself. Some of the other body
language symptoms are shrugging our shoulders for indifference, wink an eye for mischief or intimacy, tap our fingers
on the table for impatience and we slap our forehead for forgetfulness. As far as environmental elements are
concerned, a large office with luxurious carpeting and expensive furniture conveys a message of status, power and
prestige such as that of a chief operating officer. On the other hand, a small metal desk on a corner communicates the
status of a low ranking officer in the organizational setting. Accordingly non-verbal actions have considerable impact on
the quality of communication.
Communication Networks
A communication network is the pattern of information exchange used by the members of a group.
When the members of a group communicate mostly with the group leader, a wheel network develops. When the
members of a group are on different levels/of the organization's hierarchy, a chain network is developed. Members of a
task force or committee often develop a circle network of communication with each person communicating directly to
the other members of the task- force. Informal groups that lack a formal leader often form an all-channel network that
everyone uses to communicate with everyone else. Figure 13.4 shows Wheel Communication Network. Figure 13.5
shows Chain Communication Network.
Figure 13.6 shows Circle Communication Network. Figure 13.7 shows All Channel Communication Network.
#60
The density of communication refers to the total quantity of communication among members. The distance
between members describes how far a message must travel to reach the receiver. The ease with which members can
communicate with others is measured by members' relative freedom to use different paths to communicate. Members'
commitment to the group's work is defined by the centrality of the position of the members. All these provide insight into
possible communication problems. For instance, a group with high density and distance can expect a lot of noise
distortion in its communication, as messages travel a long distance to get to the receivers.
The following factors influence the formation of communication patterns within small groups:
Organizational Communications • 123
1. Type of Task: If the task of the group is simple, a chain or wheel network is used. For hard tasks, all channel
networks arises.
2. Environment: Environment including the group's seating arrangement and meeting place also affects
communication patterns. For instance, if members always sit around a table, then circle network arises.
3. Group Performance Factors: The group performance factors like group's size, composition, norms and
cohesiveness also affect the' formation of communication networks. For instance, it is much easier to have an
all-channel network in a group of eight than in a group of eighty.
Managers must make use of all these characteristics and tendencies to help groups communicate and work
most efficiently. A manager, who sees that a wheel network is forming around an experienced, trusted employee might
not interfere with the process. If an assertive but irresponsible employee becomes the hub of such a wheel, the
manager may need to take action. If the manager relies on a group to help make decisions, the manager may
encourage silent group members to speak in order to get the desired decisions.
FORMS OF ORGANIZATIONAL COMMUNICATION
Although interpersonal and group forms of communication pertain even at the broadest organizational levels, they do
not sufficiently describe the paths of all messages transmitted in organizations. Individuals can send and receive
messages across whole organizational levels and departments by means of vertical communication or the informal
communication network. Non-verbal communication is also important and can be a part of interpersonal, group and
organizational communication.
#61
Vertical Communication
Vertical communication is the communication that flows both up and down the organizational hierarchy. This
communication typically takes place between managers and their superiors or subordinates.
Upward Communication
Upward Communication consists of messages moving up the hierarchy from subordinates to superiors. The content of
upward communication usually includes requests, suggestions or complaints and information the sub-ordinate thinks is
of importance to the superior.
Downward Communication
Downward Communication consists of messages moving down the hierarchy from superiors to sub-ordinates. The
content of downward communication often includes directives, assignments, performance feedback and information
that the superior thinks are of value to the sub-ordinate.
Transactional Communication
Wenburg and Wilmont suggest that instead of communication being "upward" or "downward" which is intercommunication, it should be "transactional" communication, which is mutual and reciprocal because, "all persons are
engaged in sending and receiving messages simultaneously. Each person is constantly sharing in the sending and
receiving process and each person is affecting the other". In the transactional process, the communication is not simply
the flow of information, but it develops a personal linkage between the superior and the subordinate.
Informal Communication
Another term for informal communication network is the grapevine. Informal networks are found in all organizations. It is
in the form of gossip in which a person spreads a message to as many other people as possible who may either keep
the information to themselves or pass it on to others. The content of gossip is likely to be personal information or the
information about the organization itself.
Managers should have some control over the informal network. For example, the grapevine in an organization
may be carrying harmful information, false information or politically motivated information. When these kinds of rumors
are being spread, managers may need to intervene. They can hold open meetings and objectively discuss the issues
that are being informally discussed already. They may also issue a clearly worded memo or report stating the facts and
thereby help minimize the damage that the informal network can do.
Managers can also obtain valuable information from the grapevine and use it for decision-making.
Other Form's of Communication
One that has become especially popular is informally labelled as "management by wandering around". The basic idea
is that some managers keep in touch with what is going on by wandering around and talking with people such as subordinates, customers, dealers and any one else involved with the company in any way. This will give managers, new
ideas and a better feel for the entire company.
BARRIERS TO COMMUNICATION
The communication must be interpreted and understood in the same manner as it was-meant to be sent by the sender,
otherwise it will not achieve the desired result and a communication breakdown will occur. There are certain external
roadblocks to effective communication. In addition, there are personal factors, which affect communication.
Some of the organizational barriers and some of the interpersonal barriers to effective communication are
discussed below:
Noise Barriers
Noise is any external factor, which interferes with the effectiveness of communication. The term is derived from noise or
static effects in telephone conversation or radio wave transmission. It may cause interference in the process of
communication by distraction or by blocking a part of the message or by diluting the strength of the communication.
Some of the sources contributing towards noise factor are:
Poor Timing
A message sent on poor timing acts as a barrier. For instance, a last minute communication with a deadline may put
too much pressure on the receiver and may result in resentment. A message must be sent at an appropriate time to
avoid these problems. Hence the manager must know when to communicate.
Inappropriate Channel
Poor choice of channel of communication can also be contributory to the misunderstanding of the message. The
manager must decide whether the communication would be most effective if it is in writing or by a telephone call or a
face-to-face conversation or a combination of these modes.
#62
Improper or Inadequate Information
Information must be meaningful to the employee and should be precise or to the point. Too little or too much
information endangers effective communication. Ambiguity in use of words will lead to different interpretations.
Physical Distractions
Any physical distractions such as telephone interruptions or walk-in visitors can interfere with the effective face-to-face
communication process.
Organizational Structure
Communication may be blocked, chaotic or distorted if the channels are not clear or if there are bottlenecks. Hence the
organization structure should be such that the chain of command and channels of communication are clearly
established and ithe responsibility and authority are clearly assigned and are traceable.
Information Overhead
Overload occurs when individuals receive more information than they are capable of processing. The result could be
confusion or some important information may be laid aside for the purpose of convenience.
Network Breakdown
Network breakdown may be intentional or due to information overload and time pressures under which a
communication has to be acted upon. Some factors contributing to such disruptions are:
 The managers may withhold important negative information.
 The secretary may forget to forward a memo.
 There may be professional jealousy resulting in closed channels.
Interpersonal Barriers
There are many interpersonal barriers that disrupt the effectiveness of the communication process and generally
involve such characteristics that either the sender or the receiver can cause communication problems. Some of these
are:
Filtering
Filtering refers to intentionally withholding or deliberate manipulation of information by the sender, either because the
sender believes that the receiver does not need all the information or that the receiver is better off not knowing all
aspects of a given situation. It could also be that the receiver is simply told what he wants to hear.
Semantic Barriers
These barriers occur due to differences in individual interpretations of words and symbols. The words and paragraphs
must be interpreted with the same meaning as was intended. The choice of a wrong word or a comma at a wrong place
in a sentence can sometimes alter the meaning of the intended message. For example, a nightclub advertisement sign,
"clean and decent dancing every night except Sunday", could lead to two interpretations. First, that there is no dancing
on Sundays and second, that there is dancing on Sundays, but it not clean and decent.
Perception
Perception relates to the process through which we receive and interpret information from our environment and create
a meaningful word out of it. Different people may perceive the same situation differently. Hearing what we want to hear
and ignoring information that conflicts with what we know can totally distort the intent or the content of the message.
Some of the perceptual situations that may distort a manager's assessment of people resulting in reduced effectiveness
of the communication are:
 A manager may perceive people to belong to one category or another as stereotypes, rather than unique and
distinct individuals. For example, he may perceive women to be less efficient managers.
 A manager may make total assessment of a person based on a single trait. A pleasant smile may make a
positive first impression.
 A manager may assume that his subordinate's perception about things and situations are similar to his own.
This perception limits the manager's ability to effectively respond to and deal with individual differences and
differing views of work situations.
Cultural Barriers
The cultural differences can adversely affect the communication effectiveness, specially for multi-national companies
and enterprises.
#63
Sender Credibility
When the sender of the communication has high credibility in the eyes of the receiver, the message is taken much
more seriously and accepted at face value. If the receiver has confidence, trust and respect for the sender, then the
decoding and the interpretation of the message will lead to a meaning of the sender. Conversely, if the sender is not
trusted, then the receiver will scrutinize the message heavily and deliberately look for hidden meanings or tricks and
may end up distorting the entire message. Similarly, if the source is believed to be an expert in a particular field then
the listener may pay close attention to the message, and believe it specially if the message is related to the field of
expertise.
Emotions
The interpretation of a communication also depends upon the state of the receiver at the time when message is
received. The same message received when the receiver is angry, frustrated or depressed may be interpreted
differently than when he is happy. Extreme emotions are most likely to hinder effective communication because rational
judgments are replaced by emotional judgments.
Multi-meaning Words
Many words in English language have different meanings when used in different situations. Accordingly, a manager
must not assume that a particular word means the same thing to all people who use it. Hence, the managers must
make sure that they use the word in the same manner as the receiver is expected to understand it, otherwise it will
create a barrier to proper understanding of the message.
Feedback Barriers
The final source of communication barrier is the feedback or lack of it. Feedback is the only way to ascertain as to how
the message was interpreted.
Overcoming Communication Barriers
It is very important for the management to recognize and overcome barriers to effective communication for operational
optimization and this would involve diagnosing and analyzing situations, designing proper messages, selecting
appropriate channels for communicating these messages, assisting receivers of messages in correct decoding and
interpretation and providing an efficient and effective feedback system. Some of the steps that can be taken in this
respect are as follows:
1
Feedback: Feedback helps to reduce misunderstandings. The information is transferred more accurately
when the receiver is given the opportunity to ask for clarifications and answer to any questions about the
message. Two-way communication, even though more time-consuming, avoids distrust and leads to
trust and openness, which helps in building a
healthy relationship contributing to communication
effectiveness.
2
Improve Listening Skills: Good listening habits lead to better understanding and good relationships with
each other. Some guidelines for effective listening are:
 Listening requires full attention to the speaker. Do not let your mind wander or be preoccupied with
something else, otherwise you will not be able to grasp the meaning of the message in its entirety.
 The language used tone of the voice and emotions should receive proper attention. Listen for feelings
in (he message content and respond positively to these feelings.
 Ask questions to clarify any points that you do not understand clearly and reflect back to the speaker,
your understanding of what has been said.
 Make sure that there are no outside interruptions and interference during the course of conversation.
 Do not prejudice or value the importance of the message due to your previous dealings and
experiences with the sender or your perceptions about him, positive or negative.
 Do not jump to conclusions before the message is over and is clearly understood.
 Summarize and restate the message after it is over to make sure about the content and the intent of
the message.
3
Develop Writing Skills: Clearly written messages can help avoid semantic and perception barriers. A wellwritten communication eliminates the possibility of misunderstanding and misinterpretation. When writing
message it is necessary to be precise thus making the meaning as clear as possible so that it accomplishes
the desired purpose. Some helpful hints in written communication are suggested by Robert Degise as
follows:
 Keep words simple: This will reduce your thoughts to essentials and the message will be easier to
understand for the receiver. The message will be lost if the words are complex and do not lend to a
clear single meaning.
#64

4
Do not be boggart down by rules of composition: While the rules of grammar and composition
must be respected, they should not take priority over the ultimate purpose of the communication.
 Write concisely: Use as few words as possible. Do not be brief at the cost of completeness, but
express your thoughts, opinions and ideas in the fewest number of words possible.
 Be specific: Vagueness destroys accuracy, which leads to misunderstanding of the meaning or
intent of the message. Accordingly, be specific and to the point.
Avoid Credibility Gaps: Communication is a continuing process and the goal of the communication is
complete understanding of the message as well as the creation of trust among all members of. the
organization. Accordingly, the management must be sincere and should earn the trust of the subordinates.
Management should not only be sensitive to the needs and feelings of workers but also its promises should
be supported by actions. According to the studies conducted by J. Luft, openness and an atmosphere of
trust builds healthy relationship and closes credibility gaps, thus contributing to communication effectiveness.
GUIDELINES FOR EFFECTIVE COMMUNICATION
These guidelines are designed to help management improve their skills in communicating so as not only avoid any
barriers to effective communication, but also to strengthen the basis for optimum results which depend upon the clear
understanding of the desired communication.
The Ideas and Messages should be Clear, Brief and Precise
The ideas to be communicated must be well planned and clearly identified. This will eliminate ambiguity so that the
message will not be subject to more than one interpretation. The message must be clear, precise and to the point and
free from distortions and noise. It should also be brief so that only necessary and sufficients meanings are provided.
Sense of Timing
The message should not only be timely so that the decisions and actions can be taken in tie and when necessary, but
also the timing of the message and the environmental setting in which the message is delivered and received is equally
important.
Integrity
The communication must pass through the proper channels to reach the intended receiver. The communication
flow and its spread must avoid bypassing levels or people. When these concerned levels are omitted or bypassed, it
creates bickering, distrust, confusion and conflict. Accordingly, the established channels must be used as required.
Consult with others who are involved in Planning the Communication
If people have participated in the planning process, they would be highly motivated to give active support to such
communication. The people who are concerned must know exactly what they need and when they need the
communication.
Consider the Receiver's Interest
Take the receivers interests into account, and then the receiver will be more responsive to the communication. The
management must clarify any part of the communication that may be necessary and must encourage comments,
questions, and feedback. The management must always be helpful in carrying out the intended message of the
communication.
Mode of Delivery
While delivering the communication, avoid negative statements like, "I am not sure it will work", but be confident and
definitive. The success of the communication also depends upon the tone of the voice if the communication is verbal,
expressions and emotions exhibited, attentiveness to the receiver and so on. The written communication should be
polite and unambiguous.
Use proper Follow-up
All communications need a follow-up to ensure that these were properly understood and carried out. The response and
feedback to the communication should determine whether the action to the communication has been prompt,
appropriate and accurate.
Communication should be Comprehensive
Communication should be complete so as not only to meet the present demands. It should also fee based on future
needs of the organization as well as individuals.
Recently, the nature of managerial and organizational communication has changed dramatically, mainly
because of break through of the electronic technology and advent of computers. Now cellular phones, E-Mail and
Internet have made the communication quick and convenient. It is now even possible for managers from different cities
to meet by teleconferencing method without leaving their offices. At the same time, psychologists are beginning to
discover some problems associates with these new advances in communication.
#65
LESSON -14
LEADERSHIP IN ORGANIZATIONS
Learning Objectives
After reading this lesson, you should be able to understand:



The meaning of leadership
The various types and theories of leadership
The importance of leadership in organizations
Leadership is an integral part of management and plays a vital role in managerial operations. It provides direction,
guidance, and confidence to the employees and helps in the attainment of goals in much easier way. In business and
industrial organizations, managers play the role of leader and acquire leadership of subordinates, their efforts towards
the achievement of organizational goals and activate the individuals of an organization to make them work. Leadership
influences behavior of the individuals. It has an ability to attract others and potential to make them follow the
instructions. Individuals can be induced to contribute their optimum towards the attainment of organizational goals
through effective leadership. Leadership acquires dominance and the followers accept the directives and control of a
leader. Leadership provides direction and vision for future to an organization.
DEFINITION
Leadership is the art of influencing and inspiring subordinates to perform their duties willingly, competently and
enthusiastically for achievement of groups objectives.
According to Wendell French, "Leadership is the process of influencing the behavior of others in the direction of
a goal or set of goals or, more broadly, toward a vision of the future”,
According to Keith Davis, “Leadership is the process of encouraging and helping others to work enthusiastically
towards objectives”.
According to Koontz and O'Donnell, "Leadership is the art or process of influencing people so that they will
strive willingly towards the achievement of group goals".
According to Peter Drucker, "Leadership means the lifting of man's visions to higher sights, the raising of man's
performance to higher standard, the building of man's personality beyond its normal limitations".
According to Grey and Starke, "Leadership is both a process and a property. As a process, it is used for noncoercive influence lo shape up the goals of a group or organization, to motivate behavior toward the achievement of
those goals and to help define group or organizational culture. As a property, leadership is the set multi characteristics
attributed to those who are perceived to be leaders".
Thus, leaders are people who are able to influence the behavior of others without recourse to threats or other
forms of force towards the individuals. Leaders are the people who are accepted by the other individuals, as a superior
person to them.
FEATURES OF LEADERSHIP
The features of leadership are as follows:
 Leadership is the process of influencing behavior of individuals of an organization.
 Leadership uses non-coercive methods to direct and coordinate the activities of the individuals of an
organization.
 Leadership directs the individuals to attain the tasks assigned to them by following the instructions of their
leaders.
 A leader possesses qualities to influence others.
 Leadership gives the individuals, a vision for future.
 Leadership is a group activity. Leader influences his followers and followers also exercise influence over his
leader.
 Leadership is meant for a given situation, given group for a pre-determined period of lime.
 Leadership is continuous process of influencing behavior. It encourages liveliness in the group.
Importance of Leadership
The following points can judge the importance of leadership:
 A leader should act as a friend of the people whom he is leading.
 A leader must have the capacity to recognize the potentials of the individuals and transform them into realities.
 A leader should have the confidence of the individuals of the organization.
 A leader must be able to unite the people as a team and build up team spirit.
#66






A leader should be able to maintain discipline among his group and develop a sense of responsibility.
A leader must be able to build up a high morale among the individuals of the organization.
A leader should motivate his people to achieve goals.
A leader should try to raise the morale of the individuals and should maintain ethical standards among the
individuals.
A leader should act as a link between the work groups and the forces outside the organization.
Difference between Leadership and Management
Leading and managing go together but some differences exist between the two. The following are the differences
between the leadership and the management:
 Management takes rational and logical decisions while leadership takes decision on expectations of the
followers. Leadership has an emotional appeal while management acts on rationality.
 The management establishes relationship through a lawful authority while leadership establishes relationship
through power.
 Managers have formal authority but the leaders have no such authority.
 All leaders are not managers and all managers are leaders.
 Management is a process of planning, organizing, directing and controlling the activities of others to attain the
organizational objectives. Leadership on the other hand, is a process of influencing the behavior of the people
to attain their assigned tasks. A successful manager must possess both the managerial and leadership
qualities.
TYPES OF LEADERSHIP
Following are the main types of leadership:
Autocratic or Authoritarian
In this type of leadership, there is a complete centralization of authority in the leader, i.e., authority is centered in the
leader himself. He has all the powers to make decisions. He uses coercive measures and adopts, negative method of
motivation. He wants immediate obedience of his orders and instructions. Any negligence on the part of subordinates
results in punishment. There is no participation from the subordinates in decision-making. A leader thinks that he is the
only competent person in the organization. According to Edwin B. Filippo, there are following three types of leaders in
autocratic:
1.
Hard Boiled or Strict Autocrat: Leader, under such type uses negative influence and expects that the
employees should obey his orders immediately. Non-compliance of his orders results in punishment. He
makes all decisions and does not disclose anything to anyone. He is quite rigid on performance.
2.
Benevolent Autocrat: Benevolent autocrat leader uses positive influences and develops effective human
relations. He is known as paternalistic leader. He praises his employees if they follow his orders and invites
them to get the solutions of the problems from him. He feels happy in controlling all the actions of his
subordinates.
3.
Manipulative Autocrat: Leader, under such type is manipulative in nature. He creates a feeling in the minds
of his subordinates and workers that they are participating in decision-making processes. But he makes all
decisions by himself. Non-compliance of his orders also results jn punishment.
Democratic or Participative
Democratic or Participative leadership is also known as group centered or consultative leadership. In this type of
leadership, leaders consult their groups and consider their opinion in the decision-making process. Leaders encourage
discussion among the group members on the problem under consideration and arrive at a decision depending on their
consent. Participation or involvement of the employees in the decision-making process is also rewarded. Exchange of
ideas among subordinates and with the leader is given encouragement. Leaders give more freedom to their group
members, who feel that, their opinions arc honored and they are given importance. It develops a sense of confidence
among subordinates and they derive job satisfaction. It improves quality of decision as it is taken after due
consideration of valued opinions of the talented group members.
The demerit of this type of leadership is that it takes more time to arrive at a decision, as a lot of time is wasted
while taking the views from the employee. It is, therefore, very time consuming.
Laissez-faire or Free Rein
In this type of leadership, there is virtual absence of direct leadership. It is, therefore, known as "no leadership
at all". There is complete delegation of authority to subordinates so that they can make decisions by themselves.
Absence of leadership may have both positive and negative effects. Free rein leadership may be effective if members
of the group are highly committed to their work. The negative aspect shows that the leader is not competent enough to
lead his group effectively. Members may feel insecure and develop frustration for lack of decision-making authority.
#67
Bureaucratic
This type of leadership emphasizes the rules and regulations of an organization. The behavior of a leader is determined
by the rules, regulations and procedure to be followed under his leadership. The leader and the subordinates both
follow these rules and regulations. Therefore, there is no difference between the management and the administration in
this type of leadership. The employees, themselves cannot do anything in this regard. It is the rules that determine their
performance.
Manipulative
This type of leadership manipulates the employees to attain their assigned tasks. A manipulative leader is quite selfish
and exploits the aspirations of the employees for his gains. He knows very well the needs and desires of the employees
but he does very little to fulfill them. Due to such attitude, he has to face the hatred of the employees at times.
Paternalistic
The paternalistic leadership believes in the concept that the happy employees work better and harder. It maintains that
the fatherly altitude is the right one for better relationship between the manager and the employees. Everyone within
the organization should work together like a family.
Expert Leadership
The expert leadership emerged as a result of complex structure of modern organizations. This type of leadership is
based on the ability, knowledge and competence of the leaders. He handles the situation skillfully with his talent. The
employees feel relieved as they are working under a person who is expert and can handle the situation without any
problem.
In modern organizations, human resources vary in terms of skill, knowledge and competences. They differ in
quality, determination and their attitude towards the organization. They exhibit different behaviors as they differ in
attitude and outlook also. The leader must understand their behavior and accordingly can make use of the various
types LEADERSHIPS. The manager should assess the situation and adopt that type of leadership, which suits that
situation. He should remember that leadership is situational. If situation changes, the use of leadership among its
various types also changes. A successful leader is the one who assesses the situation, studies the psychology of the
subordinates and adopts the most useful type of leadership to lead the people at work to accomplish the organizational
goals.
THEORIES OF LEADERSHIP
A number of theories and approaches to study leadership have been developed. There are broadly three theories of
leadership.
 Trait Theory
 Behavior Theory
 Contingency Theory
(a)
Trait Theory
This theory of studying leadership is taken into consideration to analyze the personal, psychological and physical traits
of strong leaders. The assumption made in this theory was that some basic traits or set of traits differentiates leaders
from non-leaders. For example, the leadership traits might include intelligence, assertiveness, above average height,
self-confidence, initiative and understanding of interpersonal human relations. The existence of these traits determines
the importance of leadership. Possession of these traits helps the individuals to gain possession of leadership. Since all
individuals do not have these qualities, only those who have them would be considered potential leaders.
Some of the weakness of this theory is:
 All the traits are not identical with regard to essential characteristics of a leader.
 Some traits may not be inherited, but can only be acquired by training.
 It does not identify the traits that are most important and that are least important for a successful leader.
 It does not explain the leadership failures, in spite of the required traits.
 It has been found that many traits exhibited by leaders are also found among followers without explaining as to
why followers could not become leaders.
 It is difficult to define traits in absolute terms.
 Thus, the trait theory has been criticized for lack of conclusiveness and predictability.
(b)
Behavior Theory
The behavioral theory assumed that effective leaders behaved differently from ineffective leaders. It also identified the
need of consistency of behavior of good leaders. This theory can be more clearly understood with the help of following
case studies.
#68

The Michigan Studies: Researchers at the University of. Michigan, led by Rensis Likert, began studying
leadership in the late 1940s. Depending on broad discussions with both the managers and sub-ordinates, the
Michigan studies identified two forms of leadership behavior. They are discussed as below:
 Job-centered leadership behavior : The first was called job-centered leadership behavior, which
focuses on performances and efficient completion of the assigned tasks. A job-centered leader
interacts with group members to explain task procedures and oversee their work.
 Employee centered leadership behavior: The second behavior was identified as employee centered
leader behavior, which focuses on, high performance standards to be accomplished. This can be done
by developing a cohesive work group and ensuring that employees are satisfied with their jobs. Thus,
the leader's primary concern is the welfare of the ordinates. The Michagan researchers thought a
leader could show signs of one kind of behavior, but not both.
 The Ohio State Studies: At about the same time, a group of researchers at Ohio State also began studying
leadership. The Ohio State leadership studies also identified two major kinds of leadership behaviors or styles,
which are as follows:
 Initiating-structure behavior: In initiating-structure behavior, the leader clearly defines the leadersubordinate roles so that everyone knows what is expected. The leader also establishes formal lines of
communication and determines how tasks will be performed.
 Consideration behavior: In consideration behavior, the leader shows concern for subordinates
feelings' and ideas. He attempts to establish a warm, friendly and supportive.
The most obvious difference between Michigan and Ohio State studies is that the Ohio State researchers did
not position their two forms of leader behavior at opposite ends of a single continuum. Rather, they assumed the
behaviors to be independent variables, which means that a leader could exhibit varying degrees of initiating structure
and consideration at the same time i.e. a particular leader could have higher ratings on both measures, low ratings on
both or high ratings on one and low on the other.
The Ohio State researchers found that a leader’s behavior remains consistent over a period of time, if the
situation also remains same. But the researchers could not come up with one best combination of behavior suitable to
all the situations. The researchers used to believe that the leaders in possession of both types of behavior are most
effective. However, their studies at International Harvester found that leaders rated highly on initiating structure
behavior have higher performing but dissatisfied sub-ordinates, whereas leaders rated highly on consideration structure
had lower-performing sub-ordinates who showed signs of higher satisfaction.
Most experts now agree that no single set of traits or behaviors appears to be common to all good leaders. The
universal approaches to leadership can help managers examine their own leadership characteristics and match them
against the traits most commonly identified with good leaders. In order to understand the full complexity of leadership,
contingency theory is to be studied.
(c) Contingency Theory
The main assumption of contingency theory is that the behavior of an appropriate leader varies from one situation to
another. The motive of a contingency theory is to identify key situational factors and to specify how they interact to
determine appropriate behavior of a leader
The three most important and widely accepted contingency theories of leadership are as follows:
 The LPC theory: The first contingency theory of leadership is Fred Fielder's Least Preferred Co-worker (LPC)
Model. Fielder identified two types of leadership: task-oriented and relationship-oriented. Fielder believes that a
leader's tendency to be task-oriented or relationship oriented remains constant. In- other words, a leader is
either task-oriented or relationship-oriented while leading his group members. Fielder used the Least Preferred
Co-worker (LPC) scale to measure the type of leadership. A leader is asked to describe characteristics of the
person with whom he or she is least comfortable while working. They can do this by marking in a set of sixteen
scales at each end, by a positive or negative adjective. For example, three of the scales Fielder uses in the
LPC are:
Helpful -------------------- Frustrating 8 7 6 5 4 3 2 1
Tense ------------------- Relaxed
12345678
Boring ------------------- Interesting 1 2 3 4 5 6 7 8
The leader's LPC score is (hen calculated by adding up the numbers below the line checked on each scale. A high total
score is assumed to reflect a relationship orientation and a low score, a task orientation by the leader. The LPC
measure is controversial because researchers disagree about its validity. This is because some of the LPC measures
show whether the score is an index of behavior, personality or some other unknown factor.
According to Fielder, the contingency factor favours the situation from the leader's point of view. This factor is
determined by leader-member relations, task-structure and position-power, which are discussed as below:
 Leader-member relations: A Leader-member relation refers to the nature of relationship between the leader
and his work group. If the leader and the group enjoy mutual trust, respect, confidence and they like one
#69
another, relations will remain good. If there is little trust, respect or confidence and. if they do not like one
another, relations will remain bad. Good relations are assumed to be favourable and bad relations unfavorable.
 Task-structure: Task-structure is the degree to which the group's task is clearly defined. When the task is
routine, easily understood, and unambiguous and when the group has standard procedures, the structure is
assumed to be high. When the task is non-routine, ambiguous, complex, with no standard procedures and
precedents, structure is assumed to be low. High structure is more favourable for the leader and low structure
is unfavorable. If the task structure is low, the leader will have to play a major role in guiding and directing the
group's activities. If the task structure is high, the leader will not have to pay much attention.
 Position-power: Position-power is the power vested in the position of a leader in an organization. If the leader
has the power to assign work, administer rewards and punishment, recommend employees for promotion or
demotion, position-power is assumed lo be strong. If the leader does not have required powers, the positionpower is weak. From the leader's point of view, strong position power is favourable and weak position power is
unfavorable.
Fielder and his associates conducted various studies highlighting if a situation favors the leadership and
group effectiveness or not.
When the situation includes good relations, high structure and strong power, a risk-oriented leader to lie
most effective. However, when relations are good but task structure is low and position-power is weak, LI relationshiporiented leader is considered to be most effective.
 A final point about LPC theory is that, Fielder argues that any particular-type of leadership, which is measured
by the LPC is inflexible and cannot be changed. In other words a leader cannot change his behavior to fit a
particular situation. Fielder's contingency theory has been criticized on the ground that LPC measure lacks
validity and that the assumption about the inflexibility of the leader's behavior is unrealistic.
(d)
The Path-Goal theory
The path-goal model of leadership was introduced by Martin Evans and Robert House. Path-goal theory says that a
leader can motivate subordinates by influencing their expectations. Leaders can motivate sub-ordinates by making
clear what they have to do to get the reward they desire. The path-goal model assumes that leaders can change their
style or behavior to meet the demands of a particular situation. This model identifies four kinds of leader behavior:
directive, supportive, participative and achievement-oriented. According to this model managers can adjust their
behavior to include any four kinds of leadership behavior mentioned above. For instance, while leading a new group of
sub-ordinates, the leader may be directive in giving guidance and instructions to them. He may also adopt supportive
behavior to encourage group cohesiveness, to look after their needs and ensuring that they get the rewards and
benefits. As the group becomes more familiar with the task and as new problems are taken into consideration, the
leader may use participative behavior by which he can participate with employees in making decisions and take their
suggestions as well. Finally, the leader may use achievement-oriented behavior to encourage continued high
performance of sub-ordinates.
Environmental characteristics are factors, which are beyond the control of subordinates. It includes task
structure, the primary work group and the formal authority system. For instance, when structure is high, directive
leadership is less effective than when structure is low. Sub-ordinates do not usually need their boss to repeatedly tell
them how to do a routine job. According to the path-goal theory, these environmental factors can create uncertainty for
employees. A leader who helps employees reduce such uncertainty can motivate them. The figure 14.1 shows the path
goal model of leadership.
#70
Leaders do not always have control over environmental factors, but the theory emphasizes that leaders can use the
control they want, to adjust the environment and to motivate sub-ordinates.
(e)
The Vroom-Yetton-Jago Theory (VYJ)
The Vroom-Yetton-Jago model was first introduced by Vroom and Yetton in 1973 and was revised by Vroom and Jago
in 1988, This model has a much less focus than the path-goal theory. It helps a leader to determine the extent, to which
employees should participate in the decision-making processes,
The VYJ theory argues that decision-effectiveness is best judged by the quality of decision and by the
acceptance of that decision on the part of employees. Decision acceptance is the extent to which employees accept
and are loyal to their decisions.
To maximize decision effectiveness, the VYJ theory suggests that leaders adopt one of five decision-making
leaderships. The appropriate leadership depends on the situation. As summarized in the following table, there are two
autocratic types of leadership, which are AI and All, two consultative types of leadership, which are CI and CII and the
other one is group GII.
Decision-Making Styles in the VYJ model
Decision Style
Description
AI
Manager makes the decision alone.
AII
Manager asks for information from subordinates but makes (he
decision alone. Sub- ordinates may or may mil be informed
about what the situation is.
CI
Manager shares the situation with individual subordinates and
asks for information and evaluation. Subordinates do not meet
as a group and the manager alone makes the decision.
C II
Manager and subordinates meet as a group to discuss the
situation but the manager makes the decision.
G II
Manager and subordinates meet as a group to discuss the
situation and the group makes the decision.
A = Autocratic; C= Consultative; G = Group
The situation is defined by a series of questions about the characteristics or attributes of the problem under
consideration. To address the questions, the leader uses one of the four decisions. Two of them are used when the
problem affects the entire group. For example, a decision about the facilities to be given to employees in a new office
affects the entire group and the other two are appropriate when the decision affects a single individual only. e.g. a new
office for that individual only.
#71
Moreover, one of each is to be used when the decision has to be made quickly because of some urgency and
the others arc to be used when the decision can be made more slowly and the leaders wants to use the opportunity to
develop subordinates' decision-making abilities.
The VYJ model was criticized because of its complexity. Computer software has been developed to aid leaders
in defining the situation, answering the questions about the problem attributes and developing a strategy for decisionmaking participation.
Although the VYJ model is too new to have been thoroughly tested, evidence so far indicates that this model
can help leaders to choose the most effective way to include the sub-ordinates in decision-making.
OTHER CONTINGENCY APPROACHES
In addition to these three major theories, there are other contingency models or theories developed in recent years. The
other models are as follows:
 Vertical Dyad Linkage Model: This model stresses the .fact that leaders actually have different kinds of
working relationship with different subordinates. Each manager-subordinate relationship represents one vertical
dyad. The Vertical Dyad Linkage model suggests that leaders establish special working relationships with some
subordinates based on some combination of respect, trust and liking. These people constitute the ‘in-group’.
Other subordinates remain in the ‘out-group’s, who receive less of leader's time and attention. Those in the 'ingroup' receive more of the manager's time and attention and are better performers. Research shows that
people in the ‘in-group’ are more productive and more satisfied with their work than ‘out group’ members.
 Life Cycle Model: The life cycle model suggests-that appropriate leader behavior depends on the maturity of
the followers. In this context, maturity includes motivation, competence and experience. The model suggests
that as followers become more mature, the leader needs to move gradually from high to low task orientation.
Simultaneously, the leader's employee-oriented behavior should start low, increase at a moderate rate and
then decline again.
Many leaders are familiar with the life cycle theory because it is both simple and logical. However, it has
received little scientific support from researchers.
EMERGING PERSPECTIVES ON LEADERSHIP IN ORGANIZATIONS
The new perspectives that have attracted attention are the concepts of substitutes for leadership and transformational
leadership.
Substitutes for Leadership
The existing leadership theories and models try to specify what kind of leader’s behavior is appropriate for different
situations. They do not take into consideration, the situations where the leadership is not needed. The substitute
concept identifies the situations where the characteristics of the subordinates, the task and the organization replace
leaders' behaviors. For example, when a patient is admitted to an emergency room in a hospital, nurses, doctors and
attendants act immediately without waiting for directive or supportive behaviors of leaders in an emergency ward.
Several characteristics of the sub-ordinate may serve to replace or change .the behavior of the leaders. For
example, employees with much ability and experience may not need to be told what to do. Similarly, a strong need for
independence by the sub-ordinate may result in ineffectiveness of leaders’ behavior.
Characteristics of the task that may substitute the leadership include, the availability of feedback and intrinsic
satisfaction. For example, when the job is routine and simple, the subordinate may not need direction. When the task is
challenging, the subordinate may not need or want support.
Organizational characteristics that may substitute for leadership include formalization group cohesion,
inflexibility and a rigid reward structure. For example, when policies are formal and rigid, leadership may not be needed.
Transformational Leadership
Another new concept of leadership goes by a number of labels: charismatic leadership, inspirational leadership,
symbolic leadership and transformational leadership. This is a leadership that transmits a sense of mission, increases
teaming experiences and inspires new ways of thinking.
Charisma is a form of interpersonal attraction. Charismatic people attract followers and this type of leader has
great power over his or her followers. Charismatic leaders are self-confident and can influence others. The followers of
a charismatic leader identify with the leader's beliefs, accept, trust and obey the leader without questioning him and
thereby contribute toward the success of the organizational goals.
Leadership Skills
There is now recognition in both leadership theory and practice of the importance of skills, how leaders should behave
and perform effectively. Although there are many skills, such as cultural flexibility, communication, HRD, creativity, and
self-management of learning, the research-based skills identified by Whetten and Cameron seem to be most valuable.
Their personal skills model, involving developing self-awareness, managing stress and solving problems creatively; the
interpersonal skills model, involving communicating supportively, gaining power and influence, motivating others and
managing conflict, are especially comprehensive and useful. Finally, the widely recognized organizational behavior
.techniques such as, training, job design and leaders can also effectively use behavioral management.
#72
LESSON -15
STRESS MANAGEMENT
Learning Objectives
After reading this lesson, you should be able to understand:
 The meaning of stress
 Various sources of stress
 Various effects or consequences of stress
 Various methods of managing stress
The nature of stress has been studied by scholars in a wide range of academic disciplines. Physicians, psychiatrists,
and researchers in management have all studied its causes and its symptoms, and have defined the term in a variety of
different ways. Stress is defined as "the reactions of individuals to new or threatening factors in their work
environments”.
Stress can be either positive or negative. Some new work situations can bring us positive challenges and
excitement. For example, promotions to new jobs present employees with positive stress. Employees may feel anxious
about their new work assignments; they also anticipate them eagerly and look forward to the additional challenges,
rewards, and excitement. In these cases, the new and uncertain job situations create positive stress. The positive
stress is also called the eustress. However, there are certain other types of work that are very threatening and anxietyarousing. For example, depression in the economy can create negative stress for sales personnel, because they will be
much more anxious about making sales commissions and sales quotas.
For every individual there is an optimum level of stress under which he or she may perform to full capacity. If
the stress experienced is below this optimum level, then the individual gets bored, the motivational level to work
reaches a low, point, and apathy sets in. If one operates in a very low stress environment and constantly experiences
boredom, the person is likely to psychologically or physically withdraw from work. Psychological withdrawal will result in
careless mistakes being frequently made, forgetting to do things, and thinking of things other than work during work
hours. Physical withdrawal will manifest itself in increased rates of tardiness and absenteeism, which may ultimately
lead to turnover. Though the optimum stress level is different Form different individuals, each individual can sense and
determine how much stress is functional for an individual to operate in a productive manner.
Research indicates that those who possess high tolerance of ambiguity, internal locus of control and selfesteem seem to effectively handle a high level of stress. An individual possessing high degree of tolerance for
ambiguity allows him to experience very little anguish while operating under conditions of insufficient information or in
an uncertain environment. People with an internal locus of control also handle stress well since they feel they are in
control of the situation, rather than feeling controlled by the situation they are facing. This makes it possible for them to
manage their environmental stress without experiencing its harmful effects. Those with high self-esteem also handle
stress with ease since a high self-esteem increases the confidence and enables them to deal with stressful situations
with calmness and clear thinking. The more successfully one handles a stressful situation without panicking or getting
overwhelmed by it, the more confidently will the individual face further stressful situations. Thus, it is possible to raise
one’s capacity to handle in different situations.
SOURCES OF STRESS
Stress is a reality of our everyday life. There are both positive and negative stresses that come from our work and nonwork lives. As pointed out by Near. Rice, and Hunt (1980) and Sckaran (1986), among others, the work and non-work
domains of one's life are closely interrelated. The stresses and strains experienced in one domain are carried over to
the other. Thus, if one experiences stress at work, that stress will be carried over to the home.
One major source of job stress is the job itself. The way the job is designed, the amount of time pressure an
individual faces and the amount of expectations others have of a person at work can all lead to job stress. Interpersonal
relationships are a second source of job stress. How much contact an individual has with coworkers and managers,
how much time he or she deals with clients or consumers, and how pleasant those interactions are all influences of how
much stress an individual experiences at work. Third source is problems in personal lives, which can spill over into the
work environment, adding further tension to an already stressful work situation.
SOURCES OF JOB STRESS
 Job Characteristics
o
Role ambiguity
o
Role conflict
o
Role overload o Ethical dilemmas
 Interpersonal Relationships
o
Amount of contact with others
#73


o
Dealing with people in other departments
o
Organizational climate
Organizational Factors
Personal Factors
o
Career concerns
o
Geographical mobility
o
Rate of life change
Job Characteristics
A major source of job stress is a person's role in the organization. A role is simply the set of expectations that other
people in the organization have for an individual, For example, supervisors, coworkers, customers and suppliers expect
an employee to behave in certain predictable ways. The expectations others have of an employee arc sometimes
unclear, in conflict, or too high for the employee to meet within the time allotted, and he or she experiences stress.
 Role Ambiguity: When there is a lot of uncertainty surrounding job definitions or job expectations, people
experience role ambiguity. With the recent increase in mergers and acquisitions among major organizations,
more and more employees arc experiencing job stress as a result of role ambiguity. Role ambiguity is anxiety
arousing among employees that leads to job stress.
 Role Conflict: Often employees discover that different groups of people in an organization have widely varying
expectations of them, and that they cannot meet all those expectations. This inconsistency of expectations
associated with a role is called role conflict, which results in stress.
 Role Overload: Role overload is a situation in which employees feel they are being asked to do more than
time or ability permits. Working under time pressure is especially stressful.
 Role Underload: Role Underload is the condition in which employees have too little work to do or too little
variety -in their work. For example, salespeople in a store with no customer, standing around all day with
nothing to do, could be said to experience role underload. Ironically, role underload leads to low self-esteem,
increased frequency of nervous symptoms and increased health problems.
 Ethical Dilemmas: Ethical dilemmas such as whether or not one should report the observed unethical
behaviors of another person can cause extreme levels of stress in individuals. This will be especially true for
those who have strong moral values of right and wrong and a deep sense of personal and corporate social
responsibility. Tensions arise because one might have to contend against one's own colleagues who might be
close friends, and may fear of reprisal and other undesirable consequences.
Interpersonal Relationships
Another major source of stress in organization is poor interpersonal relationships with supervisors, subordinates,
coworkers. or clients. When interpersonal relationships at work are unpleasant, employees develop a generalized
anxiety, a diffuse feeling of dread about upcoming meetings and interactions. Three aspects of interpersonal
relationships at work, which have a negative impact on job stress, are as follows:
 Amount of contact with others: Jobs vary in terms of how much interpersonal contact is built into them. Too
much prolonged contact with other people can cause stress.
 Amount of contact with people in other departments: Having contacts with people outside one's own
department creates a special sort of stress. People in other departments do not always have an adequate
understanding of jobs outside their own areas, which can cause stress.
 Organizational climate: The overall psychological climate of the organization can create stress. When day-today life in an organization is marked by unfriendly, distant, or hostile exchanges, employees are continually
tense and this causes stress.
Organizational Factors
Following are the organizational factors that cause stress in individuals:
 Work environment factors such as noise, heal, poor lighting, radiation and smoke are stress-inducing agents.
 Insufficient resources such as time, budget, raw materials, space or manpower also induce stress in the work
environment. When one has to produce and perform with inadequate resources on a long-term basis, this
naturally imposes stresses and strains on the individuals who are responsible for getting the job done.
 Structural factors in the organizational setting such as staff rules and' regulations and reward systems, may
cause stress.
 Lack of career promotion in organizations may be sometime cause stress.
 Environmental factors of stress include sudden and unanticipated changes in the marketplace, technology, the
financial market and so on.
Personal Factors
#74
Employees’ personal lives have a marked effect on their lives at work. If things are going well personally, they are more
likely to be upbeat and optimistic. They have more energy and patience for dealing with problems at work. On the other
hand, if employees are having some personal problems, they might be more tense or distracted when they go to work.
Factors that influence how much stress people bring from their persona! lives to the work setting are as follows:
 Career Concerns: One major career concern that can cause stress is lack of job security. A second career
concern that can cause employees stress is status incongruity, i.e., having jobs with less status, power and
prestige than they think they deserve.
 Geographical Mobility: Geographical moves create stress because they disrupt the routines of daily life.
When geographical moves arc undertaken as part of a job transfer, the moves can be even more stressful. The
transferred employees are likely to feel out of control at work, too, and experience their new work environments
as unpredictable.
EFFECTS OR CONSEQUENCES OF JOB STRESS
Negative stress has unpleasant consequences for them, their families and for the organizations they serve.
Effects on the Individual
The impacts of distress on individuals are of following types:
 The subjective or intrapersonal effects of stress are feelings of anxiety, boredom, apathy, nervousness, depression,
fatigue, and anger. Sometimes experiencing the stress may cause aggressive behaviors on the part of the
individual.
 The cognitive effects include poor concentration, short attention span, mental blocks and inability to make
decisions.
 The physiological effects can be seen in increased heart and pulse rate, high blood pressure, dryness of throat, and
excessive sweating.
 The behavioral effects arc manifest in such things as accident proneness, drinking, excessive eating, smoking,
impulsive behaviors, depression, and withdrawal behaviors.
 The manifest health effects could be stomach disorders, asthma, eczema, and other psychosomatic disorders. In
addition, the mental health, i.e. the ability lo function effectively in one's daily life, will also decline as excessive
stress is experienced.
Consequences for the Family
Negative stress, which is handled by individuals in dysfunctional ways, such as drinking or withdrawal behaviors, will
have an adverse effect on their home life. Spouse abuse, child abuse, alienation from family members, and even
divorce could result from dysfunctional coping mechanisms.
Consequences to Organizations
The adverse consequences on an organization include low performance and productivity, high rates of absenteeism
and poor decision-making. It also leads to lost of customers because of poor worker attitudes, increased alienation of
the worker from the job, and even destructive and aggressive behaviors resulting in strikes and sabotage. The stresses
experienced by employees who take on critical roles and are responsible for safety can sometimes be detrimental to
the public. For instance, the stresses experienced by a train driver or railway guard, or that of an airline pilot, navigator,
or air traffic controller may result in serious accidents. Needless to say that the costs of employee stress to the
organization in terms of lost profits, poor image and loss of future business are enormous.
METHODS OF MANAGING STRESS
Stress is a factor that everybody has to contend with on a daily basis both in the work and non-work spheres of life.
Since the body has only a limited capacity to respond to stress, it is important for individuals to optimally manage their
stress level to operate as fully functioning human beings.
There are several ways in which stress can be handled so that the dysfunctional consequences of stress can
be reduced. Some of them are:
Role Analysis Technique (RAT)
The Role Analysis Technique helps both the manager and the employee to analyze the requirements and expectations
from the job. Breaking-down the job into various components clarifies the role of the job for the entire system. This also
helps to eliminate reduction of work and thus lowering down the stress level.
Job Relocation
Job relocation assistance is offered to employees who are transferred, by finding alternative employment for the
spouses of the transferred employees and getting admissions in schools for their children in the new place. These
arrangements help to reduce the anxiety and stress for the moving family.
#75
Recreational Program
Providing recreational facilities, arranging group meditation programs, help to reduce the stress levels of the
employees.
Employee Assistance Program
Another widely used strategy is the employee assistance Programs, which offer a variety of assistance to employees.
These include counseling employees who seek assistance on how to deal with alcohol and drug abuse, handling
conflicts at the work place, dealing with marital and other family problems.
Career Counseling
Career Counseling helps the employee to obtain professional advice regarding career that would help the individual to
achieve personal goals. It also makes the employees aware of what additional educational qualifications or specialized
technical training, if any, (hat they should acquire. By becoming knowledgeable about the possible avenues for
advancement, the employees who consider their careers to be important can reduce their stress levels by becoming
more realistic about their options and can start preparing themselves for it.
Time Management
Another way of coping with stress is to manage time more effectively. People can learn to get better organized so that
they can do their work more efficiently.
Delegation
Another way of coping with job stress is to delegate some responsibilities to others. Delegation can directly decrease
workload upon the manager and helps to reduce the stress. !
More Information and Help
Some new employees have to spend more time on a job than necessary because they are not sure what they are
doing. So it is necessary that some help should be provided before doing the work that would lead to much efficient,
effective work. It would also reduce anxiety and stress among the employees.
Health Maintenance
Probably the most frequently used organizational stress management program is health maintenance. Many companies
invest large sum of money in gym and sport facilities for maintaining the health of the employees.
Supervisor Training
Another type of stress management Program that organizations are experimenting with is supervisor training. The
emphasis on supervisory training Program is how to prevent job stress. Managers are trained to give better
performance appraisals, to listen to employees’ problems more effectively, and to communicate job assignments and
instructions more clearly.
Individual Stress Reduction Workshops
Some organizations have also sponsored individual stress reduction workshops for their employees. These programs
include biofeedback, meditation to career counseling, time management and interpersonal skills workshops. In lectures
and seminars, participants are given a basic understanding of the causes of stress and its consequences. Then,
participants are given materials to help them identify the major sources of stress in their own lives, and some strategies
for dealing with that stress more effectively.
#76
LESSON-16
POWER AND POLITICS
Learning Objectives
After reading this lesson, you should be able to:
 Know the meaning and sources of power.
 Understand how people use power
 Discuss how people use political behavior in organizations
 Understand the techniques of political behavior
Power is easy to feel but difficult to define. It is the potential ability of a person or group to influence another person or
group. It is the ability to get things done the way one wants them to be done. Both formal and informal groups and
individuals may have power; it does not need an official position or the backing of an institution to have power.
Influence can take many forms. One person has influenced another if the second person's opinions, behavior or
perspectives have changed as a result of their interaction. Power is a factor at all levels of most organizations. It can be
a factor in almost any organizational decision.
POWER AND AUTHORITY
Sometimes power and authority is used synonymously because of their objective of influencing the behavior of others.
However, there is difference between the two. Power does not have any legal sanctity while authority has such sanctity.
Authority is institutional and is legitimate. Power, on the other hand, is personal and does not have any legitimacy. But
stilt, power is a crucial factor in influencing the behavior in organizational situation.
Sources of Power
John R. P. French and Bertram Raven identified five bases or sources of power: legitimate, reward, coercive, expert
and referent power.
Legitimate Power
A person's position within organization provides him with legitimate power. The organization gives managers the power
to direct the activities of their subordinates. Legitimate power is similar to formal authority and hence it can be created,
granted, changed or withdrawn by the formal organization. The structure of the organization also identifies the strength
of the legitimate authority by position location. For instance, higher-level positions exercise more power than lower-level
positions in a classical hierarchical organizational structure. Organizations vary in how much legitimate power they
grant to individuals. In such organizations, everyone knows who has the most power and few people challenge the
power structure.
Reward Power
This type of power is the extent to which one person has control over rewards that are valued by another. The greater
the perceived values of such rewards, the greater the power. Organizational rewards include pay, promotions and
valued office assignments. A manager who has complete control over such rewards has a good deal of power.
Manager who uses praise and recognition has also a good deal of power.
Coercive Power
People have, coercive power if they have control over some form of punishment such as threat of dismissal,
suspension, demotion or other method of embarrassment for the people. Perhaps, a manager can cause psychological
harm also lo an employee. A manager’s coercive power increases with the number and severity of the sanctions over
which the manager has control. Although the use of coercive power is often successful in the short run, it tends to
create resentment and hostility and therefore is usually detrimental to the organization in the long run.
Expert Power
It is more of personal power than organizational power. Expert power is that influence which one wields as a result of
one's experience, special skill or knowledge. This power occurs when the expert threatens to withhold his knowledge or
skill. Since any person who is not easily replaceable has more power as compared to those who are easily replaceable.
If the sub-ordinates view their superior as competent, and knowledgeable, naturally they will obey and respect the
superior. To the extent, that a low-ranking worker has important knowledge not available to a superior, he is likely to
have more power.
Referent Power
A person who is respected by certain others for whatever reason has referent power over those people. A person with
referent power may have charisma and people who respect that person are likely to get emotionally involved with the
respected person and identify with, accept and be willing to follow him or her. People with referent power are often
#77
imitated by others with the star's actions, attitudes and dress. This imitation reflects the rising star's power over the
imitations.
HOW PEOPLE USE POWER
An individual manager may have power derived from any or all of the five bases of power and the manager may use
that power in different1 ways. Therefore, good managers must try to analyse the sources of their power and be careful
how they use that power.
The work of Gary Yukl provides both a way to predict the consequences of certain uses of power and
guidelines for using power. The following table list^ the five sources of ;i leader's power and some of the variables that
are likely to lead to three general types of employee responses or outcomes-commitment, compliance and resistancewhen the leader uses the power. For instance, the table shows that a leader's use of referent power will lead
employees to be committed lo the leader’s project if they see that the project is important to the leader. However a
leader who relics on coercive power is very unlikely to have committed employees.
Using Legitimate Power
The use of legitimate power is seldom challenged in an organization; when a superior asks a sub-ordinate to do
something, the sub-ordinate usually complies without resistance. However, the way the superior makes the request and
follows it up are very important for ensuring the sub-ordinate’s future compliance and the growth of the superior's
referent power. Though the secretary does what the boss asks, still the boss could be cordial and polite when making
requests and should whenever possible explain why a particular task needs to be done. The secretary who
understands the importance of a task will be more likely to work enthusiastically on it.
The boss must follow normal procedures and make sure the request is appropriate. For instance, a vicepresident whose secretary is busy should not assume that he or she can just ask a supervisor's secretary to drop all
other work and type a letter. Such by passing of the normal chain of command can cause hard feelings among all the
people involved.
Most of these suggestions imply that managers must be sensitive to employees concerns. Managers who are
insensitive to their employees may find that their legitimate power dwindles and that they must resort to coercive power.
Using Reward Power
The manager, before giving a reward, must be sure that the employee has actually done the job and done it well.
Employees must know that they get rewarded for good work.
Using Coercive Power
For some people, using coercive power is a natural response when something goes wrong. But often employees resist
coercive power, resent it and losing respect for people using that type, of power. Hence, coercion is now generally
recognized to be the most difficult form of punishment to use successfully in an organization.
Managers who wish to maintain their credibility should make threats only when they intend to carry through on
them and should never threaten a punishment that they cannot bring about. A good manager will be such that the
punishment fit the crime. For instance, warning an individual who uses copying machine to make -personal copies but
firing someone who steals equipment from the organization. Public punishment makes everyone uneasy and
humiliating and hence should be done private.
Using Expert Power
To gain power from their expertise, managers must make people aware of how much they know. Manager can use his
expert power most effectively to address employee concerns. If a particular sales person faces any difficulty in selling a
particular product and turns to manager for his help, the manager must be able to identify the defect and must be able
to help and educate him.
Using Referent Power
Leaders have traditionally strengthened their referent power by hiring employees with backgrounds similar to their own.
One of the most positive and subtle uses of referent power is the process of rote modeling. A respected manager who
wants her employees to be punctual, considerate and creative can simply demonstrate those behaviors herself and her
employees will likely imitate her actions.
POLITICAL BEHAVIOR AND ORGANIZATIONAL POLITICS
Power and politics are inextricably interwoven with the fabric of an organization's life. In any organization, at any given
moment, a number of people are seeking to gain and use power to achieve their own ends. This pursuit of power is
political behavior. Organizational politics refers to the activities carried out by people to acquire, enhance and use
power and other resources to obtain their preferred outcomes in a situation where there is uncertainly or disagreement.
One great organizational scholar, Tushman defined politics, ‘as the structure and process of the use of authority and
power to affect definition of goals, directions and the other major parameters of the organization. Decisions are not
made in rational or formal way but rather through compromise accommodation and bargaining.
#78
Managing Political Behavior
The very nature of political behavior makes it difficult to manage or even approach in a rational and systematic manner.
However a manager who understands why people use political behavior and the techniques people usually employ has
the best chance to manage political behavior successfully.
People use political behavior in organizations in response to the five main factors:
 Ambiguous goals
 Scarce resources
 Technology and the environment
 Non-Programmed decisions
 Organizational change
FACTORS INFLUENCING POLITICAL BEHAVIOR
Ambiguous Goals
When the goals of a department or the entire organization are ambiguous then there is more room available for playing
politics. Some people may use the ambiguity to manipulate the situation for their benefit.
Scarce Resources
When resources are scarce, people have the tendency to use political behavior to make sure that they get the biggest
possible share of the resource.
CHANGES IN TECHNOLOGY AND ENVIRONMENT
Organizational effectiveness is largely a function of the organization’s ability to appropriately respond to external
environment which is highly dynamic and generally unpredictable as well as adequately adopt to complex technological
developments. Thus, political behavior is increased when the internal technology is complex and when external
environment is highly volatile.
Non-Programmed Decisions
Sometimes, the companies have to make a lot of non-Programmed decisions on certain issues. These decisions are
not based on clear standards and precedents, because such issues involve many factors and variables that are
complex in nature. Hence decisions are taken on intuition, bunch and guesses and all these subjective feelings can be
affected by political behavior.
Organizational Change
Whenever there are changes in the organizational structure and policies, peoples in powerful positions have the
opportunity to play politics. These changes may include restructuring of a division or creating a division, personnel
changes, introducing a new product line and all these changes influence political behavior when various individuals and
groups try to control the given situation.
It is widely accepted that managers have to be politicians in order to maintain their positions in the
organizational hierarchy as well as serve the interests of their units. Pfeiffer, who has done extensive research on -the
subject of power in organizations, states as follows:
“If there is one concluding message, it is that it is probably effective and it is certainly normal that these
managers do behave as politicians. If is even better that some of them are quiet effective at it. In situations in which
technologies are uncertain, preferences are conflicting, perceptions are selective and biased and information
processing capacities are constrained, the model of an effective politician may be an appropriate one for both the
individual and for the organization in the long-run”.
TECHNIQUES OF POLITICAL BEHAVIOR
The most commonly used techniques of political behavior are:
 Controlling information
 Controlling lines of communication
 Controlling agenda  Using outside experts

:
Game playing
 Image building
 Building coalitions
One technique of political behavior is to control the dissemination of critical information to others. The more critical
(he information and fewer the people who have it, the stronger is political power base of those who possess these
information.
Controlling lines of communication is another political technique related to the flow of information. People who have
some control over lines of communication can yield considerable political power. For example, the secretary may have
#79
considerable power in deciding who sees the boss and who does not at a given time. She may use this power in
favoring those whom she likes and frustrating those against whom she may have it grudge.
Controlling the agenda also gives a person power over information. The person who controls a meeting's agenda,
for instance, may consistently put a particular item last on the list and then take up time so that meeting adjourns before
considering the item.
The opinions of outside experts and consultants often curry much weight in organizations and many consultants
can be swayed by political interests. Consultants know who is paying them and even honest consultants are likely to
give opinions consistent with those of their employer. Hence, hiring an outside consultant can be a clever political
move.
Game playing can range from fairly innocent to very manipulative. It involves people doing something insincere, but
not outright illegal or unethical to gain political ends. For instance, a manager who does not want to answer a
committee's tough questions may, for instance, avoid meeting by going out of the town on the day of meeting.
Image building is creating positive impression reflected by the personality, appearance and style. Some of the
factors that enhance a preferred image consist of being well dressed, having a pleasant smile, being attractive, honest,
sociable and loyal to the organizational interests. In addition, always project an image of competence and selfassurance.
Building coalitions or alliance is another technique of gaining political power. It is necessary to have the alliance
with the right people. Coalition building can become simply a matter of quid pro quo: I will support you if you will support
me.
Managing Political Behavior
Though it is virtually impossible to eliminate political behavior in organizations, it is possible to reduce it, if a manager
understands the reasons for it and the techniques of political behavior. Politics when carried to the extreme can
damage morale, create enemies, destroy loyalty, damper co-operative spirit and much time and energy is spent
planning attacks and counter attacks which are detrimental to organizational health. Accordingly, combating politics
must be undertaken by the top management and some of the steps that can be undertaken are: open communication,
reduction of uncertainty and creating awareness.
Open communication can reduce the political activity if all employees know how and why an organization
allocates resources, the employees will be likely to put their energy into meeting the stated criteria for gelling resources
rather than into political activity. If the organization is open about why it made particular decision, then employees will
he less likely to think that the decisions were political and less likely to use political techniques to try to influence the
next decision.
Uncertainty in the form of ambiguous goals and changes that affect the organization tends to increase the use
of political activity. Reducing such uncertainty can, therefore, reduce the political behavior. Open communication is one
of the ways an organization can reduce uncertainty. For instance, laying down clear criteria and making it transparent to
the employees who will be laid off, in case of lay off the organization can reduce political behavior.
Finally, managers who develop an ability to recognize and predict political activity are in the best position to
limit its effects. Managers with this awareness will expect an increase in political activity during times of organizational
change and will learn how to handle it.
#80
LESSON -17
ORGANIZATIONAL DESIGN
Learning Objectives
After reading this lesson, you should be able to:
 Understand the concept of organizational design
 Identify the determinants of organizational design
 Know the various forms of organizational design
CONCEPT OF ORGANIZATIONAL DESIGN
Organizational design is the overall configuration of structural components that defines jobs, groupings of jobs, the
hierarchy, patterns of authority, approaches to co-ordination and line-staff differentiation into a single and unified
organizational system. Consider, for example, the differences in organizational design that might exist between a
computer manufacturer and university. Since the computer manufacturer has to respond to frequent technological
breakthroughs and changes in its competitive environment, it is likely to have a relatively flat and decentralized design
whereas the university has a more stable environment and is less affected by technology. Therefore, it has a more
centralized structure with numerous rules and regulations.
DETERMINANTS OF ORGANIZATIONAL DESIGN
The key situational determinants of organizational design are technology, organizational environment, and organization
size and life cycle.
 Technology: Technology is the set of processes that an organization uses to transform various resources such
as materials and labor into products or services. Joan Woodward was the first person to see the link between
technology and organizational design. In particular. Woodward defined three basic types of technology.
 In unit or small-batch technology, products are manufactured according to customer specifications in small
quantities. Examples are printing press and studios.
 In large batch or mass-production technology, products. are manufactured in assembly-line fashion by
combining component pans to create finished goods. Examples are home-appliance," automobile and
computer manufacturers.
 In continuous-process technology, products are transformed from raw materials into finished goods through a
series of machine transformations that change the composition of the materials themselves. Examples are
petroleum refiners, food processors and chemical manufacturers.
Woodward viewed unit or small-batch technology as -the least complex while the continuous process
technology as the most complex. She found that organizations within each set had similar designs but the
designs varied somewhat from set to set.
Bums and Stalker argued that managers should examine the rate of change in technology to determine
the best organizational structure. They recommended a bureaucratic or mechanistic structure for organizations
with slowly changing technology and an organic or flexible structure for organizations with rapidly changing
technology.
Charles Perrow concluded that me key question concerning an organization’s technology is whether it is
routine or non-routine. In his view, a highly formalized centralized structure is appropriate for an organization
that uses the same routine technology while a more flexible structure is necessary for an organization that often
uses new technology. '
An organization that uses continuous process, non-routine or intensive technology needs to ensure that
its structure can adapt to changes in the technologies. Technology can affect all aspects of an organization, not
just production and the same technological change can have very different effects on different organizations.

Environment: The environment also influences the type of design an organization is likely to adopt. The
environment of an organization consists of all the factors and conditions outside the organization that might
affect it. which include customers, shareholders competitors, legislatures and regulatory agencies, economic
factors, which include interest rates, unemployment rate, finance, objects, which include buildings, machines
and events, which include as elections, war, floods etc.
If the managers are good at analyzing and predicting changes in the environment, then, they can help
the organization to take advantage of any change. Since the environment affects organization both directly and
indirectly, therefore, the managers must keep an eye on it and be ready to modify organization's design to
respond to environmental changes.
#81

Organizational Size and Life Cycle: Organization size refers to how large : the organization is, usually, in
terms of the number of its full-time employees. Life cycle refers to organization's maturity relative to that of
other organizations.
Size can affect organization design in many different ways. A group of researchers in England found that large
organizations tend to have more job specialization, more standard operating procedures, more rules and regulations,
and more decentralization than small organizations. Thus, as organizations grow in size, they should be prepared to
adapt their design accordingly.
An organization's life cycle is related to its size. Organizations tend to follow a predictable pattern of growth.
After they are created, they grow for some period of time and then eventually stabilize as a mature organization.
To summarize, an organization design needed by a small but rapidly growing business is different from an
organization design needed by an established and entrenched industry giant growing at a stable and predictable rate.
An organization's life cycle and growth rates are directly linked to the strategy that the organization is pursuing. The
following figure 17.1 shows the organization cycle.
CONTEMPORARY FORMS OF ORGANIZATIONAL DESIGN
Every organization has its own unique design depending on its technology. limits and potentials of" its environment and
the life cycle stage it follows. Following are the various forms of an organization based on their design:
 The U-Form Organization: In the U-form organization. U stands for Unity, It is also called as "functional design
as it relies exclusively on the functional approach to departmentalization. Members of the organization who
perform the same functions arc grouped together into departments. Such organization requires perfect coordination to operate smoothly aiming the various departments, since each department is highly dependent on
another.
The U-Form design has several advantages. It allows an organization to staff each department with experts; it
also facilitates wide spans of management and helps the Managing Director to maintain centralized authority.
However, the U-form design shows decision-making and employees within each department may
concentrate on their own function forgetting overall organizational goals. It tends to make it hard for
organization to monitor the performance of individual managers within each functional area. When the
organizations grow, they often find that the disadvantages of the U-form tend 10 become more significant and
adopt different designs as they evolve through their life cycles.
The H-Form Organization: In the H-form organization, H stands for Hybrid and is also known as conglomerate. The
design relics on product departmentalization with the various products constituting different businesses. This design
usually results from the corporate strategy of unrelated diversification of the products.
This design has two advantages. First, such an organization can protect itself from cyclical fluctuations in a single
industry. The loss in one product is compensated by profit in another. Secondly, an organization can buy and sell its
individual businesses with little or no disruption to the others. The main disadvantage of this form of organization is that
it is complex and diverse thereby creating difficulty for top managers in having knowledge about all products. The figure
17.2 shows the H-form organization.
#82

The M-Form Organization: In the M-form organization M stands for Multi-divisional and it is called the
divisional design. It is similar to the H-form design but has one notable distinction. Most of its businesses are in
the same or related industries. For example, an organization with an M-form design might own one business
that manufactures automobile batteries, other that manufactures lyre and still another that manufactures car
polish. Although each is distinct from the other but still related, in terms of manufacturing products that is used
by automobile owners. Thus, the M-form design is used to implement a corporate strategy of related
diversification.
A primary advantage of the M-form organization is that it can achieve a great deal of synergy in its
operations. For example, a consumer familiar with an organization’s batteries will be inclined to buy its tyres
and car polish. Moreover, because the various units are in the same or related businesses, it is easy for top
managers to understand, co-ordinate and control them. However, if the businesses are too closely related, 'the
organization cannot escape from the effect of cyclical fluctuations.


The Matrix Organization: A matrix organization is created by overlaying product-based departmentalization on
lo a functional structure. A matrix design is seldom used for an entire organization and is often used for a
portion of it. Figure 17.3 shows the matrix organization.
A matrix design allows an organization to capitalize on the advantages of both functional and product
departmentalization. It has also some drawbacks such as an organization lacks a clear chain of command
thereby 'resulting into confusion about which manager lies authority over a given employee. The organization
also has to devote more resources to coordination because of high levels of interdependence that result from a
matrix.
Global Organization: An organization, which has assets in more than one country other than its home country
is called as global organization. Such companies have offices and/or factories in different countries and usually
have a centralized head office where they coordinate the global management. These organizations have
centralized head office in their home country that controls their various office in other parts of the world.
#83
A global organization must modify and adapt its design to allow it to function effectively. e.g. Nestle is a big
global organization and highly decentralized. Us organizational design is like an umbrella. Nestlé’s various
organizations scattered around the world are operated by its own general managers, who arc empowered with
a great deal of autonomy and authority to make decisions. As a result, Nestle is almost a confederation of
independent operating organizations. Its design is similar to the M-form but because the operating units are so
far apart that there is little synergy.
It is to be remembered that there is no one best form of design that all organizations should adopt. Each
organization has to carefully assess its own strategy, its strengths and weaknesses, its history, its technology,
environment, life cycle and size. It must then choose a design that fit these elements most effectively.
#84
LESSON -18
ORGANIZATIONAL CULTURE AND CLIMATE
Learning Objectives
After reading this lesson, you should be able to understand:


Organizational culture and explain its importance.
Factors affecting organizational climate
CONCEPT OF ORGANIZATIONAL CULTURE
Organizational culture is the set of values that states what an organization stands for, how it operates and what it
considers important. According to Deal and Kennedy, a strong culture is. "a system of informal rules that spells out how
people have to behave most of the time". Schein defines organizational culture as the pattern of basic assumptions that
a given group has invented, discovered and developed while learning to cope with its problems of external adaptation
and internal integration.
All the above definitions stress acceptable and unacceptable behavior of its members. For instance, one
organization might value solidarity and loyalty to organization more than any other value whereas another organization
might stress on good relations with customers. Such values are part of organizational culture in spite of not being
formally written like rules and regulations of the organization. They do not usually appear in the organizational training
Program and in fact, many organizations have difficulty in expressing their cultural values. However, an organization's
values automatically enter every employee's personal values and actions over a period of time. Organizational culture
has a profound influence on individual employees because it is generally an accepted set of values rather than a written
set of rules with which employees might not argue.
Importance of Culture
Culture plays a very significant role in any organization by communicating information about the overall acceptable and
unacceptable behavior. Culture communicates whether the organization expects its managers to be aggressive or
conservative in decisions-making, generous or moderate in supporting social causes and ruthless or kind in competitive
dealings.
Some organizations have clear, strong and well-defined culture whereas: others have ambiguous, weak and
poorly defined cultures. Most managers agree that a strong and clear culture is preferable to weak and vague culture
because it helps to provide a common frame of reference for managerial decision-making and a wide variety of other
organizational activities.
An organizational culture generally lakes shape over time and is often deeply influenced by the values of the
organizational founders. As organizational culture evolves, various symbols, stories, heroes, slogans and ceremonies
also come into being. These, then, serve to maintain and perpetuate the culture through subsequent generations of
employees.
Changing Organizational Culture
Change is most often needed when the organization has lost its effectiveness and is struggling to either" carry out or
change its strategic goals. The manager trying to change an organizational culture faces lots of difficulties. Because
organizational culture embody the organizational values, which are embedded in organization's soul that stays stable
irrespective of the changes in leadership and environment.
It is, however, possible to change organizational culture, to improve the organization performance. For this
managers must change employee's ideas about what is and what is not appropriate behavior. They must create new
role model and new stories to help employees understand the meaning of what is happening around them. One way to
brine about such changes is to manage the symbols that are important to the organization. An organization's
suggestion box is a symbol of an organization's openness to the ideas of the employees. Some organizations try to
emphasize the importance of employees’ ideas by rewarding them for their suggestions. However, if the suggestion box
remains just a symbol and organization never translates the suggestions into actions, the box will have little effect on
organization morale.
Once successfully made, changes in the organizational culture will be as stable as the old culture was.
However, any organization willing to change its culture must realize that such a change is never easy and cannot be
brought about simply by ordering employees.
Organizational Climate
Even though organizational culture and organizational climate are sometimes used interchangeably, there are certain
differences between the two. According to Bowditch and Buono. "Organizational culture is concerned with the nature of
#85
beliefs and expectations about organizational life, while climate is an indicator of whether those beliefs and
expectations are being fulfilled." Organizational climate is a relatively enduring quality of the internal environment that is
experienced by its members, influences their behavior, and can be described in terms of the values of a particular set of
characteristics."
It is a set of characteristics and factors of the organization that are perceived by the employees and, which serve as a
major force in influencing their behavior. These factors may include job descriptions, performance arid evaluation
standards, leadership style, challenges and innovations.
FACTORS AFFECTING ORGANIZATIONAL CLIMATE
In every organization, there exist certain factors that exert deep influence on the climate. Schneider and Barlett
describe six factors that have an influence over organizational climate such as managerial support, inter-agency
conflict, agent dependence and general satisfaction. Lawrence James and Allan Jones have identified five factors
influencing climate, which include management philosophy, organizational structure and process, which include
communication, motivation and leadership, physical environment and values. Similarly, Kahn has identified factors such
as rules orientation, the nurture of subordinates, strict supervision and promotional achievement orientation. Thus, it is
very difficult to generalize exactly the factors affecting the climate.
Organizational climate has a major influence on human performance through its impact on the motivation, job
satisfaction and attitudes of people.
#86
LESSON - 19
ORGANIZATIONAL EFFECTIVENESS
Learning Objectives
After reading this lesson, you should be able to understand:


The concept of organizational effectiveness
Factors contributing organizational effectiveness
CONCEPT OF ORGANIZATIONAL EFFECTIVENESS
Organizational effectiveness is defined as an extent to which an organization achieves its predetermined objectives
with the given amount of resources and means without placing undue strain on its members.
Sometimes efficiency and effectiveness are used as synonyms. However, there exists a difference between the
two concepts. Therefore, it is important to explain the difference between the concepts of effectiveness and efficiency to
understand why organizations may he effective bin not efficient, or efficient but not effective. Effectiveness is a broad
concept and takes into account a collection of factors both inside and outside an organization. It is commonly referred
to as the degree to which predetermined goals are achieved. On the other hand, efficiency is a limited concept that
pertains to the internal working of an organization. It refers to an amount of resources used to produce a particular unit
of output. It is generally measured as the ratio of inputs to outputs.
Further, effectiveness concentrates more on human side of organizational values and activities whereas
efficiency concentrates on the technological side of an organization. However the concept of effectiveness is not simple
because there are many approaches in conceptualizing this term. Such approaches can be grouped into following three
approaches:
 Goal Approach,
 Functional Approach
 System Resource Approach
Goal Approach
Goal attainment is the most widely used criterion of organizational effectiveness, in goal approach, effectiveness refers
to maximization of profits by providing an efficient service that leads to high productivity and good employee morale.
Campbell has suggested several variables such as, quality, productivity, efficiency, profit, turnover, accidents, morale,
motivation and satisfaction, which help in measuring organizational effectiveness. However, none of the single variable
has proved to be entirely satisfactory.
The main limitation of this approaches the problem of identifying the real goals rather than the ideal goals.
Functional Approach
This approach solves the problem of identification of organizational goals. Parson states that since it has been
assumed that an organization is identified in terms of its goal, focus towards attainment of these goals should also aim
at serving the society. Thus, the vital question in determining effectiveness is how well an organization is doing for the
super-ordinate system.
The limitation of this approach is that when organizations have autonomy to follow its independent courses of
action, it is difficult to accept that ultimate goal of organization will be to serve society. As such, it cannot be applied for
measuring organizational effectiveness in terms of its contributions to social system.
Both the goal and functional approach do not give adequate consideration to the conceptual problem of the
relations between the organization and its environment.
System Resource Approach
System-resource approach of organizational effectiveness emphasizes on interdependency of processes that relate the
organization to its environment. The interdependence takes the form of input-output transactions and includes scarce
and valued resources such as physical, economic and human for which every organization competes.
The limitation of this model is that an acquisition of resources from environment is again related to the goal of
an organization. Therefore, this model is not different from the goal model.
Thus, discussion of organizational effectiveness leads to the conclusion that there is no single indicator of
effectiveness. Instead, the approach should focus on operative goals that would serve as a basis for assessment of
effectiveness.
Managerial effectiveness is a causal variable in organizational effectiveness. It has been defined in terms of
organizational goal-achieving behavior, i.e., the manager's own behavior contributes to achievement of organizational
goals.
FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS
Likert has classified the factors affecting organizational effectiveness into following three variables:
 Causal
 Intervening
 End result
#87
Causal Variables
Causal variables are those independent variables that determine the course of developments within an
organization and the objectives achieved by an organization. These causal variables include only those independent
variables, which can be altered by organization and its management. Causal variables include organization and
management's policies, decisions, business and leadership strategies, skills and behavior.
Intervening Variables
Intervening variables according to Likert are those variables that reflect the internal state and health of an
organization. For example, loyalties, attitudes, motivations, performance goals and perceptions of all the members and
their collective capacity for effective interaction, communication and decision-making.
End-Result Variables
End-Result variables are the dependent variables that reflect achievements of an organization such as its
productivity, costs, loss and earnings.
Inter-Relationship of Variables
The three variables such as causal, intervening and end-result ore interrelated. The inter-relationship may be
visualized as psychological process where stimuli or causal variables acting upon the organism or intervening variables
and creating certain responses or end-result variables. The causal, intervening and end-result variables comprise a
complex network with many interdependent relationships. The causal variables are the key to organizational effectiveness. Hence, to make organization effective, attempt should be made to improve the causal variables, while other
variables will be corrected or improved automatically because of causal variables. Figure 19.1 shows the relationship
among various variables.




Casual Variables
Leadership Style
Management
Decision
Organizational
Philosophy
Objectives and
policies
Technology





Intervening Variables
Commitment to
Objective
Motivation and
Morale
Communication
Leadership Skills
Conflict Resolution






End Results Variables
Production
Cost
Sales
Earning
Turnover
Management Union
Relationship
Decision –Making
Figure 19.1: Inter-relationship of Variables
The above model is quiet simple. The effectiveness model can be presented in a more complex way i.e. at
three different levels such as the individual, group and organizational levels in order to make the organization more
effective. Figure 19.2 shows Levels of Variables.
#88
The effective organization is built of effective individuals who work collectively in groups.
The extent to which individual and organizational goals are integrated, affects the degree of organizational
effectiveness, i.e., each individual tries to satisfy his goal by working in an organization and simultaneously satisfying
organizational minis. He may sec his goal satisfaction in satisfying organizational goals. If there is no perfect integration
of individual and organizational goals then organizational effectiveness is affected adversely. However, organizational
effectiveness is not a result of integration between individual and organizational goals only but there are other causal
variables affecting it.
Effectiveness through Adaptive-Coping Cycle
The organization must develop a system through which it can adapt or cope with the environmental requirements;
Schein has suggested that an organization can do this through the adaptive coping cycle, which consists of various
activities that enable an organization to cope with the dynamics of environment.
Adaptive-Coping cycle is a continuous process. There are six stages in the adaptive-coping cycle as follows:
1.
2.
3.
4.
5.
6.
Sensing of Change: The first stage is the sensing of change in internal or external environment. Most of the
organizations have adaptive sub-system such as marketing research, research and development and other
similar devices for effective coping with the environment.
Importing the Relevant Information: Organizations must be able to take the relevant information from the
environment, which constitutes the input.
Changing Conversion Process: The organization takes the inputs from environment for further processing,
normally known as conversion process.
Stabilizing Internal Changes: The fourth stage of the cycle is to stabilize an internal sub-system of an
organization, which is dependent on external, sub-system. This is because change in one may affect other
and this change can be either positive or negative.
Exploring New Outputs: When the internal change is stabilised, the organization can export new outputs,
which are in accordance with environment requirements.
Obtaining Feedback: The last stage in the cycle is to obtain feedback on the outcome of the changes for
further sensing the state of the external environment and the degree of integration of internal environment.
This is similar to first stage.
A successful coping suggests that all the stages have to be successfully-negotiated and failure at any of these
stages may result into ineffectiveness.
Following are the major organizational conditions for effective coping:
 There should be an effective communication system through which reliable and valid information can be
passed.
 There should be enough internal flexibility so that changes can be brought and absorbed by an organization.
 Successful coping requires integration and commitment to organizational goals, which provide willingness for
change.
 There should be supportive internal climate, which can support good communication, reduction in inflexibility
and stimulation of self-protection.
Maintaining organizational effectiveness requires additional efforts, especially when the major organizational
changes take place.
#89
LESSON - 20
MANAGEMENT OF CHANGE
Learning Objectives
After reading this lesson, you should-be able to understand:
 The concept of change in the organization
 Forces affecting the change
 Model and dynamics of planned change
 The reasons for resistance to change
 The method of overcoming resistance to change
Change simply refers to alteration in the existing conditions of an organization. Even in most stable organizations
change is necessary to maintain stability. The economic and social environment is so dynamic that without adapting to
such change even the most successful organizations cannot survive in the changed environment. Therefore,
management must continuously monitor the outside environment and be sufficiently innovative and creative to
implement these changes effectively.
Organizations encounter different forces for change. These forces come from external and internal sources of
the organization.
EXTERNAL FORCES
External forces for change originate outside an organization. There are four key external forces for change:
Demographic Characteristics: These include age, education, skill level and gender of employees. Organizations
need to effectively manage these characteristics in order to receive maximum contribution and commitment from their
employees.
Technological Advancements: Both manufacturing and service organizations are increasingly using technology as a
means to improve productivity and market competitiveness.
Market Changes: The emergence of a global economy is forcing Indian organizations to change the way they do
business. Organizations are entering into new partnerships with their suppliers in order to deliver higher quality
products at lower prices.
Social and Political Pressures: These forces are created by social and political events. Personal values affect
employees’ needs, priorities and motivation. Therefore, managers need to adjust their managerial style according to the
changing employee values. Political events also create substantial change in an organization. Although it is difficult for
organizations to predict changes in political forces, many organizations hire lobbyists and consultants to help them
detect and respond to social and political changes.
INTERNAL FORCES
Internal forces for change come from inside the organization. This may come from both human resource problems and
managerial behavior.
Human Resource Problems
These problems stem from employee perceptions about their work environment and conflict between an employee and
organization needs. Organizations might respond to these problems by using the various approaches to job design by
implementing realistic job previews and by reducing employees' role conflict, stress, work overload and ambiguity.
Managerial Behavior
Excessive interpersonal conflict between managers and their subordinates is a sign of implementing an immediate
change. Inappropriate leader behavior such as inadequate direction and support are the cause of conflict between
managers and their subordinates.
Nature of Change
Organizations introduce changes through people. Unless the people arc willing to accept the need and responsibility for
organizational change, intended changes can never be translated into reality. In addition, individuals have to learn to
adapt their attitudes and behavioral patterns to constantly changing environments.
Management of change involves both individual and organizational change. Individual change is behavioral
change, which is determined by individual characteristics of members such as their knowledge, attitudes, beliefs,
needs, expectations and skills. It is possible to bring about a total change m_ an organization by changing behaviors of
individual members through participative and. educative strategies. Although, the degree of difficulty involved in the
change and the time taken to bring about the change will depend on the target of change.
#90
The attitudes towards change are largely dependent on the nature of the situation and the manner in .which
changes are initiated and executed.
Changing individual behavior is more time consuming and a difficult task. The linkage between attitude and
behavior is not direct and therefore changing behavior is more difficult than changing attitudes. One's attitude does not
necessarily get reflected in one's behavior. For example, we know that honesty is the best policy and we have
favourable altitudes towards people- who are honest but in certain situations, we may still act in a less honest way.
Changing group behavior is usually a more prolonged and harder task. Every group has its own dynamics of
push and pull that attempt to neutralise the change that may have taken place in an individual. Due to this group
dynamics, individual member's ‘changed behavior’ may revert to earlier normative behavior in order to maintain the
change in the existing conditions. However, due to the same reasons of a group's over-riding influence on individual
members, sometimes it may be easier to tackle the group as a whole rather than trying to change the behavior of
members one by one.
Bringing total behavioral change in all the groups and members of an organization involves difficult long-range
effort. More often than not, it is a slow painful process to usher a total cultural change in an organization.
It is possible to change total organization without focusing at the level of individual's change of knowledge,
attitude and behavior. Modification in the organization's structures, policies, procedures and techniques leads to total
organizational change. These types of changes alter prescribed relationships and roles assigned to members and
eventually modify the individual members’ behavior and attitudes. As these two kinds of changes are interdependent,
the complexity of managing change increases manifold.
APPROACHES TO ORGANIZATIONAL CHANGE
As organizational change is a complex process, therefore managers must approach it systematically and logically.
Some organizational changes are planned whereas other changes are reactive. Planned change is designed and
implemented by an organization in an orderly and timely fashion in the anticipation of future change.
Reactive change results from a reaction of an organization to unexpected events. In contrast to planned
change, it is a piece-meal response to circumstances as they develop. External forces that the organization has failed
to anticipate or interpret always bring about reactive change. Since reactive change may have to be carried out hastily,
it increases the likelihood of a poorly conceived and poorly executed Program.
Planned change is always preferable to reactive change. Managers who sit back and respond to change only
when they can no longer avoid it are likely to waste a lot of time and money trying to patch together a last-minute
solution. The more effective approach is to anticipate the significant forces for change working in an organization and
plan ways to address them. To accomplish this, managers must understand the steps needed for effective change.
A COMPREHENSIVE MODEL OF CHANGE
The comprehensive model of change shown in the figure 20.1 shows seven steps that can lead to effective change.
This model is useful for both planned and reactive change.
#91
The seven steps of comprehensive model of change are as follows:
Recognize need for change
The first step in this model is recognizing need for change. For marketing managers who anticipate needed . change,
recognition is likely to come much earlier, as a result of marketing forecasts indicating new market potential, expert
indications about impending socio-economic change or a perceived opportunity to capitalize on a key technological
breakthrough. These managers tend to ‘initiate change because they expect it to be necessary in the near future in any
case’.
Establish goals for change
The manager must then set goals for the proposed change. It is important for the manager to specify goals that the
change is supposed to accomplish. The goals can be set to maintain or increase the market standing, to enter new
markets, to restore employee morale, to reduce turnover, to settle a strike and to identify good investment
opportunities.
Diagnose relevant variables
An important next step is diagnosing organizational variables that have brought about the need for change. Turnover,
for example, may be caused by a variety of factors such as low pay, poor working conditions, poor supervision, better
alternatives in the job market or employee job dissatisfaction etc. Thus, if turnover is the recognized stimulus for
change, the manager must understand what has caused it in a particular situation in order to make the right changes.
To carry out this diagnosis, the manager may discuss the situation with employees and other managers.
Select change intervention
After the manager has developed an understanding of the problem and its causes then he must select a change
intervention that will accomplish the intended goal. An intervention is a specific change induced in an organization with
the intention of solving a particular problem or accomplishing a specific objective. For example, if turnover is caused by
low pay, then a new reward system is required and if the cause is poor supervision then interpersonal skills and training
for supervisors is required.
Plan implementation of change
The manager must then carefully plan the implementation of change. Planning the implementation of change involves
consideration of the cost of the change, how the change will affect other areas of the organization and the degree to
#92
which employees should participate in bringing about the change. Hastily implemented change can result in more harm
than benefit. For example, if the change involves the use of new equipment, the manager should not make any
changes that rely on the use of new equipment until it has arrived and been installed and workers know how to use it.
Moreover, if change is thrust upon them too quickly, their resistance may stiffen.
Implement change
A systematically implemented change is more likely to proceed smoothly and to encounter fewer obstacles than is a
change that is implemented too quickly and without adequate preparation.
Evaluate implementation
Finally, after the change has been implemented, the manager should verify that it has accomplished its intended goals.
A change may fail to bring about the intended results. This may be due to inappropriate goals or inaccurate diagnosis of
the situation or wrong selection of intervention.
MODELS AND DYNAMICS OF PLANNED CHANGE
Managers are criticized for emphasizing short-term, quick fix solutions to organizational problems. Quick-fix solutions
do not really solve underlying problems and they have little staying power. Researchers and managers have thus tried
to identify effective ways to manage the change process. The following models have been developed to effectively
manage change:
Lewin's Change Model
Most theories of organizational change originated from the landmark work of social psychologist Kurt Lewin. Lewin
developed a three-stage model of planned change, which explained how to initiate, manage and stabilize the change
process. The three stages are unfreezing, changing and refreezing. Before reviewing each stage, it is important to
highlight the assumptions on which, this model is based:
1. The change process involves learning something new, as well discontinuing current attitudes, behaviors and
organizational practices.
2. Change will not occur unless there is motivation to change. This is often the most difficult part of the change
process.
3. People are the hub of all organizational changes. Any change, whether in terms of structure, group process,
reward systems or job design requires individuals to change.
4. Resistance to change is found even when the goals of change are highly desirable.
5. Effective change requires reinforcing new behaviors, attitudes and organizational practices.
The following are the three stages of change:
Unfreezing
The focus of this stage is to make organization open to change. In doing so individuals are encouraged to replace old
behaviors and attitudes with those desired by management. Managers also need to devise ways to reduce the barriers
to change during this stage.
Changing
The focus of this stage is in providing employees with new information, new behavioral models, or new ways of looking
at things. The purpose is to help employees learn new concepts to implement change. Role models, mentors, experts,
benchmarking organization against world-class organizations and training are useful mechanisms to facilitate change.
Re freezing
The focus of this stage is stabilizing the change during refreezing by helping employees integrate the changed behavior
or attitude into their normal way of doing things. This is accomplished by first giving employees the chance to exhibit
the new behaviors or attitudes. Once exhibited, positive reinforcement is used to reinforce the desired change.
Additional coaching and modelling are also used at this point to reinforce the stability of the change.
Expanded Process Model
Lewin's model is very simple and straightforward and virtually all models of organizational change use his approach.
However, it does not deal with several important issues. Expanded process model is illustrated in the figure 20.2. This
model looks at planned change from the perspective of top management. The model incorporates Lewin's concept as
part of the implementation phase.
#93
Figure 20.2
Top management according to this model perceives certain forces or trends that call for change and issues that
are subjected to the organization's usual problem solving and decision-making processes. Usually, the top
management defines its goals in terms of what the organization or certain processes, or outputs will be like after the
change. Alternatives for change are generated and evaluated and then an acceptable one is selected.
RESISTANCE TO CHANGE
Although organizations initiate changes in order to adjust to the changes in their environments but people sometimes
resist them. Therefore, managers need to recognize the manifestations of resistance both in themselves and in others,
if they want to be more effective in supporting change. For example, managers can use the list given in following table.
Acceptance






Enthusiasm
Cooperation
Cooperation under pressure from
management
Acceptance
Passive resignation
Indifference
Indifference



Apathy: loss of interest in the job
Doing only what is ordered
Regressive behavior
Passive
Resistance




Non-learning
Protests
Working to rule
Doing as little as possible
Active
Resistance


Slowing down
Persona! withdrawal (increased time off
the job)
Committing "errors"
Spoilage
Deliberate sabotage



#94
The sources of resistance to change within organizations are classified into organizational sources of
resistance and individual sources of resistance.
ORGANIZATIONAL SOURCES OF RESISTANCE
According to Daniel Kantz and Robert L Khan, organizational sources of resistance can be divided into following six
general groups.






Over determination or structural inertia refers to the tendency of an organization's rules, policies and structure
to maintain the existing conditions and therefore resist change even when change would benefit the
organization more than stability.
When an organization tries to change one of its division or part of the division without recognizing the
interdependence of the division with other divisions of the organization, then it is said to have a narrow focus of
change. Often a part of division cannot be changed without changing the whole division.
Group inertia may weaken an individual’s attempt to bring about change.
Resistance may also take the form of threatened expertise if the change lends to weaken special expertise built
after years of experience. Organizational restructuring that involves reducing the number of job categories often
meets this kind of resistance.
Any change that may alter the power relationships within an organization may meet the form of resistance
known as ‘threatened power’.
Resistance may occur when a change threatens quantum of resource allocation from one part of the
organization to another.
Individual Sources of Resistance
According to researchers, individuals have the following reasons for resisting change:
 Simple habits create a lot of resistance. Most people prefer to do their work the way they did it last week rather
than learn a new approach.
 Perhaps the biggest cause of employee resistance to change is uncertainty. In the face of impending change,
employees are likely to become anxious and nervous. They worry about their ability to meet new job demands
therefore, leading to feeling of job insecurity.
 Some people resist change to avoid feeling of loss. For example, many organizations change interventions and
alter work arrangements, thus disrupting existing social networks. Social relationships are important to most
people, so they resist any change that might adversely affect those relationships. Change may also threaten
people's feelings of familiarity and self-confidence.
 People may resist change because their perceptions of underlying circumstances differ from the perceptions of
those who are promoting the change.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Valerie Stewart (1983), a British Psychologist and business consultant, has listed the following characteristics of
people who are good at managing changes.
They know clearly what they want to achieve.
They can translate desires into practical action.
They can propose changes not only from their own view point but also from that of others.
They show reverence for tradition and respect for experience.
They are not discouraged by setbacks.
They harness circumstances to implement change.
They clearly explain change to people affected by change.
They involve their staff in the management of change and protect their security.
They do not pile one change on another but wait for assimilation.
They present changes as a relational decision.
They make change by personally rewarding people, wherever possible.
They share maximum information about possible outcomes.
They show that change is ‘related to business or job’.
They have a history of successful change.
OVERCOMING RESISTANCE TO CHANGE
Managers need not abandon planned change in the face of resistance. Before recommending specific approaches to
overcome resistance, there are three key conclusions that should be kept in mind. First, an organization must be ready
for change. Second, the top management should inform the employees about the process of change. Third, the
employees perceptions or interpretations of a change should be considered.
The following methods of overcoming-resistance to change are as follows:
#95







Participation: Participation is generally considered the most effective technique for overcoming resistance to
change. Employees who take part in planning and implementing change are better able to understand the
reasons for the change than those who are not involved. They become committed to the change and make it
work. Employees who have the opportunity to express their own ideas and to understand the perspectives of
others are likely to accept change gracefully. It is a time consuming process.
Education and Communication: Educating employees about the need for and the expected results of an
impending change help reduce their resistance. Managers should maintain an open channel of communication
while planning and implementing change. However, it is also a time consuming process.
Facilitation of Change: Knowing ahead of lime that employees are likely to resist change then the manager
should do as much as possible to help them cope with uncertainly and feeling of loss. Introducing change
gradually, making only necessary changes, announcing changes in advance and allowing time for people to
adjust to new ways of doing things can help reduce resistance.
Force-Field Analysis: In almost any situation where a change is being planned, there are forces acting for and
against the change. In force-field analysis, the manager list each set of forces and then try to remove or
minimize some of the forces acting against the change.
Negotiation: Where someone or some group will clearly lose out in a change and where that group has
considerable power to resist, there negotiation is required. Sometimes it is a relatively easy way to avoid major
resistance.
Manipulation and Cooperation: This is followed when other tactics will not work or are too expensive. It can
be quick and inexpensive, However, it can lead to further problems if people feel manipulated.
Explicit and Implicit Coercion: This is adopted where speed is essential and where the change initiators
possess considerable power. It is speedy and can overcome resistance.
Each of the above methods has its advantages and disadvantages. There is no universal strategy for
overcoming resistance to change. Hence, an organization that plans to introduce certain changes must be prepared to
face resistance from its employees. An organization should also have a planned approach to overcome such
resistances.
ORGANIZATIONAL DEVELOPMENT
The term Organizational Development (OD) refers to a broad range of behavioral science based strategies used to
diagnose the need for change in organizations and to implement changes when necessary. OD can be defined as a
technique for bringing change in the entire organization, rather man focusing attention on individuals to bring change
easily in the entire organization.
Nature of OD
OD is a general strategy or approach to organizational change mat is employed to analyze and diagnose the sources of
organizational problems and to develop and implement action plans for their solution. According to Bennis, OD has the
following characteristics;
 It is an educational strategy for bringing planned change.
 It relates to real problems of an organization.
 Laboratory training methods based on experienced behavior are primarily used to bring change.
 Change agent applying OD technique for change is external to the forms of consultants.
 There is a close working relationship between change agents and the people who are being changed. The
relationships involve mutual trust, joint goals, means, and mutual influence.
 The change agents share social philosophy about human value. They are humanists seeking to get a
humanistic philosophy in organization.
OD Interventions
OD interventions refer to various activities which consultant and client organization perform for improving organizational
functioning by enabling organization members to better manage their team and organization cultures. French and Well
have defined OD interventions as "sets of structured activities in which selected organizational units (target groups or
individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to
organizational improvement. Interventions constitute the action thrust of organization development; they make things
happen and are what is happening.”
Intervention Techniques
 Sensitivity Training
 Process Consultation
 Team Development
 Grid Organization Development
#96
Sensitivity Training: Sensitivity training is a small-group interaction under stress in an unstructured encounter group,
which requires people to become sensitive to one another's feelings in order to develop reasonable group activity. In
sensitivity training, the actual technique employed is T-group. T-group has several characteristic features:
 The T-group is generally small, from ten to twenty members
 The group begins its activity with no formal agenda
 The primary role of trainer is to call attention of members from time to time lo the ongoing process within the
group
 The procedure lends to develop introspection and self-examination, with emotional levels of involvement and
behavior.
The objectives of such training are increased openness with others, more concern for others, increased
tolerance for individual differences, less ethnic prejudice, understanding of a group process, enhanced listening skills
and increased trust and support.
Process Consultation: Process Consultation (P-C) represents a method of intervening in an ongoing system. The
basic content of P-C is that the consultant works with individuals and groups to help them learn about human and social
processes and learn to solve problems that stem from process events. P-C consists of many interventions and activities
which affect the various organizational processes such as. communication, roles and functions of group members,
group problem-solving and decision-making, group norms, authority and leadership and inter-group cooperation and
conflicts.
Team Development: The underlying aim of team development is to increase trust among team members because
people work better together when there is open and honest sharing about the problems and difficulties that they have
with one another. As such, at the initial level, the attempt should be to develop such an environment where such trust
can be developed among the team members
Grid Organization Development: Grid organization development, developed by Blake and Mounton, is a
comprehensive and systematic OD Program. The Program aims at individuals, groups and the organization as a whole.
It utilizes a considerable number of instruments, enabling individuals and groups to assess their own strength and
weaknesses. It also focuses on skills, knowledge and processes necessary for effectiveness at the individual, group
and inter-group and total organization levels.
In addition to these people focused interventions, there may be other types of interventions too. e.g. structural
and job interventions such as job enlargement, job enrichment, management by objectives, rules, procedures and
authority structure.
OD offers some very attractive methodologies and philosophies to practicing managers and academicians.
William Halal is right when he says "OD in future includes any method for modifying the behavior in the organization,
hereby, encompassing the entire spectrum of applied behavioral science". There also have been experiences of failure
in OD but these are being recorded and collected to be reviewed. In general, OD shows a promising future, since there
are no rigid sets of procedures in OD work and different strategies have to be evolved for different types of
organizations.
#97
MODEL QUESTION PAPER
ORGANIZATIONAL BEHAVIOR
Time: 3 Hours
Max. Marks: 100
SECTION-A
(5x8 = 40)
Answer any Five questions
Note: All questions carry equal murks
1. What do you understand by organizational behavior? Bring out its nature and importance.
2. Discuss the personality attributes in organization.
3. What is the organizational design? What are its forms?
4. What is group cohesiveness? What are its determinants?
5. What are the forms of organizational communications?
6. What are the sources of power?
7. What are the causes of stress?
8. What is organizational culture? How it affects the behavior of the people?
SECTION-
1.
2.
3.
4.
5.
6.
B
(4x15 = 60)
Answer any four questions
Compare the Maslow's Theory with ERG Theory of Motivation.
What are the barriers to effective communication? How to overcome those barriers?
What are the techniques of managing political behavior?
State the consequences of stress and method of managing the stress.
Suggest strategies to resolve inter-group conflicts.
Why do people resist change? As a manager how would you overcome such resistance?
MODEL QUESTION PAPER
ORGANIZATIONAL BEHAVIOR
Time: 3 Hours
Max. Marks: 100
SECTION-A
(5x8 = 40)
Answer any Five questions
Note: All questions carry equal murks
9. What do you understand by organizational behavior? Bring out its nature and importance.
10. Discuss the personality attributes in organization.
11. What is the organizational design? What are its forms?
12. What is group cohesiveness? What are its determinants?
13. What are the forms of organizational communications?
14. What are the sources of power?
15. What are the causes of stress?
16. What is organizational culture? How it affects the behavior of the people?
SECTION-
7.
8.
9.
10.
11.
12.
B
(4x15 = 60)
Answer any four questions
Compare the Maslow's Theory with ERG Theory of Motivation.
What are the barriers to effective communication? How to overcome those barriers?
What are the techniques of managing political behavior?
State the consequences of stress and method of managing the stress.
Suggest strategies to resolve inter-group conflicts.
Why do people resist change? As a manager how would you overcome such resistance?
#98
#99