ORGANISATIONAL BEHAVIOUR

MBA 1.2

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ORGANISATIONAL BEHAVIOUR SYLLABUS UNIT 1 UNIT 2 UNIT UNIT 4 UNIT 5 UNIT 6 3 Introduction to Organisational Behaviour, Meaning; Global scenario. Elements; Need; Approaches; Models;

Individual Behaviour; Personalit ; !earning; Attitudes; Perception; Motivation; Abilit ; "heir relevant organi#ational behaviour. Group dynamics; Group norms; Group cohesiveness; Group Behance to organizational behaviour. Leadership Styles; Qualities; Organisational communication; Meaning importance, process, barriers; Methods to reduce barriers; rinciple o! e!!ective communication. Stress; Meaning; "ypes; Sources; #onse$uences; Management o! stress. &e!inition; "ypes o! o%ers; Sources; #haracteristics; '!!ective use o! o%er. o%er and olitics;

Organisational &ynamics; Organisational design; Organisational e!!ectiveness; Meaning, approaches; Organisational culture; Meaning, signi!icance; Organisational #limate; (mplications on organizational behaviour. Organisational #hange; Meaning; )ature; #auses o! change; *esistance o! change; Management o! change; Organisational development; Meaning; O& (nterventions.

REFERENCE BOOKS 1. +red Luthans, Organisational Behaviour, McGra% ,ill Boo- #o., .//0. 2. Stephen P. Bobbins, Organisational Behaviour, rentice ,all, .//1. 3. 2eith &avis, ,uman Behaviour at 3or4c,.5M.cGra% ,ill Boo- #o., .//.. 4. Gregory Moorehead and *.S. Gri!!in, Organisational Behaviours$ Managing People and Organisations, 6aico, .//7. 5. 6udith *. Gordon, 8 &iagnostic Approach to Organisational Behaviour, 8llyn 9 Bacon, .//:.

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CONTENTS

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LESSON 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he ma%or environmental challenges and the paradigm shi&t that the management &aces toda "he management perspective o& organi#ational behaviour "he historical bac'ground o& modern organi#ational behaviour "he modern approach to organi#ational behaviour

"he -no%ledge and in!ormation eCplosion, global competition, total $uality and diversity are some o! the bitter realities that the managers are !acing today. "here are many solutions being o!!ered to deal %ith these compleC challenges. @et the simple but most pro!ound solution may be !ound in the %ords o! Sam 3alton, the richest person in the %orld and the !ounder o! 3al5Mart. Sam %as once as-ed the -ey to success!ul organizations and management. Sam $uic-ly replied, D eople are the -eyD. "he term paradigm comes !rom the Gree- %ord EparadigmaE, %hich means EEmodel, pattern or eCampleD. +irst introduced over thirty years ago, by the philosophy and science historian "homas 2hun, the term DparadigmD is no% used as, a broad model, a !rame%or-, a %ay o! thin-ing, and a scheme !or understanding reality. "he impact o! in!ormation technology, total $uality and diversity mentioned earlier has led to a paradigm shi!t. NE+ ,ARADIGM "he organizational behaviour has a goal lo help the managers ma-e a transition to the ne% paradigm. Some o! the ne% paradigm characteristics include coverage o! second5generation in!ormation technology and total $uality management such as empo%erment, reengineering and benchmar-ing, and learning organization !or managing diversity o! %or-. "he ne% paradigm sets the stage !or the study, understanding, and application o! the time5tested micro5variables, dynamics and macro5variables. One must -no% %hy management needs a ne% perspective to meet the environmental challenges and to shi!t to a ne% paradigm. A NE+ ,ERS,ECTIVE FOR MANAGEMENT Management is generally considered to have three maFor dimensionsGtechnical, conceptual and human. "he technical dimension consists o! the managerEs eCpertise in particular !unctional areas. "hey -no% the re$uirements o! the Fobs and have the !unctional -no%ledge to get the Fob done. But the practicing managers ignore the conceptual and human dimensions o! their Fobs. Most managers thin- that their employees are lazy, and are interested only in money, and that i! you could ma-e them happy in terms o! money, they %ould be productive. (! such assumptions are accepted, the human problems that the management is !acing are relatively easy to solve. But human behaviour at %or- is much more complicated and diverse. "he ne% perspective assumes that employees are eCtremely compleC and that there is a need !or theoretical understanding given by empirical research be!ore applications can be made !or managing people e!!ectively. MODERN A,,ROACH TO ORGANIZATIONAL BEHAVIOUR "he modern approach to organizational behaviour is the search !or the truth o! %hy people behave the %ay they do. "he organizational behaviour is a delicate and compleC process. (! one aims to manage an organization, it is necessary to understand its operation. Organization is the combination o! science and people. 3hile science and technology is predictable, the human behaviour in organization is rather unpredictable. "his is because it arises !rom deep needs and value systems o! people. HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR S'#e"(#-#' M " $e.e"( A//!0 '1 Scienti!ic management approach %as developed by +.3. "aylor at the beginning o! the =Ath century. "his theory supported the use o! certain steps in scienti!ically studying each element o! a Fob, selecting and training the best %or-ers !or the Fob arid ma-ing sure that the %or-ers !ollo% the prescribed method o! doing the Fob. (t provided a scienti!ic rationale !or Fob specialization and mass production. ,is assumption %as that employees are motivated largely by money. "o increase the output, "aylor advised managers to pay monetary incentives to e!!icient %or-ers. @et, his theory %as criticized by many employers and %or-ers. 3or-ers obFected to the pressure o! %or- as being harder and !aster. #ritics %orried that the methods too- the humanity out o! labor, reducing %or-ers to machines

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responding to management incentives. "here!ore, "aylorEs vie% is no% considered inade$uate and narro% due to the points given by the critics. B2!e 2'! (#' A//!0 '1 3hile scienti!ic management %as !ocusing on the interaction bet%een %or-ers and the tas-, me researchers %ere studying ho% to structure the organization more e!!ectively. (nstead o! trying to ma-e each %or-er more e!!icient, classical organization theory sought the most e!!ective overall organizational structure !or %or-ers and managers. "he theoryEs most prominent advocate, MaC 3eber, proposed a Ebureaucratic !ormE o! structure, %hich he thought %ould %or- !or all organizations. 3eberEs ideaH bureaucracy %as , logical, rational and e!!icient. ,e made the naive assumption that one structure %ould %or- best !or all organizations. ,enry +ord, ,enry +ayol and +rederic- 3. "aylor, the early management pioneers, recognized the behavioral side o! management. ,o%ever, they did not emphasize the human dimensions. 8lthough there %ere varied and compleC reasons !or the emerging importance o! behavioral approach to management, it is generally recognized that the ,a%thorne studies mar- the historical roots !or the !ield o! organizational behaviour. H 3(10!"e S(24#e* 'ven, as "aylor and 3eber brought attention %ith their rational, logical approaches to more e!!icient productivity, their vie%s %ere criticized on the ground that both approaches ignored %or-erEs humanity. "he real beginning o! applied research in the area o! organizational behaviour started %ith ,a%thorne 'Cperiments. (n ./=7, a group o! pro!essors began an en$uiry into the human aspects o! %or- and %or-ing conditions at the ,a%thorne plant o! 3estern 'lectric #ompany, #hicago. "he !indings o! these studies %ere given a ne% name Ehuman relationsE the studies brought out a number o! !indings relevant to understanding human behaviour at %or-. "he ,uman element in the %or-place %as considerably more important. "he %or-ers are in!luenced by social !actors and the behaviour o! the individual %or-er is determined by the group. ,a%thorne studies have been criticized !or their research methods and conclusions dra%n. But their impact on the emerging !ield o! organizational behaviour %as dramatic. "hey helped usher in a more humanity centered approach to %or-. A,,ROACHES TO ORGANIZATIONAL BEHAVIOUR "here are mainly !our approaches to organizational behaviour. "hey areB I ,uman resources approach E I #ontingency approach I roductivity approach I Systems approach H2. " Re*02!'e* A//!0 '1 "he human resources approach is concerned %ith the gro%th and development o! people to%ards higher levels o! competency, creativity and !ul!illment, because people are the central resource in any organization. "his approach help employees become better in terms o! %or- and responsibility and then it tries to create a climate in %hich they can contribute to the best o! their improved abilities. "his approach is also -no%n as Esupportive approachE because the managerEs primary role changes !rom control o! employees to providing an active support !or their gro%th and per!ormance. A C0"(#"$e"'5 A//!0 '1 8 contingency approach to organizational behaviour implies that di!!erent situations re$uire di!!erent behavioral practices !or e!!ectiveness instead o! !ollo%ing a traditional approach !or all situations. 'ach situation must be analyzed care!ully to determine the signi!icant variables that eCist in order to establish the more e!!ective practices. "he strength o! this approach is that it encourages analysis o! each situation prior to action. "hus, it helps to use all the current -no%ledge about people in the organization in the most appropriate manner. ,!042'(#)#(5 A//!0 '1 roductivity is a ratio that compares units o! output %ith units o! input. (t is o!ten measured in terms o! economic inputs and outputs. roductivity is considered to be improved, i! more outputs can be produced !rom the same amount o! inputs. But besides economic inputs and outputs, human and social inputs and outputs also arc important. S5*(e.* A//!0 '1 8 system is an interrelated part o! an organization or a society that interacts %ith everyone related to that organization or society and !unctions as a %hole. 3ithin the organization EpeopleE employ EtechnologyE in per!orming the Etas-E that they are responsible !or, %hile the EstructureE o! the organization serves as a basis !or co5ordinating all their di!!erent activities. "he systems vie% emphasizes the interdependence o! each o! these elements %ithin the organization, i! the

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organization as a %hole is to !unction e!!ectively. "he other -ey aspect o! the systems vie% o! organization is its emphasis on the interaction bet%een the organization and its broader environment,, %hich consists o! social, economic, cultural and political environment %ithin %hich they operate. Organizations arc dependent upon their surrounding environment in t%o main %aysB (irst, the organization re$uires EinputsE !rom the environment in the !orm o! ra% material, people, money, ideas and so on. "he organization itsel! can be thought o! as per!orming certain Etrans!ormationE processes, on its inputs in order to create outputs in the !orm o! products or services. )econdl , the organization depends on environment such as, public to accept its output. "he systems vie% o! organization thus emphasizes on the -ey interdependencies that organizations must manage. 3ithin themselves the organizations must trade o!! the interdependencies among people, tas-s, technology and structure in order to per!orm their trans!ormation processes e!!ectively and e!!iciently. Organizations must also recognize their interdependence %ith the broader environments %ithin %hich they eCist.

CONTEMPORARY ORGANIZATIONAL BEHAVIOUR A Separate !e"# $% St&#'

Organizational behaviour can be treated as a distinct !ield o! study. (t is yet to become a science. )o% e!!orts are being made to synthesize principles, concepts and processes in this !ield o! study. I"(e!4#*'#/6#" !5 A//!0 '1 Organizational behaviour is basically an interdisciplinary approach. (t dra%s heavily !rom other disciplines li-e psychology, sociology and anthropology. Besides, it also ta-es relevant things !rom economics, political science, la% and history. Organizational behaviour integrates the relevant contents o! these disciplines to ma-e them applicable !or organizational analysis. e.g. it addresses issues, %hich may be relevant to the case, such as the !ollo%ingB 3hat !acilitates accurate perception and attributionJ 3hat in!luences individual, group and organizational learning and the development o! individual attitudes to%ard .%or-J ,o% do individual di!!erences in personality, personal development, and career development a!!ect individualEs behaviours and attitudesJ 3hat motivates people to %or-, and ho%. does the organizational re%ard system in!luence %or-erEs behaviour and attitudesJ ,o% do managers build e!!ective teamsJ 3hat contributes to e!!ective decision5ma-ingJ 3hat are the constituents o! e!!ective communicationJ 3hat are the characteristics o! e!!ective communicationJ ,o% can po%er be secured and used productivelyJ 3hat !actors contribute to e!!ective negotiationsJ ,o% can con!lict Kbet%een groups or bet%een a manager and subordinatesL be resolved or managedJ ,o% can Fobs and organizations be e!!ectively designedJ ,o% can managers help %or-ers deal e!!ectively %ith changeJ A" A//6#e4 S'#e"'e "he basic obFective o! organizational behaviour is to ma-e application o! various researches to solve the organizational problems, particularly related to the human behavioral aspect. N0!. (#)e "4 V 62e Ce"(e!e4 Organizational behaviour is a normative science. 8 normative science prescribes ho% the various !indings o! researches can be applied to get organizational results, %hich are acceptable to the society. "hus, %hat is acceptable by the society or individuals engaged in an organization is a matter o! values o! the society and people concerned. H2. "#*(#' "4 O/(#.#*(#' Organizational behaviour !ocuses the attention on people !rom humanistic point o! vie%. (t is based on the belie! that needs and motivation o! people are o! highE concern. +urther, there is optimism about the innate potential o! man to be independent, creative, predictive and capable o! contributing positively to the obFectives o! the organization. O!#e"(e4 (03 !4* O!$ "#7 (#0" 6 O%&e'(#)e* Organizational behaviour is oriented to%ards organizational obFectives. (n !act, organizational behaviour tries to integrate both individual and organizational obFectives so that both are achieved simultaneously. A T0( 6 S5*(e. A//!0 '1

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8n individualEs behaviour can be analyzed -eeping in vie% his psychological !rame%or-, interpersonal5orientation, group in!luence and social and cultural !actors; "hus, individualEs nature is $uite compleC and organizational behaviour by applying systems approach tries to !ind solutions !or this compleCity.

LESSON 2 FOUNDATION OF ORGANISATIONAL BEHAVIOUR Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB *e&ine and e+plain the meaning o& organi#ational behaviour ,nderstand the nature and importance o& organi#ational behaviour -elate the organi#ational behaviour to manager.s %ob

DEFINITION OF MANAGEMENT Management is commonly de!ined as DGetting %or- done through other peopleD. "his simple de!inition eCplains the signi!icance o! the role o! people. "he %or- %ill not be done unless DpeopleD %ant to do the %or- and i! the %or- is not done then there %ill be no organisation. ,ence, the cooperation o! the %or-ers is crucial to the success or !ailure o! the organisation. DEFINITION OF ORGANISATION 8ccording to Gary 6ohns, DOrganisations are social inventions !or accomplishing goals through group e!!ortsD. "his de!inition covers %ide variety5o! groups such as businesses, schools, hospitals, !raternal groups, religious bodies, government agencies and so on. "here are three signi!icant aspects in the above de!inition, %hich re$uire !urther analysis. "hey are as !ollo%sB Social Inventions: "he %ord DsocialD as a derivative o! society basically means gathering o! people. (t is the people that primarily ma-e up an organisation. Accomplishing Goals: 8ll organisations have reasons !or their eCistence. "hese reasons are the goals to%ards %hich all organisational e!!orts are directed. 3hile the primary goal .o! any commercial organisation is to ma-e money !or its o%ners, this goal is inter5related %ith many other goals. 8ccordingly, any organisational goal must integrate in itsel! the personal goals o! all individuals associated %ith the organisation. Group Effort: eople, both as members o! the society at large and as a part o! an organisation interact %ith each other and are inter5dependent. (ndividuals in themselves have physical and intellectual limitations and these limitations can only be overcome by group e!!orts. MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR Organisational behaviour is concerned %ith peopleEs thoughts, !eelings, emotions and actions in setting up a %or-. ;nderstanding an individual behaviour is in itsel! a challenge, but understanding group behaviour in an organisational environment is a monumental managerial tas-. 8s )adler and "ushman put it, D;nderstanding one individualEs behaviour is challenging in and o! itsel!; understanding a group that is made up o! di!!erent individuals and comprehending the many relationships among those individuals is even more compleC. ;ltimately, the organisationEs %or- gets done through people, individually or collectively, on their, o%n or in collaboration %ith technology. "here!ore, the management o! organisational behaviour is central to the management tas-Ga tas- that involves the capacity to DunderstandD the behaviour patterns o! individuals, groups and organisations, to EEpredictED %hat behavioural responses %ill be elicited by various managerial actions and !inally to use this understanding and these predictions to achieve DcontrolD. Organisational behaviour can then be de!ined asB D"he study o! human behaviour in organisational settings, the inter!ace bet%een human behaviour and the organisational conteCt, and the organisation itsel!.D "he above de!inition has three partsGthe individual behaviour, the organisation and the Kinter!ace bet%een the t%o. 'ach individual brings to an organisation a uni$ue set o! belie!s, values, attitudes and other personal characteristics and these characteristics o! all individuals must interact %ith each other in order to create organisational

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settings. "he organisational behaviour is speci!ically concerned %ith %or-5related behaviour, %hich ta-es place in organisations. (n addition to understanding; the on5going behavioural processes involved, in Etheir o%n Fobs, managers must understand the basic human element o! their %or-. Organisational behaviour o!!ers three maFor %ays o! understanding this conteCt; people as organisations, people as resources and people as people. 8bove all, organisations are people; and %ithout people there %ould be no organisations. "hus, i! managers are to understand the organisations in %hich they %or-, they must !irst understand the people %ho ma-e up the organisations. 8s resources, people are one o! the organisationEs most valuable assets. eople create the organisation, guide and direct its course, and vitalise and revitalise it. eople ma-e the decisions, solve the problems, and ans%er the $uestions. 8s managers increasingly recognise the value o! potential contributions by their employees, it %ill become more and more important !or managers and employees to grasp the compleCities o! organisational behaviour. +inally, there is people as people 5 an argument derived !rom the simple notion o! humanistic management. eople spend a large part o! their lives in ; organisational settings, mostly as employees. "hey have a right to eCpect something in return beyond %ages and bene!its. "hey have a right to eCpect satis!action and to learn ne% s-ills. 8n understanding o! organisational behaviour can help the manager better appreciate the variety o! individual needs andE eCpectations. Organisational behaviour is concerned %ith the characteristics and behaviours o! employees in isolation; the characteristics and processes that are part o! the organisation itsel!; Eand the characteristics and behaviours directly resulting !rom people %ith their individual needs and motivations %or-ing %ithin the structure o! the organisation. One cannot understand an individualMs behaviour completely %ithout learning something about that individualEs organisation. Similarly, he cannot understand ho% the organisation operates %ithout; studying the people %ho5ma-e it up. "hus, the organisation in!luences and is in!luenced by individuals. ELEMENTS OF ORGANISATIONAL BEHAVIOUR "he -ey elements in the organisational behaviour are people,, structure, technology and the environment in %hich the organisation operates. People: eople ma-e up the internal and social system o! the organisation. "hey consist o! individuals and groups. "he groups may be big or small; !ormal or in!ormal; o!!icial or uno!!icial. Groups are dynamic and they %or- in the organisation to achieve their obFectives. Structure: Structure de!ines the !ormal relationships o! the people in organisations. &i!!erent people in the organisation are per!orming di!!erent type o! Fobs and they need to be Kelated in some structural %ay so that their %or- can be e!!ectively co5ordinated. Technology: "echnology such as machines and %or- processes provide the resources %ith %hich people %or- and a!!ects the tas-s that they per!orm. "he technology used has a signi!icant in!luence on %or-ing relationships. (t allo%s people to do more and %or- better but it also restrictsE people in various %ays. Environment: 8ll organisations operate %ithin an eCternal environment. (t is the part o! a larger system that contains many other elements such as government, !amily and other organisations. 8ll o! these mutually in!luence each other in a compleC system that creates a conteCt !or a group o! people. NATURE OF ORGANISATIONAL BEHAVIOUR 'ach individual brings to an organisation a uni$ue set o! personal characteristics, eCperiences !rom other organisation, the environment surrounding the organisation and . they also posses a personal bac-ground. (n considering the people %or-ing in an organisation, organisational behaviour must loo- at the uni$ue perspective that each individual brings to the %or- setting. But individuals do not %or- in isolation. "hey come in contact %ith other individuals and the organisation in a variety o! %ays. oints o! contact include managers, co5%or-ers, !ormal policies and procedures o! the organisation, and various changes implemented by the organisation. Over time, the individual, too, changes, as a !unction o! both the personal eCperiences and the organisation. "he organisation is also a!!ected by the presence and eventual absence o! the individual. #learly, the study o! organisational behaviour must consider the %ays in %hich the individual and the organisation interact. 8n organisation, characteristically, eCists be!ore a particular person Foins it and continues to eCist a!ter he leaves it. "hus, the organisation itsel! represents a crucial third perspective !rom %hich to vie% organisational behaviour.

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NEED FOR STUDYING ORGANISATIONAL BEHAVIOUR "he rules o! %or- are di!!erent !rom the rules o! play. "he uni$ueness o! rules and the environment o! organisations !orces managers to study organisational behaviour in order to learn about normal and abnormal ranges o! behaviour. M0!e */e'#-#' 6658 0!$ "#* (#0" 6 %e1 )#02! *e!)e* (1!ee /2!/0*e*9 3hat causes behaviourJ 3hy particular antecedents cause behaviourJ 3hich antecedents o! behaviour can be controlled directly and %hich are beyond controlJ 8 more speci!ic and !ormal course in organisational behaviour helps an individual to develop more re!ined and %or-able sets o! assumption that is directly relevant to his %or- interactions. Organisational behaviour helps in predicting human behaviour in the organisational setting by dra%ing a clear distinction bet%een individual behaviour and group behaviour. Organisational behaviour does not provide solutions to all compleC and di!!erent behaviour puzzles o! organisations. (t is only the intelligent Fudgement o! the manager in dealing %ith a speci!ic issue that can try to solve the problem. Organisational behaviour only assists in ma-ing Fudgements that are derived !rom tenable assumptions; Fudgement that ta-es into account the important variables underlying the situation; Fudgement that are assigned due recognition to the compleCity o! individual or group behaviour; Fudgement that eCplicitly ta-es into account the managers o%n goals, motives, hang5ups, blind spots and %ea-nesses. IM,ORTANCE OF ORGANISATIONAL BEHAVIOUR Organisational behaviour o!!ers several ideas to management as to ho% human !actor should be properly emphasised to achieve organisational obFectives. Barnard has observed that an organisation is a conscious interaction o! t%o or more people. "his suggests that since an organisation is (he interaction o! persons, they should be given ade$uate importance in managing the organisation. Organisational behaviour provides opportunity to management to analyse human behaviour and prescribe means !or shaping it to a particular direction. ;nderstanding ,uman Behaviour Organisational behaviour provides understanding the human behaviour in all directions in %hich the human beings interact. "hus, organisational behaviour can be understood at the individual level, interpersonal level, group level and inter5group level. Organisational behaviour helps to analyse E%hyE and Eho%E an individual behaves in a particular %ay. ,uman behaviour is a compleC phenomenon and is a!!ected by a large number o! !actors including the psychological, social and cultural implications. Organisational behaviour integrates these !actors to provideN simplicity in understanding the human behaviour. Interpersonal evel: ,uman behaviour can be understood at the level o! interpersonal interaction. Organisational behaviour provides I means !or understanding the interpersonal relationships in an organisation. 8nalysis o! reciprocal relationships, role analysis and transactional analysis are some o! the common methods, %hich provide such understanding. Group evel: "hough people interpret anything at their individual level, they are o!ten modi!ied by group pressures, %hich then become a !orce in shaping human behaviour, "hus, individuals should be studied in groups also.. *esearch in group dynamics has contributed vitally to organisational behaviour and sho%s ho% a group behaves in its norms, cohesion, goals, procedures, communication pattern and leadership. "hese research results are advancing managerial -no%ledge o! understanding group behaviour, %hich is very important !or organisational morale and productivity. Inter!group evel: "he organisation is made up o! many groups that develop compleC relationships to build their process and substance. ;nderstanding the e!!ect o! group relationships is important !or managers in todayEs organisation. (nter5group relationship may be in the !orm o! co5operation or competition.

"he co5operative relationships help the organisation in achieving its obFectives. Organisational behaviour provides means to understand and achieve co5operative group relationships through interaction, rotation o! members among groups, avoidance o! %in5lose situation and !ocussing on total group obFectives. "ontrolling an# $irecting %ehaviour: 8!ter understanding the mechanism o! human behaviour, managers are re$uired to control and direct the behaviour so that it con!orms to the standards re$uired !or achieving the organisational obFectives. "hus, managers are re$uired to control and direct the behaviour at all levels o! individual interaction. "here!ore, organisational behaviour helps managers in controlling and directing in

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di!!erent areas such as use o! po%er and sanction, leadership, communication and building organisational climate !avourable !or better interaction. Use of Po&er an# Sanction: "he behaviours can be controlled and directed by the use o! po%er and sanction, %hich are !ormally de!ined by the organisation. o%er is re!erred to as the capacity o! an individual to ta-e certain action and may be utilised in many %ays. Organisational behaviour eCplains ho% various means o! po%er and sanction can ,be utilised so that both organisational and individual obFectives are achieved simultaneously. ea#ership: Organisational behaviour brings ne% insights and understanding to the practice and theory o! leadership. (t identi!ies various leadership styles available to a manager and analyses %hich style is more appropriate in a given situation. "hus, managers can adopt styles -eeping in vie% the various dimensions o! organisations, individuals and situations. "ommunication: #ommunication helps people to come in contact %ith each other. "o achieve organisational obFectives, the communication must be e!!ective. "he communication process and its %or- in inter5personal dynamics have been evaluated by organisational behaviour. 'rganisational "limate: Organisational climate re!ers to the total organisational situations a!!ecting human behaviour. Organisational climate ta-es a system perspective that a!!ect human behaviour. Besides improving the satis!actory %or-ing conditions and ade$uate compensation, organisational climate includes creation o! an atmosphere o! e!!ective supervision; the opportunity !or the realisation o! personal goals, congenial relations %ith others at the %or- place and a sense o! accomplishment. 'rganisational A#aptation: Organisations, as dynamic entities are characterised by pervasive changes. Organisations have to adapt themselves to the environmental changes by ma-ing suitable, internal arrangements such as convincing employees %ho normally have the tendency o! resisting any changes.

LEVELS OF ANALYSIS Organisational behaviour can be vie%ed !rom di!!erent perspectives or levels o! analysis. 8t one level, the organisation can be vie%ed as consisting o! individuals %or-ing on tas-s in the pursuit o! the organisational goals. 8 second level o! analysis !ocuses upon the interaction among organisational members as they %or- inE teams, groups and departments. +inally, organisational behaviour can be analysed !rom the perspective o! the organisation as a %hole. 'rganisation at the In#ivi#ual evel: Organisational behaviour can be studied in the perspective o! individual members o! the organisation. "his approach to organisational behaviour dra%s heavily on the discipline o! psychology and eCplains %hy individuals behave and react the %ay they do to di!!erent organisational policies, practices and procedures. 3ithin this perspective, psychologically based theories o! learning, motivation, satis!action and leadership are brought to bear upon the behaviour and per!ormance o! individual members o! an organisation. +actors such as attitudes, belie!s, perceptions and personalities are ta-en into account and their impact upon individualsM behaviour and per!ormance on the Fob is studied. 'rganisation at the Group evel: eople rarely %or- independently in organisations; they have to necessarily %or- in coordination to meet the organisational goals. "his !re$uently results in people %or-ing together in teams, committees and groups. ,o% do people %or- together in groupsJ 3hat !actors determine %hether group %ill be cohesive and productiveJ 3hat types o! tas-s could be assigned to groupsJ "hese are some o! the $uestions that can be as-ed about the e!!ective !unctioning o! groups in organisations. 8n important component o! organisational behaviour involves the application o! -no%ledge and theories !rom social psychology to the study o! groups in organisations. 'rganisation at the 'rganisational evel: Some organisational behaviour researchers ta-e the organisation as a %hole as their obFect o! study. "his F macro perspective on organisational behaviour dra%s heavily on theories and concepts !rom the discipline o! EsociologyE. *esearchers see- to understand the implications o! the relationship bet%een the organisation and its environment !or the e!!ectiveness o! the organisation. 'mphasis is placed upon understanding ho% organisational structure and design in!luences the e!!ectiveness o! an organisation. Other !actors such as the technology employed by the organisation, the size o! the organisation and the organisationEs age are also eCamined and their implications !or e!!ective organisational !unctioning are eCplored. "hese di!!erent perspectives on the study o! organisational behaviour are not in con!lict %ith one another. (nstead they are complementary. 8 !ull and complete understanding o! the nature o! organisations and the determinants o! their e!!ectiveness re$uires a blending o! -no%ledge derived !rom each perspective. FUNDAMENTAL CONCE,TS OF ORGANISATIONAL BEHAVIOUR Organisational behaviour starts %ith the !ollo%ing siC !undamental concepts revolving around the nature o! people and organisationsB "he nature o! peopleB (ndividual di!!erences 8 %hole person

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 Motivated behaviour <alue o! the person "he nature o! organisationB Social system Mutual interest In#ivi#ual $ifferences: (ndividuals are di!!erent in their physical and mental traits. "hey are di!!erent not only in the physical appearance such as seC, age, height, %eight, compleCion and so on but also di!!erent in their psychological trait such as intelligence, attitude, motivation and perception. "his belie! that each person is di!!erent !rom all others is typically called the ELa% o! (ndividual &i!!erencesE. (ndividual di!!erences mean that the management has to treat them di!!erently to get the best out o! them. A (hole Person: "hough the organisation may !eel that they are employing only the individualEs s-ill or intelligence, in !act, they employ the E%hole personE. "his means that individual does not have only the s-ill and intelligence but he has a personal li!e, needs and desires as %ell. (n other %ords, his personal li!e cannot be separated !rom his %or- li!e since people !unction as total human beings. 3hen management practices organisational behaviour, it is not only trying to develop a better employee but it also %ants to develop a Ebetter personE in terms o! all round gro%th and development. "he bene!it %ill eCtend beyond the !irm into the larger society in %hich each employee lives. )otivate# *ehaviour: (t is the urge o! the individual to satis!y a particular need that motivates him to do an act. "he motivation could be positive or negative. Motivation is essential !or the proper !unctioning o! organisations. "he organisation can sho% to its employees ho% certain actions %ill increase their need !ul!ilment. +alue of the Person: (t is more an ethical philosophy. (t stresses that people are to be treated %ith respect and dignity. 'very Fob, ho%ever simple, entitles the people %ho do it to proper respect and recognition o! their uni$ue aspirations and abilities. Since organisational behaviour involves people, ethical philosophy is involved in one %ay or the other. "he nature o! an organisation can be understood %ith the help o! tFie description o! !ollo%ing t%o pointsB Social System: 8 system is a group o! independent and interrelated elements comprising a uni!ied %hole. (n conteCt %ith an organisation, the individuals o! a society are considered as a system organised by a characteristic pattern o! relationships having a distinctive culture and values. (t is also called social organisation or social structure. (t can be !urther divided into !ollo%ing categoriesB ,eu#al system: "his is a social system, %hich is developed in 'urope in the ?th #entury. 8 political and economic system based on the holding o!. land and relation o! lord to vassal and characterized by homage, legal and military service o! tenants, and !or!eiture. Patriarchate: "his is social system, in %hich a male is considered to be the !amily head and title or surname is traced through his chain. (n other %ords, po%er lies in his hands. )atriarchate: "his is social system, in %hich a !emale is considered to be the !amily head and title or surname is traced through her chain. (n other %ords, po%er lies in her hands. )eritocracy: "his is a social system, in %hich po%er vests in the hands o! the person %ith superior intellects. "lass Structure: "his is a social system o! di!!erent classes %ith in a society. Segregation: "his is a social system, %hich provides separate !acilities !or minority groups o! a society. )utual Interest: Organisational relationships are most li-ely to be strong i! di!!erent groups can negotiate strategies. "his can be de!ined as the interests that are common to both the parties and are related to the accomplishment o! their respective goals. "his space !or sharing ideas builds trust. (ndividuals %ho have shared mutual interests are li-ely to ma-e their organisation the strongest, because even though the vie%s are di!!erent they have a shared concern !or similar obFectives. (t is important !or the individuals to thin- about their issues openly, and to incorporate the perspectives o! their colleagues. "his helps to build sustainable and harmonious activities that can operate in the mutual direct interests o! the organisation.

o o o o o o

-olistic 'rganisational %ehaviour: 3hen the above siC concepts o! organisational behaviour are considered together, they provide a holistic concept o! the subFect. ,olistic organisational behaviour interprets people5organisation relationships in terms o! the %hole person, %hole group, %hole organisation and %hole social system. "hus, the blending o! nature o! people and organisation results in an holistic organisational behaviour.

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LESSON 3 M04e6* 0- 0!$ "#7 (#0" 6 %e1 )#02! Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he concept o& organi#ational behaviour s stem "he di&&erent models o& organi#ational behaviour "he importance o& organi#ational behaviour to managers "he &uture o& organi#ational behaviour

Organizations have undergone tremendous change in the behaviour o! their employeeEs. 'arlier employers had no systematic program !or managing their employees instead their simple rules served as a po%er!ul in!luence on employees. ,o%ever, today increasing many organizations are eCperimenting %ith ne% %ays to attract and motivate their employees. CONCE,T OF ORGANIZATIONAL BEHAVIOUR SYSTEM Organizations achieve their goals by creating, communicating and operating an organizational behaviour system. Organizational behaviour system de!ines organizational structure and culture and eCplains their impact on employees. "he !igure :.. sho%s the maFor elements o! a good organizational behaviour systemB

"hese systems eCist in every organization, but sometimes in varying !orms. "hey have a greater chance o! being success!ul, though, i! they have been consciously created, regularly eCamined and updated to meet ne% and emerging conditions. "he primary advantage o! organizational behaviour system is to identi!y the maFor human and organizational variables that a!!ect organizational outcomes. +or some variables managers can only be a%are o! them and ac-no%ledge their impact %hereas !or other variables, managers can eCert some control over them. "he outcomes are measured in terms o! $uantity and $uality o! products and services, level o! customer service, employee satis!action and personal gro%th and development. "hese systems eCist in every organization, but sometimes in varying !orms. "hey have a greater chance o! being success!ul, though, i! they have been consciously created, regularly eCamined and updated to meet ne% and emerging conditions. "he primary advantage o! organizational behaviour system is to identi!y the maFor human and organizational variables that a!!ect organizational outcomes. +or some variables managers can only be a%are o! them and ac-no%ledge their impact %hereas !or other variables, managers can eCert some control over them. "he outcomes arc measured in terms o! $uantity and $uality o! products and services, level o! customer service, employee satis!action and personal gro%th and development.

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ELEMENTS OF THE SYSTEM "he systemEs base rests in the !undamental belie!s and intentions o! those %ho Foin together to create it such as o%ners and managers %ho currently administer it. "he philosophy o! organizational behaviour held by management consists o! an integrated set o! assumptions and belie!s about the %ay things are, the purpose !or these activities, and the %ay they should be. "hese philosophies are sometimes eCplicit and occasionally implicit, in the minds managers. Organizations di!!er in the $uality o! organizational behaviour that they develop. "hese di!!erences are substantially caused by di!!erent models o! organizational behaviour that dominant managementEs thought in each organization. "he model that a manager holds usually begins %ith certain assumptions about people and thereby leads to certain interpretations o! organizational events. "he !ollo%ing !our models o! organizational behaviour are as !ollo%sB 8. 8utocratic model B. #ustodial model #. Supportive model &. #ollegial model A2(0'! (#' M04e6 (n an autocratic modelE, the manager has the po%er to command his subordinates to do a speci!ic Fob. Management believes that it -no%s %hat is best !or an organization and there!ore, employees are re$uired to !ollo% their orders. "he psychological result o! this model on employees is their increasing dependence on their boss. (ts main %ea-ness is its high human cost. C2*(04# 6 M04e6 "his model !ocuses better employee satis!action and security. ;nder this model organizations satis!y the security and %el!are needs o! employees. ,ence, it is -no%n as custodian model. "his model leads to employee dependence on an organization rather than on boss. 8s a result o! economic re%ards and bene!its, employees are happy and contented but they are not strongly motivated. S2//0!(#)e M04e6 "he supportive model depends on EleadershipE instead o! po%er or money. "hrough leadership, management provides a climate to help employees gro% and accomplish in the interest o! an organization. "his model assumes that employees %ill ta-e responsibility, develop a drive to contribute and improve them i! management %ill give them a chance. "here!ore, managementEs direction is to ESupportE the employeeEs Fob per!ormance rather than to EsupportE employee bene!it payments, as in the custodial approach. Since management supports employees in their %or-, the psychological result is a !eeling o! participation and tas- involvement in an, organization. C066e$# 6 M04e6 "he term EcollegialE relates to a body o! persons having a common purpose. (t is a team concept. Management is the coach that builds a better team. "he management is seen as Foint contributor rather than as a boss. "he employee response to this situation is responsibility. "he psychological result o! the collegial approach !or the employee is Esel!5 disciplineE. (n this -ind o! environment employees normally !eel some degree o! !ul!illment and %orth%hile contribution to%ards their %or-. "his results in enthusiasm in employeesE per!ormance. FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR Autocratic o%er 8uthority &ependence on boss Subsistence Minimum "usto#ial 'conomic resources Money &ependence on organization Security assive cooperation Supportive Leadership Support articipation Status and recognition 8%a-ened drives "ollegial artnership "eam%orSel!5discipline Sel!5actualization Moderate enthusiasm

Basis o! Model Managerial5 orientation 'mployee psychological result 'mployee needs met er!ormance result

(t is %rong to assume that a particular model is the best model. "his is because a model depends on the -no%ledge about human behaviour in a particular environment, %hich is unpredictable. "he primary challenge !or management is to identi!y the model it is actually using and then assess its current e!!ectiveness.

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"he selection o! model by a manager is determined by a number o! !actors such as, the eCisting philosophy, vision and goals o! manager. (n addition, environmental conditions help in determining %hich model %ill be the most e!!ective model. IM,ORTANCE OF ORGANIZATIONAL BEHAVIOUR TO MANAGERS Managers per!orm !our maFor !unctions such as planning, organizing, directing and controlling. (n addition to these !unctions there are ten managerial roles, %hich can be de!ined as organized set o! behaviors identi!ied %ith the position. "hese roles are developed by ,enry Mintzberg in ./>As a!ter a care!ul study o! eCecutives at %or-. 8ll these roles, in one !orm or other deal %ith people and their behaviour. "hese ten managerial roles are divided into three categories. "he !irst category called the interpersonal roles arises directly !rom the managerEs position and the !ormal authority given to him. "he second category, the in!ormational role arises as a direct result o! the interpersonal roles and these t%o categories give rise to the third category called decisional roles. +igure :.= sho%s the categories o! managerial roles.

"he roles, in the conteCt o! organizational behaviour, are as !ollo%sB I"(e!/e!*0" 6 R06e* (n every organization managers spend a considerable amount o! time in interacting %ith other people both %ithin their o%n organizations as %ell as outside. "hese people include peers, subordinates, superiors, suppliers, customers, government o!!icials and community leaders. 8ll these interactions re$uire an understanding o! interpersonal behaviour. Studies sho% that interacting %ith people ta-es up nearly ?AO o! a managerEs time. "hese interactions involve the !ollo%ing three maFor interpersonal rolesB ,igure.lea# /ole: Managers act as symbolic !igureheads per!orming social or legal obligations. "hese duties include greeting visitors, signing legal documents, ta-ing important customers to lunch, attending a subordinateEs %edding and spea-ing at !unctions in schools and churches. 8ll these, primarily, are duties o! a ceremonial nature but are important !or the smooth !unctioning o! an organization. ea#ership /ole: "he in!luence o! the manager is most clearly seen in the leadership role as a leader o! a unit or an organization. Since he is responsible !or the activities o! his subordinates there!ore he must lead and coordinate their activities in meeting tas-5related goals and motivate them to per!orm better. ,e must be an ideal leader so that his subordinates !ollo% his directions and guidelines %ith respect and dedication. iaison /ole: "he managers must maintain a net%or- o! outside contacts. (n addition, they need to have a constant contact %ith their o%n subordinates, peers and superiors in order to assess the eCternal environment o! competition, social changes or changes in governmental rules and regulations. (n this role, the managers build up their o%n eCternal in!ormation system. "his can be achieved by attending meetings and pro!essional con!erences, personal phone calls, trade Fournals and in!ormal personal contacts %ith outside agencies.

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I"-0!. (#0" R06e* 8 manager, by virtue o! his interpersonal contacts, emerges as a source o! in!ormation about a variety o! issues concerning an organization. (n this capacity o! in!ormation processing, a manager eCecutes the !ollo%ing three roles. )onitor /ole: "he managers are constantly monitoring and scanning their internal and eCternal environment, collecting and studying in!ormation regarding their organization. "his can be done by reading reports and periodicals, interrogating their liaison contacts and through gossip, hearsay and speculation. Information $isseminator /ole: "he managers must transmit the in!ormation regarding changes in policies or other matters to their subordinates, their peers and to other members o! an organization. "his can be done through memos, phone calls, individual meetings and group meetings. Spo0esman /ole: 8 manager has to be a spo-esman !or his unit and represent his unit in either sending relevant in!ormation to people outside his unit or ma-ing some demands on behal! o! his unit. De'#*#0" R06e* 8 manager must ma-e decisions and solve organizational problems on the basis o! the environmental in!ormation received. (n that respect, a manager plays !our important roles. Entrepreneur /ole: Managers, as entrepreneurs are constantly involved in improving their units and !acing the dynamic technological challenges. "hey are constantly on the loo-out !or ne% ideas !or product improvement or product addition. "hey initiate !easibility studies, arrange capital !or ne% products and as- !or suggestions !rom the employees to improve organization. "his can be achieved through suggestion boCes, holding strategy meetings %ith proFect managers and *9& personnel. "onflict -an#ling /ole: "he managers are constantly involved as Fudge in solving con!licts among the employees and bet%een employees and management. Mangers must anticipate such problems and ta-e preventive action and ta-e corrective action once the problem arises. "hese problems may involve labor disputes, customer complaints, employee grievances, machine brea-do%ns, cash !lo% shortages and interpersonal con!licts. /esource Allocation /ole: "he managers establish priorities among various proFects or programs and ma-e budgetary allocations to di!!erent activities o! an organization based on these priorities. Negotiator /ole: "he managers in their negotiator role represent their organization in negotiating deals and agreements %ithin and outside o! an organization. "hey negotiate contracts %ith the unions. Sales managers may negotiate prices %ith prime customers. urchasing managers may negotiate prices %ith vendors. 8ll these ten roles are important in a managerEs Fob and are interrelated, even though some roles may be more in!luential than others depending upon the managerial position. +or eCample, sales manager gives more importance to interpersonal roles, %hile the production manager may give more importance to decisional roles. LIMITATIONS OF ORGANIZATIONAL BEHAVIOUR Organizational behaviour cannot abolish con!lict and !rustration but can only reduce them. (t is a %ay to improve but not an absolute ans%er to problems. (t is only one o! the many systems operating %ithin a large social system. eople %ho lac- system understanding may develop a Ebehavioral basisE, %hich gives them a narro% vie% point, i.e., a tunnel vision that emphasizes on satis!ying employee eCperiences %hile overloo-ing the broader system o! an organization in relation to all its public. "he la% o! diminishing returns also operates in the case o! organizational behaviour. (t states, that at some point increase o! a desirable practice produce declining returns and sometimes, negative returns. "he concept implies that !or any situation there is an optimum amount o! a desirable practice. 3hen that point is eCceeded, there is a decline in returns. +or eCample, too much security may lead to less employee initiative and gro%th. "his relationship sho%s that organizational e!!ectiveness is achieved not by maCimizing one human variable but by %or-ing all system variables together in a balanced %ay. 8 signi!icant concern about organizational behaviour is that its -no%ledge and techni$ues could be used to manipulate people %ithout regard !or human %el!are. eople %ho lac- ethical values could use people in unethical %ays. FUTURE OF ORGANIZATIONAL BEHAVIOUR "he gro%ing interest in organizational behaviour stems !rom both a philosophical desire by many people to create more humanistic %or- places and a practical need to design more productive %or- environments. 8s a result o! these !orces, organizational behaviour is no% a part o! the curriculum o! almost all courses including engineering and medical. "he !ield o! organizational behaviour has gro%n in depth and breadth. "he -eys to its past and !uture success revolve around the related processes o! theory development, research and managerial practice. 8lthough organizational behaviour has certain limitations, it has a tremendous potential to contribute to the advancement o! civilisation. (t has provided and %ill provide much improvement in the human environment. By building a better climate !or people, organizational behaviour %ill release their creative potential to solve maFor social problems. (n this %ay organizational behaviour %ill contribute to social improvements. (mproved organizational behaviour is not

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easy to apply but opportunities are there. (t should produce a higher $uality o! li!e in %hich there is improved harmony %ithin each individual, among people and among the organizations o! !uture. LESSON 4 GLOBAL SCENARIO OF ORGANIZATIONAL BEHAVIOUR Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he global scenario o& organi#ational behaviour "he barriers to cultural adaptation and measures to overcome those barriers

&ue to globalization o! economy, many organizations no% operate in more than one country. "hese multinational operations add ne% dimensions to organizational behaviour. (t is a step into di!!erent social, political and economic environments. "here!ore, communication and control becomes di!!icult. "he social, political and economic di!!erences among countriesD in!luence international organizational behaviour. SOCIAL CONDITIONS (n many countries due to poorly developed resources, there is shortage o! managerial personnel, scientists and technicians. ,ence the re$uired s-ills must be temporarily imported !rom other countries, and training programs need to be developed to train the local %or-ers. "rained locals become the nucleus !or developing others, thereby spreading the training through masses. 8nother signi!icant social condition in many countries is that the local culture is not !amiliar %ith advanced technology. 8 !e% countries arc agriculture dominated and a !e% other manu!acturing industries dominated. )aturally, the nature o! their culture and %or- li!e %ill be di!!erent. ,OLITICAL CONDITIONS olitical conditions that have a signi!icant e!!ect on organizational behaviour include instability o! the government, restricting industries to a particular area and nationalistic drives such as sel!5su!!iciency in latest technologies. 3hen the government is unstable, organizations become cautious about !urther investments. "his organizational instability leaves %or-ers insecure and causes them to be passive and lo% in ta-ing any initiatives. (n spite o! instability, a nationalistic drive is strong !or locals to run their country and their organizations by themselves %ithout any inter!erence by !oreign nationals. (n some nations, organized labor is mostly an arm o! the authoritarian state and in some other nations labor is some%hat independent. (n some nations, State tends to be involved in collective bargaining and other practices that a!!ect %or-ers. +or eCample, %or-ersE participation in management are restricted by la% %hile in other countries they are permitted. ECONOMIC CONDITIONS "he most signi!icant economic conditions in less developed nations are lo% per capita income and rapid in!lation. (n!lation ma-es the economic li!e o! %or-ers insecure %hen compared to developed countries. "he di!!erent socio5economic and political conditions eCisting in countries in!luence the introduction o! advanced technology and sophisticated organizational systems. 8 developed country can easily adopt advanced technology %hen compared to a less developed country. "hese limiting conditions cannot be changed rapidly because they arc too %ell established and %oven into the %hole social !abric o! a nation. MANAGING AN INTERNATIONAL +ORKFORCE 3henever an organization eCpands its operations to other countries, it tends to become multicultural and %ill then !ace the challenge o! blending various cultures together. "he managerial personnel entering another nation need to adFust their leadership styles, communication patterns and other practices to !it their host country. "heir role is to provide !usion o! cultures in %hich employees !rom both countries adFust to the ne% situation see-ing a greater productivity !or the bene!it o! both the organization and the people o! the country in %hich it operates. B !!#e!* (0 C26(2! 6 A4 /( (#0" Managers and other employees %ho come into a host country tend to eChibit di!!erent behaviors and some%hat, see situation around them !rom their o%n perspectives. "hey may !ail to recognize the -ey di!!erences bet%een their o%n and other cultures. "hese people are called, EparochialE. 8nother category o! managers called EindividualisticE place greatest emphasis on their personal needs and %el!are. "hey are more concerned about themselves than the host country.

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8nother potential barrier to easy adaptation o! another culture occurs, %hen5people are predisposed to believe that their homeland conditions are the5best. "his predisposition is -no%n as the Esel!5re!erence criterionE or EethnocentrismE. "his !eeling inter!eres %ith understanding humanB behaviour in other cultures and obtaining productivity !rom local employees.

"ultural $istance "o decide the amount o! adaptation that may be re$uired %hen personnel moves to another country, it is help!ul to understand the cultural distance bet%een the t%o countries. #ultural distance is the amount o! distance bet%een any t%o social systems. 3hatever may be the amount o! cultural distance, it does a!!ect the responses o! all individuals to business. "he managerEs Fob is to ma-e the employees adapt to the other culture and integrate the interests o! the various cultures involved. "ultural Shoc0 3hen employees enter another nation they tend to su!!er cultural shoc-, %hich is the insecurity and disorientation caused by encountering a di!!erent culture. "hey may not -no% ho% to act. may !ear losing !ace and sel!5con!idence or may become emotionally upset. #ultural shoc- is virtually universal. Some o! the more !re$uent reasons !or cultural shoc- are as !ollo%sB &i!!erent management philosophies )e% language 8lternative !ood, dress, availability o! goods 8ttitude to%ards %or- and productivity Separation !rom !amily, !riends and colleagues ;ni$ue currency system Many eCpatriates report di!!iculty in adFusting to di!!erent human resource management philosophies, the language, the di!!erent currency and %or- attitudes in another culture. O)e!'0.#"$ B !!#e!* (0 C26(2! 6 A4 /( (#0" #are!ul selection; o! employees, %ho can %ithstand4adFust cultural shoc-s !or international assignmentsN is important. re5departure training in geography, customs, culture and political environment in %hich the employee %ill be living %ill help !or cultural adaptation. (ncentives and guarantees !or better position %ill motivate employees !or cultural adaptation in the ne% country. 'mployees %ho return to their home country a!ter %or-ing in another nation !or sometime tend to su!!er cultural shoc- in their o%n homeland. 8!ter adFusting to the culture o! another nation and enFoying its uni$ueness, it is di!!icult !or eCpatriates to re5adFust to the surroundings o! their home country. ,ence, organizations need repatriation policies and programs to help returning employees obtain suitable assignments and adFust to the Ene%E environments. C26(2! 6 C0"(#"$e"'#e* roductive business practices !rom one country cannot be trans!erred directly to another country. "his re!lects the idea o! cultural contingency that the most productive practices !or a particular nation %ill depend heavily on the culture, social system, economic development and employeeEs values in the host country. ,ence, the eCpatriate managers must learn to operate e!!ectively in a ne% environment %ith certain amount o! !leCibility. Labor policy, personnel practices and production methods need to be adapted to a di!!erent labor !orce. Organization structures and communication patterns need to be suitable !or local operations. MANAGEMENT:S INTEGRATING ROLE Once managers are in a host country, their attention needs to be directed to%ard integrating the technological approaches %ith the local cultures involved. M0(#) (#"$ "4 Le 4#"$ L0' 6 E./605ee* Same motivational tools may not suit the employees o! all the nations. ,ence, appropriate motivational techni$ues need to be implemented depending on the re$uirement o! employees o! that particular nation. Similarly, communication problems may also arise bet%een the eCpatriate manager and the employees o! the host country. ,ence, managers need to ma-e adFustments in their communication suited toP local cultures. (! local culture is ignored, the resulting imbalance in the social system inter!eres %ith the productivity. 'ventually, a cadre o! employees %ith cross5cultural adaptability can be developed in organizations %ith large international operations. "hese employees are Etrans5culturalM employees because they operate e!!ectively in several cultures. "hey are lo% in ethnocentrism and adapt readily to di!!erent cultures %ithout maFor cultural shoc-. "hey usually can communicate !luently in more than one language.

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"rans5cultural employees are especially needed in large, multinational !irms that operate in a5variety o! national cultures. +or a !irm to be truly multi5national in character, it should have o%nership, operations, mar-ets and managers truly diversi!ied. (ts leaders loo- to the %orld as an economic and social unit; but they recognize each local culture, respect its integrity, ac-no%ledge its bene!its and use its di!!erences e!!ectively in their organization. LESSON 5 FOUNDATION OF INDIVIDUAL BEHAVIOR Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB ,nderstand the nature o& individual di&&erences in organi#ations Identi& the individual &actors a&&ecting organi#ational behavior

INDIVIDUAL BEHAVIOR ,uman behavior, %hich is; considered a compleC phenomenon, is very di!!icult to de!ine in absolute terms. (t is primarily a combination o! responses to eCternal and internal stimuli. "hese responses %ould re!lect psychological structure o! the person and may be resultsE o! the combination o! biological and psychological processes, %hich interpret them, respond to them in an appropriate manner and learn !rom the result o! these responses. sychologist 2urt Levin has conducted; considerable research into the human behavior and its causes. ,e believes that people are in!luenced by a number o! diversi!ied !actors, %hich can be both genetic and environmental. "he in!luence o! these !actors determines the pattern o! human behavior. 3henever people buy something, !or eCample, a car, both the buyer and the seller sign a contract that speci!ies the terms o! the sales agreement. Similarly, most people, %hen they begin a %or-ing relationship %ith an organization !ormulate a psychological contract %ith their employer. 8 psychological contract is the overall set o! eCpectations that an individual holds %ith respect to his or her contributions to the. organization and the organizationEs response to those contributions. 8 psychological contract is not %ritten do%n li-e a legal contract. 8n individual ma-es a variety o! contributions to an organization in the !orm o!Ge!!orts, s-ills, ability, time, loyalty and so !orth. "hese contributions presumably satis!y various needs and re$uirements o! the organization. (n return !or contributions, the organization provides incentives such as pay, promotion, and Fob security to the employee. 6ust as the contributions available !rom the individual must satis!y the organizationEs needs, the incentives must serve the employeesE needs in return. (! both the individual and the organization consider the psychological contract !air and e$uitable, they %ill be satis!ied %ith the relationship and are li-ely to continue it. (! either party perceives an imbalance or ini$uity in the contract, it may initiate a change. 8 maFor challenge !aced by an organization, thus, is to manage the psychological contracts. One speci!ic aspect o! managing psychological contracts is managing the person5Fob !it. "he Eperson5Fob !itE is the eCtent to %hich the contributions made by the individual match the incentives o!!ered by the organization. (n theory, each employee has a speci!ic set o! needs to !ul!ill and a set o! Fob related behaviors and abilities to contribute. (! the organization can ta-e complete advantage o! those behaviors and abilities and eCactly !ul!ill the employeeEs needs, it %ill achieve a per!ect person5Fob !it. O! course, such a precise, level o! person5Fob !it is seldom achieved due to various reasons such as imper!ect selection procedures, di!!erences in individual s-ills, constant change in the needs and re$uirements o! people and organization. "hus, the behavior o! individuals in organization is the primary concern o! management and it is essential that the managers should have an understanding o! the !actors in!luencing the behavior o! the employees they manage. "he !igure 0.. identi!ies !ive sets o! !actors that have an impact upon individual behavior in organizations.

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NATURE OF INDIVIDUAL DIFFERENCES (ndividual di!!erences are personal attributes that vary !rom one person to another. (ndividual di!!erences may be physical and psychological. "he !igure 0.= sho%s the attributes o! physical and psychological di!!erences. ,15*#' 6 D#--e!e"'e* ,eight 3eight Body Shape 8ppearance #ompleCion ,*5'1060$#' 6 D#--e!e"'e* ersonality 8ttitudes erception Motivation Learning

!igure 0.=

3henever an organization attempts to assess the individual di!!erences among its employees, it must consider the situation in %hich that particular behavior occurs. (ndividuals %ho are satis!ied in one conteCt may prove to be dissatis!ied in another conteCt. 8ssessing both individual di!!erences and contributions in relation to incentives and conteCts, then, is a maFor challenge !or organizations as they attempt to establish e!!ective psychological contracts %ith their employees and achieve optimal !its bet%een people and Fobs. (ndividual di!!erences ma-e the managerEs Fob eCtremely challenging. (n !act, according to a recent research, Dvariability among %or-ers is substantial at all levels but increases dramatically %ith Fob compleCity. &ue to these reasons, gro%ing %or- !orce diversity compel managers to vie% individual di!!erences in a !resh %ay. Leaders no% tal!re$uently about Dvaluing di!!erencesD and learn to Dmanage diversityD. So rather than limiting diversity, as in the past, todayEs managers need to better understand and accommodate employee diversity and individual di!!erences. IM,ORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES Sel!5concept ersonality dimensions 8bilities, and ersonal values and ethics. Se6-;'0"'e/( Sel! is the core o! oneEs conscious eCistence. 8%areness o! sel! is re!erred to as oneEs sel!5concept. Sociologists <i-tor Gecas de!ines sel!5concept as Dthe concept the individual has o! himsel! as a physical, social and spiritual or moral beingD. (n other %ords, every individual recognizes himsel! as a distinct individual. 8 sel!5concept %ould be impossible %ithout the capacity to thin-. "his brings us to the role o! cognitions. #ognitions represent, Dany -no%ledge, opinion, or belie! about the environment about onesel!, or about oneEs behaviorD. 8mong many di!!erent types o! cognitions, those involving eCpectation, planning, goal setting, evaluating and setting personal standards are particularly relevant to organizational, behavior. Se6-;e*(ee. Sel!5esteem is a belie! over oneEs o%n %orth based on an overall sel!5evaluation. "hose %ith lo% sel!5esteem tend to vie% themselves in negative terms. "hey do not !eel good about themselves, tend to have trouble in dealing e!!ectively %ith others, and are hampered by sel!5doubts. ,igh sel!5esteem individuals, in contrast, see themselves as %orth%hile, capable and acceptable. 8lthough, high sel!5esteem is generally considered a positive trait because it is associated %ith better per!ormance and greater satis!action, recent research uncovered !la%s among those having high sel!5esteem. Speci!ically, high sel!5esteem subFects tended to become sel!5centered and boast!ul %hen !aced %ith situations under pressure ,ence moderate sel!5esteem is desirable. .. =. :. 7. Managers can build employee sel!5esteem in !our %aysB Be supportive by sho%ing concern !or personal problems, interests, status and contribution. O!!er %or- involving variety, autonomy and challenges that suit the individualEs values, s-ills and abilities. Strive !or management5employee cohesiveness and trust building. ,ave !aith in each employeeEs sel!5management ability, re%ard successes.

Se6-;e--#' '5 Sel!5e!!icacy is a personEs belie! about hisE or her chances o! success!ully accomplishing a speci!ic tas-. 8ccording to one organizational behavior %riter, DSel!5e!!icacy arises !rom the gradual ac$uisition o! compleC, cognitive, social, linguistic, and4or physical s-ills through eCperienceD,

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"here is strong lin-age bet%een high sel!5e!!icacy eCpectations and success in terms o! physical and mental tas-s, anCiety reduction, addiction control, pain tolerance and illness recovery. Oppositely, those %ith lo% sel!5e!!icacy eCpectations tend to have lo% success rates. Self!efficacy Implications for )anagers Managers need to nurture sel!5e!!icacy in them and in their employees. Sel!5e!!icacy re$uires constructive action in each o! the !ollo%ing managerial areasB "o design recruitment selection procedure. "o design intervie% $uestions to probe applicantEs general sel!5e!!icacy !or determining orientation and training needs. +or designing Fob. +or systematic sel!5management training. +or goal5setting and $uality improvement. "o evolve suitable leadership. "o design suitable regards. ,e!*0" 6#(5 D#.e"*#0"* "he big, !ive personality dimensions areB eCtroversion, agreeableness, thoroughness, emotional stability and openness to eCperience. (deally, these personality dimensions that correlate positively and strongly %ith Fob per!ormance %ould be help!ul in the selection, training and appraisal o! employees. "he individuals %ho eChibit; traits associated %ith a strong sense o! responsibility and determination generally per!orm better than those %ho do not. ,HYSICAL AND INTELLECTUAL <UALITIES hysical di!!erences among individuals are the most visible o! all di!!erences. "hey are also relatively easy to assess. (ntellectual di!!erences are some%hat more di!!icult to discern, but they too can be assessed by !airly obFective means. "he abilities4s-ills and competencies o! employees are both physical and intellectual $ualities. 8bility re!ers to an individualEs s-ill to per!orm e!!ectively in one or more areas o! activity, such as physical, mental or interpersonal %or-. (ndividuals %ith numerical ability, !or eCample, can be trained to apply their ability in the !ield o! engineering, accounting and computer science. 8bilities develop !rom an individualEs natural aptitudes and subse$uent learning opportunities. 8ptitudes are relatively stable capacities !or per!orming some activity e!!ectively. Learning opportunities translate aptitude into abilities through practice, eCperience and !ormal training. Organizations have to ensure that people possess the necessary abilities to engage in the behaviors re$uired !or e!!ective per!ormance. "his can >e accomplished either by care!ul selection o! people or by a combination o! selection and training. S-ills are generally thought o! as being more tas-5speci!ic capabilities than abilities. +or eCample, an individual %ith numerical ability %ho goes to school to learn accounting develops a numerical s-ill speci!ic to that !ieldE. "hus, %hen a particular ability is applied to a specialized area, K!or eCample accountingL, it becomes a s-ill. #ompetencies are s-ills associated %ith specialization. #ompetencies are s-ills that have been re!ined by practice and eCperience and that enable, the5individual to specialize in some !ield. +or eCample, an accountant %ith numerical Dability and accounting s-ill ta-es a position in the "aCation &epartment and as time passes, he develops more competency as a taC eCpert. hysical abilities such as strength, !leCibility, endurance and stamina can be developed %ith eCercise and training. Mental abilities such as reasoning, memory visualization, comprehension and inter5personal abilities can also be developed through practice and education. 'ven in the absence o! such !ormal programs, many individuals manage their o%n careers in such a %ay as to continually upgrade their abilities, s-ills and competencies in order to remain valuable to their organizations. ,ERSONAL VALUES AND ETHICS 8ccording to Milton *o-each, a value is Dan enduring belie! that a speci!ic mode o! conduct or end5stated o! eCistence is personally or socially pre!erable to an opposite or converse mode o! conduct are end5state o! eCistenceD. 'thics involve the study o! moral issues and choices. (t is concerned %ith right versus %rong and good versus bad. *elative to the %or-place, the terms business ethics and management ethics are o!ten heard. Moral rinciples !or Managers 6udge actions by their conse$uences; achieve the greatest good !or the greatest number o! people. Basic human rights should be respected. *ules and re%ards should be administered impartially, !airly and e$uitably.

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(mproving OrganizationEs 'thical #limate Managers are po%er!ul role models %hose habits and actual behavior send clear signals about the importance o! ethical conduct. 'thical behavior is a . top to bottom proposition. Screen potential employees by chec-ing re!erences, credentials, and other in!ormation !or ascertaining their ethical behavior.

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LESSON ; 6 ,ERSONALITY Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB ,nderstand perceptual clarit about personalit *iscuss main determinants o& personalit E+plain nature and dimensions o& personalit *escribe personalit attributes that are relevant to organi#ational behavior

ersonality is a compleC, multi5dimensional construct and there is no simple de!inition o! %hat personality is. Maddi de!ines personality as, Q8 stable set o! characteristics and tendencies that determine those commonalities and di!!erences in the psychological behavior and that may not be easily understood as the sole result o! the social and biological pressures o! the momentD. +rom the above de!inition %e can in!er that all individuals have some universally common characteristics. @et they di!!er in some other speci!ic attributes. "his ma-es it di!!icult !or the managers to assume that they can apply same re%ard types or motivation techni$ues to modi!y di!!erent individual behaviors. "he de!inition, ho%ever, does not mean that people never change. (n simple terms, it asserts that individuals do not change all at once. "heir thoughts, !eelings, values and actions remain relatively stable over time. #hanges in individualEs personality can, ho%ever, occur gradually over a period o! time. "he managers should, there!ore, attempt to understand certain dimensions o! personality. "his can enable them to predict the behavior o! their employees on a daily basis. Some personality theorists stress the need >! identi!ying person5situation as interaction. "his is e$uivalent to recognizing thd social learning aspects related to personality. Such a social learning analysis is one o! the most comprehensive and meaning!ul %ays included in the overall study o! organizational behavior. +rom this perspective, personality means the %ay people a!!ect others. (t also involves peopleEs understanding themselves, as %ell as their pattern o! inner and outer measurable traits, and the person and situation interaction. eople a!!ect others depending primarily upon their eCternal appearance such as height, %eight, !acial !eatures, color and other physical aspects and traits. ersonality traits are very important in organizational behavior. (n particular, !ive personality traits especially related to Fob per!ormance have recently emerged !rom research. #haracteristics o! these traits can be summarized as !ollo%sB 1. 2. 3. 4. 5. E1troversion: Sociable, tal-ative and assertive. Agreea*leness: Good5natured, cooperative and trusting. "onscientiousness: *esponsible, dependable, persistent and achievement5oriented. Emotional Sta*ility: <ie%ed !rom a negative standpoint such as tense, insecure and nervous. 'penness to E1perience: (maginative, artistically sensitive and intellectual.

(denti!ying the above Dbig !iveD traits related to per!ormance reveals that personality plays an important role in organizational behavior. Besides physical appearance and personality traits, the aspects o! personality concerned %ith the sel!5concept such as sel!5esteem and sel!5e!!icacy and the person5situation interaction also play important roles. ,ERSONALITY FORMATION "he personality !ormation o! an individual starts at birth and continues throughout his li!e. "hree maFor types o! !actors play important roles in personality !ormation, %hich are as !ollo%sB $eterminants: "he most %idely studied determinants o! personality are biological, social and cultural. eople gro% up in the presence o! certain hereditary characteristics Kbody shape and heightL, the social conteCt K!amily and !riendsL and the cultural conteCt Kreligion and valuesL. "hese three parts interact %ith I each other to shape personality. 8s people gro% into adulthood, their personalities become very clearly de!ined and generally stable. Stages: 8ccording to Sigmund +reud human personality progresses through !our stagesB dependent, compulsive, oedipal and mature. "his concept o! stages o! gro%th provides a valuable perspective to organizational behavior. 'Cperienced managers become a%are o! the stages that their employees o!ten go through. "his helps them ./ deal %ith these stages e!!ectively and promote maCimum gro%th !or the individual and !or the organization. Traits: "raits to personality are also based on psychology. 8ccording to some trait theories, all people share common traits, li-e social, Kpolitical, religious and aesthetic pre!erences but each individualEs nature di!!eren 5 tiates that person !rom all others.

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,ERSONALITY FACTORS IN ORGANISATI<N5 Some o! the important personality !actors that determine %hat -ind o! behaviors are eChibited at %or- include the !ollo%ingB )eed attern Steers and Braunstein in ./1> Rdeveloped a scale !or the !our needs o! personality that became apparent in the E%orenvironment. "hey are as !ollo%sB The nee# for achievement: "hose %ith a high achievement need engage themselves proactively in %orbehaviors in order to !eel proud o! their achievements and successes. The nee# for affiliation: "hose in greater need !or a!!iliation li-e to %or- cooperatively %ith others. The nee# for autonomy: "hose in need !or autonomy !unction in the best %ay %hen not closely supervised. The nee# for #ominance: "hose high in need !or dominance are very e!!ective %hile operating in environments %here they can actively en!orce their legitimate authority.

L0'2* 0- C0"(!06 Locus o! control is the degree to %hich an individual believes that his or her behavior has direct impact on the conse$uences o! that behavior. Some people, !or eCample, believe that i! they %or- hard they %ill certainly succeed. "hey, strongly believe that each individual is in control o! his or her li!e. "hey are said to have an internal locus o! control. By contrast, some people thin- that %hat happens to them is a result o! !ate, chance, luc- or the behavior o! other people, rather than the lac- o! s-ills or poor per!ormance on their part. Because5 these individuals thin- that !orces beyond their control dictate the happenings around them, they are said to have an eCternal locus o! control. 8s a personality attribute, locus o! control has clear implications !or organizations. +or eCample, certain individuals have an internal locus o! control, %hich means they have a relatively strong desire to participate in the management o! their organizations and have aE !reedom to do their Fobs. "hus, they may pre!er a decentralized organization %here they have a right o! decision5ma-ing and %or- %ith a leader %ho provides them !reedom and autonomy. "hey may li-e a re%ard system that recognizes individual per!ormance and contributions. #onversely, people %ith an eCternal locus o! control, are li-ely to pre!er a more centralized organization %here they need not ta-e any decisions. "hey may incline to structured Fobs %here standard procedures are de!ined !or them. "hey may pre!er a leader %ho ma-es most o! the decisions and a re%ard system that considers seniority rather than merit. I"(!0)e!*#0" "4 E=(!0)e!*#0" (ntroversion is the tendency o! individuals, %hich directs them to be in%ard and process !eelings, thoughts and ideas %ithin themselves. 'Ctroversion, on the contrary, re!ers to the tendency in individuals to loo- outside themselves, searching !or eCternal stimuli %ith %hich they can interact. 3hile there is some element o! introversion as %ell as eCtroversion in all o! us, people tend to be dominant as either eCtroverts or introverts. 'Ctroverts are sociable, lively and gregarious and see- out%ard stimuli or eCternal eCchanges. Such individuals are li-ely to be most success!ul %hile %or-ing in the sales department, publicity o!!ice, personal relations unit, and so on, %here they can interact !ace to !ace %ith others. (ntroverts, on the other ,and, are $uiet, re!lective, introspective, and intellectual people, pre!erring to interact %ith a small intimate circle o! !riends. (ntroverts are more li-ely to be success!ul %hen they can %or- on highly abstract ideas such as *9& %or-, in a relatively $uiet atmosphere. Since managers have to constantly interact %ith individuals both in and out o! the organization and in!luence people to achieve the organizationEs goals, it is believed that eCtroverts are li-ely to be more success!ul as managers. T06e! "'e -0! A.%#$2#(5 "his personality characteristic indicates the level o! uncertainty that people can tolerate to %or- e!!iciently %ithout eCperiencing undue stress. Managers have to %or- %ell under conditions o! eCtreme uncertainty and insu!!icient in!ormation, especially %hen things are rapidly changing in the organizationEs eCternal environment. Managers %ho have a high tolerance !or ambiguity can cope up %ell under these conditions. Managers, %ho have a lo% tolerance !or ambiguity may be e!!ective in structured %or- settings but !ind it almost impossible to operate e!!ectively %hen things are rapidly changing and much in!ormation about the !uture events is not available. "hus, tolerance !or ambiguity is a personality dimension necessary !or managerial success. Se6-;E*(ee. "4 Se6-;C0"'e/( Sel!5esteem denotes the eCtent to %hich individuals consistently regard themselves as capable, success!ul, important and %orthy individuals. Sel!5esteem is an important personality !actor that determines ho% managers perceive themselves and their role in the organization. Sel!5esteem is important to sel!5concept, i.e., the %ay individuals, de!ine

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themselves as to %ho they are and derive their sense o! identity. ,igh sel!5esteem provides a high sense o! sel!5 concept, %hich, in turn, rein!orces high sel!5esteem. "hus, the t%o are mutually rein!orcing. (ndividuals %ith a high sel!5 esteem %ill try to ta-e on more challenging assignments and be success!ul. "hus, they %ill be enhancing their sel!5 concept i.e., they %ould tend to de!ine themselves as highly valued individuals in the organizational system. "he higher the sel!5concept and sel!5esteem, the greater %ill be their contributions to the goals o! the organization, especially %hen the system re%ards them !or their contributions. A2(10!#( !# "#*. "4 D0$. (#*. 8uthoritarianism is the eCtent to %hich an individual believes that po%er and status di!!erences are important %ithinE hierarchical social systems li-e organizations. +or eCample, an employee %ho is highly authoritarian may accept directives or orders !rom his superior %ithout much $uestioning. 8 person %ho is not highly authoritarian might agree to carry out appropriate and reasonable directives !rom his boss. But he may also raise $uestions, eCpress disagreement and even re!use to carry out re$uests i! they arc !or some reason obFectionable. &ogmatism is the rigidity o! a personEs belie!s and his or her openness to other vie%points. "he popular terms Eclose5mindedE and Eopen5mindedE describe people %ho are more and less .dogmatic in their belie!s respectively. +or eCample, a manager may be un%illing to listen to a ne% idea related to doing something more e!!iciently. ,e is said to be a person %ho is close5minded or highly dogmatic. 8 manager %ho is very receptive to hearing about and trying out ne% ideas in the same circumstances might be seen as more open5minded or less dogmatic. &ogmatism can be either bene!icial or detrimental to organizations, but given the degree o! change in the nature o! organizations and their environments, individuals %ho are, not dogmatic are most li-ely to be use!ul and productive organizational members. R#*> ,!0/e"*#(5 *is-5propensity is the decree to %hich an individual is %illing to ta-e chances and ma-e ris-y decisions. 8 manager %ith a high5ris- propensity might be eCpected to eCperiment %ith ne% ideas and to lead the organization in ne% directions. (n contrast, a manager %ith lo% ris- propensity might lead to a stagnant and overly conservative organization. M '1# )e66# "#*. Machiavellianism is manipulating or in!luencing other people as a primary %ay o! achieving oneEs goal. 8n individual tends to be Machiavellian, i! he tends to be logical in assessing the system around, %illing to t%ist and turn !acts to in!luence others, and try to gain control o! people, events and situations by manipulating the system to his advantage. T5/e A "4 B ,e!*0" 6#(#e* "ype 8 persons !eel a chronic sense o! time urgency, are highly achievement5oriented, eChibit a competitive drive, and are impatient %hen their %or- is slo%ed do%n !or any reason. "ype B persons are easy5going individuals %ho do not !eel the time urgency, and %ho do not eCperience the competitive drive. "ype 8 individuals are signi!icantly more prone to heart attac-s than "ype B individuals. 3hile "ype 8 persons help the organization to move ahead in a relatively short period o! time they may also su!!er health problems, %hich might be detrimental to both themselves and the organization in the long run. +0!>;E(1#' O!#e"( (#0" Some individuals are highly %or-5oriented %hile others try to do the minimum 3or- that is necessary to get by %ithout being !ired on5the5Fob. "he eCtremely %or- oriented person gets greatly involved in the Fob. 'Ctreme %or- ethic values could lead to traits o! D%or-ahollismD %here %or- is considered as the only primary motive !or living %ith very little outside interests. +or a %or-aholic turning to %or- can sometimes become a viable alternative to !acing non5%orrelated problems. 8 high level o! %or- ethic orientation o! members is good !or the organization to achieve its goals. "oo much D%or-ahollismD, ho%ever, might lead to premature physical and mental eChaustion and health problems, %hich is dys!unctional !or both organization and the %or-aholic members. "he above ten di!!erent personality predispositions are important !or individual, managerial and organizational e!!ectiveness. DESIRED ,ERSONALITY CHARACTERISTICS FOR EFFECTIVE MANAGERS Obviously, there arc some personality Rpredispositions, %hich are !avourable Dto managerial e!!ectiveness and to the success o! managers. 8part !rom possessing the necessary s-ills and abilities, managers need to develop a high tolerance !or ambiguity. "here are many changes ta-ing place in the internal and the eCternal environment o! an organization.. )aturally, several unpredictable !actors are involved in any compleC situation, %hich are beyond the managersM control. "here!ore, they should be able to, handle situations as they come, %ithout eCperiencing undue stress. "hus, a high tolerance !or ambiguity is a desired managerial trait. Managers %ith a good miC o! achievements, a!!iliations and po%er %ill be success!ul in most situations. "his is because they %ill have the drive to achieve the goals and the interpersonal orientation to get the Fob done through others. (n sales and other people5oriented roles, eCtrovert managers %ill !it better in their Fobs. Similarly, managers %ith internal locus o! control %ill be more e!!icient as

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intellectual and s-illed per!ormers. Managers %ith good %or- ethic values, %ill get more involved in their Fobs and ma-e things happen. "hey are li-ely to be more success!ul in their Fobs. Managers %ith "ype 8 personalities may suit very %ell !or some Fobs, %hich have inbuilt per!ormance pressures and deadlines, but they need to -no% ho% to relaC through eCercises and sel!5monitor their stress levels. ersonality is a relatively stable !actor, but our predispositions can be changed through conscious choice. +or instance, our tolerance !or ambiguity and ability to handle stress can be considerably enhanced; the attributions %e ma-e !or success such as internal versus eCternal5locus o! control can be changed. 8lso, our latent needs can be activated and our s-ills in decision5ma-ing can be increased through training programs and by deliberately ma-ing the necessary changes. *ecognizing the essential ingredients !or managerial success is the !irst step to%ards ma-ing the changes. THE SELF;CONCE,T9 SELF;ESTEEM AND SELF;EFFICACY eopleEs attempt to understand themselves is called the sel!5concept in personality theory. "he human sel! is made o! many interacting parts and may be thought o! as the personality vie%ed !rom %ithin. "his sel! is particularly relevant to the concepts o! sel!5esteem and sel!5e!!icacy in the !ield o! organizational behavior. eopleEs sel!5esteem has to do %ith their sel!5perceived competence and sel!5image. #onsiderable research has been done on the role played by sel!5esteem outcomes in the organizational behavior. Most recently done studies indicate that sel!5esteem plays an important moderating role in the areas o! emotional and behavioral responses and stress o! organizational members. (t %as recently noted that, Dboth research and everyday eCperience con!irm that employees %ith high sel!5esteem !eel uni$ue, competent, secure, empo%ered and connected, to the people around themD Sel!5e!!icacy is concerned %ith sel!5perceptions o! ho% %ell a person can cope %ith situations as they arise. "hose %ith high sel!5e!!icacy !eel capable and con!ident o! per!orming %ell in a situation. (n the !ield o! organizational behavior, sel!5e!!icacy is conceptually close to sel!5esteem. Miner points out the di!!erences by noting that sel!5esteem tends to be a generalized trait Kit %ill be present in any situationL, %hile sel!5e!!icacy tends to be situation speci!ic. Sel!5 e!!icacy; has been sho%n to have an empirical relationship %ith organizational per!ormance and other dynamics o! organizational behavior. (n summary, personality is a very diverse and compleC cognitive process. (t incorporates almost everything. 8s de!ined above, personality means the %hole person. (t is concerned %ith eCternal appearance and traits, sel! and situational interactions. robably the best statement on personality %as made many years ago by 2luc-hohn and Murray, Dto some eCtent, a personEs personality is li-e all other peopleEs, li-e some other peopleEs, and li-e no other peopleEs.D

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LESSON ? LEARNING AND BEHAVIOR MODIFICATION Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB ,nderstand various &actors a&&ecting human behavior E+plain implications o& behavior modi&ication *escribe rein&orcement &or inducing positive behavior

Learning is an important psychological process that5determines human behavior. Learning can be de!ined as Qrelatively permanent change in behavior that occurs as a result o! eCperience or rein!orced practiceD. "here are !our important points in the de!inition o! learningB .. Learning involves a change in behavior, though this change is not necessarily an improvement over previous behavior. Learning generally has the connotation o! improved behavior, but bad habits, preFudices, stereotypes, and %or- restrictions are also learned. =. "he, behavioral change must be relatively permanent. 8ny temporary change in behavior is not a part o! learning. :. "he behavioral change must be based oh some !orm o! practice or eCperience. 7. "he practice or eCperience must be rein!orced in order so as to !acilitate learning to occur. COM,ONENTS OF THE LEARNING ,ROCESS "he components o! learning process areB drive, cue stimuli, response, rein!orcement and retention. D!#)e Learning !re$uently occurs in the presence o! drive 5 any strong stimulus that impels action. &rives are basically o! t%o types 5primary Kor physiologicalL; and secondary Kor psychologicalL. "hese t%o categories o! drives o!ten interact %ith each other. (ndividuals operate under many drives at the same time. "o predict a behavior, it is necessary to establish %hich drives are stimulating the most. C2e S(#.26# #ue stimuli are those !actors that eCist in the environment as perceived by the individual. "he idea is to discover the conditions under %hich stimulus %ill increase the probability o! eliciting a speci!ic response. "here may be t%o types i o! stimuli %ith respect to their results in terms o! response concernedB generalization and discrimination. Generalization occurs %hen a response is elicited by a similar but ne% stimulus. (! t%o stimuli are eCactly ali-e, they %ill have the same probability o! evo-ing a speci!ied response. "he principle o! generalization has important implications !or human learning. Because o! generalization, a person does not have to Ecompletely relearn each o! the ne% tas-s. (t allo%s the members to adapt to overall changing conditions and speci!ic ne% assignments. "he individual can borro% !rom past learning eCperiences to adFust more smoothly to ne% learning situations. &iscrimination is a procedure in %hich an organization learns to emit a response to a stimulus but avoids ma-ing the same response to a similar but some%hat di!!erent stimulus. &iscrimination has %ide applications in Eorganizational behavior. +or eCample, a supervisor can discriminate bet%een t%o e$ually high producing %or-ers, one %ith lo% $uality and other %ith high $uality. Re*/0"*e* "he stimulus results in responses. *esponses may be in the physical !orm or may be in terms o! attitudes, !amiliarity, perception or other compleC phenomena. (n the above eCample, the supervisor discriminates bet%een the %or-er producing lo% $uality products and the %or-er producing high $uality products, and positively responds only to the $uality conscious %or-er. Re#"-0!'e.e"( *ein!orcement is a !undamental condition o! learning. 3ithout rein!orcement, no measurable modi!ication o! behavior ta-es place. *ein!orcement may be de!ined as the environmental eventEs a!!ecting the probability o! occurrence o! responses %ith %hich they are associated. Re(e"(#0" "he stability o! learned behavior over time is de!ined as retention and its contrary is -no%n as !orgetting. Some o! the learning is retained over a period o! time %hile others may be !orgotten.

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LEARNING THEORIES C6 **#' 6 C0"4#(#0"#"$ "he %or- o! the !amous *ussian physiologist (van avlov demonstrated the classical conditioning process. 3hen avlov presented a piece o! meat to the dog in the eCperiment, avlov noticed a great deal o! salivation. ,e termed the !ood an unconditioned stimulus and the salivation an unconditioned response. 3hen the dog sa% the meat, it salivated. On the other hand, %hen avlov merely rang a bell, the dog did not salivate. avlov subse$uently introduced the sound o! a bell each time the meat %as given to the dog. "he dog eventually learned to salivate in response to the ringing o! the5bell5even %hen there %as no meat. avlov had conditioned the dog to respond to a learned stimulus. "horndi-e called this the Dla% o! eCerciseD %hich states that behavior can be learned by repetitive association bet%een a stimulus and a response. #lassical conditioning has a limited value in the study o! organizational behavior. 8s pointed out by S-inner, classical conditioning represents an insigni!icant part o! total human learning. #lassical conditioning is passive. Something happens and %e react in a speci!ic or particular !ashion. (t is elicited in response to a speci!ic, identi!iable event. 8s such it eCplains simple and re!leCive behaviors. But behavior o! people in organizations is emitted rather than elicited, and it is voluntary rather than re!leCive. "he learning o! these compleC behaviors can be eCplained or better understood by loo-ing at operant conditioning. O/e! "( C0"4#(#0"#"$ 8n operant is de!ined as a behavior that produces e!!ects. Operant conditioning, basically a product o! S-innerian psychology, suggests that individuals emit responses that are either not re%arded or are punished. Operant conditioning is a voluntary behavior and it is determined, maintained and controlled by its conse$uences. Operant conditioning is a po%er!ul tool !or managing people in organizations. Most behaviors in organizations are learned, controlled and altered by the conse$uences; i.e. operant behaviors. Management can use the operant conditioning process success!ully to control and in!luence the behavior o! employees by manipulating its re%ard system. *ein!orcement is anything that both increases the strength o! response and tends to induce repetitions o! the behavior. +our types o! rein!orcement strategies can be employed by managers to in!luence the behavior o! the employees, viz., positive rein!orcement, negative rein!orcement, eCtinction and punishment. Positive /einforcement ositive rein!orcement strengthens and increases behavior by the presentation o! a desirable conse$uence Kre%ardL. (n other %ords, a positive rein!orce is a re%ard that !ollo%s behavior and is capable o! increasing the !re$uency o! that behavior. "here are t%o typos o! positiveB rein!orcesB primary and secondary. rimary rein!orcers such as !ood, %ater and seC are o! biological importance and have e!!ects, %hich arc independent o! past eCperiences. +or instance, a primary rein!orcer li-e !ood satis!ies hunger need and rein!orced !ood5producing behavior. Secondary rein!orcers li-e Fob advancement, recognition, praise and esteem result !rom previous association %ith a primary rein!orcer. rimary rein!orcers must be learned. (n order to apply rein!orcement procedures success!ully, management must select rein!orcers that are su!!iciently po%er!ul and durable. Negative /einforcement "he threat o! punishment is -no%n as negative rein!orcement. )egative rein!orcers also serve to strengthen desired behavior responses leading to their removal or termination. E1tinction 'Ctinction is an e!!ective method o! controlling undesirable behavior. (t re!ers to non5rein!orcement. (t is based on the principle that i! a response is not rein!orced, it %ill eventually disappear. 'Ctinction is a behavioral strategy that does not promote desirable behaviors but can help to reduce undesirable behaviors. Punishment unishment is a control device employed in organizations to discourage and reduce annoying behaviors o! employees. OBSERVATIONAL LEARNING Observational learning results !rom %atching the behavior o! another person and appraising the conse$uences o! that behavior. (t does not re$uire an overt response. 3hen Mr. S observes that @ is re%arded !or superior per!ormance, S learns the positive relationship bet%een per!ormance and re%ards %ithout actually obtaining the re%ard himsel!. Observational learning plays a crucial role in altering behaviors in organizations. C0$"#(#)e Le !"#"$ ,ere the primary emphasis is on -no%ing ho% events and obFects are related to each other. Most o! the learning that ta-es place in the classroom is cognitive learning. #ognitive learning is important because it increases the change that the learner %ill do the right thing !irst, %ithout going through a lengthy operant conditioning process.

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LEARNING THEORY AND ORGANIZATIONAL BEHAVIOR "he relevance o! the learning theories !or eCplaining and predicting o! organizational behavior is marginal. "his does not mean that learning theories are totally irrelevant. Learning concepts provide a basis !or changing behaviors that are unacceptable and maintaining those behavior that are acceptable. 3hen individuals engage in various types o! dys!unctional behavior such as late !or %or-, disobeying orders, poor per!ormance, the manager %ill attempt to educate more !unctional behaviors. Learning theory can also provide certain guidelines !or conditioning organizational behavior. Managers -no% that individuals capable o! giving superior per!ormance must be given more rein!orces than those %ith average or lo% per!ormance. Managers can success!ully use the operant conditioning process to control and in!luence the behavior o! employees; by manipulating its re%ard system.

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LESSON @ LEARNING AND BEHAVIOUR MODIFICATION Learning ObFectives 8!ter reading this lesson, you should be able toB E+plain the concept o& attitude in organi#ations ,nderstand the method o& &ormation o& attitude *iscuss individual attitude in organi#ations and indicate their e&&ect on behaviour E+plain the concept o& perception and perceptual process *escribe perception attribution in organi#ations

(n simple %ords, an DattitudeD is an individualEs point o! vie% or an individualEs %ay o! loo-ing at something. "o be more eCplicit, an DattitudeD may be eCplained as the mental state o! an individual, %hich prepares him to react or ma-e him behave in a particular pre5determined %ay. 8n attitude is de!ined as, Da learned pre5disposition to respond in a consistently !avourable or un!avorable manner %ith respect to a given obFectD. 8ttitude is the combination o! belie!s and !eelings that people have about speci!ic ideas, situations or other people. 8ttitude is important because it is the mechanism through %hich most people eCpress their !eelings. COM,ONENTS OF ATTITUDE 8ttitude has three components, %hich are as !ollo%sB 8!!ective component #ognitive component (ntentional component "he !igure ?.. sho%s the components o! attitude.

"he a!!ective component o! an attitude re!lects E!eelings and emotionsE that an individual has to%ards a situation. "he cognitive component o! an attitude is derived !rom E-no%ledgeE that an individual has about a situation. +inally, the intentional component o! an attitude re!lects ho% an individual EeCpects to behaveE to%ards or in the situation. +or eCample, the di!!erent components o! an attitude held to%ards a !irm, %hich supplies in!erior products and that too irregularly could be described as !ollo%sB D( donEt li-e that companyDG8!!ective component. D"hey are the %orst supply !irm ( have ever dealt %ithDG#ognitive component. D( %ill never do business %ith them againDEG(ntentional component.

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eople try to maintain consistency among the three components o! their attitudes. ,o%ever, con!licting circumstances o!ten arise. "he con!lict that individuals may eCperience among their o%n attitudes is called Ecognitive dissonance. ATTITUDE FORMATION AND CHANGE (ndividual attitude are !ormed over time as a result o! repeated personal eCperiences %ith ideas, situations or people. One o! the very important %ays to understand individual behaviour in an organization is that o! studying attitude, %hich is situationally speci!ic and learned. 8n attitude may change as a result o! ne% in!ormation. 8 manager may have a negative attitude about a ne% employee because o! his lac- o! Fob5related eCperience. 8!ter %or-ing %ith a ne% person, a manager may come to realise that he is actually very talented and subse$uently may develop a more positive attitude to%ard him. +0!>;Re6 (e4 A((#(24e* eople in an organization !orm attitude about many things such as about their salary, promotion possibilities, superiors, !ringe bene!its, !ood in the canteen, uni!orm etc. 'specially some important attitudes are Fob satis!action or dissatis!action, organizational commitment and Fob involvement. A0% S (#*- '(#0" 6ob satis!action is an attitude re!lects the eCtent to %hich an individual is grati!ied or !ul!illed .by his or her %or-. 'Ctensive research conducted on Fob satis!action has indicated that personal .!actors such as an individualEs needs and aspirations determine this attitude, along %ith group and organizational !actors such as relationships %ith co5%or-ers and supervisors, %or-ing conditions, %or- policies and compensation. 8 satis!ied employee also tends to be absent less o!ten, ma-es positive contributions, and stays %ith the organization. (n contrast, a dissatis!ied employee may be absent more o!ten may eCperience stress that disrupts co5 %or-ers, and may -eep continually loo-ing !or another Fob. Organizational !actors that in!luence employee satis!action include pay, promotion, policies and procedures o! the organizations and %or-ing conditions. Group !actors such as relationship %ith co5%or-ers and supervisors also in!luence Fob5 satis!action. Similarly, satis!action depends on individual !actors li-e individualEs needs and aspirations. (! employees are satis!ied %ith their Fob, it may lead to lo% employee turnover and less absenteeism and vice5versa. O!$ "#7 (#0" 6 C0..#(.e"( "4 I")06)e.e"( "%o other important %or-5related attitudes arc organizational commitment and involvement. Organizational commitment is the individualEs !eeling o! identi!ication %ith and attachment to an organization. (nvolvement re!ers to a personEs %illingness to be a team member and %or- beyond the usual standards o! the Fob. 8n employee %ith little involvement is motivated by eCtrinsic motivational !actor and an employee %ith strong involvement is motivated by intrinsic motivational !actors. "here are a number o! !actors that lead to commitment and involvement. Both may increase %ith an employeeEs age and years %ith the organization, %ith his sense o! Fob security and participation in decision5ma-ing. (! the organization treats its employees !airly and provides reasonable re%ards and Fob security, employees are more li-ely to be satis!ied and committed. (nvolving employees in decision5ma-ing can also help to increase commitment. (n particular, designing Fobs, %hich are interesting and stimulating, can enhance Fob involvement. ATTITUDE9 ITBS IM,ORTANCE IN ORGANIZATIONAL BEHAVIOUR 8ttitudes o! both %or-ers and management react to each other and determine mutual relationships. 8ttitude is an understanding or learning o! %hy employees !eel and act the %ay; they do and help supervisors in %inning cooperation !rom them. So, it is very essential !or the e!!icient %or-ing o! an organization. +rom a personal perspective, attitudes provide -no%ledge base or prepare, our mental state, !or our interaction %ith others, and %ith the %orld around us. "his directly a!!ects organizational behaviour, and in turn organizational %or-ing. ,e!'e/(#0" erception is an important mediating cognitive process. "hrough this compleC process, people ma-e interpretations o! the stimulus or situation they are !aced %ith. Both selectivity and organization go Einto perceptual, interpretations. 'Cternally, selectivity is a!!ected by intensity, size, contrast, repetition, motion and novelty and !amiliarity. (nternally, perceptual selectivity is in!luenced by the individualEs motivation, learning and personality. 8!ter the selective process !ilters the stimulus situation, the incoming in!ormation is organized into a meaning!ul %hole. (ndividual di!!erences and uni$ueness are largely the result o! the cognitive processes. 8lthough there arc a number o! cognitive processes, it is generally recognized that the perceptual process is a very important one. (t is a process that ta-es place bet%een the situation and the behaviour and is most relevant to the study o! organizational behaviour. +or eCample, the observation that a department head and a subordinate may react $uite di!!erently to the same top management directive can be better understood and eCplained by the perceptual process.

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(n the process o! perception, people receive many di!!erent -inds o! in!ormation through all !ive senses, assimilate them and then interpret them. &i!!erent people perceive the same in!ormation di!!erently. erception plays a -ey role in determining individual behaviour in organizations. Organizations send messages in a variety o! !orms to their members regarding %hat they are eCpected to do and not to do. (n spite o! organizations sending clear messages, those messages are subFect to distortion in the process o! being perceived by organizational members. ,ence, managers need to have a general understanding o! the basic perceptual process. %asic Perceptual Process erception is in!luenced by characteristics o! the obFect being perceived, by the characteristics o! the person and by the situational processes. #haracteristics o! the obFect include contrast, intensity, movement, repetition and novelty. #haracteristics o! the person include attitude, sel!5concept and personality. "he details o! a particular situation a!!ect the %ay a person perceives an obFect; the same person may perceive the same obFect very di!!erently in di!!erent situations. "he processes through %hich a personEs perceptions are altered by the situation include selection, organization, attribution, proFection, stereotyping process, and the halo e!!ect process. 8mong these, selective perception and stereotyping are particularly relevant to organizations. Selective Perception Selective perception is the process o! screening out in!ormation that %e are uncom!ortable %ith or that contradicts our belie!s. +or eCample, a manager has a very positive attitude about a particular %or-er and one day he notices that the %or-er seems to be goo!ing up. Selective perception may ma-e the manager to $uic-ly disregard %hat he observed. +or eCample, a manager %ho has !ormed a very negative attitude about a particular %or-er and he happens to observe a high per!ormance !rom the same %or-er. (n this case in!luenced by the selective perception process he too %ill disregard it. (n one sense, selective perception is bene!icial because it allo%s us to disregard minor bits o! in!ormation. But i! selective perception causes managers to ignore important in!ormation, it can become $uite detrimental. Stereotyping Stereotyping is the process o! categorizing or labeling people on the basis o! a single attribute. erceptions based on stereotypes about peopleEs seC eCist more or less in all %or- places. "ypically, these perceptions lead to the belie! that an individualEs seC determines %hich tas-s he or she %ill be able to per!orm. +or eCample, i! a %oman is sitting behind the table in the o!!ice, she %ill be very o!ten, perceived as a cler- and not an eCecutive at !irst. But it %ould induce holding an eCactly opposite assumption about a man. Stereotyping consists o! three stepsB identi!ying categories o! people Kli-e %omen, politicianL, associating certain characteristics %ith those categories Kli-e passivity, dishonesty respectivelyL and then assuming that any one %ho !its a certain category must have those characteristics. +or eCample, i! dishonesty is associated %ith politicians, %e are li-ely to assume that all politicians are dishonest. ,ERCE,TION AND ATTRIBUTION erception is also closely lin-ed %ith another process called attribution. 8ttribution is a mechanism through %hich %e observe behaviour and then attribute certain causes to it. 8ccording to 8ttribution theory, once %e observe behaviour %e evaluate it in terms o! its consensus, consistency and distinctiveness. #onsensus is the eCtent to %hich other people in the same situation behave in the same %ay. #onsistency is the degree to %hich the same person behaves in the same %ay at di!!erent times. &istinctiveness is the eCtent to %hich the same person behaves in the same %ay in other situations. "he !orces %ithin the person KinternalL or outside the person KeCternalL lead to the behaviour. +or instance, i! you observe that an employee is much more motivated than the people around Klo% consensusL, is consistently motivated Khigh consistencyL, and seems to %or- hard no matter %hat the tas- Klo% distinctivenessL you might conclude that internal !actors are causing that particular behaviour. 8nother eCample is o! a manager %ho observes that an employee is late !or a meeting. ,e might realize that this employee is the only one %ho5 is laic Klo% consensusL, recall that he is o!ten late !or other meetings Khigh consistencyL, and subse$uently recall that the same employee is sometimes late !or %or- Klo% distinctivenessL. "his pattern o! attributions might cause the manager to decide that the individualEs behaviour re$uires a change. 8t this point, the manager might meet the subordinate to establish some disciplinary conse$uences to avoid !uture delays. IM,RESSION MANAGEMENT Social perception is concerned %ith ho% one individual perceives other individuals. #onversely, impression management is the process by %hich the general people attempt to manage or control the perceptions that others !orm about them. eople o!ten tend to present themselves in such a %ay so as to impress others in a socially desirable manner. "hus, impression management has considerableE implications !or activities li-e determining the validity o!

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per!ormance appraisals. (t serves as a pragmatic, political tool !or someone to climb the ladder o! success in organizations. T1e ,!0'e** 0- I./!e**#0" M " $e.e"( 8s %ith other cognitive processes, impression management has many possible conceptual dimensions arid has been researched in relation to aggression, attitude change; attributions and social !acilitation, among other things. Most recently, ho%ever, t%o separate components o! impression management have been identi!ied 5 impression motivation and impression construction. 'specially in an employment situation, subordinates may be; motivated to control ho% their boss perceives them. "he degree o! this motivation to manage impression %ill depend on !actors li-e the relevance that these impressions have on the individualEs goals, the value o! these goals, the discrepancy bet%een the image one %ould li-e others to hold and the image one believes others already hold. (mpression construction, the other maFor process, is concerned %ith the speci!ic type o! impression people %ant to ma-e and ho% they create it. 8lthough some theorists limit the type o! impression only to personal characteristics others include such things as attitudes, physical status, interests, or values. ;sing this broader approach, !ive !actors have been identi!ied as being especially relevant to theT -inds o! impression people try to constructB the sel!5concept, desired and undesired identity images, role constraints, target values and current social image. 8lthough there has been a considerable research done on ho% these !ive !actors in!luence the type o! impression that people try to ma-e, there is still little -no%n o! ho% they select the %ay to manage othersE perceptions o! them. E./605ee I./!e**#0" M " $e.e"( S(! (e$#e* "here are t%o basic strategies o! impression management that employees can use. (! employees are trying to minimize responsibility !or some negative event or to stay out o! trouble, they may employ a demotion5preventative strategy. On the other hand, i! they are see-ing to maCimize responsibility !or a positive outcome or to loo- better than %hat they really are, then they lean use a promotion5enhancing strategy. "he demotion5preventative strategy is characterized by the !ollo%ing activitiesB 'mployees attempt to eCcuse or Fusti!y their actions. 'mployees apologies to the boss !or some negative event. 'mployees secretly tell their boss that they !ought !or the right thing, but %ere overruled. 'mployees using this approach try to disassociate themselves !rom the group and !rom the problem. "he promotion enhancing strategies involve the !ollo%ing activitiesB 'mployees harbor a !eeling that they have not been given credit !or a positive outcome. 'mployees point out that they did more, but received a lesser credit. 'mployees identi!y cither personal or organizational obstacles they had to overcome to accomplish an outcome and eCpect a higher credit. 'mployees ascertain that they are seen %ith the right people at the right times. C0/#"$ 3#(1 I"4#)#42 6 D#--e!e"'e* (ndividual di!!erences and peopleEs perception o! them a!!ect every aspect o! behaviour in organizations. Managers must never underestimate, the di!!erences bet%een individuals. Success!ul managers constantly monitor their o%n assumptions, perceptions and attributions, trying to treat each individual as a uni$ue person

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LESSON C MOTIVATION AND BEHAVIOR Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB ,nderstand the meaning, nature and importance o& motivation E+plain need/based theories o& motivation *iscuss e+pectanc theor o& motivation E+plain 0a s o& enhancing emplo ee motivation

"he %ord motivation is derived !rom UmotiveE, %hich means an active !orm o! a desire, craving or need that must be satis!ied. Motivation is the -ey to organizational e!!ectiveness. "he manager in general has to get the %or- done through others. "hese EothersE are human resources %ho need to be motivated to attain organizational obFectives. DEFINITION 8ccording to George *. "erry, DMotivation is the desire %ithin an individual that stimulates him or her to action.D (n the %ords o! *obert &ubin, it is Dthe compleC o! !orces starting and -eeping a person at %or- in an organizationD. <iteles de!ines motivation as Dan unsatis!ied need %hich creates a state o! tension or dise$uilibrium, causing the individual to move in a goal directed pattern to%ards restoring a state o! e$uilibrium, by satis!ying the need.D 8ccording to 'ncyclopaedia o! Management. DMotivation re!ers to the degree o! readiness o! an organism to pursue some designated goals and implies the determination o! the nature and locus o! !orce inducing a degree o! readiness.D On the basis o! above de!initions, the !ollo%ing observations can be made regarding motivationB Motivation is an inner psychological !orce, %hich activates and compels the person to behave in a particular manner. "he motivation process is in!luenced by personality traits, learning abilities, perception and competence o! an individual. 8 highly motivated employee %or-s more e!!iciently and his level o! production tends to be higher than others. Motivation originates !rom the5needs and %ants o! an individual. (t is a tension o! lac-ing something in his mind, %hich !orces him to %or- more e!!iciently. Motivation is also a process o! stimulating and channelising the energy o! an individual !or achieving set goals. Motivation also plays a crucial role in determining the level o! per!ormance. ,ighly motivated employees get higher satis!action, %hich may lead to higher e!!iciency. Motivating !orce anR its degree, may di!!er !rom individual to individual depending on his personality, needs, competence and other !actors. "he process o! Motivation helps the manager in analysing and understanding human behavior and !inding but ho% an individual can be inspired to produce desirable %or-ing behavior. Motivation may be positive as %ell as negative. ositive motivation includes incentives, re%ards and other bene!its %hile negative motivation implies some punishment, !ear, use o! !orce etc. "he motivation procedure contributes to and boosts up the morale o! the employees. 8 high degree o! motivation may lead to high morale. FEATURES OF MOTIVATION "he !ollo%ing are the !eatures o! motivationB (t is an internal !eeling and !orces a person to action. (t is a continuous activity. (t varies !rom person to person and !rom time to time. (t may be positive or negative. IM,ORTANCE OF MOTIVATION Motivation is an important part o! managing process. 8 team o! highly $uali!ied and motivated employees is necessary !or achieving obFectives o! an organization because o! the !ollo%ing reasonsB Motivated employees ma-e optimum use o! available resources !or achieving obFectives. Motivation is directly related to the level o! e!!iciency o! employees. Motivated employees ma-e !ull use o! their energy and other abilities to raise the eCisting level o! e!!iciency.

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Motivated employees ma-e goal5directed e!!orts. "hey are more committed and cooperative !or achieving organizational obFectives. Motivated employees are more loyal and sincere to an organization. "hese !actors help reduce absenteeism and labor turnover. Motivation is considered as a bac-bone o! good industrial relations. '!!ectively motivated employees get more Fob satis!action and possess high morale. Motivation also helps in improving the image o! an organization.

"he motivation process begins %ith identi!ication o! individual needs. +or eCample, %hen an employee !eels underpaid then %hat, then he tries to !ul!ill his needs by as-ing !or a raise or by %or-ing harder to earn a raise or by see-ing a ne% Fob. ,e then chooses to pursue one or more o! these options !or instance, %or-ing harder %hile simultaneously loo-ing !or a Fob. (! his hard %or- resulted in a pay rise, he probably !eels satis!ied and %ill continue to %or- hard. But i! no raise has been provided he is li-ely to try another option. Since people have many di!!erent needs, the satis!action o! one need or set o! needs is li-ely to give rise to the identi!ication o! other needs. "hus, the cycle o! motivation is constantly repeated. ;nderstanding human motivation is crucial !or managing people. 'Ctensive research has been per!ormed to !ind out %hat ma-es people %or- and ho% to motivate them. "his includes managers, social scientists, behaviorists and psychologists. 8 number o! theories have been developed, even though there is no universally acceptable motivation theory. ;nderstanding these theories !acilitates the managers to get a better insight into the human behavior. NEED;BASED THEORIES TO MOTIVATION )eed5based theories try to ans%er the $uestion, D%hat !actorKsL motivate people to choose certain behaviorsJD Some o! the %idely -no%n need5based theories are as !ollo%sB D E M *603:* H#e! !'15 0- Nee4* Maslo% 8braham proposed his theory in the ./7As. "his theory, popularly -no%n as the ,ierarchy o! )eeds assumes that people are motivated to satis!y !ive levels o! needsB physiological, security, belongingness, esteem and sel!5 actualization needs. "he !igure /.. sho%s Maslo%Es hierarchy o! needs

Maslo% suggested that the !ive levels o! needs are arranged in accordance %ith their importance, starting !rom the bottom o! the hierarchy. 8n individual is motivated !irst and !oremost to satis!y physiological needs. 3hen these needs are satis!ied, he is motivated and Emoves upE the hierarchy to satis!y security needs. "his Emoving up process continues until the individual reaches the sel!5actualization level. hysiological needs represent the basic issues o! survival such as !ood, seC, %ater and air. (n organizational settings, most physiological needs are satis!ied by ade$uate %ages and by the %or- environment itsel!, %hich provides employees %ith rest rooms, ade$uate lighting, com!ortable temperatures and ventilation. Security or sa!ety needs re!er to the re$uirements !or a secure physical and emotional environment. 'Camples include the desire !or ade$uate housing and clothing, the need to be !ree !rom %orry about money and Fob security and the desire !or sa!e %or-ing conditions. Security needs are satis!ied !or people in the %or- place by Fob continuity, a grievance resolving system and an ade$uate insurance and retirement bene!it pac-age. Belonging or social needs are related to the, social aspect o! human li!e. "hey include the need !or love and a!!ection and the need to be accepted by oneEs peers. +or most people these needs are satis!ied by a combination o!

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!amily and community relationships and !riendships on the Fob. Managers can help ensure the Esatis!action o! these important needs by allo%ing social interaction and by ma-ing employees !eel li-e part o! a team or %or- group. 'steem needs actually comprise o! t%o di!!erent sets o! needsB "he need !or a positive sel!5image and sel!5respect. "he need !or recognition and respect !rom others. Organizations can help address esteem needs by providing a variety o! eCternal symbols o! accomplishment such as Fob titles and spacious o!!ices. 8t a more !undamental level, organizations can also help satis!y esteem needs by providing employees %ith challenging Fob assignments that can induce a sense o! accomplishment. 8t the top o! the hierarchy are those needs, %hich Maslo% de!ines the sel!5actualization needs. "hese needs involve realizing oneEs potential !or continuedB gro%th and individual development. Since these needs are highly individualized and personal, sel!5actualization needs are perhaps the most di!!icult !or managers to address. "here!ore, an employee should try to meet these needs on his o%n end. ,o%ever, an organization can help his employee by creating a climate !or !ul!illment o! sel!5actualization needs. +or instance, an organization can help in !ul!illment o! these needs by encouraging employeeMs participation in decision5ma-ing process and by providing them %ith an opportunity to learn ne% things about their Fobs and organization. "his process o! contributing to actual organizational per!ormance helps employees eCperience personal gro%th and development associated %ith sel!5actualizing. Maslo%Es concept o! the need hierarchy possesses a certain intuitive logic and has been accepted universally by managers. But research has revealed several shortcomings o! the theory such as some research has !ound that !ive levels o! needs are not al%ays present and that the order o! the levels is not al%ays the same as assumed by Maslo%. Moreover, it is di!!icult !or organizations to use the need hierarchy to enhance employee motivation. D%E ERG T1e0!5 0- M0(#) (#0" #layton 8lder!er has proposed an alternative hierarchy o! needs 5 called the '*G "heory o! Motivation. "he letters ', * and G stand !or 'Cistence, *elatedness and Gro%th. "he !igure /.= sho%s '*G theoryB

'*G "heory the need hierarchy developed by Maslo% into three /.=. "he eCistence needs in this theory re!ers to the physiological and security needs o! Maslo%. *elatedness needs re!ers to belongingness and esteem needs. Gro%th needs re!ers to both sel!5esteem and sel!5actualization needs. 8lthough '*G "heory assumes that motivated behavior !ollo%s a hierarchy in some%hat the same !ashion as suggested by Maslo%, there are t%o important di!!erences. +irstly, '*G theory suggests that more than one -ind o! need might motivate a person at the same time. +or eCample, it allo%s !or the possibility that people can be motivated by a desire !or money KeCistenceL; !riendship KrelatednessL, and an opportunity to learn ne% s-ills Kgro%thL all at the same time.

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Secondly, '*G theory has an element o! !rustrations5regression that is missing !rom Maslo%Es need hierarchy. Maslo% maintained that one heed must be satis!ied be!ore an individual can progress to needs at a higher level, !or eCample, !rom security needs to belongingness. "his is termed as satis!actionGprogression process. 8lthough the '*G theory includes this process, it also suggests that i! needs remain unsatis!ied at some higher level, the individual %ill become !rustrated, regress to a lo%er level and %ill begin to pursue lo% level needs again. +orD eCample, a %or-er previously motivated by money KeCistence needsL is a%arded a pay rise to satis!y this needs. "hen he attempts to establish more !riendship to satis!y relatedness needs. (! !or some reason an employee !inds that it is impossible to become better !riends %ith others in the %or- place, he may eventually become !rustrated and regress to being motivated to earn even more money. "his is termed as U!rustration5regressionE process.

"he '*G theory emphasis on the !ollo%ing -ey points regarding needsB o Some needs may be more important than others. o eople may change their behavior a!ter any particular set o! needs has been satis!ied. D'E T1e D2 6;S(!2'(2!e A//!0 '1 (0 M0(#) (#0" 8nother popular need5based approach to motivation is the dual5structure approach developed by +rederic- ,erzberg. "his is also -no%n as "%o5!actor "heory. ,erzberg developed this approach a!ter intervie%ing =AA accountants and engineers in ittsburg. ,e as-ed them to recall such occasions %hen they had been dissatis!ied and less motivated. ,e !ound that entirely di!!erent sets o! !actors %ere associated %ith satis!action and dissatis!action. +or instance, an individual %ho identi!ied Elo% payE as causing dissatis!action did not necessarily mention Ehigh payE as a cause o! satis!action. (nstead, several other !actors, such as recognition or accomplishment, %ere cited as causing satis!action. "his !inding suggests that satis!action and dissatis!action are at opposite ends o! a single scale. 'mployees %ould, there!ore, be satis!ied, dissatis!ied or some%here in bet%een. ,erzberg argued that attitudes and motivation consists o! a dual structure. One structure involves a set o! !actors that result in !eelings ranging !rom satis!action to no satis!action. "he other structure involves a set o! !actors that result in !eelings ranging !rom dissatis!action to no satis!action. ,erzberg identi!ied t%o sets o! !actors responsible !or causing either satis!action or dissatis!action. "he !actors in!luencing satis!action are called motivation !actors or motivators, %hich are related speci!ically to the Fob itsel! and the !actors causing dissatis!action are called hygiene !actors, %hich are related to the %or- environment in %hich the Fob is per!ormed. )otivators 8chievement *ecognition 8dvancement "he %or- itsel! "he possibility o! personal gro%th *esponsibility -ygiene or )aintenance ,actors #ompany policies "echnical supervision (nterpersonal relations %ith supervisor (nterpersonal relations %ith peers (nterpersonal relations %ith subordinates Salary 6ob security ersonal li!e 3or- conditions Status Based on these !indings, ,erzberg recommended that managers see-ing to motivate employees should !irst ma-e sure that hygiene !actors are ta-en care o! and that employees are not dissatis!ied %ith pay, security and %or-ing conditions. Once a manager has eliminated employee dissatis!action, ,ertzberg recommends !ocusing on a di!!erent set o! !actors to increase motivation, by improving opportunities !or advancement, recognition, advancement and gro%th. Speci!ically, he recommends Fob enrichment as a means o! enhancing the availability o! motivation !actors.

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8lthough %idely accepted by managers, ,ertzbergMs dual structure approach ho%ever su!!ers !rom certain dra%bac-s. Other researchers %ho measured satis!action and dissatis!action based on di!!erent aspects reached very di!!erent conclusions. "hey have also criticized ,erzbergEs theory !or its inability to de!ine the relationship bet%een satis!action and motivation and to pay enough attention to di!!erences bet%een individuals. ,ence, at present ,erzbergEs theory is not held in high esteem by researchers in the !ield o! motivation. "he theory, ho%ever, had a maFor impact on managers and has played a -ey role in increasing their a%areness o! motivation and its importance in type %or- place. :F: AND GY: THEORIES OF MOTIVATION &ouglas McGregor observed t%o diametrically opposing vie%points o! managers Eabout their employees; one is negative called D"heory o! SD and another is positive called D"heory o! @D. ( T1e0!5 0- F +ollo%ing are the assumptions o! managers %ho believe in the D"heory o! SD regarding their employees. 'mployees disli-e %or-. 'mployees must be coerced, controlled or threatened to do the %or-. 'mployees avoid responsibilities and see- !ormal direction. Most employees consider security o! Fob, most important o! all other !actors in the Fob and have very little ambition. T1e0!5 0- Y +ollo%ing are the assumptions o! managers %ho believe in the D"heory o! @D regarding their employees. 'mployees love %or- as play or rest. 'mployees are sel!5directed and sel!5controlled and committed to the organizational obFectives. 'mployees accept and see- responsibilities. (nnovative spirit is not con!ined to managers alone, some employees also possess it. Applica*ility of Theories 232 an# 242 "heory ESE in its applicability, places eCclusive reliance upon eCternal control o! human behavior, %hile theory E@E, relies heavily on sel!5control 5and sel!5direction. "heory ESE points to the traditional approach o! management. Literally, this theory o! behavior is related to organizations that lay hard and rigid standards o! %or-5behavior. Some eCamples o! such organizations are organizations that brea- do%n Fobs into specialized elements, establish Enorms o! production, design e$uipment to control %or-erEs pace o! %or-, have rigid rules and regulations, that are sometimes very vigorously en!orced. "heory E@M, on the other hand, secures the commitment o! employees to organizational obFectives. "his motivational theory places emphasis on satis!action o! employees. 3hile applying this theory, the use o! authority, as an instrument o! command and control is minimal. 'mployees eCercise sel!5direction and sel!5control. "he concepts o! E6obE 'nlargementE, E articipationE and EManagement by ObFectivesE are $uite consistent %ith theory E @E. McGregor supports the applicability o! motivational theory E@E, instead o! theory USE. Organization should -eep in mind that once theory ESE is employed !or organizational %or-ing, it is di!!icult !or the management to shi!t to theory E @E, all o! a sudden. ,o%ever, %ith systematic, Fudicious and slo% steps, shi!ting in the practical applicability o! theory ESE to theory E @E usually can be achieved. MC;CLELLAND:* NEED THEORY OF MOTIVATION &avid #. Mc#lelland and his associate 8t-inson have contributed to an understanding o! motivation by identi!ying three types o! basic motivating needs. "hese needs have been classi!ied asB .. )eed !or o%er =. )eed !or 8!!iliation :. )eed !or 8chievement B B Nee4 -0! ,03e! 8ccording to this theory the need !or po%er, %hich might be de!ined as the desire to be in!luential in a group and to control oneEs environment is an important motivation !actor. *esearch suggests that people %ith a strong need !or

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po%er, are li-ely to be superior per!ormers and occupy supervisory positions. Such types o! individuals generally loo!or positions o! leadership, they act e!!ectively, are outspo-en, have a stubborn character and eCert authority. Nee# for Affiliation "he need !or a!!iliation means the desire !or human companionship and acceptance. "hose %ith a high need !or a!!iliation o!ten behave the %ay they thin- other people %ant them to, in an e!!ort to maintain !riendship. "hey pre!er a Fob that entails a good deal o! social interaction and o!!ers opportunities to ma-e !riends. "he principal characteristics o! such peoplesE traits are as !ollo%sB &esire to li-e and be li-ed. 'nFoy company and !riendship. re!er cooperative situation. 'Ccel in group tas-. Star attraction in gathering. Leadership $ualities. "his need is closely associated %ith the Dsocial5typeV o! personality, %ho are sociable, !riendly, cooperative and understanding. ersons %ith high motivation !or po%er and a!!iliation have better chances o! becoming good managers. Nee4 -0! A'1#e)e.e"( eople %ith a high need !or achievement, al%ays !eel ambitious to be success!ul; are ever prepared to !ace challenging situations and set arduous goals .!or themselves. "hey are prone to ta-e calculated ris-s; and possess a high sense o! personal responsibility in getting Fobs done. "hese people are concerned %ith their progress, and !eel inclined to put in longer hours o! %or-D +ailures never dishearten them and they are al%ays ready to put in their best e!!orts !or eCcellent per!ormance. ,ROCESS;BASED THEORIES TO MOTIVATION "he !ield o! organizational behavior has generally moved a %ay !rom the needs theories o! motivation. )eeds theories are content5oriented 5 that is, they eCplain %hat are the causes leading to motivated behaviors. "hey do not eCplain %hy or ho% motivated behavior occurs. "hese $uestions relate to behaviors or actions, goals and !eelings o! satis!action., "hese concepts are addressed by various process5based theories to motivation. rocess5based theories to motivation are concerned %ith ho% motivation occurs. "hey !ocus on %hy people choose to enact certain behavioral options to !ul!ill their needs and ho% they evaluate their satis!action a!ter they have attained these goals. "%o o! the most use!ul process5based approaches to motivation arc eCpectancy theory and e$uity theory. KaL 'Cpectancy "heory o! Motivation 'Cpectancy theory o! motivation %as developed by5 <ictor <room. Basically, <roomEs eCpectancy theory vie%s motivation as a5 process o! governing choices. "he eCpectancy theory tries to eCplain ho% and %hy people choose a particular behavior over an alternative. "he theory suggests that motivation depends on t%o thingsB ho% much an individual desires a particular goal and ho% li-ely he thin-s he can get it. +or instance, a person is loo-ing !or a Fob and reads an advertisement !or a position o! Mar-eting 'Cecutive %ith a starting salary o! *s. : la-h per year. 'ven though he might %ant the Fob, he probably does not apply because he is a%are that there is little chance o! getting it. )eCt he sees an advertisement is !or +ield Supervisor !or a salary o! *e. . la-h per year. (n this case he realizes that he .can probably get the Fob, but still doesnEt apply simply because he doesnEt %ant it. "hen he comes across another advertisement !or a Management "rainee in a big organization %ith a starting salary o! *s. = la-h per year. ,e chooses to apply !or this Fob because he %ants it and also thin-s that he has a reasonable chance o! getting it. +igure /.: sho%s the eCpectancy theory o! motivation.

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"he eCpectancy theory rests on !our assumptionsB "he theory assumes that behavior is determined by a combination o! !orces in the individual and in the environment. (t assumes that people ma-e decisions about their o%n behavior in organizations. (t assumes that di!!erent people have di!!erent types o! needs, desires and goals. (t assumes that people ma-e choices !rom among alternative plans o! behavior based on their perceptions o! the eCtent to %hich a given behavior %ill lead to desired outcomes. "he above model suggests that motivation leads to e!!orts and that e!!ort, %hen combined %ith individual ability and environmental !actors, result in per!ormance. er!ormance, in turn, leads to various outcomesGeach o! %hich has an associated value called its EvalenceE. 8ccording to this model, individuals develop some sense o! these eCpectations be!ore they eChibit motivated or non5motivated behavior. Effort!to!Performance E1pectancy "he e!!ort5to5per!ormance eCpectancy re!ers to an individualEs perception o! the probability that e!!ort %ill result in high per!ormance. 3hen an individual believes that e!!ort %ill lead directly to high per!ormance, eCpectancy is $uite strong, that is close to ..AA. +or instance, i! one !eels sure that studying hard !or an eCamination Ke!!ortL %ill result in scoring high mar-s Kper!ormanceL, then his e!!ort5to5per!ormance eCpectancy is high, that is close to ..A. 3hen an individual believes that e!!ort and per!ormance are unrelated, the e!!ort5to5per!ormance eCpectancy is very %ea-, that is close to A.A. ;sually %e are not sure about our eCpectations, so they !all some%here bet%een A.A and ..A %ith a moderate eCpectancy. ; Performance!to!'utcome E1pectancy "he per!ormance5to5outcome eCpectancy means an individualEs perception o! the probability that per!ormance %ill result in a speci!ic outcome. +or eCample, an individual %ho believes that high per!ormance %ill lead to a pay raise has a high per!ormance5to5outcome eCpectancy, approaching to ..AA. 8n individual %ho believes that high per!ormance may possibly lead to a pay raise has a moderate eCpectancy bet%een ..AA and A. 8nd an individual %ho believes that per!ormance has no relationship to re%ards has a lo% per!ormance5to5outcome eCpectancy that is close to A. 'utcomes an# +alences 'Cpectancy theory recognizes that an individual may eCperience a variety o! outcomes as a conse$uence, o! behavior in an organizational environment. 8 high per!ormer, !or eCample, may get big pay raises, !ast promotions and praise !rom the boss. ,o%ever, he may also be subFect to a lot o! stress and incur resentment !rom co5%or-ers. 'ach o! these outcomes has an associated value or valence that is,, an indeC o! ho% much an individual desires a particular outcome. (! an individual %ants an outcome, its valence is positive. (! an individual does not %ant an outcome, its valence is negative. (! an individual is indi!!erent to an outcome, its valence is zero. (t is this advantage o! eCpectancy theory that goes beyond the need5based approaches to motivation.

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"hus, !or motivated behavior to occur on the part o! any individual, three conditions must be met, %hich are as !ollo%sB +irst, the e!!ort5to5per!ormance eCpectancy must be greater than zero. Second, the per!ormance5to5outcome eCpectancy must also be greater than zero. "hird, the sum o! the valences !or all relevant outcomes must be greater than zero. 'Cpectancy theory maintains that %hen all o! these conditions are met, the individual is motivated to eCpand e!!ort. "he eCpectancy theory also has several other important practical implications, %hich managers should -eep in mind. "he managers can per!orm the !ollo%ing activities in relation to this 5 &etermine %hat outcomes employees pre!er. &e!ine, communicate and clari!y the level o! per!ormance that is desired. 'stablish attainable per!ormance goals. Lin- desired outcomes to per!ormance goal achievement. Practical Applica*ility of E1pectancy Theory (! a manager %ishes to motivate his employees !or increased and better per!ormance, then he has to ma-e sure %hether the re%ard system is highly supportive to hard %or- or high $uality. "he manager %ill particularly see that the speci!ic system, as applicable in their case, is communicated to them, so as to ma-e them !eel con!ident that their energized e!!orts %ill be re%arded. 8nother important point, %hich should not be ignored by the manger, is that re%ards must correspond to the varying pre!erences o! an individual employee. (n conclusion, no doubt EeCpectancyE theory has gained much popularity %ith theorists, but much more %or- still needs to be put in, be!ore it can be accepted !or use as an e!!ective instrument o! eCplanation o! EmotivationE %ith all its implications. The Porter! a&er E1tension orter and La%ler have proposed an interesting eCtension to the eCpectancy theory. "he human relationists assumed that employee satis!action causes good per!ormance but research has not supported such relationship. orter and La%ler suggest that there may indeed be a relationship bet%een satis!action and per!ormance but that it goes in the opposite direction, that is, superior per!ormance can lead to satis!action. Porter! a&ler )o#el +irst, an individualEs initial e!!ort is in!luenced by his perception regarding the value o! re%ard and the li-elihood that the e!!ort %ill yield a re%ard. "he probability that increased e!!ort %ill lead to improved per!ormance is a!!ected by an individualEs traits, abilities and perception o! his role in an organization. "he model also distinguishes bet%een intrinsic and eCtrinsic re%ards. +inally, the orter5La%ler model borro%s !rom e$uity theory the idea that the employeeEs satis!action depends on the perceived e$uity o! the re%ards relative to the Ee!!ort eCpended and the level o! per!ormance attained. Implications for )anagers 'Cpectancy theory can be use!ul !or organizations attempting to improve the motivation o! their employees. )adler and La%ler suggest a series o! steps !or managers in applying the basic ideas o! the theory. .. "hey should determine the primary outcomes that each employee li-ely desires. =. "hey should decide %hat -ind and levels o! per!ormance are needed to meet organizational goals. :. "hey should ascertain that the desired levels o! per!ormance are attainable. 7. "hey should ensure that desired outcomes and per!ormance are lin-ed. 0. "hey should also analyze the complete %or- situation !or con!licting eCpectancies. >. "hey should ma-e sure that the re%ards are large enough. 1. "hey should ma-e sure that the overall system is e$uitable !or everyone. "he eCpectancy theory has also its limitations. (t is $uite di!!icult to apply, !or eCample, application o! this theory in the %or- place %ould re$uire to identi!y all the potential outcomes !or each employee, to determine all relevant eCpectancies and then to balance everything someho% to maCimize employee motivation. 'Cpectancy theory also assumes that people are rational 5 there!ore, they %ill systematically consider all the potential outcomes and their associated eCpectancies be!ore selecting a particular behavior. ,o%ever, !e% people actually ma-e decisions in such a precise and rational manner.

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D%E EH2#(5 T1e0!5 6. Stacy 8dams developed e$uity theory o! motivation. "he e$uity theory argues that motivations arise out o! simple desire to be treated !airly. '$uity can be de!ined as an individualEs belie! that he is being treated !airly relative to the treatment o! others. "he !igure /.7 sho%s the e$uity process. 8 personEs perception o! e$uity develops through a !our5step process as sho%n belo%B .. +irst an individual evaluates the %ay he is being treated by an organization. "he neCt step is !or an individual to choose a co5%or-er %ho seems to be in a roughly similar situation and to observe ho% an organization treats him. (n the crucial step o! e$uity theory an individual EcomparesE the t%o treatments. (n the !ourth step he evaluate a sense o! e$uity to see i! the t%o treatments seem similar or i! the are di!!erent.

=. :. 7.

8dam suggests that employees ma-e these comparisons by !ocusing on input and outcome ratios. 8n employeeEs contributions or input to an organization include time, education, e!!ort, eCperience and loyalty. Outcomes are %hat an individual receives !rom an organization such as, pay, recognition and social relationships. "he theory suggests that people vie% their outcomes and inputs as ratio and then5 compare their ratio to the ratio o! someone else. "his other EpersonE may be someone in the %or- group. "he comparison may result in three types o! attitudesB "he individual may !eel e$uitably re%arded, ;nder5re%arded. Over5re%arded. 8n individual %ill eCperience a !eeling o! e$uity %hen the t%o ratios are e$ual. (! an individual has the !eeling o! e$uity then he should maintain the status $uo. (! he has a !eeling o! ine$uity then he is li-ely to change the input. "he single most important idea !or managers to remember about e$uity theory is that i! re%ards are to motivate employees, they must be perceived as being e$uitable andR !air. ,o%ever, managers must remember that di!!erent employees have di!!erent sense to%ards basis !or a re%ard and this may result in problems. ,ence, the best %ay to avoid such problems is to ma-e all employees a%are o! the basis !or re%ards. Re#"-0!'e.e"( B *e4 A//!0 '1e* (0 M0(#) (#0" 8 !inal approach to the motivation process !ocuses on %hy some behavior are maintained and changed overtime. *ein!orcement5based approaches eCplain the role o! those re%ards as they cause behavior to change or remain the same over time. Speci!ically, rein!orcement theory is based on the !airly simple assumption that behaviors that result in re%arding conse$uences are li-ely to be repeated, %hereas behavior that results in punishing conse$uences are less li-ely to be repeated. "here arc similarities bet%een eCpectancy theory and rein!orcement theory. Both consider the processes by %hich an individual chooses behaviors in a particular situation. ,o%ever, the eCpectancy theory !ocuses more on behavior choices and the latter is more concerned %ith the conse$uences o! those choices. /einforcement "ontingencies *ein!orcement contingencies are the possible outcomes that an individual may eCperience as a result o! his or her behaviors. "he !our types o! rein!orcement contingencies that can a!!ect individuals in an organizational setting are positive rein!orcement, avoidance, punishment and eCtinction. ositive *ein!orcement is a method o! strengthening behavior. (t is a re%ard or a positive outcome a!ter a desired behavior is per!ormed. 3hen a managerE observes an employee is doing a good Fob and o!!ers praise then this praise helps in positive rein!orcement o! behavior. Other positive rein!orces include pay, promotions and a%ards. "he other rein!orcement, contingency that can strengthen desired behavior is avoidance. "his occurs %hen an individual chooses certain behavior in order to avoid unpleasant conse$uences. +or instance, an employee may come to %or- on time to avoid criticism. unishment is used by some managers to %ea-en undesired behaviors. "he logic is that the unpleasant, conse$uence %ill reduce an undesirable behavior again, !or eCample, punishing %ith !ine !or coming late. 'Ctinction can also be used to %ea-en behavior, specially that has previously been re%arded. 3hen an employee tells a vulgar Fo-e and the boss laughs, the laughter rein!orces the behavior and the employee may continue

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to tell similar Fo-es. By simply ignoring this behavior and not rein!orcing it, the boss can cause the behavior to subside %hich eventually becomes EeCtinctE. ositive rein!orcement and punishment are the most common rein!orcement contingencies practiced by organizations. Most managers pre!er a Fudicious use o! positive rein!orcement and punishment. 8voidance and eCtinction are generally used only in specialized circumstances. NE+ A,,ROACHES TO MOTIVATION IN ORGANIZATIONS )e% approaches are emerging to supplement the established models and theories o! motivation. "%o o! the most promising are Goal5Setting "heory and the 6apanese 8pproach. D E G0 6;Se((#"$ T1e0!5 "his approach to motivation has been pioneered in the ;S8 by 'd%in Loc-e and his associates in ./>As and re!ined in ./?As. Goal5setting theory suggests that managers and subordinates should set goals !or an individual on a regular basis, as suggested by MBO. "hese goals should be moderately di!!icult and very speci!ic and o! type that an employee %ill accept and ma-e a commitment to accomplishing them. *e%ards should be tied directly to accomplished goals. 3hen involved in goal5settings, employees see ho% their e!!ort %ill lead to per!ormance, re%ards and personal satis!action. Salient !eatures o! this theory are as !ollo%sB Speci!ic goal !iCes the needs o! resources and e!!orts. (t increases per!ormance. &i!!icult goals result higher per!ormance than easy Fob. Better !eedbac- o! results leads to better per!ormances than lac- o! !eedbac-. articipation o! employees in goal has miCed result. articipation o! setting goal, ho%ever, increases acceptance o! goal and involvements. Goal setting theory has de!ined t%o !actors,E %hich in!luences the per!ormance. "hese are given belo%B o Goal commitment o Sel!5e!!iciency. "he mere act o! goal setting does not ensure higher levels o! motivation among employees. (n !act, there seem to be three important criteria that goals must meet i! they are to in!luence the behavior o! organization members. "hey are goal speci!icity, goal di!!iculty and goal acceptance. Goal Specificity Goals must be stated in speci!ic terms i! they are to motivate e!!ective per!ormance. Goals must be set in terms o! measurable criteria o! %or- per!ormance, i.e., number o! units produced, ne% sales etc. and must speci!y a lime period %ithin %hich the goal is to be attained. (t also gives a sense o! personal satis!action and accomplishment to %or-ers i! he is able to meet the speci!ic goal.

Goal $ifficulty."hallenge "here eCists a relationship bet%een goal di!!iculty and %or- motivation. "he more di!!icult5 and challenging the goal is, the higher the level o! motivation and per!ormance. ,o%ever, it is essential that goals are set at realistic levels. Goals that are very di!!icult to achieve are unable to motivate since it is beyond the capacity o! the concerned individual. G0 6 Acceptance (n order to in!luence motivation and per!ormance, a goal must be internalized by an individual. (n other %ords, the person has to !eel some personal o%nership o! the goal and must have commitment to achieve it. Goal Setting in Practice "he most obvious implication o! goal5setting theory is that managers should be helping subordinates to set goals that are speci!ic and reasonably di!!icult so that subordinates accept and internalize them as their o%n goals. Besides this, there are a number o! issues that arise in implementing goal setting in practice. "hough speci!icity o! goal is essential and measurability is desirable, it should not a!!ect in identi!ying meaning!ul and valid obFective o! goal attainment. "he manager can stimulate goal acceptance in at least three %aysB o By involving subordinates in goal5setting process. o By demonstrating a supportive attitude and approach to%ard his subordinates . o By assigning various re%ards to the achievement o! goals.

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Management by ObFectives KMBOL is a managerial techni$ue !or improving motivation and per!ormance using goal5setting principles. "ognitive Evaluation Theory 8 researcher E#harmsE reported in ./>A that eCtrinsic motivation li-e pay or re%ards !or a Fob, %hich has an intrinsic5 motivation content, %hich is prior to such re%ards. (t tends to decrease overall level o! motivation. "his proposal is called cognitive 'valuation "heoryD %hich has been supported by a large number o! research studies conducted subse$uently. D%E A / "e*e A//!0 '1 (0 M0(#) (#0" "he 6apanese approach to motivation has gained increasing popularity around the %orld during the past !e% years. "his approach is rather a philosophy o! management than a theory or model. "he basic tenet o! the 6apanese approach is that managers and %or-ers should per!orm together as partners. Since both o! them see themselves as one group, ail members are committed and motivated to %or- in the best interests o! an organization. )o one is called an employee; instead everyone is a team member, team leader or coach and everyone o%ns the EshareE o! an organization. Li-e goal5setting meo%, the 6apanese approach is li-ely to become more common in businesses throughout the %orld. Integration of )otivation Theories "hus several theories complicate our understanding. Some o! these theories are compatible and some are not. "he real challenge that a researcher has to !ace is integration o! all or at least some o! these together so that their inter and intra5relationships are established. "his %ill also improve the understanding o! motivation. #ertain attempts are made in ;S8 and else%here. Enhancing )otivation in 'rgani5ations Managers trying to enhance the motivation o! their employees can, o! course, dra% on any o! the theories described above. "hey may in practice adopt speci!ic interventions derived !rom one or more theories or they may in!luence motivation through the organizationEs re%ard system. "he organization can enhance motivation in !ollo%ing %aysB -umani5e the &or0 environment: *espect the need to treat each employee as an individual. Pu*lici5e *oth short an# long!term organi5ational goals: 'ncourage personal and departmental goal setting. Promote from &ithin: (tEs great !or morale and simpli!ies hiring procedures. Use incentive programs: (nducing the !eeling that Ei! youEre creative enough, you %onEt have to rely on eCpensive !inancial bonuses.E Esta*lish appropriate #ea#lines: 'very proFect should have a deadline. %e li*eral &ith praise: (tEs almost impossible to over praise and easy to under praise. Be consistent in your o%n %or- and in your relations %ith others. Sho& a personal interest in the people &ho &or0 for you: *elations are al%ays smoother bet%een people %ho -no% each other on a personal basis than relations bet%een people %ho merely %ant something !rom each other. A#mit mista0es: eople %ill respect you !or it and %ill be less li-ely to hide their o%n mista-es. $on2t &hite&ash unpleasant assignments: repare subordinates !or unpleasant assignments %ell in advance and o!!er %hat support you can. M " $e!# 6 A//!0 '1e* -0! I./!0)#"$ M0(#) (#0" 8 number o! approaches can help managers motivate %or-ers, to per!orm more e!!ectively. "he !ollo%ing steps promote intrinsic motivationB 3or-ers articipation in Management K3 ML Management by ObFectives KMBOL Organization Behavior Modi!ication 6ob5*edesign 8lternative 3or- Schedules. "%o approaches, ho%ever, have been especially e!!ectiveB lin-ing pay to Fot per!ormance and $uality o! %or-5li!e programs. Pay an# 6o* Performance ay o!ten can be used to motivate employee per!ormance. But a pay plan also must be able to do the !ollo%ing tas-sB #reate the belie! that good per!ormance leads to high levels o! pay;

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Minimize the negative conse$uences o! good per!ormance; and #reate conditions in %hich re%ards other than pay are evaluated as related to good per!ormance.

7uality of (or0 ife Programs Quality o! 3or- Li!e KQ3LL is de!ined as an attempt through a !ormal program to integrate employee needs and %ell being %ith the intention o! improved productivity, greater %or-er involvement and higher levels o! Fob satis!action. rograms !or Q3L improvements range !rom those re$uiring minor changes in an organization to those re$uiring eCtensive modi!ications in structure, personnel and the utilization o! resources. "here are three types o! Q3L programs, %hich are as !ollo%sB 7uality "ircles Quality #ircles KQ#L are small groups o! %or-ers %ho meet regularly %ith their supervisor as their Ecircle leaderE to solve %or-5related problems. Q#s give an employee an opportunity !or involvement, social5need satis!action, participation in %or- improvement and challenge and opportunity !or gro%th. "hey are, in essence, vehicles !or providing employees %ith opportunities to satis!y lo%er and upper5level needs as stated by Maslo%, through the motivators described in E,erzbergEs theory. A6(e!" (#)e +0!> S'1e426e Organizations also !re$uently use the modi!ied E%or-5%ee-E as a %ay to increase employee motivation. 8 modi!ied E%or-5%ee-E can be any %or- schedule that does not con!orm to a traditional ? hours a day or 0 days a %ee- !ormat. "he modi!ied E%or-5%ee-E helps individual satis!y higher5level needs by providing more personal control over oneEs %orschedule. (t also provides an opportunity to !ul!il several needs simultaneously. A0%;Re4e*#$" 6ob5*edesign or changing the nature o! peopleEs Fob is also being used more as a motivational techni$ue. "he idea pursued here is that mangers can use any o! the alternatives Fob rotation, Fob enlargement, Fob enrichment as part o! motivational programme. 'Cpectancy theory helps eCplain the role o! %or- design in motivation.

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LESSON 1I AOB SATISFACTION Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he concept o& %ob satis&action "he various &actors relating to %ob satis&action "he methods o& enhancing %ob satis&action

"he term EFob satis!actionE re!ers to an employeeEs general happiness %ith his or her Fob. Loc-e de!ines Fob satis!action as a Dpleasurable or positive emotional state resulting !rom the appraisal o! oneEs Fob eCperiencesD. +or our purposes Fob satis!action %ill be de!ined as the amount o! overall positive a!!ect or !eelings that individuals have to%ards their Fob. 6ob satis!action is the result o! various attitudes the employee holds to%ards his Fob, to%ards related !actors and to%ards li!e in general. "he importance o! Fob Satis!action is that i! the people are satis!ied %ith their %or-, then there is an improvement in both the $uality and $uantity o! production. (! they are not satis!ied, then both the $uantity and $uality o! his output %ill be lo%, there %ill be high absenteeism and employee turnover and increased unionism. #aldur and Schurr in ./?. suggested that there are three di!!erent approaches to evaluating Fob satis!action. "he !irst approach is that %or- attitudes such as Fob satis!action are dispositional in nature, i.e., they are stable, positive or negative disposition learned through eCperiences. "he second approach is the Esocial in!ormation processing modelE, %hich suggests that Fob satis!action and other %or- place attitudes are developed or constructed out o! eCperiences and in!ormation provided by others at the %or- place. "he third approach is the i! in!ormation processing modelE, %hich is based on the accumulation o! cognitive in!ormation about the 5%or- place and oneEs Fob. (n a sense, this is the most obvious approach, as it argues that a personEs Fob satis!action is in!luenced directly by the characteristics o! their Fob. FACTORS RELATING TO AOB SATISFACTION Some o! the most important !actors relating to Fob satis!action are brie!ly stated belo%B ,e!*0" 6 F '(0!* "hese !actors include the individual employeeEs personality, age, seC, educational level, intelligence etc. Most o! the evidence on the relation bet%een age and satis!action seems to indicate that there is generally a positive relationship bet%een the t%o variables up to the pre5retirement years and then there is a sharp decrease in satis!action. "here is no clear research evidence bet%een educational level and Fob satis!action. 8s regards the relationship bet%een the intelligence level and Fob satis!action, it usually depends upon the level and range o! intelligence and the challenge o! the Fob. "here is as yet no consistent evidence as to %hether %omen are more satis!ied %ith their Fobs than men. A0% F '(0!* "hese !actors include the type o! %or- to be per!ormed, s-ill re$uired !or %or- per!ormance, occupational status involved in the Fob etc. "he type o! %or- is very important, as a number o! research studies have sho%n that varied %or- generally brings about more satis!action than routine %or-. 3here s-ill eCists to a considerable degree it tends to become the main source o! satis!action to the employee. 8s regards the relation o! occupational status to Fob satis!action, research evidences indicate that employees are relatively more dissatis!ied in those Fobs, %hich have less social status or prestige. O!$ "#7 (#0" 6 F '(0!* "hese !actors include security, %ages and salaries, !ringe bene!its, opportunities !or advancement, %or-ing conditions etc. Social and economic security to employees increases Fob satis!action, the %ages and salaries and !ringe bene!its are de!initely the main !actors that a!!ect Fob satis!action o! employees. 8s regards the relation o! opportunity !or advancement to Fob satis!action, it has been !ound that this !actor is most important to s-illed personnel and least important to uns-illed personnel. &esirable %or-ing conditions are also important to Fob satis!action. Besides, an e!!ective do%n%ard !lo% o! communications in an organization is also important to Fob satis!action as employees are -een to -no% more about the company and its plans, policies etc. Basically, Fob satis!action is determined by the discrepancy bet%een %hat individuals eCpect to get out o! their Fobs and %hat the Fob actually o!!ers. 8 person %ill be satis!ied i! there is no discrepancy bet%een desired and actual conditions I./0!( "'e 0- A0% S (#*- '(#0"

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Obviously, Fob satis!action signi!icantly contributes to employee productivity and morale. 8n organization can be substantially bene!ited i! it develops general attitudes o! its employees that can e!!ectively contribute to Fob satis!action. (! employees are satis!ied, turnover and absenteeism %ill be less and productivity %ill be more, +urther, satis!action o! individual eCpectations results in group integration and cohesiveness. Me *2!#"$ A0% S (#*- '(#0" "here have been many measures o! Fob satis!action in the %or- place !rom the 6ob &escription indeC to 6ob Satis!action Scales to the more recent Fob satis!action scale o! the Occupational Stress (ndicator KOS(L. "hey all tend to involve scales, %hich eCplore pay, %or- activities, %or-ing conditions, career prospects, and relationship %ith superiors and relationship %ith colleagues. 8n eCample o! a measure o! Fob satis!action !rom the OS(, %hich contains all o! the elements that usually ma-e up a Fob satis!action measure, is given in the "able .A... TABLE 1I.19 8n 'Cample o! a Measure o! 6ob Satis!action !rom the OS( H03 Y02 Fee6 A%02( Y02! A0%J <ery much satis!action > Much satis!action 0 Some satis!action 7 Some dissatis!action : Much dissatis!action = <ery much dissatis!action . .. =. :. 7. 0. >. 1. ?. /. .A. ... .=. .:. .7. .0. .>. .1. .?. ./. =A. =.. ==. #ommunication and the %ay in!ormation !lo%s around your organization. "he relationships you have %ith other people at %or-. "he !eeling you have about the %ay you and your e!!orts are valued. "he actual Fob itsel! "he degree to %hich you !eel QmotivatedV by your Fob #urrent career opportunities "he level o! Fob security in your present Fob "he eCtent to %hich you may identi!y %ith the public image or goals o! your organization "he style o! supervision that your superiors use "he %ay changes an innovations are implemented "he -ind o! %or- or tas-s that you are re$uired to per!orm "he degree to %hich you !eel that you can personally develop or gro% in your Fob. "he %ay in %hich con!licts are resolved in your company. "he scope your Fob provides to help you achieve your aspirations and ambitions "he amount o! participation %hich you are given in important decision ma-ing "he degree to %hich your Fob taps the range o! s-ills %hich you !eel you possess "he amount o! !leCibility and !reedom you !eel you have in your Fob. "he psychological Q!eelV or climate that dominates your organization. @our level o! salary relative to your eCperience "he design or shape o! your organizationMs structure "he amount o! %or- you are given to do %hether too much or too little "he degree to %hich you !eel eCtended in your Fob > > > > > > > > > > > > > > > > > > > > > > 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 : : : : : : : : : : : : : : : : : : : : : : = = = = = = = = = = = = = = = = = = = = = = . . . . . . . . . . . . . . . . . . . . . .

MEASURES TO INCREASE AOB SATISFACTION 8lthough management cannot change the personal !actors in Fob satis!action, it should appreciate the role5o! such !actors and must ta-e care to place the employees %here the personal !actors o! the individual help him in achieving Fob satis!action.

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Similarly, the management can use the !actors inherent in the Fob to plan and administer Fobs more advantageously !or its personnel. +or eCample, the policy o! Fob rotation, Fob enrichment, and Fob enlargement may help increase Fob satis!action. Management should also ta-e necessary steps to raise the occupational status o! the %or-ers. "he management should care!ully develop appropriate policies and practices !or promotions and trans!ers, %or-ing conditions, %ages, grievance handling, !ringe bene!its, satis!actory hours o! %or- and ade$uate rest pausing. Management should also able to recognize and appreciate the good %or- done by the employees and give respect !or their creative suggestion. roper delegation o! authority, !reedom to do %or- %ill also help increase Fob satis!action. 8bove all, %hile -eeping in vie% the !actors related to Fob satis!action, the management must recognize the importance o! the stability o! employee attitudes that may lead to high morale and production. (t is evident !rom the above description that there are many !actors that in!luence Fob satis!action and the managements must be able to %or- out a broad strategies that may help increase Fob satis!action and must also able to identi!y the speci!ic !actors that causes the individual di!!erences and must evolve appropriate strategies that could raise the Fob satis!action o! those particular segment.

#4)

LESSON ; 11 GROU, DYNAMICS Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB *e&ine the term group and describe t pes o& groups ,nderstand group &ormation and development *iscuss group norms and group cohesiveness

8 group consists o! a number o! individuals %or-ing together !or a common obFective. Groups have signi!icant in!luence on an organization and are inseparable !rom an organization. "hey are use!ul !or the organization as they !orm !oundation o! human resources. "he study o! group behavior is essential !or an organization to achieve its goals. (ndividual and group behavior vary !rom each other. (n ./=A, 'lton Mayo and his associates conducted the ,a%thorne eCperiments and came to -no% that the group behavior has great impact on productivity. "he importance o! group behavior has been realized !rom time to time. ,uman behavior consists o! individuals, %ho move in groups. "he -no%ledge o! group behavior as %ell as individual behavior is necessary !or a manager. ,e must understand group psychology and should also understand individual behavior in the conteCt o! group behavior. "he group in %hich he moves in!luences individual %or-, Fob satis!action and e!!ective per!ormance. DEFINITION OF A GROU, 8 group is a t%o or more individual %ho interact regularly %ith each other to accomplish a common purpose or goal. 8ccording to Marvin Sha%, Da group comprises, o! t%o or more persons %ho interact %ith one another in such a manner that each person in!luences and is in!luenced by each other personE. "he -ey parts o! this de!inition are the concepts o! interaction and in!luence, %hich also limit the size o! the group. (t is di!!icult !or members to interact su!!iciently in a large group. Groups or %or- teams are the primary tools used by managers. Managers need groups to co5ordinate individual behavior in order to reach the organizational goals. Groups can ma-e a managerEs Fob easier because by !orming a group, he need not eCplain the tas- to each and every individual. 8 manager can easily coordinate %ith the %or- o! an individual by giving the group a tas- and allo% them to co5ordinate %ith each other. But !or a group to %ore!!ectively, the interactions bet%een its members should be productive. "here!ore, managers must pay attention to the needs o! individuals. Nee4 -0! G!02/ "he reasons !or the need, o! groups are as !ollo%sB Management o! modern organizations ma-e mutual e!!orts to introduce industrial democracy at %or-place. "hey use proFect teams and %or- committees %here %or-ers get due recognition. "hey %illingly participate in decision5ma-ing. "he tas-s in modern industries are becoming more compleC, tedious arid o! repetitive nature. 3orcommittees, %or- groups and teams are !ormed to monitor the %or-. "hey also ma-e the environment at %or-place more lively. Groups help in ma-ing participative management more e!!ective. Groups o! all -inds and types help by cooperating in all the matters related to production and human relations to %or- e!!ectively in the organization. 8n individual cannot per!orm each and every tas-. Group e!!orts are re$uired !or its completion. +or eCample, building a ship, ma-ing o! a movie, construction o! a !ly5over, etc. 8ll these re$uire coordinated and uni!ied e!!orts o! many individuals, %or-ing in a group. 8 group can Fudge in a better %ay as compared to an individual. 3hile accomplishing tas-s, all members o! a group together use their creative and innovative ideas than a single individual. (n a group, individuals communicate %ith each oilier, discuss their %or- per!ormances and ta-e suggestions !rom each other to ma-e it better. Group e!!orts a!!ect an individual, his attitude and behavior. Group has the ability to satis!y the needs o! its members. T5/e* 0- G!02/*

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(n an organization, there are three types o! groups, %hich are as !ollo%sB F2"'(#0" 6 0! -0!. 6 $!02/* +unctional groups are the groups !ormed by the organization to accomplish di!!erent organizational purposes. 8ccording to 8 L Stencombe, Da !ormal group is said to be any social arrangement in %hich the activities o! some persons are planned by others to achieve a common purposeD. "hese groups are permanent in nature. "hey have to !ollo% rules, regulations and policy o! the organization. 8 !ormal organizational group includes departments such as the personnel department, the advertising department, the $uality control department and the public relations department. T *> $!02/ "as-s groups are the groups !ormed by an organization to accomplish a narro% range o! purposes %ithin a speci!ied time. "hese groups are temporary in nature. "hey also develop a solution to a problem or complete its purpose. (n!ormal committees, tas- !orces and %or- teams are included in tas- groups. "he organization a!ter speci!ying a group membership, assigns a narro% set o! purposes such as developing a ne% product, evaluating a proposed grievance procedure, etc. I"-0!. 6 $!02/ (n!ormal groups are the groups !ormed !or the purposes other than the organizational goals. (n!ormal groups !orm %hen individuals are dra%n together by !riendship, by mutual interests or both. "hese groups are spontaneous. 8ccording to 2eith &avid, Dthe net%or- o! persons and social relations %hich is not established or re$uired !orm an in!ormal organizationD. "hese are the groups !ormed by the employees themselves at the %or-place %hile %or-ing together. "he organization does not ta-e any active interest in their !ormation. (n!ormal groups are very e!!ective and po%er!ul. "hese groups %or- as an in!ormal communication net%or!orming a part o! the grapevine to the organizations. "hey are also li-e a po%er!ul !orce, %hich an organization cannot avoid. Some managers consider them to be harm!ul to the interest o! an organization. "hey suspect their integrity and consider as a virtual threat. Some managers do not consider them as threat and see- the help o! group members in getting the organizational tas- accomplished. (n!ormal groups are o! !ollo%ing typesB o Interest group: (nterest groups are the groups !ormed to attain a common purpose. 'mployees coming together !or payment o! bonus, increase in salary, medical bene!it and other !acilities are the eCamples o! interest groups o )em*ership group: Membership groups are the groups o! individualsE belonging to the same pro!ession and -no%ing each other. +or eCample, teachers o! the same !aculty in a university. o ,rien#ship group: +riendship groups are the groups o! individuals belonging to same age group, having similar vie%s, tastes and opinions. "hese groups can also be !ormed outside the plant or o!!ice and can be in the !orm o! clubs and associations. o /eference group: *e!erence groups are the group %here individuals shape their ideas, belie!s, values etc. "hey %ant support !rom the group. GROU, FORMATION AND DEVELO,MENT Groups can !orm %hen individuals %ith similar goals and motives come, together. Groups are !ormed voluntarily. "he individuals o! a group can Foin and leave the group any time and they can also change their tas-s. ,ence, understanding ho% groups !orm and develop is important !or managers. "here are certain motives because o! %hich, the individuals Foin a group, %hich are as !ollo%sB

#4+

'rgani5ational motives to 8oin groups: Organizations !orm !unctional and tas- groups because such groups help the organization in structuring and grouping the organizational activities logically and e!!iciently. Personal motives to 8oin groups: (ndividuals also choose to Foin in!ormal or interest groups !or unimportant reasons. Since Foining these groups is voluntary, various personal motives a!!ect membership. Some o! these are sho%n in the !igure ....B Interpersonal attraction: (ndividuals conic together to !orm in!ormal or interest group, as they arc also attracted to each other. "he !actors that contribute to interpersonal attraction are seC, similar attitudes, personality and economic standing. "he closeness o! group members may also be an important !actor. Interest in!group activities: (ndividuals may also be motivated to Foin an in!ormal or interest group because the activities o! the group appeal to them. laying tennis, discussing current events or contemporary literature, all these are group activities that individuals enFoy. Support for group goals: "he individuals may also be motivated goals by the other group members to Foin. +or eCample, a club, %hich is dedicated to environmental conservation, may motivate individuals to Foin. (ndividuals Foin groups, such as these in order to donate their money and time to attain the goals they believe in and to meet other individuals %ith similar values. Nee# for affiliation: 8nother reason !or individuals to Foin groups is to satis!y their need !or attachment. *etired4old aged individuals Foin groups to enFoy the companionship o! other individuals in similar situation. Instrumental *enefits: Group membership sometimes also help!ul in providing other bene!its to an individual. +or eCample, a manager might Foin a *otary4 Lions club i! he !eels that being a member o! this club %ill lead to important and use!ul business contacts. STAGES OF DEVELO,MENT Members o! ne% group are un!amiliar %ith one anotherEs personalities and B hesitant in their interactions. "he ne% group must pass s o! development, %hich are depicted in the !igure ...=. Mutual 8cceptance Ma-ing 8cceptance Sharing 8c$uaintances &iscussing SubFects "esting 'ach Other Being &e!ensive

Slow Evolution to Next Stage

#ommunication and &ecision5Ma-ing 'Cpressing 8ttitudes 'stablishing )orms 'stablishing Goals Openly &iscussing "as-s Being &e!ensive

Burst of Activities to Next Stage

Motivation and roductivity #ooperating 3or-ing 8ctively on "as-s Being #reative

Slow Evolution to Next Stage

#ontrol and Organization 3or-ing (ndependently 8ssigning "as-s Based on 8bility Being +leCible +igure ...= "hese di!!erent stages o! group development are eCplained as !ollo%sB M2(2 6 A''e/( "'e "he very !irst stage o! a group development is called DMutual 8cceptanceD. &uring this stage, the members o! the group get !amiliar %ith one another and chec-, %hich inter5personal behavior is acceptable and %hich is

#5,

unacceptable by the other members o! the group. "his helps all the members o! a group to -no% each other better and helps the group to move to the neCt stage easily. C0..2"#' (#0" "4 De'#*#0";. >#"$ "he second stage o! group development is D#ommunication and &ecision5ma-ingEE. &uring this stage, group members share their opinions and !ormulate the groupEs goals. "hrough communication and decision5ma-ing, the structure becomes clear and the group moves to the third stage. M0(#) (#0" "4 ,!042'(#)#(5 "he third stage is DMotivation and roductivityD, %hich is characterized by a shared acceptance among members o! %hat the group is trying to do. 'ach person recognizes and accepts his role as %ell as to accept and to understand the roles to others. Members also become more com!ortable %ith each other and develop a sense o! group identity and unity. C0"(!06 "4 O!$ "#7 (#0" "he !ourth stage is D#ontrol and OrganizationD, in %hich the members per!orm the roles they have accepted and direct their group e!!orts to%ard goal attainment. (n reality, this developmental se$uence varies !rom group to group, depending on the time, personal characteristics o! group members and !re$uency o! interaction.

CHARACTERISTICS OF MATURE GROU,S 8s groups pass through the stages o! development to maturity, they begin sho% signs o! the !ollo%ing !our characteristicsB a role structure, behavioral norms, cohesiveness and in!ormal leadership. *ole Structures 8 role is the part that an individual plays in a group to reach its goals. Some individuals are leaders, some !ocus on the groupEs tas-; some interact %ith other groups and so on. *ole structure is the set o! de!ined roles and interrelationships among those roles that the group members de!ine and accept. "he !ailure in role development result in role ambiguity, role con!lict and role overload. Managers have to ta-e steps to avoid role ambiguity, role con!lict and role overload. Be1 )#0! 6 "0!.* 8lthough in!ormal groups do not have any speci!ic goals to accomplish, but they must have some goals over a period o! time. "hese goals are temporary and can be changed in accordance %ith the needs o! the group members. "he goals can be achieved e!!ectively depending on the !ollo%ing !actorsB o "he eCtent o! cooperation %ith management. o Maintenance o! an e!!icient communication system. o Satis!action o! the needs o! group members. K I"-0!. 6 6e 4e!*1#/ 'ach in!ormal group has one or more leaders. "hese leaders come !or%ard on the basis o! acceptance o! all the group members. 'very in!ormal group has one primary leader apart !rom the secondary B leaders. "he primary leader has more in!luence on the group members than the secondary leaders. K C01e*#)e"e** #ohesiveness is de!ined as the attractiveness o! group members to%ards the group. (t also emphasizes on the groupEs ability to satis!y its members needs. (t, there!ore, helps the group members to %or- more consistently and ma-e greater contribution to the achievement o! the organizational goals. (t is also psychologically more satis!ying to all o! its members. 8ccording to #art%right there are !our principal conse$uences o! cohesiveness, %hich are as !ollo%sB o 8bility o! a group to retain its members. o o%er o! the group to in!luence its members. o &egree o! participation and loyalty o! members. o +eeling o! security on the part o! the members. GROU, NORMS )orms re!er to group behavior standard, belie!s, attitudes, traditions and eCpectations shared by group members. 8ccording to Michael 8rgyle, DGroup norms are rules or guidelines o! accepted behavior %hich are established by a group and used to monitor the behavior o! its membersD. "hey are !ramed to achieve obFectives o! the group. "hey can be social and !air in nature. )orms de!ine boundaries bet%een acceptable and unacceptable behavior. "hey ma-e the members to identi!y themselves %ith the group. )orms play a signi!icant role in disciplining the members o! a group to ma-e them to %or- regularly and properly. "his reduces absenteeism and employee turnover. "he members o! the group are eCpected !ollo% the norms strictly. "his %ill ma-e the group more organized T5/e* 0- G!02/ N0!.* "here are t%o types o! group norms, %hich arc as !ollo%sB

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%ehavior norms: Behavior norms are rules that standardise ho% individuals act %hile %or-ing on a day5to5day basis. 'Camples are. Ddo not come to committee meetings unless you have read the reports to be EDdiscussedDE, Dgreet every customer %ith a smileEE, etc. "hese norms tend to re!lect motivation, commitment to the organization and there!ore result in high level o! per!ormance.

Performance norms: Per%$r-a./e .&-3er $% 1$&r0 4$r5e#6 Rea0$.0 %$r Str$.7 E.%$r/e-e.t $% N$r-0

.$r-0

are

r&"e0

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0ta.#ar#!2e e-p"$'ee $&tp&t a.#

Groups donEt have the time or energy, to regulate each and every action o! the group members. Only those behaviors that sound to5be important by group members should be brought under control. Groups, li-e individuals, try to operate in such a %ay that they maCimize their chances o! tas- success and minimize Kheir chances o! tas- !ailure. Groups %ant to !acilitate their per!ormance and overcome barriers to reach their goals. Moreover, groups %ant to increase morale and prevent any interpersonal discom!ort to their members. )orms that %ill help groups meet these aims o! per!orming success!ully and -eeping morale high are li-ely to be strongly en!orced. #onditions %here group norms %ill be strongly en!orced are as !ollo%sB (! the norms !acilitate group success or ensure group survival, (! the norms simpli!y or predict regarding the behavior %hich is eCpected !rom group members. (! the norms emphasize the roles o! speci!ic members %ithin a group and (! the norms help the group to solve the inter5personal problems themselves. U"#H2e"e** 0- G!02/ N0!.* "he norms o! one group cannot be easily miCed %ith another group. Some di!!erences are primarily due to the di!!erence in structure o! the groups. ,o%ever, even very similar %or- groups may develop di!!erent norms5. "he members o! one group may be !riendly %ith their supervisor %hereas those o! another group may not N0!. C0"-0!.#(5 )orms have the po%er to !orce a certain degree o! con!ormity. "here are several !actors consist o! norm con!ormity, %hich are as !ollo%sB Some groups may eCert more pressure !or con!ormity than others because o! the personalities o! the group members. "he history o! the group and its members also plays a part in con!ormity. +or eCample, i! the group has al%ays been success!ul by !ollo%ing certain behaviors, ne% group members are also as-ed to !ollo% the same. (! the group %as not success!ul in the past, a ne% group member may have greater !reedom to eChibit other behaviors. G!02/ C01e*#)e"e** 8ccording to *cnsis Li-ert, Dcohesiveness is the attractiveness o! the members to%ards the group or resistance o! the members leaving itD. (t re!ers to the attachment o! members %ith the group. 8ccording lo 2. 8s%alhappa, Dcohesiveness is understood as the eCtent o! li-ing each member has to%ards others and ho% !ar everyone %ants to remain as the member o! the groupD. 8ttractiveness is the -ey to cohesiveness. #ohesiveness is the eCtent to %hich group members are loyal and committed lo the group and to each other. (n a highly cohesive group, the members %or- %ell together, support and trust one another and are generally e!!ective at achieving their chosen goals. 8 group that lac-s cohesiveness %ill not be very much coordinated. (ts members %ill not support one another and they may !ace di!!iculty in reaching their goals. Managers should develop an understanding o! the !actors that increase and reduce group cohesiveness. A4) "( $e* 0- G!02/ C01e*#)e"e** "he advantages o! group cohesiveness are as !ollo%sB "he members o! cohesive groups have high morale. "he members donEt have con!licting vie%s, %hich decreases the chances o! in clash among the vie%s o! group members at the %or-place or else%here. (ndividuals o! cohesive groups have no anCiety at the %or-place. Members o! cohesive groups are regular at their %or-. #ohesiveness increases productivity. Organizations gain !rom the members o! cohesive group because they communicate better they share ideologies and respect opinions o! !ello% employees. "he !ollo%ing !actors can increase group cohesivenessB #ompetitiveness %ith other groups. (nter5personal attraction. +avourable evaluation !rom outsiders. 8greement on goals.

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+re$uent interaction. "he !ollo%ing !actors decrease cohesivenessB Large group size. &isagreement on goals. #ompetitiveness %ithin group. &omination by one or more members. ;npleasant eCperiences. LESSON ; 12 LEARNING AND BEHAVIOR MODIFICATION

Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB 1onceptual clarit about nature and levels o& con&licts "he sources and e&&ects o& con&licts to manage con&licts

#on!lict arises !rom di!!erence o! opinion bet%een the group members %hile attaining the organizational goals. 8n organization is an interloc-ing net%or- o! groups, departments, sections or %or- teams. (n organizations every%here, con!lict among groups o! di!!erent interests is unavoidable. 8ccording to one survey, managers spend an estimated =A percent o! their time dealing %ith group con!licts. "he success o! an organization depends upon the harmonious relations among all independent groups. Managers may either directly resolve the con!licts or they may act as mediators bet%een t%o or more employees. (n either case, -no%ledge and understanding o! con!lict and the methods o! resolving it are important. (nter5group con!licts result !rom the %ays in %hich organizations co5ordinate the %or- o! di!!erent groups and distribute re%ards among those groups. TY,ES OF CONFLICT "he levels o! group con!lict are as !ollo%sB Personal conflict: 8re the con!licts that arise among employees, individuals because o! their competitive roles. Group conflict: Are the con!licts arising %ithin t%o or more groups due to di!!erence in their attitudes and behavior. Infra!organi5ational conflict: 8re the con!lict arising bet%een levels o! an organization, %hich are o! t%o types. <ertical con!lict arises bet%een higher and lo%er level o! management. ,orizontal con!lict arises among the employees at same level. +ollo%ing is the se$uence in %hich a con!lict can ariseB atent conflict: (s situation %hen the conditions !or con!lict arise. +or eCample, t%o groups competing !or scarce resources. Perceive# conflict: (s a situation %hen both the groups realize that there eCists con!lict bet%een them. (elt con&lict$ (s a situation %hen members involved in the con!lict !eel tense or anCious. )anifest conflict: (s a situation %hen both the group try to !rustrate each other. "onflict outcome: (s a situation or conse$uence arising a!ter the con!lict is eliminated. REASONS FOR CONFLICT "here are many reasons !or con!licts among groups and its members. Some o! them are related to limited resources, communication problems, di!!erences in interests and goals, di!!erent perceptions, attitudes and lac- o! clarity about responsibilities. "he reasons !or group con!licts are as !ollo%sB "ommunication pro*lems: Groups o!ten become very involved %ith their o%n areas o! responsibility. "hey tend to develop their o%n uni$ue vocabulary. aying attention to an area o! responsibility is a %orthy 'ndeavour, but it can result in communication problems. "he receiver o! in!ormation should be considered %hen a group communicates an idea, a proposal, or a decision. Misin!ormed receivers o!ten become irritated and then hostile. Incompati*le goals: (nter5group con!lict arises because o! goal incompatibility. (n other %ords, goal attainment by one group may reduce the level o! goal attainment by other groups. "his may be due to horizontal di!!erentiation and tas- specialization. "he con!lict bet%een production and mar-eting departments, line and sta!! departments, union and management are !e% eCamples o! inter5group con!licts that arise because o! in 5 compatibility o! goals.

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Tas0 inter#epen#ence: "as- interdependence means to %hat eCtent a %or-, group relies on other organizational groups to complete its tas-s. (n simple %ords, it re!ers to the dependence o! one group on another !or resources or in!ormation. (t can be said in generaT that as interdependence increases, the potential !or con!lict increases. 8ccording to 6. "hompson, there are three types o! interdependence among groups, %hich are as !ollo%sB o Poole# inter#epen#ence: (t arises %hen groups have little interaction %ith each other but are a!!ected by each otherEs activities. +or eCample, a branch in &elhi does not need to interact %ith a branch in #hennai. "he only lin-age bet%een the t%o is that they share !inancial resources !rom a common pool and the success o! each branch contributes to the success o! the organization. o Se9uential tas0 inter#epen#ence: (t arises %hen one group is unable to commence its %or- until the %or- o! other group gets completed. (n se$uential tas- interdependence, the output o! one group becomes the input o! another group. (n such situations, the potential !or con!lict is greater. Li!e and sta!! groups o!ten have con!licts resulting !rom this type o! interdependence. o /eciprocal inter#epen#ence: (t arises bet%een the groups, %hich depend on each other !or their respective tas- such as production department and $uality department. "he production department provides the goods to the mar-eting department to sell and the mar-eting department prepares the orders and estimates on the basis o! the volume produced by the production department. (nter5group con!lict arises !rom reciprocal tas- interdependence over di!!erence in per!ormance eCpectations. 'ach group is dissatis!ied %ill the $uality or $uantity o! %or- received; !rom the other group. o Tas0 am*iguity: "he lac- o! clarity over Fob responsibilities is called tas- ambiguity and it !re$uently leads to aggression bet%een groups. (nter5group con!lict also arises %hen it is not clear %hich group is responsible !or certain activities. "as- ambiguity o!ten arises %here the organization is gro%ing $uic-ly or the organizationEs environment is changing rapidly. 8 good eCample o! tas- ambiguity is inter5group con!lict arising in the recruitment o! ne% employees. (t may be the responsibility o! either the personnel department or any o! the !unctional departments such as mar-eting, !inance. "he con!usion may also arise regarding %ho has the !inal authority to eCecute the !inal decisions. o /esource sharing: "he relation bet%een t%o groups can be a!!ected by the degree to %hich they ma-e use o! a common pool o! resources and the degree to %hich this common pool o! resources is ade$uate to meet the demands o! both the groups. "hus, con!lict o! this nature; arises because o! the di!!erences bet%een aggregate demand o! a group and available resources to meet them. 'ach party o! the con!lict competes %ith each other to get a larger share. "he con!lict bet%een management and the labor union5is the best eCample. Such con!licts ta-e place in the $uantum o! %ages, amenities, %or-ing conditions and other related matters. o $ifference in &or0 orientation: "he %ays in %hich employees do their %or- and deal %ith others vary %idely %ith the !unctional areas o! an organization. +irst, !unctional groups di!!er in their time perspectives. +or eCample, *9& scientists have a longer5range o! goals than manu!acturing groups. "he range o! %or- o! manu!acturing group is evaluated on ho% $uic-ly it can manu!acture high5$uality products %hile the range o! *9& scientists can be evaluated on the basis o! product development and testing a!ter a long period o! time. Second, the goals o! di!!erent !unctional groups vary to a large eCtent. "he goals o! manu!acturing groups are more speci!ic and clear5cut than the goals o! *9& groups. "he greater the di!!erences in goal and time bet%een t%o groups, the more li-ely it is that con!lict %ill arise bet%een them %hile co5ordinating their %or- e!!orts. "hese di!!erences bet%een groups result in !rustration, misinterpretation o! the behaviors and activities o! other groups. o "onflicting re&ar# systems: Sometimes the %ays in %hich re%ard systems in organizations arc designed create a situation in %hich one group can only. accomplish its goal at the eCpense o! other groups. +or eCample, sta!! departments may be re%arded !or cutting costs and personnel %hile line departments are re%arded !or increasing the amount o! products sold or services provided. "o increase the amount o! products sold, the line group may have to depend even more heavily on sta!! groups such as advertising. ,o%ever the sta!! groups are being re%arded !or cutting costs and personnel provided the types o! services as-ed !or by line groups can prevent them !rom meeting their o%n goals. #on!licting re%ard systems inevitably result in poor inter5group relations. o $ifferent perceptions an# attitu#es: "he attitudes, values and perceptions o! members o! various groups to%ards each other can be a cause and a conse$uence o! the nature o! their relationship. (! the group relations begin %ith the attitudes o! distrust, competitiveness, secrecy and closed communications, there is a possibility o! con!licts, disagreements in their vie%s and among themselves. "his can a!!ect the success o! a group to accomplish their %or- in an e!!ective manner.

DYNAMICS OF INTER;GROU, CONFLICT "he !ollo%ing points are covered in the dynamics o! an inter5group con!lictB

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"hanges &ithin each group: 3hen there is inter5group con!lict in an organization, systematic changes ta-e place in the perceptions, attitudes and behaviors o! the participants. "hey are as !ollo%sB o "he group demands more loyalty !rom individual members %hile !acing an eCternal threat. (n the !ace o! an eCternal threat, past di!!erences and di!!iculties bet%een group members are !orgotten and group cohesiveness increases. o (n an inter5group con!lict, it is important !or a group to respond $uic-ly and in a uni!ied manner to the activities o! other groups. (n an inter5group con!lict, the organization and structure o! the %or- group becomes more rigid. (t leads to more coordination o! activities, allocution o! responsibilities to di!!erent group members. o "hanges in relation *et&een groups: "he nature o! the relationships bet%een groups also changes mar-edly during inter5group con!licts. ;nion5Management relationships during contract negotiations are one o! the eCamples o! the group dynamics. (t becomes di!!icult !or each group to see the positive behavior and attitude o! the other group. 'ach party undervalues the interests o! the other group. "he changes that occur arc as !ollo%sB o "here are distortions o! perception about oneEs o%n group and about the other group. o "he interaction and communication bet%een groupsE decreases. o "here is a shi!t among the groups !rom a problem5solving motive to a %in5lose motive. o "here is increased ill !eeling to%ards the rival group.

GROU, STRATEGIES TO GAIN ,O+ER "here are several strategies that various groups use to gain po%er in an inter5group con!lict situation. Some o! these strategies allo% co5operation and sharing bet%een groups %hile other strategies are more competitive and increase the po%er o! one group at the eCpense o! others. "ontracting: (t re!ers to the negotiation or an agreement bet%een t%o groups. 'ach group ma-es some compromises so that there can be some predictability and stability in their relationships. O" eCample, contracting occurs bet%een labor and management at the time collective bargaining. "o!opting: (t occurs %hen a group gives some o! its leadership positions to members o! other groups or includes them in its policy5ma-ing committees. +or eCample, representatives !rom !inancial institutions are included in the Board o! &irectors o! a #ompany to participate in decision5ma-ing activities. ,orming association: (n !orming an association, t%o or more groups cooperate or combine their resources in order to increase their po%er over other groups. Members o! groups co5operate %ith each other in order to compete more e!!ectively %ith members o! other groups. Influencing #ecision criteria: Groups can also sometimes eCert po%er lo change criteria !or decision5ma-ing that are selected as the basic !or resource distribution. "ontrolling Information: Gaining access to sensitive in!ormation and then limiting other groupEs access lo it increases the po%er o!D the in!ormation5E rich group and other subunits. Pressure tactics: "hese are applied to !orce other to use the most competitive strategy a group can use to gain po%er. +or instance, a union might threaten to stri-e to pressurize management. Management reaction to disruptive inter5group con!lict can ta-e many di!!erent !orms. But management usually tries to minimize the con!lict indirectly and i! this !ails, become directly involved. Me(104* (0 S06)e I"(e!;$!02/ C0"-6#'( I"4#!e'(65 "he various methods to solve inter5group con!licts indirectly are as !ollo%sB Avoi#ance: (t is an indirect method o!ten used by the managers. (t includes avoidance o! direct approaches on the part o! managers to solve among groups. But avoidance does not al%ays minimize the problem. Matters can get %orse i! nothing is done and the groups can become more aggressive and un!riendly. Encouragement: "his is another indirect method to solve the group con!licts. (t includes encouragement on the part o! managers to the groups so that they %ill be able to meet and discuss their di!!erences. By doing so, they can !ind out a solution %ithout the involvement o! management. %argaining: "his is the indirect method, in %hich the groups agree as to %hat each o! them %ill get and give others regarding their %or-. "his ma-es the accomplishment o! the assigned tas- much easier. +or eCample, one group may agree to give the other, a $uic- turn around time on the repairs o! needed e$uipment only i! the Second group agrees to bring complaints about the $uality o! repairs to it be!ore going to management. Bargaining bet%een t%o groups is success!ul i! both groups are com!ortable %ith the agreement bet%een them. Persuasion: "his is the indirect method, in %hich the groups !ind the areas o! common interests among themselves. "he groups try to !ind out those interests levels %here they have the same say. 8!ter%ardsE, the groups try to sho% ho% important it is to each o! them in attaining organizational goals. But persuasion is possible only i! there are no clashes bet%een the groups and its members Me(104* (0 S06)e I"(e!;G!02/ C0"-6#'(

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"he various methods to solve inter5group con!licts directly are as !ollo%sB Ignoring the conflict: "his is a direct method used by Khe managers to solve inter5group con!licts. (gnoring the con!lict is characterized by the absence o! behavior %herein the members o! the groups avoids dealing %ith the dys!unctional aspects o! the con!lict. (n this, a, group simply re!uses to attac- the other group. But the disadvantage o! this method is that it ignores the causes o! con!licts and as a result, the con!lict situation !re$uently continues or gets %orse over time. $omination *y the management: "his method o! solving inter5group con!licts emphasizes on improving the inter5group relations. "o improve the inter5group relations, greater integration or collaboration among groups is needed. Management can use domination to minimize the con!licts by eCercising its authority and po%er over the groups and their members. /emoving the 0ey figures in the conflict: "his is another direct method to solve the inter5group con!licts. (! a con!lict arises because o! personality di!!erences bet%een t%o individuals, removing them is a possible solution. (t includes the removal o! the -ey !igures in the con!lict. "he -ey !igures that are to be removed may be leaders o! the groups and removing them could lead to greater con!lict. (t is also di!!icult to pinpoint accurately the individuals %ho are the root5cause o! con!licts. Pro*lem solving: Management can also establish a tas- !orce %ith representatives !rom groups in con!lict to %or- on problems. "he tas- !orce develops the ideas Eand procedures !or improving group interaction and thereby attempt to solve the con!licts arising bet%een the groups. o 8ppealing to super5ordinate goals. "he !inal method to minimize the con!licts is to !ind super5ordinate goals. "hese are goals desired by t%o or more groups that can only be accomplished through the cooperation o! the groups. 3hen con!licting groups have to cooperate to accomplish a goal, con!lict can be minimized. +or eCample, a %ide pro!it5sharing plan o! a company may encourage groups to %or- together. (! the pro!its o! a company are distributed among employees at the end o! the year, the con!licts among groups can reduce. "he super ordinate goals are as !ollo%sB "he assignment and co5 ordination o! %or- among groups should be clari!ied so that the daily disputes over minor issues can be avoided. o Managers should monitor re%ard systems to eliminate any %in5lose con!licts among groups. o "he use o! co5operative approaches among groups in organizations o!ten leads to more positive results than does the use o! competitive approaches. o Managers can establish rules and standard procedures to regulate con!lict in more constructive and e!!ective %ays.

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LESSON;13 ORGANIZATIONAL COMMUNICATIONS Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he meaning and importance o& communication 1ommunication process 2arious t pes o& organi#ational communication "he barriers and the methods o& overcoming barriers to e&&ective communication

#ommunication is one o! the most !re$uently discussed dynamics in the entire !ield o! organizational behavior. (n practice, e!!ective communication is a basic prere$uisite !or the attainment o! organizational goals. "here!ore, communication is considered to be the most important and most e!!ective ingredient o! the management process. (nterpersonal communication is !undamental to all managerial activities. 8ll other management !unctions involve communication in some !orm o! directions and !eedbac-. "hus, e!!ective management is a !unction o! e!!ective communication. DEFINITION OF COMMUNICATION (n modern society, the term communication is !re$uently and !reely used by everyone, including members o! the general public, organizational behavior scholars, and management practitioners. #ommunication is the process o! transmitting in!ormation !rom one person to another. Broadly, it means %ho says %hat, to %hom, through %hich channel and %ith %hat e!!ect. (t is a %ay o! reacting to the other person %ith ideas, !acts, thoughts, !eelings and values. #ommunication eCperts emphasize the behavioral implications o! communication by pointing out that Dthe only means by %hich one person can in!luence another is by the behaviors he sho%s that is, the communicative eCchanges bet%een people provide the sole method by %hich in!luence or e!!ects can be achievedD. (n other %ords, the behaviors that occur in an organization are vital to the communication process. "his personal and behavioral eCchange vie% o! communication ta-es many !orms. "he !igure .:.. can be used to identi!y the maFor categories o! communication that arc especially relevant to the study o! organizational behavior. #ommunication "echnology (nterpersonal "echnology <erbal "echnology

(igure 34.3$ 1hain o& 1ommunication in Organi#ational Behavior O%&e'(#)e* 0- C0..2"#' (#0" Managements depend upon communication to achieve organizational obFectives. Since managers %or- %ith and through other people, all their acts, policies, rules, orders and procedures must pass through some -ind o! communication channel. 8lso there must be channel o! communication !or !eedbac-. 8ccordingly, some o! the purposes o! communication areB "o discourage the spread o! misin!ormation, ambiguity and rumors, %hich can cause con!lict and tension. "o !oster any attitude, that is necessary !or motivation, cooperation and Fob satis!action. "o develop in!ormation and understanding among all %or-ers. "his is necessary !or group e!!ort. "o prepare %or-ers !or a change in methods o! environment by giving them necessary in!ormation in advance. "o encourage subordinates to supply ideas and suggestions !or improving the product or %or- environment and ta-ing these suggestions seriously. "o improve labor management relations by -eeping the communications channels open and accessible. "o improve social relations among %or-ers by encouraging intercommunication. "his %ould satis!y the basic human need !or a sense o! belonging and !riendship.

I./0!( "'e 0- C0..2"#' (#0" (nterpersonal roles re$uire managers to interact %ith supervisors, sub5ordinates, peers and others outside the organization. "hus, !or co5ordinated action, communication is necessary. #ommunication trans!orms a group o! unrelated individuals into a team that -no%s %hat its goals are and ho% it %ill try to reach them.

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#ommunication allo%s people to co5ordinate %ith each other by providing them %ith a %ay to share in!ormation. "he !irst type o! in!ormation that needs to be shared is %hat the goals o! the organizations are. eople need to -no%5 %here they are heading and %hy. "hey also need directions !or their speci!ic tas-s. #ommunication is especially important !or the tas- o! decision5ma-ing. &ecision5ma-ers must share their vie%s on %hat the problem is and %hat the alternatives are. Once a decision has been made, communication is necessary to implement the decision and to evaluate its results. #hanges in mar-et or in customer pre!erences can lead to uncertainty about %hether a product Or a mar-eting strategy needs to be updated or overhauled. "he uncertainty resulted !rom the lac- o! in!ormation, can be reduced by communicating that in!ormation. Mar-et researchers, !or eCample, can communicate %ith other groups about changes in the mar-et place. "he greater the uncertainty about a tas-, the more important the communication o! in!ormation becomes. #ommunication also allo%s people to eCpress their emotions. #ommunication o! !eelings can be very important to employee morale and productivity. 'mployees %ho !eel that they cannot vent their anger or eCpress their Foy on the Fob may !eel !rustrated and repressed. On any given day, a manager may communicate !or all the purposes described above. #ommunication goes up, do%n and across the levels o! the hierarchy o! an organization. COMMUNICATION ,ROCESS "he !igure .:.= presents a general vie% o! the communication process, as a loop bet%een the source and the receiver. (n the simplest -ind o! communication, both the sender and the receiver per!orm the encoding and decoding !unctions automatically.

S02!'e 0! Se"4e! "he communication cycle begins %hen one person called the sender %ants to transmit a !act, idea, opinion or other in!ormation to someone else. 8 manager, !or instance, might call the research department to send the latest in!ormation on a particular mar-et. E"'04#"$ "he second step is to encode the message into a !orm appropriate to the situation. "he encoding might ta-e the !orm o! %ords, !acial eCpressions, gestures, physical actions and symbols such as numbers, pictures, graphs etc. (ndeed, most communication involves a combination o! these. "he encoding process is in!luenced by the content o! the message, the !amiliarity o! the sender and receiver and other situational !actors. T! "*.#**#0" 8!ter the message has been encoded, it is transmitted through the appropriate channel or medium. #ommon channels or media in organizations include !ace5to5!ace communication using the media o! sound %aves, light, letters and reports. De'04#"$ "he person to %hom the message is sent, called the receiver interprets the meaning o! the message through the process o! decoding. "his process may be simple and automatic, but it can also be $uite compleC. 'ven %hen you are Fust reading a letter, you may need to use all your -no%ledge o! the language, your eCperience %ith the letter5%riter and so on. (! the intended message and the received message di!!er a great deal, there is a communication gap and misunderstanding is li-ely to !ollo%.

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Re'e#)e! "he receiver can be an individual, a group, or an individual acting on behal! o! a group. "he sender has generally little control over ho% the receiver %ill deal %ith the message. "he receiver may ignore it, decide not to try to decode, understand it or respond immediately. "he communication cycle continues %hen the receiver responds by the same steps bac- to the original sender, %hich is called the !eedbac-. N0#*e (n the communication process, noise ta-es on a meaning slightly di!!erent !rom its usual one. )oise re!ers to any type o! disturbance that reduces the clearness o! the message being transmitted. "hus, it might be something that -eeps the receiver !rom paying close attention such as someone coughing, other people tal-ing dosely, a car driving by etc. (t can be a disruption such as disturbance in a telephone line, %ea- signal due to bad %eather etc. (t can also be internal to the receiver such as tiredness or hunger or minor ailments, %hich may a!!ect the message. METHODS OF COMMUNICATION "here are mainly three primary methods o! communication in an organization, %hich are %ritten, oral, and non5verbal. "hese methods o! communication are o!ten combined. #onsiderations that a!!ect the choice o! method include the audience %hether it is physically present, the nature o! the message, and the lost o! transmission. "he !igure .:.: given belo% sho%s various !orms each method can ta-e.

"ypically organizations produce a great deal o! %ritten communication o! many -inds. 8 letter is a !ormal means o! communication %ith an individual, generally someone outside the organization. robably the most common !orm o! %ritten communication in organizations is the o!!ice memorandum, or a memo. Memos usually are addressed to a person or group inside the organization. "hey tend to deal %ith a single topic and are more impersonal, but less !ormal than letters. Other common !orms o! %ritten communication include reports, manuals and !orms. *eports generally summarize the progress or results o! a proFect and o!ten provide in!ormation to be used in decision5ma-ing. Manuals have various !unctions in organizations. (nstruction manuals tell employees ho% to operate machines; policy and procedure manuals in!orm them o! organizational rules; operations manual describe ho% to per!orm tas-s and respond to %or-5related problems. 8s such, they represent attempts to ma-e communication more e!!icient and in!ormation more accessible. 8 per!ormance appraisal !orm is an eCample. ORAL COMMUNICATION Oral communication, also -no%n as !ace5to5!ace communication is the most prevalent !orm o! organizational communication. (t may be in the !orm o! direct tal- and conversation bet%een the spea-ers and listeners %hen they are physically present at one place or through telephone or intercom system conversation. 3here one5%ay communication

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is re$uired, then oral communication may include public address system. (n!ormal rumour mill or grapevine is also a popular !orm o! oral communication. (t is most e!!ective !or leaders to address the !ollo%ers via public address system or audio5visual media. Oral communication is particularly po%er!ul because the receiver not only hears the content o! the message, but also observes the physical gestures associated %ith it as %ell as the changes in tone, pitch, speed and volume o! the spo-en %ord. "he human voice can impart the message much more !orce!ully and e!!ectively than the %ritten %ords and is an e!!ective %ay o! changing attitudes, belie!s and !eelings, since !aith, trust and sincerity can be much better Fudged in a !ace5to5!ace conversation rather than in %ritten %ords. A4) "( $e* Some o! the advantages o! oral communication areB (t is direct, simple, time saving and least eCpensive !orm o! communication. (t allo%s !or !eedbac- and spontaneous thin-ing, so that i! the receiver Fs unsure o! the message, rapid !eedbac- allo%s !or early detection by the sender so that corrections can be immediately made, i! necessary. Because the message is conveyed instantaneously, it helps in avoiding delays, red tape and other !ormalities. (t conveys personal %armth and !riendliness and it develops a sense o! belonging because o! these personalized contacts. D#* 4) "( $e* "here is no !ormal record o! communication so that any misunderstood message cannot be re!erred bac- to %hat %as actually said. (! the verbal message is passed on,the long hierarchical chain o! command, then some distortions can occur during the process. "he more people the message is to pass through, the greater is the potential distortion. Lengthy and distant communication cannot be conveyed verbally in an e!!icient %ay. "he receiver may receive the message in his o%n perception and thus misunderstand the intent o! the message. Spontaneous responses may not be care!ully thought about. "he spirit o! authority cannot be transmitted e!!ectively in verbal transactions. Organizational #ommunications More or less or a di!!erent meaning might be conveyed by manner o! spea-ing, tone o! voice and !acial eCpressions. +RITTEN COMMUNICATION 8 %ritten communication is put in %riting and is generally in the !orm o! instructions, letters, memos, !ormal reports, rules and regulations, policy manuals, in!ormation bulletins and so on. "hese areas have to be covered in %riting !or e!!icient !unctioning o! the organization. (t is most e!!ective %hen it is re$uired to communicate in!ormation that re$uires action in the !uture arid also in situations %here communication is that o! general in!ormational nature. (t also ensures that everyone has the same in!ormation. A4) "( $e* (t serves as an evidence o! events and proceedings. (t provides a permanency o! record !or !uture re!erences. "he message can be stored !or an inde!inite period o! time. (t reduces the li-elihood o! misunderstanding and misinterpretation. "he %ritten communications are more li-ely to be %ell considered, logical and clear. "he message can be chec-ed !or accuracy be!ore it is transmitted. (t can save time %hen many persons must be contacted at the same time. (t is more reliable !or transmitting lengthy statistical data. (t appears !ormal and authoritative !or action. D#* 4) "( $e* (t can be very time5consuming, specially !or lengthy reports. "here is no immediate !eedbac- opportunity to be sure that the receiver has understood the message. #on!idential %ritten material may lea- out be!ore time, causing disruption in its e!!ectiveness. (t leads to eCcessive !ormality in personal relations.

NON;VERBAL COMMUNICATION Some o! the meaning!ul communication is conveyed through non5verbal %ays. 'ven some o! the verbal messages are strengthened or diluted by non5verbal eCpressions. "hese non5verbal eCpressions include !acial eCpressions and physical movement. (n addition, some o! the environmental elements such as building and o!!ice space can convey a

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message about the authority o! the person. 8ccording to "ip-ins and Mc5#arter, !acial eCpressions can be categorized asB (nterest5eCcitement 'nFoyment5Foy Surprise5startle &istress5anguish +ear5terror Shame5humiliation #ontempt5disgust 8nger5rage hysical movements or body language is -no%n as D-inesicsD. 8 handsha-e is probably the most common !orm o! body language and tells a lot about a personEs disposition. Other eCamples o! body language are tilting o! head, !olding o! arms or sitting position in a chair. Our !acial eCpressions can sho% anger, !rustration, arrogance, shyness, !ear and other characteristics that can never be ade$uately communicated through %ritten %ord or through oral communication itsel!. Some o! the other body language symptoms are shrugging our shoulders !or indi!!erence, %in- an eye !or mischie! or intimacy, tap our !ingers on the table !or impatience and %e slap our !orehead !or !orget!ulness. 8s !ar as environmental elements are concerned, a large o!!ice %ith luCurious carpeting and eCpensive !urniture conveys a message o! status, po%er and prestige such as that o! a chie! operating o!!icer. On the other hand, a small metal des- on a corner communicates the status o! a lo% ran-ing o!!icer in the organizational setting. 8ccordingly non5verbal actions have considerable impact on the $uality o! communication. C0..2"#' (#0" Ne(30!>* 8 communication net%or- is the pattern o! in!ormation eCchange used by the members o! a group. 3hen the members o! a group communicate mostly %ith the group leader, a %heel net%or- develops. 3hen the members o! a group are on di!!erent levels4o! the organizationEs hierarchy, a chain net%or- is developed. Members o! a tas- !orce or committee o!ten develop a circle net%or- o! communication %ith each person communicating directly to the other members o! the tas-5 !orce. (n!ormal groups that lac- a !ormal leader o!ten !orm an all5channel net%or- that everyone uses to communicate %ith everyone else. +igure .:.7 sho%s 3heel #ommunication )et%or-. +igure .:.0 sho%s #hain #ommunication )et%or-.

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+igure .:.> sho%s #ircle #ommunication )et%or-. +igure .:.1 sho%s 8ll #hannel #ommunication )et%or-.

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"he density o! communication re!ers to the total $uantity o! communication among members. "he distance bet%een members describes ho% !ar a message must travel to reach the receiver. "he ease %ith %hich members can communicate %ith others is measured by membersE relative !reedom to use di!!erent paths to communicate. MembersE commitment to the groupEs %or- is de!ined by the centrality o! the position o! the members. 8ll these provide insight into possible communication problems. +or instance, a group %ith high density and distance can eCpect a lot o! noise distortion in its communication, as messages travel a long distance to get to the receivers. "he !ollo%ing !actors in!luence the !ormation o! communication patterns %ithin small groupsB Organizational #ommunications I .=: .. Type of Tas0$ (! the tas- o! the group is simple, a chain or %heel net%or- is used. +or hard tas-s, all channel net%or-s arises. =. Environment: 'nvironment including the groupEs seating arrangement and meeting place also a!!ects communication patterns. +or instance, i! members al%ays sit around a table, then circle net%or- arises. :. Group Performance ,actors: "he group per!ormance !actors li-e groupEs size, composition, norms and cohesiveness also a!!ect theE !ormation o! communication net%or-s. +or instance, it is much easier to have an all5channel net%or- in a group o! eight than in a group o! eighty. Managers must ma-e use o! all these characteristics and tendencies to help groups communicate and %ormost e!!iciently. 8 manager, %ho sees that a %heel net%or- is !orming around an eCperienced, trusted employee might not inter!ere %ith the process. (! an assertive but irresponsible employee becomes the hub o! such a %heel, the manager may need to ta-e action. (! the manager relies on a group to help ma-e decisions, the manager may encourage silent group members to spea- in order to get the desired decisions. FORMS OF ORGANIZATIONAL COMMUNICATION 8lthough interpersonal and group !orms o! communication pertain even at the broadest organizational levels, they do not su!!iciently describe the paths o! all messages transmitted in organizations. (ndividuals can send and receive messages across %hole organizational levels and departments by means o! vertical communication or the in!ormal communication net%or-. )on5verbal communication is also important and can be a part o! interpersonal, group and organizational communication.

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Ve!(#' 6 C0..2"#' (#0" <ertical communication is the communication that !lo%s both up and do%n the organizational hierarchy. "his communication typically ta-es place bet%een managers and their superiors or subordinates. U/3 !4 C0..2"#' (#0" ;p%ard #ommunication consists o! messages moving up the hierarchy !rom subordinates to superiors. "he content o! up%ard communication usually includes re$uests, suggestions or complaints and in!ormation the sub5ordinate thin-s is o! importance to the superior. D03"3 !4 C0..2"#' (#0" &o%n%ard #ommunication consists o! messages moving do%n the hierarchy !rom superiors to sub5ordinates. "he content o! do%n%ard communication o!ten includes directives, assignments, per!ormance !eedbac- and in!ormation that the superior thin-s are o! value to the sub5ordinate. T! "* '(#0" 6 C0..2"#' (#0" 3enburg and 3ilmont suggest that instead o! communication being Dup%ardD or Ddo%n%ardD %hich is inter5 communication, it should be DtransactionalD communication, %hich is mutual and reciprocal because, Dall persons are engaged in sending and receiving messages simultaneously. 'ach person is constantly sharing in the sending and receiving process and each person is a!!ecting the otherD. (n the transactional process, the communication is not simply the !lo% o! in!ormation, but it develops a personal lin-age bet%een the superior and the subordinate. I"-0!. 6 C0..2"#' (#0" 8nother term !or in!ormal communication net%or- is the grapevine. (n!ormal net%or-s are !ound in all organizations. (t is in the !orm o! gossip in %hich a person spreads a message to as many other people as possible %ho may either -eep the in!ormation to themselves or pass it on to others. "he content o! gossip is li-ely to be personal in!ormation or the in!ormation about the organization itsel!. Managers should have some control over the in!ormal net%or-. +or eCample, the grapevine in an organization may be carrying harm!ul in!ormation, !alse in!ormation or politically motivated in!ormation. 3hen these -inds o! rumors are being spread, managers may need to intervene. "hey can hold open meetings and obFectively discuss the issues that are being in!ormally discussed already. "hey may also issue a clearly %orded memo or report stating the !acts and thereby help minimize the damage that the in!ormal net%or- can do. Managers can also obtain valuable in!ormation !rom the grapevine and use it !or decision5ma-ing. O(1e! F0!.:* 0- C0..2"#' (#0" One that has become especially popular is in!ormally labelled as Dmanagement by %andering aroundD. "he basic idea is that some managers -eep in touch %ith %hat is going on by %andering around and tal-ing %ith people such as sub5 ordinates, customers, dealers and any one else involved %ith the company in any %ay. "his %ill give managers, ne% ideas and a better !eel !or the entire company. BARRIERS TO COMMUNICATION "he communication must be interpreted and understood in the same manner as it %as5meant to be sent by the sender, other%ise it %ill not achieve the desired result and a communication brea-do%n %ill occur. "here are certain eCternal roadbloc-s to e!!ective communication. (n addition, there are personal !actors, %hich a!!ect communication. Some o! the organizational barriers and some o! the interpersonal barriers to e!!ective communication are discussed belo%B N0#*e B !!#e!* )oise is any eCternal !actor, %hich inter!eres %ith the e!!ectiveness o! communication. "he term is derived !rom noise or static e!!ects in telephone conversation or radio %ave transmission. (t may cause inter!erence in the process o! communication by distraction or by bloc-ing a part o! the message or by diluting the strength o! the communication. Some o! the sources contributing to%ards noise !actor areB Poor Timing 8 message sent on poor timing acts as a barrier. +or instance, a last minute communication %ith a deadline may put too much pressure on the receiver and may result in resentment. 8 message must be sent at an appropriate time to avoid these problems. ,ence the manager must -no% %hen to communicate. Inappropriate "hannel oor choice o! channel o! communication can also be contributory to the misunderstanding o! the message. "he manager must decide %hether the communication %ould be most e!!ective i! it is in %riting or by a telephone call or a !ace5to5!ace conversation or a combination o! these modes.

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Improper or Ina#e9uate Information (n!ormation must be meaning!ul to the employee and should be precise or to the point. "oo little or too much in!ormation endangers e!!ective communication. 8mbiguity in use o! %ords %ill lead to di!!erent interpretations. Physical $istractions 8ny physical distractions such as telephone interruptions or %al-5in visitors can inter!ere %ith the e!!ective !ace5to5!ace communication process. 'rgani5ational Structure #ommunication may be bloc-ed, chaotic or distorted i! the channels are not clear or i! there are bottlenec-s. ,ence the organization structure should be such that the chain o! command and channels o! communication are clearly established and ithe responsibility and authority are clearly assigned and are traceable. Information 'verhea# Overload occurs %hen individuals receive more in!ormation than they are capable o! processing. "he result could be con!usion or some important in!ormation may be laid aside !or the purpose o! convenience. Net&or0 %rea0#o&n )et%or- brea-do%n may be intentional or due to in!ormation overload and time pressures under %hich a communication has to be acted upon. Some !actors contributing to such disruptions areB "he managers may %ithhold important negative in!ormation. "he secretary may !orget to !or%ard a memo. "here may be pro!essional Fealousy resulting in closed channels. I"(e!/e!*0" 6 B !!#e!* "here are many interpersonal barriers that disrupt the e!!ectiveness o! the communication process and generally involve such characteristics that either the sender or the receiver can cause communication problems. Some o! these areB ,iltering +iltering re!ers to intentionally %ithholding or deliberate manipulation o! in!ormation by the sender, either because the sender believes that the receiver does not need all the in!ormation or that the receiver is better o!! not -no%ing all aspects o! a given situation. (t could also be that the receiver is simply told %hat he %ants to hear. Semantic %arriers "hese barriers occur due to di!!erences in individual interpretations o! %ords and symbols. "he %ords and paragraphs must be interpreted %ith the same meaning as %as intended. "he choice o! a %rong %ord or a comma at a %rong place in a sentence can sometimes alter the meaning o! the intended message. +or eCample, a nightclub advertisement sign, Dclean and decent dancing every night eCcept SundayD, could lead to t%o interpretations. +irst, that there is no dancing on Sundays and second, that there is dancing on Sundays, but it not clean and decent. Perception erception relates to the process through %hich %e receive and interpret in!ormation !rom our environment and create a meaning!ul %ord out o! it. &i!!erent people may perceive the same situation di!!erently. ,earing %hat %e %ant to hear and ignoring in!ormation that con!licts %ith %hat %e -no% can totally distort the intent or the content o! the message. Some o! the perceptual situations that may distort a managerEs assessment o! people resulting in reduced e!!ectiveness o! the communication areB 8 manager may perceive people to belong to one category or another as stereotypes, rather than uni$ue and distinct individuals. +or eCample, he may perceive %omen to be less e!!icient managers. 8 manager may ma-e total assessment o! a person based on a single trait. 8 pleasant smile may ma-e a positive !irst impression. 8 manager may assume that his subordinateEs perception about things and situations are similar to his o%n. "his perception limits the managerEs ability to e!!ectively respond to and deal %ith individual di!!erences and di!!ering vie%s o! %or- situations. "ultural %arriers "he cultural di!!erences can adversely a!!ect the communication e!!ectiveness, specially !or multi5national companies and enterprises.

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Sen#er "re#i*ility 3hen the sender o! the communication has high credibility in the eyes o! the receiver, the message is ta-en much more seriously and accepted at !ace value. (! the receiver has con!idence, trust and respect !or the sender, then the decoding and the interpretation o! the message %ill lead to a meaning o! the sender. #onversely, i! the sender is not trusted, then the receiver %ill scrutinize the message heavily and deliberately loo- !or hidden meanings or tric-s and may end up distorting the entire message. Similarly, i! the source is believed to be an eCpert in a particular !ield then the listener may pay close attention to the message, and believe it specially i! the message is related to the !ield o! eCpertise. Emotions "he interpretation o! a communication also depends upon the state o! the receiver at the time %hen message is received. "he same message received %hen the receiver is angry, !rustrated or depressed may be interpreted di!!erently than %hen he is happy. 'Ctreme emotions are most li-ely to hinder e!!ective communication because rational Fudgments are replaced by emotional Fudgments. )ulti!meaning (or#s Many %ords in 'nglish language have di!!erent meanings %hen used in di!!erent situations. 8ccordingly, a manager must not assume that a particular %ord means the same thing to all people %ho use it. ,ence, the managers must ma-e sure that they use the %ord in the same manner as the receiver is eCpected to understand it, other%ise it %ill create a barrier to proper understanding o! the message. ,ee#*ac0 %arriers "he !inal source o! communication barrier is the !eedbac- or lac- o! it. +eedbac- is the only %ay to ascertain as to ho% the message %as interpreted. O)e!'0.#"$ C0..2"#' (#0" B !!#e!* (t is very important !or the management to recognize and overcome barriers to e!!ective communication !or operational optimization and this %ould involve diagnosing and analyzing situations, designing proper messages, selecting appropriate channels !or communicating these messages, assisting receivers o! messages in correct decoding and interpretation and providing an e!!icient and e!!ective !eedbac- system. Some o! the steps that can be ta-en in this respect are as !ollo%sB . ,ee#*ac0$ +eedbac- helps to reduce misunderstandings. "he in!ormation is trans!erred more accurately %hen the receiver is given the opportunity to as- !or clari!ications and ans%er to any $uestions about the message. "%o5%ay communication, even though more time5consuming, avoids distrust and leads to trust and openness, %hich helps in building a healthy relationship contributing to communication e!!ectiveness. = Improve istening S0ills: Good listening habits lead to better understanding and good relationships %ith each other. Some guidelines !or e!!ective listening areB Listening re$uires !ull attention to the spea-er. &o not let your mind %ander or be preoccupied %ith something else, other%ise you %ill not be able to grasp the meaning o! the message in its entirety. "he language used tone o! the voice and emotions should receive proper attention. Listen !or !eelings in Khe message content and respond positively to these !eelings. 8s- $uestions to clari!y any points that you do not understand clearly and re!lect bac- to the spea-er, your understanding o! %hat has been said. Ma-e sure that there are no outside interruptions and inter!erence during the course o! conversation. &o not preFudice or value the importance o! the message due to your previous dealings and eCperiences %ith the sender or your perceptions about him, positive or negative. &o not Fump to conclusions be!ore the message is over and is clearly understood. Summarize and restate the message a!ter it is over to ma-e sure about the content and the intent o! the message. $evelop (riting S0ills: #learly %ritten messages can help avoid semantic and perception barriers. 8 %ell5 %ritten communication eliminates the possibility o! misunderstanding and misinterpretation. 3hen %riting message it is necessary to be precise thus ma-ing the meaning as clear as possible so that it accomplishes the desired purpose. Some help!ul hints in %ritten communication are suggested by *obert &egise as !ollo%sB

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:eep &or#s simple: "his %ill reduce your thoughts to essentials and the message %ill be easier to understand !or the receiver. "he message %ill be lost i! the %ords are compleC and do not lend to a clear single meaning. $o not *e *oggart #o&n *y rules of composition: 3hile the rules o! grammar and composition must be respected, they should not ta-e priority over the ultimate purpose o! the communication. (rite concisely: ;se as !e% %ords as possible. &o not be brie! at the cost o! completeness, but eCpress your thoughts, opinions and ideas in the !e%est number o! %ords possible. %e specific: <agueness destroys accuracy, %hich leads to misunderstanding o! the meaning or intent o! the message. 8ccordingly, be speci!ic and to the point. Avoi# "re#i*ility Gaps: #ommunication is a continuing process and the goal o! the communication is complete understanding o! the message as %ell as the creation o! trust among all members o!. the organization. 8ccordingly, the management must be sincere and should earn the trust o! the subordinates. Management should not only be sensitive to the needs and !eelings o! %or-ers but also its promises should be supported by actions. 8ccording to the studies conducted by 6. Lu!t, openness and an atmosphere o! trust builds healthy relationship and closes credibility gaps, thus contributing to communication e!!ectiveness.

GUIDELINES FOR EFFECTIVE COMMUNICATION "hese guidelines are designed to help management improve their s-ills in communicating so as not only avoid any barriers to e!!ective communication, but also to strengthen the basis !or optimum results %hich depend upon the clear understanding o! the desired communication. T1e I4e * "4 Me** $e* *10264 %e C6e !8 B!#e- "4 ,!e'#*e "he ideas to be communicated must be %ell planned and clearly identi!ied. "his %ill eliminate ambiguity so that the message %ill not be subFect to more than one interpretation. "he message must be clear, precise and to the point and !ree !rom distortions and noise. (t should also be brie! so that only necessary and su!!icients meanings are provided. Se"*e 0- T#.#"$ "he message should not only be timely so that the decisions and actions can be ta-en in tie and %hen necessary, but also the timing o! the message and the environmental setting in %hich the message is delivered and received is e$ually important. I"(e$!#(5 "he communication must pass through the proper channels to reach the intended receiver. "he communication !lo% and its spread must avoid bypassing levels or people. 3hen these concerned levels are omitted or bypassed, it creates bic-ering, distrust, con!usion and con!lict. 8ccordingly, the established channels must be used as re$uired. C0"*26( 3#(1 0(1e!* 310 !e #")06)e4 #" ,6 ""#"$ (1e C0..2"#' (#0" (! people have participated in the planning process, they %ould be highly motivated to give active support to such communication. "he people %ho are concerned must -no% eCactly %hat they need and %hen they need the communication. C0"*#4e! (1e Re'e#)e!:* I"(e!e*( "a-e the receivers interests into account, and then the receiver %ill be more responsive to the communication. "he management must clari!y any part o! the communication that may be necessary and must encourage comments, $uestions, and !eedbac-. "he management must al%ays be help!ul in carrying out the intended message o! the communication. M04e 0- De6#)e!5 3hile delivering the communication, avoid negative statements li-e, D( am not sure it %ill %or-D, but be con!ident and de!initive. "he success o! the communication also depends upon the tone o! the voice i! the communication is verbal, eCpressions and emotions eChibited, attentiveness to the receiver and so on. "he %ritten communication should be polite and unambiguous. U*e /!0/e! F06603;2/ 8ll communications need a !ollo%5up to ensure that these %ere properly understood and carried out. "he response and !eedbac- to the communication should determine %hether the action to the communication has been prompt, appropriate and accurate. C0..2"#' (#0" *10264 %e C0./!e1e"*#)e #ommunication should be complete so as not only to meet the present demands. (t should also !ee based on !uture needs o! the organization as %ell as individuals. *ecently, the nature o! managerial and organizational communication has changed dramatically, mainly because o! brea- through o! the electronic technology and advent o! computers. )o% cellular phones, '5Mail and (nternet have made the communication $uic- and convenient. (t is no% even possible !or managers !rom di!!erent cities

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to meet by telecon!erencing method %ithout leaving their o!!ices. 8t the same time, psychologists are beginning to discover some problems associates %ith these ne% advances in communication.

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LESSON ;14 LEADERSHI, IN ORGANIZATIONS Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he meaning o& leadership "he various t pes and theories o& leadership "he importance o& leadership in organi#ations

Leadership is an integral part o! management and plays a vital role in managerial operations. (t provides direction, guidance, and con!idence to the employees and helps in the attainment o! goals in much easier %ay. (n business and industrial organizations, managers play the role o! leader and ac$uire leadership o! subordinates, their e!!orts to%ards the achievement o! organizational goals and activate the individuals o! an organization to ma-e them %or-. Leadership in!luences behavior o! the individuals. (t has an ability to attract others and potential to ma-e them !ollo% the instructions. (ndividuals can be induced to contribute their optimum to%ards the attainment o! organizational goals through e!!ective leadership. Leadership ac$uires dominance and the !ollo%ers accept the directives and control o! a leader. Leadership provides direction and vision !or !uture to an organization. DEFINITION Leadership is the art o! in!luencing and inspiring subordinates to per!orm their duties %illingly, competently and enthusiastically !or achievement o! groups obFectives. 8ccording to 3endell +rench, DLeadership is the process o! in!luencing the behavior o! others in the direction o! a goal or set o! goals or, more broadly, to%ard a vision o! the !utureV, 8ccording to 2eith &avis, QLeadership is the process o! encouraging and helping others to %or- enthusiastically to%ards obFectivesV. 8ccording to 2oontz and OE&onnell, DLeadership is the art or process o! in!luencing people so that they %ill strive %illingly to%ards the achievement o! group goalsD. 8ccording to eter &ruc-er, DLeadership means the li!ting o! manEs visions to higher sights, the raising o! manEs per!ormance to higher standard, the building o! manEs personality beyond its normal limitationsD. 8ccording to Grey and Star-e, DLeadership is both a process and a property. 8s a process, it is used !or non5 coercive in!luence lo shape up the goals o! a group or organization, to motivate behavior to%ard the achievement o! those goals and to help de!ine group or organizational culture. 8s a property, leadership is the set multi characteristics attributed to those %ho are perceived to be leadersD. "hus, leaders are people %ho are able to in!luence the behavior o! others %ithout recourse to threats or other !orms o! !orce to%ards the individuals. Leaders are the people %ho are accepted by the other individuals, as a superior person to them. FEATURES OF LEADERSHI, "he !eatures o! leadership are as !ollo%sB Leadership is the process o! in!luencing behavior o! individuals o! an organization. Leadership uses non5coercive methods to direct and coordinate the activities o! the individuals o! an organization. Leadership directs the individuals to attain the tas-s assigned to them by !ollo%ing the instructions o! their leaders. 8 leader possesses $ualities to in!luence others. Leadership gives the individuals, a vision !or !uture. Leadership is a group activity. Leader in!luences his !ollo%ers and !ollo%ers also eCercise in!luence over his leader. Leadership is meant !or a given situation, given group !or a pre5determined period o! lime. Leadership is continuous process o! in!luencing behavior. (t encourages liveliness in the group. I./0!( "'e 0- Le 4e!*1#/ "he !ollo%ing points can Fudge the importance o! leadershipB 8 leader should act as a !riend o! the people %hom he is leading. 8 leader must have the capacity to recognize the potentials o! the individuals and trans!orm them into realities. 8 leader should have the con!idence o! the individuals o! the organization.

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8 leader must be able to unite the people as a team and build up team spirit. 8 leader should be able to maintain discipline among his group and develop a sense o! responsibility. 8 leader must be able to build up a high morale among the individuals o! the organization. 8 leader should motivate his people to achieve goals. 8 leader should try to raise the morale o! the individuals and should maintain ethical standards among the individuals. 8 leader should act as a lin- bet%een the %or- groups and the !orces outside the organization.

D#--e!e"'e %e(3ee" Le 4e!*1#/ "4 M " $e.e"( Leading and managing go together but some di!!erences eCist bet%een the t%o. "he !ollo%ing are the di!!erences bet%een the leadership and the managementB Management ta-es rational and logical decisions %hile leadership ta-es decision on eCpectations o! the !ollo%ers. Leadership has an emotional appeal %hile management acts on rationality. "he management establishes relationship through a la%!ul authority %hile leadership establishes relationship through po%er. Managers have !ormal authority but the leaders have no such authority. 8ll leaders are not managers and all managers are leaders. Management is a process o! planning, organizing, directing and controlling the activities o! others to attain the organizational obFectives. Leadership on the other hand, is a process o! in!luencing the behavior o! the people to attain their assigned tas-s. 8 success!ul manager must possess both the managerial and leadership $ualities. TY,ES OF LEADERSHI, +ollo%ing are the main types o! leadershipB A2(0'! (#' 0! A2(10!#( !# " (n this type o! leadership, there is a complete centralization o! authority in the leader, i.e., authority is centered in the leader himsel!. ,e has all the po%ers to ma-e decisions. ,e uses coercive measures and adopts, negative method o! motivation. ,e %ants immediate obedience o! his orders and instructions. 8ny negligence on the part o! subordinates results in punishment. "here is no participation !rom the subordinates in decision5ma-ing. 8 leader thin-s that he is the only competent person in the organization. 8ccording to 'd%in B. +ilippo, there are !ollo%ing three types o! leaders in autocraticB .. -ar# %oile# or Strict Autocrat: Leader, under such type uses negative in!luence and eCpects that the employees should obey his orders immediately. )on5compliance o! his orders results in punishment. ,e ma-es all decisions and does not disclose anything to anyone. ,e is $uite rigid on per!ormance. =. %enevolent Autocrat: Benevolent autocrat leader uses positive in!luences and develops e!!ective human relations. ,e is -no%n as paternalistic leader. ,e praises his employees i! they !ollo% his orders and invites them to get the solutions o! the problems !rom him. ,e !eels happy in controlling all the actions o! his subordinates. :. )anipulative Autocrat: Leader, under such type is manipulative in nature. ,e creates a !eeling in the minds o! his subordinates and %or-ers that they are participating in decision5ma-ing processes. But he ma-es all decisions by himsel!. )on5compliance o! his orders also results Fn punishment. De.0'! (#' 0! , !(#'#/ (#)e &emocratic or articipative leadership is also -no%n as group centered or consultative leadership. (n this type o! leadership, leaders consult their groups and consider their opinion in the decision5ma-ing process. Leaders encourage discussion among the group members on the problem under consideration and arrive at a decision depending on their consent. articipation or involvement o! the employees in the decision5ma-ing process is also re%arded. 'Cchange o! ideas among subordinates and %ith the leader is given encouragement. Leaders give more !reedom to their group members, %ho !eel that, their opinions arc honored and they are given importance. (t develops a sense o! con!idence among subordinates and they derive Fob satis!action. (t improves $uality o! decision as it is ta-en a!ter due consideration o! valued opinions o! the talented group members. "he demerit o! this type o! leadership is that it ta-es more time to arrive at a decision, as a lot o! time is %asted %hile ta-ing the vie%s !rom the employee. (t is, there!ore, very time consuming. L #**e7;- #!e 0! F!ee Re#" (n this type o! leadership, there is virtual absence o! direct leadership. (t is, there!ore, -no%n as Dno leadership at allD. "here is complete delegation o! authority to subordinates so that they can ma-e decisions by themselves. 8bsence o! leadership may have both positive and negative e!!ects. +ree rein leadership may be e!!ective i! members

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o! the group are highly committed to their %or-. "he negative aspect sho%s that the leader is not competent enough to lead his group e!!ectively. Members may !eel insecure and develop !rustration !or lac- o! decision5ma-ing authority. B2!e 2'! (#' "his type o! leadership emphasizes the rules and regulations o! an organization. "he behavior o! a leader is determined by the rules, regulations and procedure to be !ollo%ed under his leadership. "he leader and the subordinates both !ollo% these rules and regulations. "here!ore, there is no di!!erence bet%een the management and the administration in this type o! leadership. "he employees, themselves cannot do anything in this regard. (t is the rules that determine their per!ormance. M "#/26 (#)e "his type o! leadership manipulates the employees to attain their assigned tas-s. 8 manipulative leader is $uite sel!ish and eCploits the aspirations o! the employees !or his gains. ,e -no%s very %ell the needs and desires o! the employees but he does very little to !ul!ill them. &ue to such attitude, he has to !ace the hatred o! the employees at times. , (e!" 6#*(#' "he paternalistic leadership believes in the concept that the happy employees %or- better and harder. (t maintains that the !atherly altitude is the right one !or better relationship bet%een the manager and the employees. 'veryone %ithin the organization should %or- together li-e a !amily. E=/e!( Le 4e!*1#/ "he eCpert leadership emerged as a result o! compleC structure o! modern organizations. "his type o! leadership is based on the ability, -no%ledge and competence o! the leaders. ,e handles the situation s-ill!ully %ith his talent. "he employees !eel relieved as they are %or-ing under a person %ho is eCpert and can handle the situation %ithout any problem. (n modern organizations, human resources vary in terms o! s-ill, -no%ledge and competences. "hey di!!er in $uality, determination and their attitude to%ards the organization. "hey eChibit di!!erent behaviors as they di!!er in attitude and outloo- also. "he leader must understand their behavior and accordingly can ma-e use o! the various types L'8&'*S,( S. "he manager should assess the situation and adopt that type o! leadership, %hich suits that situation. ,e should remember that leadership is situational. (! situation changes, the use o! leadership among its various types also changes. 8 success!ul leader is the one %ho assesses the situation, studies the psychology o! the subordinates and adopts the most use!ul type o! leadership to lead the people at %or- to accomplish the organizational goals. THEORIES OF LEADERSHI, 8 number o! theories and approaches to study leadership have been developed. "here are broadly three theories o! leadership. "rait "heory Behavior "heory #ontingency "heory D E T! #( T1e0!5 "his theory o! studying leadership is ta-en into consideration to analyze the personal, psychological and physical traits o! strong leaders. "he assumption made in this theory %as that some basic traits or set o! traits di!!erentiates leaders !rom non5leaders. +or eCample, the leadership traits might include intelligence, assertiveness, above average height, sel!5con!idence, initiative and understanding o! interpersonal human relations. "he eCistence o! these traits determines the importance o! leadership. ossession o! these traits helps the individuals to gain possession o! leadership. Since all individuals do not have these $ualities, only those %ho have them %ould be considered potential leaders. Some o! the %ea-ness o! this theory isB 8ll the traits are not identical %ith regard to essential characteristics o! a leader. Some traits may not be inherited, but can only be ac$uired by training. (t does not identi!y the traits that are most important and that are least important !or a success!ul leader. (t does not eCplain the leadership !ailures, in spite o! the re$uired traits. (t has been !ound that many traits eChibited by leaders are also !ound among !ollo%ers %ithout eCplaining as to %hy !ollo%ers could not become leaders. (t is di!!icult to de!ine traits in absolute terms. "hus, the trait theory has been criticized !or lac- o! conclusiveness and predictability. D%E Be1 )#0! T1e0!5

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"he behavioral theory assumed that e!!ective leaders behaved di!!erently !rom ine!!ective leaders. (t also identi!ied the need o! consistency o! behavior o! good leaders. "his theory can be more clearly understood %ith the help o! !ollo%ing case studies. The )ichigan Stu#ies: *esearchers at the ;niversity o!. Michigan, led by *ensis Li-ert, began studying leadership in the late ./7As. &epending on broad discussions %ith both the managers and sub5ordinates, the Michigan studies identi!ied t%o !orms o! leadership behavior. "hey are discussed as belo%B 6o*!centere# lea#ership *ehavior : "he !irst %as called Fob5centered leadership behavior, %hich !ocuses on per!ormances and e!!icient completion o! the assigned tas-s. 8 Fob5centered leader interacts %ith group members to eCplain tas- procedures and oversee their %or-. Employee centere# lea#ership *ehavior: "he second behavior %as identi!ied as employee centered leader behavior, %hich !ocuses on, high per!ormance standards to be accomplished. "his can be done by developing a cohesive %or- group and ensuring that employees are satis!ied %ith their Fobs. "hus, the leaderEs primary concern is the %el!are o! the ordinates. "he Michagan researchers thought a leader could sho% signs o! one -ind o! behavior, but not both. The 'hio State Stu#ies: 8t about the same time, a group o! researchers at Ohio State also began studying leadership. "he Ohio State leadership studies also identi!ied t%o maFor -inds o! leadership behaviors or styles, %hich are as !ollo%sB Initiating!structure *ehavior: (n initiating5structure behavior, the leader clearly de!ines the leader5 subordinate roles so that everyone -no%s %hat is eCpected. "he leader also establishes !ormal lines o! communication and determines ho% tas-s %ill be per!ormed. "onsi#eration *ehavior: (n consideration behavior, the leader sho%s concern !or subordinates !eelingsE and ideas. ,e attempts to establish a %arm, !riendly and supportive. "he most obvious di!!erence bet%een Michigan and Ohio State studies is that the Ohio State researchers did not position their t%o !orms o! leader behavior at opposite ends o! a single continuum. *ather, they assumed the behaviors to be independent variables, %hich means that a leader could eChibit varying degrees o! initiating structure and consideration at the same time i.e. a particular leader could have higher ratings on both measures, lo% ratings on both or high ratings on one and lo% on the other. "he Ohio State researchers !ound that a leaderMs behavior remains consistent over a period o! time, i! the situation also remains same. But the researchers could not come up %ith one best combination o! behavior suitable to all the situations. "he researchers used to believe that the leaders in possession o! both types o! behavior are most e!!ective. ,o%ever, their studies at (nternational ,arvester !ound that leaders rated highly on initiating structure behavior have higher per!orming but dissatis!ied sub5ordinates, %hereas leaders rated highly on consideration structure had lo%er5per!orming sub5ordinates %ho sho%ed signs o! higher satis!action. Most eCperts no% agree that no single set o! traits or behaviors appears to be common to all good leaders. "he universal approaches to leadership can help managers eCamine their o%n leadership characteristics and match them against the traits most commonly identi!ied %ith good leaders. (n order to understand the !ull compleCity o! leadership, contingency theory is to be studied. D'E C0"(#"$e"'5 T1e0!5 "he main assumption o! contingency theory is that the behavior o! an appropriate leader varies !rom one situation to another. "he motive o! a contingency theory is to identi!y -ey situational !actors and to speci!y ho% they interact to determine appropriate behavior o! a leader "he three most important and %idely accepted contingency theories o! leadership are as !ollo%sB The P" theory: "he !irst contingency theory o! leadership is +red +ielderEs Least re!erred #o5%or-er KL #L Model. +ielder identi!ied t%o types o! leadershipB tas-5oriented and relationship5oriented. +ielder believes that a leaderEs tendency to be tas-5oriented or relationship oriented remains constant. (n5 other %ords, a leader is either tas-5oriented or relationship5oriented %hile leading his group members. +ielder used the Least re!erred #o5%or-er KL #L scale to measure the type o! leadership. 8 leader is as-ed to describe characteristics o! the person %ith %hom he or she is least com!ortable %hile %or-ing. "hey can do this by mar-ing in a set o! siCteen scales at each end, by a positive or negative adFective. +or eCample, three o! the scales +ielder uses in the L # areB ,elp!ul 55555555555555555555 +rustrating ? 1 > 0 7 : = . "ense 5555555555555555555 *elaCed .=:70>1? Boring 5555555555555555555 (nteresting . = : 7 0 > 1 ? "he leaderEs L # score is Khen calculated by adding up the numbers belo% the line chec-ed on each scale. 8 high total score is assumed to re!lect a relationship orientation and a lo% score, a tas- orientation by the leader. "he L # measure is controversial because researchers disagree about its validity. "his is because some o! the L # measures sho% %hether the score is an indeC o! behavior, personality or some other un-no%n !actor. 8ccording to +ielder, the contingency !actor !avours the situation !rom the leaderEs point o! vie%. "his !actor is determined by leader5member relations, tas-5structure and position5po%er, %hich are discussed as belo%B

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ea#er!mem*er relations: A Leader5member relation re!ers to the nature o! relationship bet%een the leader and his %or- group. (! the leader and the group enFoy mutual trust, respect, con!idence and they li-e one another, relations %ill remain good. (! there is little trust, respect or con!idence and. i! they do not li-e one another, relations %ill remain bad. Good relations are assumed to be !avourable and bad relations un!avorable. Tas0!structure: "as-5structure is the degree to %hich the groupEs tas- is clearly de!ined. 3hen the tas- is routine, easily understood, and unambiguous and %hen the group has standard procedures, the structure is assumed to be high. 3hen the tas- is non5routine, ambiguous, compleC, %ith no standard procedures and precedents, structure is assumed to be lo%. ,igh structure is more !avourable !or the leader and lo% structure is un!avorable. (! the tas- structure is lo%, the leader %ill have to play a maFor role in guiding and directing the groupEs activities. (! the tas- structure is high, the leader %ill not have to pay much attention. Position!po&er: osition5po%er is the po%er vested in the position o! a leader in an organization. (! the leader has the po%er to assign %or-, administer re%ards and punishment, recommend employees !or promotion or demotion, position5po%er is assumed lo be strong. (! the leader does not have re$uired po%ers, the position5 po%er is %ea-. +rom the leaderEs point o! vie%, strong position po%er is !avourable and %ea- position po%er is un!avorable. +ielder and his associates conducted various studies highlighting i! a situation !avors the leadership and group e!!ectiveness or not. 3hen the situation includes good relations, high structure and strong po%er, a ris-5oriented leader to lie most e!!ective. ,o%ever, %hen relations are good but tas- structure is lo% and position5po%er is %ea-, L( relationship5 oriented leader is considered to be most e!!ective. 8 !inal point about L # theory is that, +ielder argues that any particular5type o! leadership, %hich is measured by the L # is in!leCible and cannot be changed. (n other %ords a leader cannot change his behavior to !it a particular situation. +ielderEs contingency theory has been criticized on the ground that L # measure lac-s validity and that the assumption about the in!leCibility o! the leaderEs behavior is unrealistic. D4E T1e , (1;G0 6 (1e0!5 "he path5goal model o! leadership %as introduced by Martin 'vans and *obert ,ouse. ath5goal theory says that a leader can motivate subordinates by in!luencing their eCpectations. Leaders can motivate sub5ordinates by ma-ing clear %hat they have to do to get the re%ard they desire. "he path5goal model assumes that leaders can change their style or behavior to meet the demands o! a particular situation. "his model identi!ies !our -inds o! leader behaviorB directive, supportive, participative and achievement5oriented. 8ccording to this model managers can adFust their behavior to include any !our -inds o! leadership behavior mentioned above. +or instance, %hile leading a ne% group o! sub5ordinates, the leader may be directive in giving guidance and instructions to them. ,e may also adopt supportive behavior to encourage group cohesiveness, to loo- a!ter their needs and ensuring that they get the re%ards and bene!its. 8s the group becomes more !amiliar %ith the tas- and as ne% problems are ta-en into consideration, the leader may use participative behavior by %hich he can participate %ith employees in ma-ing decisions and ta-e their suggestions as %ell. +inally, the leader may use achievement5oriented behavior to encourage continued high per!ormance o! sub5ordinates. 'nvironmental characteristics are !actors, %hich are beyond the control o! subordinates. (t includes tasstructure, the primary %or- group and the !ormal authority system. +or instance, %hen structure is high, directive leadership is less e!!ective than %hen structure is lo%. Sub5ordinates do not usually need their boss to repeatedly tell them ho% to do a routine Fob. 8ccording to the path5goal theory, these environmental !actors can create uncertainty !or employees. 8 leader %ho helps employees reduce such uncertainty can motivate them. "he !igure .7.. sho%s the path goal model o! leadership.

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Leaders do not al%ays have control over environmental !actors, but the theory emphasizes that leaders can use the control they %ant, to adFust the environment and to motivate sub5ordinates.

DeE T1e V!00.;Ye((0";A $0 T1e0!5 DVYAE "he <room5@etton56ago model %as !irst introduced by <room and @etton in ./1: and %as revised by <room and 6ago in ./??, "his model has a much less !ocus than the path5goal theory. (t helps a leader to determine the eCtent, to %hich employees should participate in the decision5ma-ing processes, "he <@6 theory argues that decision5e!!ectiveness is best Fudged by the $uality o! decision and by the acceptance o! that decision on the part o! employees. &ecision acceptance is the eCtent to %hich employees accept and are loyal to their decisions. "o maCimize decision e!!ectiveness, the <@6 theory suggests that leaders adopt one o! !ive decision5ma-ing leaderships. "he appropriate leadership depends on the situation. 8s summarized in the !ollo%ing table, there are t%o autocratic types o! leadership, %hich are 8( and 8ll, t%o consultative types o! leadership, %hich are #( and #(( and the other one is group G((. $ecision!)a0ing Styles in the +46 mo#el $ecision Style $escription 8( Manager ma-es the decision alone. 8(( Manager as-s !or in!ormation !rom subordinates but ma-es Khe decision alone. Sub5 ordinates may or may mil be in!ormed about %hat the situation is. #( Manager shares the situation %ith individual subordinates and as-s !or in!ormation and evaluation. Subordinates do not meet as a group and the manager alone ma-es the decision. # (( Manager and subordinates meet as a group to discuss the situation but the manager ma-es the decision. G (( Manager and subordinates meet as a group to discuss the situation and the group ma-es the decision. 8 W 8utocratic; #W #onsultative; G W Group "he situation is de!ined by a series o! $uestions about the characteristics or attributes o! the problem under consideration. "o address the $uestions, the leader uses one o! the !our decisions. "%o o! them are used %hen the problem a!!ects the entire group. +or eCample, a decision about the !acilities to be given to employees in a ne% o!!ice a!!ects the entire group and the other t%o are appropriate %hen the decision a!!ects a single individual only. e.g. a ne% o!!ice !or that individual only.

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Moreover, one o! each is to be used %hen the decision has to be made $uic-ly because o! some urgency and the others arc to be used %hen the decision can be made more slo%ly and the leaders %ants to use the opportunity to develop subordinatesE decision5ma-ing abilities. "he <@6 model %as criticized because o! its compleCity. #omputer so!t%are has been developed to aid leaders in de!ining the situation, ans%ering the $uestions about the problem attributes and developing a strategy !or decision5 ma-ing participation. 8lthough the <@6 model is too ne% to have been thoroughly tested, evidence so !ar indicates that this model can help leaders to choose the most e!!ective %ay to include the sub5ordinates in decision5ma-ing. OTHER CONTINGENCY A,,ROACHES (n addition to these three maFor theories, there are other contingency models or theories developed in recent years. "he other models are as !ollo%sB +ertical $ya# in0age )o#el: "his model stresses the .!act that leaders actually have di!!erent -inds o! %or-ing relationship %ith di!!erent subordinates. 'ach manager5subordinate relationship represents one vertical dyad. "he <ertical &yad Lin-age model suggests that leaders establish special %or-ing relationships %ith some subordinates based on some combination o! respect, trust and li-ing. "hese people constitute the Uin5groupM. Other subordinates remain in the Uout5groupMs, %ho receive less o! leaderEs time and attention. "hose in the Ein5 groupE receive more o! the managerEs time and attention and are better per!ormers. *esearch sho%s that people in the Uin5groupM are more productive and more satis!ied %ith their %or- than Uout groupM members. ife "ycle )o#el: "he li!e cycle model suggests5that appropriate leader behavior depends on the maturity o! the !ollo%ers. (n this conteCt, maturity includes motivation, competence and eCperience. "he model suggests that as !ollo%ers become more mature, the leader needs to move gradually !rom high to lo% tas- orientation. Simultaneously, the leaderEs employee5oriented behavior should start lo%, increase at a moderate rate and then decline again. Many leaders are !amiliar %ith the li!e cycle theory because it is both simple and logical. ,o%ever, it has received little scienti!ic support !rom researchers. EMERGING ,ERS,ECTIVES ON LEADERSHI, IN ORGANIZATIONS "he ne% perspectives that have attracted attention are the concepts o! substitutes !or leadership and trans!ormational leadership. S2%*(#(2(e* -0! Le 4e!*1#/ "he eCisting leadership theories and models try to speci!y %hat -ind o! leaderMs behavior is appropriate !or di!!erent situations. "hey do not ta-e into consideration, the situations %here the leadership is not needed. "he substitute concept identi!ies the situations %here the characteristics o! the subordinates, the tas- and the organization replace leadersE behaviors. +or eCample, %hen a patient is admitted to an emergency room in a hospital, nurses, doctors and attendants act immediately %ithout %aiting !or directive or supportive behaviors o! leaders in an emergency %ard. Several characteristics o! the sub5ordinate may serve to replace or change .the behavior o! the leaders. +or eCample, employees %ith much ability and eCperience may not need to be told %hat to do. Similarly, a strong need !or independence by the sub5ordinate may result in ine!!ectiveness o! leadersM behavior. #haracteristics o! the tas- that may substitute the leadership include, the availability o! !eedbac- and intrinsic satis!action. +or eCample, %hen the Fob is routine and simple, the subordinate may not need direction. 3hen the tas- is challenging, the subordinate may not need or %ant support. Organizational characteristics that may substitute !or leadership include !ormalization group cohesion, in!leCibility and a rigid re%ard structure. +or eCample, %hen policies are !ormal and rigid, leadership may not be needed. T! "*-0!. (#0" 6 Le 4e!*1#/ 8nother ne% concept o! leadership goes by a number o! labelsB charismatic leadership, inspirational leadership, symbolic leadership and trans!ormational leadership. "his is a leadership that transmits a sense o! mission, increases teaming eCperiences and inspires ne% %ays o! thin-ing. #harisma is a !orm o! interpersonal attraction. #harismatic people attract !ollo%ers and this type o! leader has great po%er over his or her !ollo%ers. #harismatic leaders are sel!5con!ident and can in!luence others. "he !ollo%ers o! a charismatic leader identi!y %ith the leaderEs belie!s, accept, trust and obey the leader %ithout $uestioning him and thereby contribute to%ard the success o! the organizational goals. Le 4e!*1#/ S>#66* "here is no% recognition in both leadership theory and practice o! the importance o! s-ills, ho% leaders should behave and per!orm e!!ectively. 8lthough there are many s-ills, such as cultural !leCibility, communication, ,*&, creativity, and sel!5management o! learning, the research5based s-ills identi!ied by 3hetten and #ameron seem to be most valuable. "heir personal s-ills model, involving developing sel!5a%areness, managing stress and solving problems creatively; the interpersonal s-ills model, involving communicating supportively, gaining po%er and in!luence, motivating others and managing con!lict, are especially comprehensive and use!ul. +inally, the %idely recognized organizational behavior .techni$ues such as, training, Fob design and leaders can also e!!ectively use behavioral management.

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LESSON ;15 STRESS MANAGEMENT Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he meaning o& stress 2arious sources o& stress 2arious e&&ects or conse5uences o& stress 2arious methods o& managing stress "he nature o! stress has been studied by scholars in a %ide range o! academic disciplines. hysicians, psychiatrists, and researchers in management have all studied its causes and its symptoms, and have de!ined the term in a variety o! di!!erent %ays. Stress is de!ined as Dthe reactions o! individuals to ne% or threatening !actors in their %orenvironmentsV. Stress can be either positive or negative. Some ne% %or- situations can bring us positive challenges and eCcitement. +or eCample, promotions to ne% Fobs present employees %ith positive stress. 'mployees may !eel anCious about their ne% %or- assignments; they also anticipate them eagerly and loo- !or%ard to the additional challenges, re%ards, and eCcitement. (n these cases, the ne% and uncertain Fob situations create positive stress. "he positive stress is also called the eustress. ,o%ever, there are certain other types o! %or- that are very threatening and anCiety5 arousing. +or eCample, depression in the economy can create negative stress !or sales personnel, because they %ill be much more anCious about ma-ing sales commissions and sales $uotas. +or every individual there is an optimum level o! stress under %hich he or she may per!orm to !ull capacity. (! the stress eCperienced is belo% this optimum level, then the individual gets bored, the motivational level to %orreaches a lo%, point, and apathy sets in. (! one operates in a very lo% stress environment and constantly eCperiences boredom, the person is li-ely to psychologically or physically %ithdra% !rom %or-. sychological %ithdra%al %ill result in careless mista-es being !re$uently made, !orgetting to do things, and thin-ing o! things other than %or- during %orhours. hysical %ithdra%al %ill mani!est itsel! in increased rates o! tardiness and absenteeism, %hich may ultimately lead to turnover. "hough the optimum stress level is di!!erent +orm di!!erent individuals, each individual can sense and determine ho% much stress is !unctional !or an individual to operate in a productive manner. *esearch indicates that those %ho possess high tolerance o! ambiguity, internal locus o! control and sel!5 esteem seem to e!!ectively handle a high level o! stress. 8n individual possessing high degree o! tolerance !or ambiguity allo%s him to eCperience very little anguish %hile operating under conditions o! insu!!icient in!ormation or in an uncertain environment. eople %ith an internal locus o! control also handle stress %ell since they !eel they are in control o! the situation, rather than !eeling controlled by the situation they are !acing. "his ma-es it possible !or them to manage their environmental stress %ithout eCperiencing its harm!ul e!!ects. "hose %ith high sel!5esteem also handle stress %ith ease since a high sel!5esteem increases the con!idence and enables them to deal %ith stress!ul situations %ith calmness and clear thin-ing. "he more success!ully one handles a stress!ul situation %ithout panic-ing or getting over%helmed by it, the more con!idently %ill the individual !ace !urther stress!ul situations. "hus, it is possible to raise oneMs capacity to handle in di!!erent situations. SOURCES OF STRESS Stress is a reality o! our everyday li!e. "here are both positive and negative stresses that come !rom our %or- and non5 %or- lives. 8s pointed out by )ear. *ice, and ,unt K./?AL and Sc-aran K./?>L, among others, the %or- and non5%ordomains o! oneEs li!e are closely interrelated. "he stresses and strains eCperienced in one domain are carried over to the other. "hus, i! one eCperiences stress at %or-, that stress %ill be carried over to the home. One maFor source o! Fob stress is the Fob itsel!. "he %ay the Fob is designed, the amount o! time pressure an individual !aces and the amount o! eCpectations others have o! a person at %or- can all lead to Fob stress. (nterpersonal relationships are a second source o! Fob stress. ,o% much contact an individual has %ith co%or-ers and managers, ho% much time he or she deals %ith clients or consumers, and ho% pleasant those interactions are all in!luences o! ho% much stress an individual eCperiences at %or-. "hird source is problems in personal lives, %hich can spill over into the %or- environment, adding !urther tension to an already stress!ul %or- situation. SOURCES OF AOB STRESS 6ob #haracteristics o *ole ambiguity o *ole con!lict o *ole overload o 'thical dilemmas (nterpersonal *elationships o 8mount o! contact %ith others

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o &ealing %ith people in other departments o Organizational climate Organizational +actors ersonal +actors o #areer concerns o Geographical mobility o *ate o! li!e change

A0% C1 ! '(e!#*(#'* 8 maFor source o! Fob stress is a personEs role in the organization. 8 role is simply the set o! eCpectations that other people in the organization have !or an individual, +or eCample, supervisors, co%or-ers, customers and suppliers eCpect an employee to behave in certain predictable %ays. "he eCpectations others have o! an employee arc sometimes unclear, in con!lict, or too high !or the employee to meet %ithin the time allotted, and he or she eCperiences stress. /ole Am*iguity: 3hen there is a lot o! uncertainty surrounding Fob de!initions or Fob eCpectations, people eCperience role ambiguity. 3ith the recent increase in mergers and ac$uisitions among maFor organizations, more and more employees arc eCperiencing Fob stress as a result o! role ambiguity. *ole ambiguity is anCiety arousing among employees that leads to Fob stress. /ole "onflict: O!ten employees discover that di!!erent groups o! people in an organization have %idely varying eCpectations o! them, and that they cannot meet all those eCpectations. "his inconsistency o! eCpectations associated %ith a role is called role con!lict, %hich results in stress. /ole 'verloa#: *ole overload is a situation in %hich employees !eel they are being as-ed to do more than time or ability permits. 3or-ing under time pressure is especially stress!ul. /ole Un#erloa#$ *ole ;nderload is the condition in %hich employees have too little %or- to do or too little variety 5in their %or-. +or eCample, salespeople in a store %ith no customer, standing around all day %ith nothing to do, could be said to eCperience role underload. (ronically, role underload leads to lo% sel!5esteem, increased !re$uency o! nervous symptoms and increased health problems. Ethical $ilemmas: 'thical dilemmas such as %hether or not one should report the observed unethical behaviors o! another person can cause eCtreme levels o! stress in individuals. "his %ill be especially true !or those %ho have strong moral values o! right and %rong and a deep sense o! personal and corporate social responsibility. "ensions arise because one might have to contend against oneEs o%n colleagues %ho might be close !riends, and may !ear o! reprisal and other undesirable conse$uences. I"(e!/e!*0" 6 Re6 (#0"*1#/* 8nother maFor source o! stress in organization is poor interpersonal relationships %ith supervisors, subordinates, co%or-ers. or clients. 3hen interpersonal relationships at %or- are unpleasant, employees develop a generalized anCiety, a di!!use !eeling o! dread about upcoming meetings and interactions. "hree aspects o! interpersonal relationships at %or-, %hich have a negative impact on Fob stress, are as !ollo%sB Amount of contact &ith others: 6obs vary in terms o! ho% much interpersonal contact is built into them. "oo much prolonged contact %ith other people can cause stress. Amount of contact &ith people in other #epartments: ,aving contacts %ith people outside oneEs o%n department creates a special sort o! stress. eople in other departments do not al%ays have an ade$uate understanding o! Fobs outside their o%n areas, %hich can cause stress. 'rgani5ational climate: "he overall psychological climate o! the organization can create stress. 3hen day5to5 day li!e in an organization is mar-ed by un!riendly, distant, or hostile eCchanges, employees are continually tense and this causes stress. O!$ "#7 (#0" 6 F '(0!* +ollo%ing are the organizational !actors that cause stress in individualsB 3or- environment !actors such as noise, heal, poor lighting, radiation and smo-e are stress5inducing agents. (nsu!!icient resources such as time, budget, ra% materials, space or manpo%er also induce stress in the %orenvironment. 3hen one has to produce and per!orm %ith inade$uate resources on a long5term basis, this naturally imposes stresses and strains on the individuals %ho are responsible !or getting the Fob done. Structural !actors in the organizational setting such as sta!! rules andE regulations and re%ard systems, may cause stress. Lac- o! career promotion in organizations may be sometime cause stress. 'nvironmental !actors o! stress include sudden and unanticipated changes in the mar-etplace, technology, the !inancial mar-et and so on. ,e!*0" 6 F '(0!*

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'mployeesM personal lives have a mar-ed e!!ect on their lives at %or-. (! things are going %ell personally, they are more li-ely to be upbeat and optimistic. "hey have more energy and patience !or dealing %ith problems at %or-. On the other hand, i! employees are having some personal problems, they might be more tense or distracted %hen they go to %or-. +actors that in!luence ho% much stress people bring !rom their personaH lives to the %or- setting are as !ollo%sB "areer "oncerns: One maFor career concern that can cause stress is lac- o! Fob security. 8 second career concern that can cause employees stress is status incongruity, i.e., having Fobs %ith less status, po%er and prestige than they thin- they deserve. Geographical )o*ility: Geographical moves create stress because they disrupt the routines o! daily li!e. 3hen geographical moves arc underta-en as part o! a Fob trans!er, the moves can be even more stress!ul. "he trans!erred employees are li-ely to !eel out o! control at %or-, too, and eCperience their ne% %or- environments as unpredictable. EFFECTS OR CONSE<UENCES OF AOB STRESS )egative stress has unpleasant conse$uences !or them, their !amilies and !or the organizations they serve. E--e'(* 0" (1e I"4#)#42 6 "he impacts o! distress on individuals are o! !ollo%ing typesB "he subFective or intrapersonal e!!ects o! stress are !eelings o! anCiety, boredom, apathy, nervousness, depression, !atigue, and anger. Sometimes eCperiencing the stress may cause aggressive behaviors on the part o! the individual. "he cognitive e!!ects include poor concentration, short attention span, mental bloc-s and inability to ma-e decisions. "he physiological e!!ects can be seen in increased heart and pulse rate, high blood pressure, dryness o! throat, and eCcessive s%eating. "he behavioral e!!ects arc mani!est in such things as accident proneness, drin-ing, eCcessive eating, smo-ing, impulsive behaviors, depression, and %ithdra%al behaviors. "he mani!est health e!!ects could be stomach disorders, asthma, eczema, and other psychosomatic disorders. (n addition, the mental health, i.e. the ability lo !unction e!!ectively in oneEs daily li!e, %ill also decline as eCcessive stress is eCperienced. C0"*eH2e"'e* -0! (1e F .#65 )egative stress, %hich is handled by individuals in dys!unctional %ays, such as drin-ing or %ithdra%al behaviors, %ill have an adverse e!!ect on their home li!e. Spouse abuse, child abuse, alienation !rom !amily members, and even divorce could result !rom dys!unctional coping mechanisms. C0"*eH2e"'e* (0 O!$ "#7 (#0"* "he adverse conse$uences on an organization include lo% per!ormance and productivity, high rates o! absenteeism and poor decision5ma-ing. (t also leads to lost o! customers because o! poor %or-er attitudes, increased alienation o! the %or-er !rom the Fob, and even destructive and aggressive behaviors resulting in stri-es and sabotage. "he stresses eCperienced by employees %ho ta-e on critical roles and are responsible !or sa!ety can sometimes be detrimental to the public. +or instance, the stresses eCperienced by a train driver or rail%ay guard, or that o! an airline pilot, navigator, or air tra!!ic controller may result in serious accidents. )eedless to say that the costs o! employee stress to the organization in terms o! lost pro!its, poor image and loss o! !uture business are enormous. METHODS OF MANAGING STRESS Stress is a !actor that everybody has to contend %ith on a daily basis both in the %or- and non5%or- spheres o! li!e. Since the body has only a limited capacity to respond to stress, it is important !or individuals to optimally manage their stress level to operate as !ully !unctioning human beings. "here are several %ays in %hich stress can be handled so that the dys!unctional conse$uences o! stress can be reduced. Some o! them areB R06e A" 65*#* Te'1"#H2e DRATE "he *ole 8nalysis "echni$ue helps both the manager and the employee to analyze the re$uirements and eCpectations !rom the Fob. Brea-ing5do%n the Fob into various components clari!ies the role o! the Fob !or the entire system. "his also helps to eliminate reduction o! %or- and thus lo%ering do%n the stress level. A0% Re60' (#0" 6ob relocation assistance is o!!ered to employees %ho are trans!erred, by !inding alternative employment !or the spouses o! the trans!erred employees and getting admissions in schools !or their children in the ne% place. "hese arrangements help to reduce the anCiety and stress !or the moving !amily.

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Re'!e (#0" 6 ,!0$! . roviding recreational !acilities, arranging group meditation programs, help to reduce the stress levels o! the employees. E./605ee A**#*( "'e ,!0$! . 8nother %idely used strategy is the employee assistance rograms, %hich o!!er a variety o! assistance to employees. "hese include counseling employees %ho see- assistance on ho% to deal %ith alcohol and drug abuse, handling con!licts at the %or- place, dealing %ith marital and other !amily problems. C !ee! C02"*e6#"$ #areer #ounseling helps the employee to obtain pro!essional advice regarding career that %ould help the individual to achieve personal goals. (t also ma-es the employees a%are o! %hat additional educational $uali!ications or specialized technical training, i! any, Khat they should ac$uire. By becoming -no%ledgeable about the possible avenues !or advancement, the employees %ho consider their careers to be important can reduce their stress levels by becoming more realistic about their options and can start preparing themselves !or it. T#.e M " $e.e"( 8nother %ay o! coping %ith stress is to manage time more e!!ectively. eople can learn to get better organized so that they can do their %or- more e!!iciently. De6e$ (#0" 8nother %ay o! coping %ith Fob stress is to delegate some responsibilities to others. &elegation can directly decrease %or-load upon the manager and helps to reduce the stress. H M0!e I"-0!. (#0" "4 He6/ Some ne% employees have to spend more time on a Fob than necessary because they are not sure %hat they are doing. So it is necessary that some help should be provided be!ore doing the %or- that %ould lead to much e!!icient, e!!ective %or-. (t %ould also reduce anCiety and stress among the employees. He 6(1 M #"(e" "'e robably the most !re$uently used organizational stress management program is health maintenance. Many companies invest large sum o! money in gym and sport !acilities !or maintaining the health o! the employees. S2/e!)#*0! T! #"#"$ 8nother type o! stress management rogram that organizations are eCperimenting %ith is supervisor training. "he emphasis on supervisory training rogram is ho% to prevent Fob stress. Managers are trained to give better per!ormance appraisals, to listen to employeesM problems more e!!ectively, and to communicate Fob assignments and instructions more clearly. I"4#)#42 6 S(!e** Re42'(#0" +0!>*10/* Some organizations have also sponsored individual stress reduction %or-shops !or their employees. "hese programs include bio!eedbac-, meditation to career counseling, time management and interpersonal s-ills %or-shops. (n lectures and seminars, participants are given a basic understanding o! the causes o! stress and its conse$uences. "hen, participants are given materials to help them identi!y the maFor sources o! stress in their o%n lives, and some strategies !or dealing %ith that stress more e!!ectively.

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LESSON;16 ,O+ER AND ,OLITICS Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB 6no0 the meaning and sources o& po0er. ,nderstand ho0 people use po0er *iscuss ho0 people use political behavior in organi#ations ,nderstand the techni5ues o& political behavior o%er is easy to !eel but di!!icult to de!ine. (t is the potential ability o! a person or group to in!luence another person or group. (t is the ability to get things done the %ay one %ants them to be done. Both !ormal and in!ormal groups and individuals may have po%er; it does not need an o!!icial position or the bac-ing o! an institution to have po%er. (n!luence can ta-e many !orms. One person has in!luenced another i! the second personEs opinions, behavior or perspectives have changed as a result o! their interaction. o%er is a !actor at all levels o! most organizations. (t can be a !actor in almost any organizational decision. ,O+ER AND AUTHORITY Sometimes po%er and authority is used synonymously because o! their obFective o! in!luencing the behavior o! others. ,o%ever, there is di!!erence bet%een the t%o. o%er does not have any legal sanctity %hile authority has such sanctity. 8uthority is institutional and is legitimate. o%er, on the other hand, is personal and does not have any legitimacy. But stilt, po%er is a crucial !actor in in!luencing the behavior in organizational situation. S02!'e* 0- ,03e! 6ohn *. . +rench and Bertram *aven identi!ied !ive bases or sources o! po%erB legitimate, re%ard, coercive, eCpert and re!erent po%er. Le$#(#. (e ,03e! 8 personEs position %ithin organization provides him %ith legitimate po%er. "he organization gives managers the po%er to direct the activities o! their subordinates. Legitimate po%er is similar to !ormal authority and hence it can be created, granted, changed or %ithdra%n by the !ormal organization. "he structure o! the organization also identi!ies the strength o! the legitimate authority by position location. +or instance, higher5level positions eCercise more po%er than lo%er5level positions in a classical hierarchical organizational structure. Organizations vary in ho% much legitimate po%er they grant to individuals. (n such organizations, everyone -no%s %ho has the most po%er and !e% people challenge the po%er structure. Re3 !4 ,03e! "his type o! po%er is the eCtent to %hich one person has control over re%ards that are valued by another. "he greater the perceived values o! such re%ards, the greater the po%er. Organizational re%ards include pay, promotions and valued o!!ice assignments. 8 manager %ho has complete control over such re%ards has a good deal o! po%er. Manager %ho uses praise and recognition has also a good deal o! po%er. C0e!'#)e ,03e! eople have, coercive po%er i! they have control over some !orm o! punishment such as threat o! dismissal, suspension, demotion or other method o! embarrassment !or the people. erhaps, a manager can cause psychological harm also lo an employee. 8 managerMs coercive po%er increases %ith the number and severity o! the sanctions over %hich the manager has control. 8lthough the use o! coercive po%er is o!ten success!ul in the short run, it tends to create resentment and hostility and there!ore is usually detrimental to the organization in the long run. E=/e!( ,03e! (t is more o! personal po%er than organizational po%er. 'Cpert po%er is that in!luence %hich one %ields as a result o! oneEs eCperience, special s-ill or -no%ledge. "his po%er occurs %hen the eCpert threatens to %ithhold his -no%ledge or s-ill. Since any person %ho is not easily replaceable has more po%er as compared to those %ho are easily replaceable. (! the sub5ordinates vie% their superior as competent, and -no%ledgeable, naturally they %ill obey and respect the superior. "o the eCtent, that a lo%5ran-ing %or-er has important -no%ledge not available to a superior, he is li-ely to have more po%er. Re-e!e"( ,03e! 8 person %ho is respected by certain others !or %hatever reason has re!erent po%er over those people. 8 person %ith re!erent po%er may have charisma and people %ho respect that person are li-ely to get emotionally involved %ith the respected person and identi!y %ith, accept and be %illing to !ollo% him or her. eople %ith re!erent po%er are o!ten

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imitated by others %ith the starEs actions, attitudes and dress. "his imitation re!lects the rising starEs po%er over the imitations. HO+ ,EO,LE USE ,O+ER 8n individual manager may have po%er derived !rom any or all o! the !ive bases o! po%er and the manager may use that po%er in di!!erent. %ays. "here!ore, good managers must try to analyse the sources o! their po%er and be care!ul ho% they use that po%er. "he %or- o! Gary @u-l provides both a %ay to predict the conse$uences o! certain uses o! po%er and guidelines !or using po%er. "he !ollo%ing table listR the !ive sources o! ;i leaderEs po%er and some o! the variables that are li-ely to lead to three general types o! employee responses or outcomes5commitment, compliance and resistance5 %hen the leader uses the po%er. +or instance, the table sho%s that a leaderEs use o! re!erent po%er %ill lead employees to be committed lo the leaderMs proFect i! they see that the proFect is important to the leader. ,o%ever a leader %ho relics on coercive po%er is very unli-ely to have committed employees. U*#"$ Le$#(#. (e ,03e! "he use o! legitimate po%er is seldom challenged in an organization; %hen a superior as-s a sub5ordinate to do something, the sub5ordinate usually complies %ithout resistance. ,o%ever, the %ay the superior ma-es the re$uest and !ollo%s it up are very important !or ensuring the sub5ordinateMs !uture compliance and the gro%th o! the superiorEs re!erent po%er. "hough the secretary does %hat the boss as-s, still the boss could be cordial and polite %hen ma-ing re$uests and should %henever possible eCplain %hy a particular tas- needs to be done. "he secretary %ho understands the importance o! a tas- %ill be more li-ely to %or- enthusiastically on it. "he boss must !ollo% normal procedures and ma-e sure the re$uest is appropriate. +or instance, a vice5 president %hose secretary is busy should not assume that he or she can Fust as- a supervisorEs secretary to drop all other %or- and type a letter. Such by passing o! the normal chain o! command can cause hard !eelings among all the people involved. Most o! these suggestions imply that managers must be sensitive to employees concerns. Managers %ho are insensitive to their employees may !ind that their legitimate po%er d%indles and that they must resort to coercive po%er. U*#"$ Re3 !4 ,03e! "he manager, be!ore giving a re%ard, must be sure that the employee has actually done the Fob and done it %ell. 'mployees must -no% that they get re%arded !or good %or-. U*#"$ C0e!'#)e ,03e! +or some people, using coercive po%er is a natural response %hen something goes %rong. But o!ten employees resist coercive po%er, resent it and losing respect !or people using that type, o! po%er. ,ence, coercion is no% generally recognized to be the most di!!icult !orm o! punishment to use success!ully in an organization. Managers %ho %ish to maintain their credibility should ma-e threats only %hen they intend to carry through on them and should never threaten a punishment that they cannot bring about. 8 good manager %ill be such that the punishment !it the crime. +or instance, %arning an individual %ho uses copying machine to ma-e 5personal copies but !iring someone %ho steals e$uipment !rom the organization. ublic punishment ma-es everyone uneasy and humiliating and hence should be done private. U*#"$ E=/e!( ,03e! "o gain po%er !rom their eCpertise, managers must ma-e people a%are o! ho% much they -no%. Manager can use his eCpert po%er most e!!ectively to address employee concerns. (! a particular sales person !aces any di!!iculty in selling a particular product and turns to manager !or his help, the manager must be able to identi!y the de!ect and must be able to help and educate him. U*#"$ Re-e!e"( ,03e! Leaders have traditionally strengthened their re!erent po%er by hiring employees %ith bac-grounds similar to their o%n. One o! the most positive and subtle uses o! re!erent po%er is the process o! rote modeling. 8 respected manager %ho %ants her employees to be punctual, considerate and creative can simply demonstrate those behaviors hersel! and her employees %ill li-ely imitate her actions. ,OLITICAL BEHAVIOR AND ORGANIZATIONAL ,OLITICS o%er and politics are ineCtricably inter%oven %ith the !abric o! an organizationEs li!e. (n any organization, at any given moment, a number o! people are see-ing to gain and use po%er to achieve their o%n ends. "his pursuit o! po%er is political behavior. Organizational politics re!ers to the activities carried out by people to ac$uire, enhance and use po%er and other resources to obtain their pre!erred outcomes in a situation %here there is uncertainly or disagreement. One great organizational scholar, "ushman de!ined politics, Uas the structure and process o! the use o! authority and po%er to a!!ect de!inition o! goals, directions and the other maFor parameters o! the organization. &ecisions are not made in rational or !ormal %ay but rather through compromise accommodation and bargaining.

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M " $#"$ ,06#(#' 6 Be1 )#0! "he very nature o! political behavior ma-es it di!!icult to manage or even approach in a rational and systematic manner. ,o%ever a manager %ho understands %hy people use political behavior and the techni$ues people usually employ has the best chance to manage political behavior success!ully. eople use political behavior in organizations in response to the !ive main !actorsB 8mbiguous goals Scarce resources "echnology and the environment )on5 rogrammed decisions Organizational change FACTORS INFLUENCING ,OLITICAL BEHAVIOR A.%#$202* G0 6* 3hen the goals o! a department or the entire organization are ambiguous then there is more room available !or playing politics. Some people may use the ambiguity to manipulate the situation !or their bene!it. S' !'e Re*02!'e* 3hen resources are scarce, people have the tendency to use political behavior to ma-e sure that they get the biggest possible share o! the resource. CHANGES IN TECHNOLOGY AND ENVIRONMENT Organizational e!!ectiveness is largely a !unction o! the organizationMs ability to appropriately respond to eCternal environment %hich is highly dynamic and generally unpredictable as %ell as ade$uately adopt to compleC technological developments. "hus, political behavior is increased %hen the internal technology is compleC and %hen eCternal environment is highly volatile. N0";,!0$! ..e4 De'#*#0"* Sometimes, the companies have to ma-e a lot o! non5 rogrammed decisions on certain issues. "hese decisions are not based on clear standards and precedents, because such issues involve many !actors and variables that are compleC in nature. ,ence decisions are ta-en on intuition, bunch and guesses and all these subFective !eelings can be a!!ected by political behavior. O!$ "#7 (#0" 6 C1 "$e 3henever there are changes in the organizational structure and policies, peoples in po%er!ul positions have the opportunity to play politics. "hese changes may include restructuring o! a division or creating a division, personnel changes, introducing a ne% product line and all these changes in!luence political behavior %hen various individuals and groups try to control the given situation. (t is %idely accepted that managers have to be politicians in order to maintain their positions in the organizational hierarchy as %ell as serve the interests o! their units. !ei!!er, %ho has done eCtensive research on 5the subFect o! po%er in organizations, states as !ollo%sB Q(! there is one concluding message, it is that it is probably e!!ective and it is certainly normal that these managers do behave as politicians. (! is even better that some o! them are $uiet e!!ective at it. (n situations in %hich technologies are uncertain, pre!erences are con!licting, perceptions are selective and biased and in!ormation processing capacities are constrained, the model o! an e!!ective politician may be an appropriate one !or both the individual and !or the organization in the long5runV. TECHNI<UES OF ,OLITICAL BEHAVIOR "he most commonly used techni$ues o! political behavior areB #ontrolling in!ormation #ontrolling lines o! communication #ontrolling agenda 5 ;sing outside eCperts B Game playing (mage building Building coalitions One techni$ue o! political behavior is to control the dissemination o! critical in!ormation to others. "he more critical Khe in!ormation and !e%er the people %ho have it, the stronger is political po%er base o! those %ho possess these in!ormation.

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#ontrolling lines o! communication is another political techni$ue related to the !lo% o! in!ormation. eople %ho have some control over lines o! communication can yield considerable political po%er. +or eCample, the secretary may have considerable po%er in deciding %ho sees the boss and %ho does not at a given time. She may use this po%er in !avoring those %hom she li-es and !rustrating those against %hom she may have it grudge. #ontrolling the agenda also gives a person po%er over in!ormation. "he person %ho controls a meetingEs agenda, !or instance, may consistently put a particular item last on the list and then ta-e up time so that meeting adFourns be!ore considering the item. "he opinions o! outside eCperts and consultants o!ten curry much %eight in organizations and many consultants can be s%ayed by political interests. #onsultants -no% %ho is paying them and even honest consultants are li-ely to give opinions consistent %ith those o! their employer. ,ence, hiring an outside consultant can be a clever political move. Game playing can range !rom !airly innocent to very manipulative. (t involves people doing something insincere, but not outright illegal or unethical to gain political ends. +or instance, a manager %ho does not %ant to ans%er a committeeEs tough $uestions may, !or instance, avoid meeting by going out o! the to%n on the day o! meeting. (mage building is creating positive impression re!lected by the personality, appearance and style. Some o! the !actors that enhance a pre!erred image consist o! being %ell dressed, having a pleasant smile, being attractive, honest, sociable and loyal to the organizational interests. (n addition, al%ays proFect an image o! competence and sel!5 assurance. Building coalitions or alliance is another techni$ue o! gaining political po%er. (t is necessary to have the alliance %ith the right people. #oalition building can become simply a matter o! $uid pro $uoB ( %ill support you i! you %ill support me. M " $#"$ ,06#(#' 6 Be1 )#0! "hough it is virtually impossible to eliminate political behavior in organizations, it is possible to reduce it, i! a manager understands the reasons !or it and the techni$ues o! political behavior. olitics %hen carried to the eCtreme can damage morale, create enemies, destroy loyalty, damper co5operative spirit and much time and energy is spent planning attac-s and counter attac-s %hich are detrimental to organizational health. 8ccordingly, combating politics must be underta-en by the top management and some o! the steps that can be underta-en areB open communication, reduction o! uncertainty and creating a%areness. Open communication can reduce the political activity i! all employees -no% ho% and %hy an organization allocates resources, the employees %ill be li-ely to put their energy into meeting the stated criteria !or gelling resources rather than into political activity. (! the organization is open about %hy it made particular decision, then employees %ill he less li-ely to thin- that the decisions %ere political and less li-ely to use political techni$ues to try to in!luence the neCt decision. ;ncertainty in the !orm o! ambiguous goals and changes that a!!ect the organization tends to increase the use o! political activity. *educing such uncertainty can, there!ore, reduce the political behavior. Open communication is one o! the %ays an organization can reduce uncertainty. +or instance, laying do%n clear criteria and ma-ing it transparent to the employees %ho %ill be laid o!!, in case o! lay o!! the organization can reduce political behavior. +inally, managers %ho develop an ability to recognize and predict political activity are in the best position to limit its e!!ects. Managers %ith this a%areness %ill eCpect an increase in political activity during times o! organizational change and %ill learn ho% to handle it.

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LESSON ;1? ORGANIZATIONAL DESIGN Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able toB ,nderstand the concept o& organi#ational design Identi& the determinants o& organi#ational design 6no0 the various &orms o& organi#ational design CONCE,T OF ORGANIZATIONAL DESIGN Organizational design is the overall con!iguration o! structural components that de!ines Fobs, groupings o! Fobs, the hierarchy, patterns o! authority, approaches to co5ordination and line5sta!! di!!erentiation into a single and uni!ied organizational system. #onsider, !or eCample, the di!!erences in organizational design that might eCist bet%een a computer manu!acturer and university. Since the computer manu!acturer has to respond to !re$uent technological brea-throughs and changes in its competitive environment, it is li-ely to have a relatively !lat and decentralized design %hereas the university has a more stable environment and is less a!!ected by technology. "here!ore, it has a more centralized structure %ith numerous rules and regulations. DETERMINANTS OF ORGANIZATIONAL DESIGN "he -ey situational determinants o! organizational design are technology, organizational environment, and organization size and li!e cycle. Technology$ "echnology is the set o! processes that an organization uses to trans!orm various resources such as materials and labor into products or services. 6oan 3ood%ard %as the !irst person to see the lin- bet%een technology and organizational design. (n particular. 3ood%ard de!ined three basic types o! technology. (n unit or small5batch technology, products are manu!actured according to customer speci!ications in small $uantities. 'Camples are printing press and studios. (n large batch or mass5production technology, products. are manu!actured in assembly5line !ashion by combining component pans to create !inished goods. 'Camples are home5appliance,D automobile and computer manu!acturers. (n continuous5process technology, products are trans!ormed !rom ra% materials into !inished goods through a series o! machine trans!ormations that change the composition o! the materials themselves. 'Camples are petroleum re!iners, !ood processors and chemical manu!acturers. 3ood%ard vie%ed unit or small5batch technology as 5the least compleC %hile the continuous process technology as the most compleC. She !ound that organizations %ithin each set had similar designs but the designs varied some%hat !rom set to set. Bums and Stal-er argued that managers should eCamine the rate o! change in technology to determine the best organizational structure. "hey recommended a bureaucratic or mechanistic structure !or organizations %ith slo%ly changing technology and an organic or !leCible structure !or organizations %ith rapidly changing technology. #harles erro% concluded that me -ey $uestion concerning an organizationMs technology is %hether it is routine or non5routine. (n his vie%, a highly !ormalized centralized structure is appropriate !or an organization that uses the same routine technology %hile a more !leCible structure is necessary !or an organization that o!ten uses ne% technology. 7 8n organization that uses continuous process, non5routine or intensive technology needs to ensure that its structure can adapt to changes in the technologies. "echnology can a!!ect all aspects o! an organization, not Fust production and the same technological change can have very di!!erent e!!ects on di!!erent organizations. Environment$ "he environment also in!luences the type o! design an organization is li-ely to adopt. "he environment o! an organization consists o! all the !actors and conditions outside the organization that might a!!ect it. %hich include customers, shareholders competitors, legislatures and regulatory agencies, economic !actors, %hich include interest rates, unemployment rate, !inance, obFects, %hich include buildings, machines and events, %hich include as elections, %ar, !loods etc. (! the managers are good at analyzing and predicting changes in the environment, then, they can help the organization to ta-e advantage o! any change. Since the environment a!!ects organization both directly and indirectly, there!ore, the managers must -eep an eye on it and be ready to modi!y organizationEs design to respond to environmental changes.

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'rgani5ational Si5e an# ife "ycle: Organization size re!ers to ho% large B the organization is, usually, in terms o! the number o! its !ull5time employees. Li!e cycle re!ers to organizationEs maturity relative to that o! other organizations.

Size can a!!ect organization design in many di!!erent %ays. 8 group o! researchers in 'ngland !ound that large organizations tend to have more Fob specialization, more standard operating procedures, more rules and regulations, and more decentralization than small organizations. "hus, as organizations gro% in size, they should be prepared to adapt their design accordingly. 8n organizationEs li!e cycle is related to its size. Organizations tend to !ollo% a predictable pattern o! gro%th. 8!ter they are created, they gro% !or some period o! time and then eventually stabilize as a mature organization. "o summarize, an organization design needed by a small but rapidly gro%ing business is di!!erent !rom an organization design needed by an established and entrenched industry giant gro%ing at a stable and predictable rate. 8n organizationEs li!e cycle and gro%th rates are directly lin-ed to the strategy that the organization is pursuing. "he !ollo%ing !igure .1.. sho%s the organization cycle.

CONTEM,ORARY FORMS OF ORGANIZATIONAL DESIGN 'very organization has its o%n uni$ue design depending on its technology. limits and potentials o!D its environment and the li!e cycle stage it !ollo%s. +ollo%ing are the various !orms o! an organization based on their designB The U!,orm 'rgani5ation: (n the ;5!orm organization. ; stands !or ;nity, (t is also called as D!unctional design as it relies eCclusively on the !unctional approach to departmentalization. Members o! the organization %ho per!orm the same !unctions arc grouped together into departments. Such organization re$uires per!ect co5 ordination to operate smoothly aiming the various departments, since each department is highly dependent on another. "he ;5+orm design has several advantages. (t allo%s an organization to sta!! each department %ith eCperts; it also !acilitates %ide spans o! management and helps the Managing &irector to maintain centralized authority. ,o%ever, the ;5!orm design sho%s decision5ma-ing and employees %ithin each department may concentrate on their o%n !unction !orgetting overall organizational goals. (t tends to ma-e it hard !or organization to monitor the per!ormance o! individual managers %ithin each !unctional area. 3hen the organizations gro%, they o!ten !ind that the disadvantages o! the ;5!orm tend .A become more signi!icant and adopt di!!erent designs as they evolve through their li!e cycles. The -!,orm 'rgani5ation: (n the ,5!orm organization, , stands !or ,ybrid and is also -no%n as conglomerate. "he design relics on product departmentalization %ith the various products constituting di!!erent businesses. "his design usually results !rom the corporate strategy o! unrelated diversi!ication o! the products. "his design has t%o advantages. +irst, such an organization can protect itsel! !rom cyclical !luctuations in a single industry. "he loss in one product is compensated by pro!it in another. Secondly, an organization can buy and sell its individual businesses %ith little or no disruption to the others. "he main disadvantage o! this !orm o! organization is that it is compleC and diverse thereby creating di!!iculty !or top managers in having -no%ledge about all products. "he !igure .1.= sho%s the ,5!orm organization.

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The )!,orm 'rgani5ation: (n the M5!orm organization M stands !or Multi5divisional and it is called the divisional design. (t is similar to the ,5!orm design but has one notable distinction. Most o! its businesses are in the same or related industries. +or eCample, an organization %ith an M5!orm design might o%n one business that manu!actures automobile batteries, other that manu!actures lyre and still another that manu!actures car polish. 8lthough each is distinct !rom the other but still related, in terms o! manu!acturing products that is used by automobile o%ners. "hus, the M5!orm design is used to implement a corporate strategy o! related diversi!ication. 8 primary advantage o! the M5!orm organization is that it can achieve a great deal o! synergy in its operations. +or eCample, a consumer !amiliar %ith an organizationMs batteries %ill be inclined to buy its tyres and car polish. Moreover, because the various units are in the same or related businesses, it is easy !or top managers to understand, co5ordinate and control them. ,o%ever, i! the businesses are too closely related, Ethe organization cannot escape !rom the e!!ect o! cyclical !luctuations.

The )atri1 'rgani5ation$ 8 matriC organization is created by overlaying product5based departmentalization on lo a !unctional structure. 8 matriC design is seldom used !or an entire organization and is o!ten used !or a portion o! it. +igure .1.: sho%s the matriC organization.

8 matriC design allo%s an organization to capitalize on the advantages o! both !unctional and product departmentalization. (t has also some dra%bac-s such as an organization lac-s a clear chain o! command thereby Eresulting into con!usion about %hich manager lies authority over a given employee. "he organization also has to devote more resources to coordination because o! high levels o! interdependence that result !rom a matriC. Glo*al 'rgani5ation: 8n organization, %hich has assets in more than one country other than its home country is called as global organization. Such companies have o!!ices and4or !actories in di!!erent countries and usually have a centralized head o!!ice %here they coordinate the global management. "hese organizations have centralized head o!!ice in their home country that controls their various o!!ice in other parts o! the %orld.

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8 global organization must modi!y and adapt its design to allo% it to !unction e!!ectively. e.g. )estle is a big global organization and highly decentralized. ;s organizational design is li-e an umbrella. )estlXMs various organizations scattered around the %orld are operated by its o%n general managers, %ho arc empo%ered %ith a great deal o! autonomy and authority to ma-e decisions. 8s a result, )estle is almost a con!ederation o! independent operating organizations. (ts design is similar to the M5!orm but because the operating units are so !ar apart that there is little synergy. (t is to be remembered that there is no one best !orm o! design that all organizations should adopt. 'ach organization has to care!ully assess its o%n strategy, its strengths and %ea-nesses, its history, its technology, environment, li!e cycle and size. (t must then choose a design that !it these elements most e!!ectively.

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LESSON ;1@ ORGANIZATIONAL CULTURE AND CLIMATE Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB Organi#ational culture and e+plain its importance. (actors a&&ecting organi#ational climate

CONCE,T OF ORGANIZATIONAL CULTURE Organizational culture is the set o! values that states %hat an organization stands !or, ho% it operates and %hat it considers important. 8ccording to &eal and 2ennedy, a strong culture is. Da system o! in!ormal rules that spells out ho% people have to behave most o! the timeD. Schein de!ines organizational culture as the pattern o! basic assumptions that a given group has invented, discovered and developed %hile learning to cope %ith its problems o! eCternal adaptation and internal integration. 8ll the above de!initions stress acceptable and unacceptable behavior o! its members. +or instance, one organization might value solidarity and loyalty to organization more than any other value %hereas another organization might stress on good relations %ith customers. Such values are part o! organizational culture in spite o! not being !ormally %ritten li-e rules and regulations o! the organization. "hey do not usually appear in the organizational training rogram and in !act, many organizations have di!!iculty in eCpressing their cultural values. ,o%ever, an organizationEs values automatically enter every employeeEs personal values and actions over a period o! time. Organizational culture has a pro!ound in!luence on individual employees because it is generally an accepted set o! values rather than a %ritten set o! rules %ith %hich employees might not argue. I./0!( "'e 0- C26(2!e #ulture plays a very signi!icant role in any organization by communicating in!ormation about the overall acceptable and unacceptable behavior. #ulture communicates %hether the organization eCpects its managers to be aggressive or conservative in decisions5ma-ing, generous or moderate in supporting social causes and ruthless or -ind in competitive dealings. Some organizations have clear, strong and %ell5de!ined culture %hereasB others have ambiguous, %ea- and poorly de!ined cultures. Most managers agree that a strong and clear culture is pre!erable to %ea- and vague culture because it helps to provide a common !rame o! re!erence !or managerial decision5ma-ing and a %ide variety o! other organizational activities. 8n organizational culture generally la-es shape over time and is o!ten deeply in!luenced by the values o! the organizational !ounders. 8s organizational culture evolves, various symbols, stories, heroes, slogans and ceremonies also come into being. "hese, then, serve to maintain and perpetuate the culture through subse$uent generations o! employees. C1 "$#"$ O!$ "#7 (#0" 6 C26(2!e #hange is most o!ten needed %hen the organization has lost its e!!ectiveness and is struggling to eitherD carry out or change its strategic goals. "he manager trying to change an organizational culture !aces lots o! di!!iculties. Because organizational culture embody the organizational values, %hich are embedded in organizationEs soul that stays stable irrespective o! the changes in leadership and environment. (t is, ho%ever, possible to change organizational culture, to improve the organization per!ormance. +or this managers must change employeeEs ideas about %hat is and %hat is not appropriate behavior. "hey must create ne% role model and ne% stories to help employees understand the meaning o! %hat is happening around them. One %ay to brine about such changes is to manage the symbols that are important to the organization. 8n organizationEs suggestion boC is a symbol o! an organizationEs openness to the ideas o! the employees. Some organizations try to emphasize the importance o! employeesM ideas by re%arding them !or their suggestions. ,o%ever, i! the suggestion boC remains Fust a symbol and organization never translates the suggestions into actions, the boC %ill have little e!!ect on organization morale. Once success!ully made, changes in the organizational culture %ill be as stable as the old culture %as. ,o%ever, any organization %illing to change its culture must realize that such a change is never easy and cannot be brought about simply by ordering employees. O!$ "#7 (#0" 6 C6#. (e 'ven though organizational culture and organizational climate are sometimes used interchangeably, there are certain di!!erences bet%een the t%o. 8ccording to Bo%ditch and Buono. DOrganizational culture is concerned %ith the nature o!

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belie!s and eCpectations about organizational li!e, %hile climate is an indicator o! %hether those belie!s and eCpectations are being !ul!illed.D Organizational climate is a relatively enduring $uality o! the internal environment that is eCperienced by its members, in!luences their behavior, and can be described in terms o! the values o! a particular set o! characteristics.D (t is a set o! characteristics and !actors o! the organization that are perceived by the employees and, %hich serve as a maFor !orce in in!luencing their behavior. "hese !actors may include Fob descriptions, per!ormance arid evaluation standards, leadership style, challenges and innovations. FACTORS AFFECTING ORGANIZATIONAL CLIMATE (n every organization, there eCist certain !actors that eCert deep in!luence on the climate. Schneider and Barlett describe siC !actors that have an in!luence over organizational climate such as managerial support, inter5agency con!lict, agent dependence and general satis!action. La%rence 6ames and 8llan 6ones have identi!ied !ive !actors in!luencing climate, %hich include management philosophy, organizational structure and process, %hich include communication, motivation and leadership, physical environment and values. Similarly, 2ahn has identi!ied !actors such as rules orientation, the nurture o! subordinates, strict supervision and promotional achievement orientation. "hus, it is very di!!icult to generalize eCactly the !actors a!!ecting the climate. Organizational climate has a maFor in!luence on human per!ormance through its impact on the motivation, Fob satis!action and attitudes o! people.

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LESSON ; 1C ORGANIZATIONAL EFFECTIVENESS Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should be able to understandB "he concept o& organi#ational e&&ectiveness (actors contributing organi#ational e&&ectiveness

CONCE,T OF ORGANIZATIONAL EFFECTIVENESS Organizational e!!ectiveness is de!ined as an eCtent to %hich an organization achieves its predetermined obFectives %ith the given amount o! resources and means %ithout placing undue strain on its members. Sometimes e!!iciency and e!!ectiveness are used as synonyms. ,o%ever, there eCists a di!!erence bet%een the t%o concepts. "here!ore, it is important to eCplain the di!!erence bet%een the concepts o! e!!ectiveness and e!!iciency to understand %hy organizations may he e!!ective bin not e!!icient, or e!!icient but not e!!ective. '!!ectiveness is a broad concept and ta-es into account a collection o! !actors both inside and outside an organization. (t is commonly re!erred to as the degree to %hich predetermined goals are achieved. On the other hand, e!!iciency is a limited concept that pertains to the internal %or-ing o! an organization. (t re!ers to an amount o! resources used to produce a particular unit o! output. (t is generally measured as the ratio o! inputs to outputs. +urther, e!!ectiveness concentrates more on human side o! organizational values and activities %hereas e!!iciency concentrates on the technological side o! an organization. ,o%ever the concept o! e!!ectiveness is not simple because there are many approaches in conceptualizing this term. Such approaches can be grouped into !ollo%ing three approachesB Goal 8pproach, +unctional 8pproach System *esource 8pproach G0 6 A//!0 '1 Goal attainment is the most %idely used criterion o! organizational e!!ectiveness, in goal approach, e!!ectiveness re!ers to maCimization o! pro!its by providing an e!!icient service that leads to high productivity and good employee morale. #ampbell has suggested several variables such as, $uality, productivity, e!!iciency, pro!it, turnover, accidents, morale, motivation and satis!action, %hich help in measuring organizational e!!ectiveness. ,o%ever, none o! the single variable has proved to be entirely satis!actory. "he main limitation o! this approaches the problem o! identi!ying the real goals rather than the ideal goals. F2"'(#0" 6 A//!0 '1 "his approach solves the problem o! identi!ication o! organizational goals. arson states that since it has been assumed that an organization is identi!ied in terms o! its goal, !ocus to%ards attainment o! these goals should also aim at serving the society. "hus, the vital $uestion in determining e!!ectiveness is ho% %ell an organization is doing !or the super5ordinate system. "he limitation o! this approach is that %hen organizations have autonomy to !ollo% its independent courses o! action, it is di!!icult to accept that ultimate goal o! organization %ill be to serve society. 8s such, it cannot be applied !or measuring organizational e!!ectiveness in terms o! its contributions to social system. Both the goal and !unctional approach do not give ade$uate consideration to the conceptual problem o! the relations bet%een the organization and its environment. S5*(e. Re*02!'e A//!0 '1 System5resource approach o! organizational e!!ectiveness emphasizes on interdependency o! processes that relate the organization to its environment. "he interdependence ta-es the !orm o! input5output transactions and includes scarce and valued resources such as physical, economic and human !or %hich every organization competes. "he limitation o! this model is that an ac$uisition o! resources !rom environment is again related to the goal o! an organization. "here!ore, this model is not di!!erent !rom the goal model. "hus, discussion o! organizational e!!ectiveness leads to the conclusion that there is no single indicator o! e!!ectiveness. (nstead, the approach should !ocus on operative goals that %ould serve as a basis !or assessment o! e!!ectiveness. Managerial e!!ectiveness is a causal variable in organizational e!!ectiveness. (t has been de!ined in terms o! organizational goal5achieving behavior, i.e., the managerEs o%n behavior contributes to achievement o! organizational goals. FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS Li-ert has classi!ied the !actors a!!ecting organizational e!!ectiveness into !ollo%ing three variablesB #ausal (ntervening

#+,

'nd result

C 2* 6 V !# %6e* #ausal variables are those independent variables that determine the course o! developments %ithin an organization and the obFectives achieved by an organization. "hese causal variables include only those independent variables, %hich can be altered by organization and its management. #ausal variables include organization and managementEs policies, decisions, business and leadership strategies, s-ills and behavior. I"(e!)e"#"$ V !# %6e* (ntervening variables according to Li-ert are those variables that re!lect the internal state and health o! an organization. +or eCample, loyalties, attitudes, motivations, per!ormance goals and perceptions o! all the members and their collective capacity !or e!!ective interaction, communication and decision5ma-ing. E"4;Re*26( V !# %6e* 'nd5*esult variables are the dependent variables that re!lect achievements o! an organization such as its productivity, costs, loss and earnings. I"(e!;Re6 (#0"*1#/ 0- V !# %6e* "he three variables such as causal, intervening and end5result ore interrelated. "he inter5relationship may be visualized as psychological process %here stimuli or causal variables acting upon the organism or intervening variables and creating certain responses or end5result variables. "he causal, intervening and end5result variables comprise a compleC net%or- %ith many interdependent relationships. "he causal variables are the -ey to organizational e!!ective 5 ness. ,ence, to ma-e organization e!!ective, attempt should be made to improve the causal variables, %hile other variables %ill be corrected or improved automatically because o! causal variables. +igure ./.. sho%s the relationship among various variables. C *2 6 V !# %6e* Leadership Style Management &ecision Organizational hilosophy ObFectives and policies "echnology I"(e!)e"#"$ V !# %6e* #ommitment to ObFective Motivation and Morale #ommunication Leadership S-ills #on!lict *esolution &ecision YMa-ing (igure 38.3$ Inter/relationship o& 2ariables "he above model is $uiet simple. "he e!!ectiveness model can be presented in a more compleC %ay i.e. at three di!!erent levels such as the individual, group and organizational levels in order to ma-e the organization more e!!ective. +igure ./.= sho%s Levels o! <ariables. E"4 Re*26(* V !# %6e* roduction #ost Sales 'arning "urnover Management ;nion *elationship

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"he e!!ective organization is built o! e!!ective individuals %ho %or- collectively in groups. "he eCtent to %hich individual and organizational goals are integrated, a!!ects the degree o! organizational e!!ectiveness, i.e., each individual tries to satis!y his goal by %or-ing in an organization and simultaneously satis!ying organizational minis. ,e may sec his goal satis!action in satis!ying organizational goals. (! there is no per!ect integration o! individual and organizational goals then organizational e!!ectiveness is a!!ected adversely. ,o%ever, organizational e!!ectiveness is not a result o! integration bet%een individual and organizational goals only but there are other causal variables a!!ecting it. E--e'(#)e"e** (1!02$1 A4 /(#)e;C0/#"$ C5'6e "he organization must develop a system through %hich it can adapt or cope %ith the environmental re$uirements; Schein has suggested that an organization can do this through the adaptive coping cycle, %hich consists o! various activities that enable an organization to cope %ith the dynamics o! environment. 8daptive5#oping cycle is a continuous process. "here are siC stages in the adaptive5coping cycle as !ollo%sB .. =. :. 7. 0. >. Sensing of "hange: "he !irst stage is the sensing o! change in internal or eCternal environment. Most o! the organizations have adaptive sub5system such as mar-eting research, research and development and other similar devices !or e!!ective coping %ith the environment. Importing the /elevant Information: Organizations must be able to ta-e the relevant in!ormation !rom the environment, %hich constitutes the input. "hanging "onversion Process: "he organization ta-es the inputs !rom environment !or !urther processing, normally -no%n as conversion process. Sta*ili5ing Internal "hanges: "he !ourth stage o! the cycle is to stabilize an internal sub5system o! an organization, %hich is dependent on eCternal, sub5system. "his is because change in one may a!!ect other and this change can be either positive or negative. E1ploring Ne& 'utputs: 3hen the internal change is stabilised, the organization can eCport ne% outputs, %hich are in accordance %ith environment re$uirements. '*taining ,ee#*ac0: "he last stage in the cycle is to obtain !eedbac- on the outcome o! the changes !or !urther sensing the state o! the eCternal environment and the degree o! integration o! internal environment. "his is similar to !irst stage.

8 success!ul coping suggests that all the stages have to be success!ully5negotiated and !ailure at any o! these stages may result into ine!!ectiveness. +ollo%ing are the maFor organizational conditions !or e!!ective copingB "here should be an e!!ective communication system through %hich reliable and valid in!ormation can be passed. "here should be enough internal !leCibility so that changes can be brought and absorbed by an organization. Success!ul coping re$uires integration and commitment to organizational goals, %hich provide %illingness !or change. "here should be supportive internal climate, %hich can support good communication, reduction in in!leCibility and stimulation o! sel!5protection. Maintaining organizational e!!ectiveness re$uires additional e!!orts, especially %hen the maFor organizational changes ta-e place.

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LESSON ; 2I MANAGEMENT OF CHANGE

Le !"#"$ O%&e'(#)e* 8!ter reading this lesson, you should5be able to understandB "he concept o& change in the organi#ation (orces a&&ecting the change Model and d namics o& planned change "he reasons &or resistance to change "he method o& overcoming resistance to change #hange simply re!ers to alteration in the eCisting conditions o! an organization. 'ven in most stable organizations change is necessary to maintain stability. "he economic and social environment is so dynamic that %ithout adapting to such change even the most success!ul organizations cannot survive in the changed environment. "here!ore, management must continuously monitor the outside environment and be su!!iciently innovative and creative to implement these changes e!!ectively. Organizations encounter di!!erent !orces !or change. "hese !orces come !rom eCternal and internal sources o! the organization. EFTERNAL FORCES 'Cternal !orces !or change originate outside an organization. "here are !our -ey eCternal !orces !or changeB $emographic "haracteristics: "hese include age, education, s-ill level and gender o! employees. Organizations need to e!!ectively manage these characteristics in order to receive maCimum contribution and commitment !rom their employees. Technological A#vancements: Both manu!acturing and service organizations are increasingly using technology as a means to improve productivity and mar-et competitiveness. )ar0et "hanges: "he emergence o! a global economy is !orcing (ndian organizations to change the %ay they do business. Organizations are entering into ne% partnerships %ith their suppliers in order to deliver higher $uality products at lo%er prices. Social an# Political Pressures: "hese !orces are created by social and political events. ersonal values a!!ect employeesM needs, priorities and motivation. "here!ore, managers need to adFust their managerial style according to the changing employee values. olitical events also create substantial change in an organization. 8lthough it is di!!icult !or organizations to predict changes in political !orces, many organizations hire lobbyists and consultants to help them detect and respond to social and political changes. INTERNAL FORCES (nternal !orces !or change come !rom inside the organization. "his may come !rom both human resource problems and managerial behavior. H2. " Re*02!'e ,!0%6e.* "hese problems stem !rom employee perceptions about their %or- environment and con!lict bet%een an employee and organization needs. Organizations might respond to these problems by using the various approaches to Fob design by implementing realistic Fob previe%s and by reducing employeesE role con!lict, stress, %or- overload and ambiguity. M " $e!# 6 Be1 )#0! 'Ccessive interpersonal con!lict bet%een managers and their subordinates is a sign o! implementing an immediate change. (nappropriate leader behavior such as inade$uate direction and support are the cause o! con!lict bet%een managers and their subordinates. N (2!e 0- C1 "$e Organizations introduce changes through people. ;nless the people arc %illing to accept the need and responsibility !or organizational change, intended changes can never be translated into reality. (n addition, individuals have to learn to adapt their attitudes and behavioral patterns to constantly changing environments. Management o! change involves both individual and organizational change. (ndividual change is behavioral change, %hich is determined by individual characteristics o! members such as their -no%ledge, attitudes, belie!s, needs, eCpectations and s-ills. (t is possible to bring about a total change mZ an organization by changing behaviors o! individual members through participative and. educative strategies. 8lthough, the degree o! di!!iculty involved in the change and the time ta-en to bring about the change %ill depend on the target o! change.

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"he attitudes to%ards change are largely dependent on the nature o! the situation and the manner in .%hich changes are initiated and eCecuted. #hanging individual behavior is more time consuming and a di!!icult tas-. "he lin-age bet%een attitude and behavior is not direct and there!ore changing behavior is more di!!icult than changing attitudes. OneEs attitude does not necessarily get re!lected in oneEs behavior. +or eCample, %e -no% that honesty is the best policy and %e have !avourable altitudes to%ards people5 %ho are honest but in certain situations, %e may still act in a less honest %ay. #hanging group behavior is usually a more prolonged and harder tas-. 'very group has its o%n dynamics o! push and pull that attempt to neutralise the change that may have ta-en place in an individual. &ue to this group dynamics, individual memberEs Uchanged behaviorM may revert to earlier normative behavior in order to maintain the change in the eCisting conditions. ,o%ever, due to the same reasons o! a groupEs over5riding in!luence on individual members, sometimes it may be easier to tac-le the group as a %hole rather than trying to change the behavior o! members one by one. Bringing total behavioral change in all the groups and members o! an organization involves di!!icult long5range e!!ort. More o!ten than not, it is a slo% pain!ul process to usher a total cultural change in an organization. (t is possible to change total organization %ithout !ocusing at the level o! individualEs change o! -no%ledge, attitude and behavior. Modi!ication in the organizationEs structures, policies, procedures and techni$ues leads to total organizational change. "hese types o! changes alter prescribed relationships and roles assigned to members and eventually modi!y the individual membersM behavior and attitudes. 8s these t%o -inds o! changes are interdependent, the compleCity o! managing change increases mani!old. A,,ROACHES TO ORGANIZATIONAL CHANGE 8s organizational change is a compleC process, there!ore managers must approach it systematically and logically. Some organizational changes are planned %hereas other changes are reactive. lanned change is designed and implemented by an organization in an orderly and timely !ashion in the anticipation o! !uture change. *eactive change results !rom a reaction o! an organization to uneCpected events. (n contrast to planned change, it is a piece5meal response to circumstances as they develop. 'Cternal !orces that the organization has !ailed to anticipate or interpret al%ays bring about reactive change. Since reactive change may have to be carried out hastily, it increases the li-elihood o! a poorly conceived and poorly eCecuted rogram. lanned change is al%ays pre!erable to reactive change. Managers %ho sit bac- and respond to change only %hen they can no longer avoid it are li-ely to %aste a lot o! time and money trying to patch together a last5minute solution. "he more e!!ective approach is to anticipate the signi!icant !orces !or change %or-ing in an organization and plan %ays to address them. "o accomplish this, managers must understand the steps needed !or e!!ective change. A COM,REHENSIVE MODEL OF CHANGE "he comprehensive model o! change sho%n in the !igure =A.. sho%s seven steps that can lead to e!!ective change. "his model is use!ul !or both planned and reactive change.

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"he seven steps o! comprehensive model o! change are as !ollo%sB Re'0$"#7e "ee4 -0! '1 "$e "he !irst step in this model is recognizing need !or change. +or mar-eting managers %ho anticipate needed . change, recognition is li-ely to come much earlier, as a result o! mar-eting !orecasts indicating ne% mar-et potential, eCpert indications about impending socio5economic change or a perceived opportunity to capitalize on a -ey technological brea-through. "hese managers tend to Uinitiate change because they eCpect it to be necessary in the near !uture in any caseM. E*( %6#*1 $0 6* -0! '1 "$e "he manager must then set goals !or the proposed change. (t is important !or the manager to speci!y goals that the change is supposed to accomplish. "he goals can be set to maintain or increase the mar-et standing, to enter ne% mar-ets, to restore employee morale, to reduce turnover, to settle a stri-e and to identi!y good investment opportunities. D# $"0*e !e6e) "( ) !# %6e* 8n important neCt step is diagnosing organizational variables that have brought about the need !or change. "urnover, !or eCample, may be caused by a variety o! !actors such as lo% pay, poor %or-ing conditions, poor supervision, better alternatives in the Fob mar-et or employee Fob dissatis!action etc. "hus, i! turnover is the recognized stimulus !or change, the manager must understand %hat has caused it in a particular situation in order to ma-e the right changes. "o carry out this diagnosis, the manager may discuss the situation %ith employees and other managers. Se6e'( '1 "$e #"(e!)e"(#0" 8!ter the manager has developed an understanding o! the problem and its causes then he must select a change intervention that %ill accomplish the intended goal. 8n intervention is a speci!ic change induced in an organization %ith the intention o! solving a particular problem or accomplishing a speci!ic obFective. +or eCample, i! turnover is caused by lo% pay, then a ne% re%ard system is re$uired and i! the cause is poor supervision then interpersonal s-ills and training !or supervisors is re$uired. ,6 " #./6e.e"( (#0" 0- '1 "$e "he manager must then care!ully plan the implementation o! change. lanning the implementation o! change involves consideration o! the cost o! the change, ho% the change %ill a!!ect other areas o! the organization and the degree to

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%hich employees should participate in bringing about the change. ,astily implemented change can result in more harm than bene!it. +or eCample, i! the change involves the use o! ne% e$uipment, the manager should not ma-e any changes that rely on the use o! ne% e$uipment until it has arrived and been installed and %or-ers -no% ho% to use it. Moreover, i! change is thrust upon them too $uic-ly, their resistance may sti!!en. I./6e.e"( '1 "$e 8 systematically implemented change is more li-ely to proceed smoothly and to encounter !e%er obstacles than is a change that is implemented too $uic-ly and %ithout ade$uate preparation. E) 62 (e #./6e.e"( (#0" +inally, a!ter the change has been implemented, the manager should veri!y that it has accomplished its intended goals. 8 change may !ail to bring about the intended results. "his may be due to inappropriate goals or inaccurate diagnosis o! the situation or %rong selection o! intervention. MODELS AND DYNAMICS OF ,LANNED CHANGE Managers are criticized !or emphasizing short5term, $uic- !iC solutions to organizational problems. Quic-5!iC solutions do not really solve underlying problems and they have little staying po%er. *esearchers and managers have thus tried to identi!y e!!ective %ays to manage the change process. "he !ollo%ing models have been developed to e!!ectively manage changeB Le3#":* C1 "$e M04e6 Most theories o! organizational change originated !rom the landmar- %or- o! social psychologist 2urt Le%in. Le%in developed a three5stage model o! planned change, %hich eCplained ho% to initiate, manage and stabilize the change process. "he three stages are un!reezing, changing and re!reezing. Be!ore revie%ing each stage, it is important to highlight the assumptions on %hich, this model is basedB .. "he change process involves learning something ne%, as %ell discontinuing current attitudes, behaviors and organizational practices. =. #hange %ill not occur unless there is motivation to change. "his is o!ten the most di!!icult part o! the change process. :. eople are the hub o! all organizational changes. 8ny change, %hether in terms o! structure, group process, re%ard systems or Fob design re$uires individuals to change. 7. *esistance to change is !ound even %hen the goals o! change are highly desirable. 0. '!!ective change re$uires rein!orcing ne% behaviors, attitudes and organizational practices. "he !ollo%ing are the three stages o! changeB Unfree5ing "he !ocus o! this stage is to ma-e organization open to change. (n doing so individuals are encouraged to replace old behaviors and attitudes %ith those desired by management. Managers also need to devise %ays to reduce the barriers to change during this stage. "hanging "he !ocus o! this stage is in providing employees %ith ne% in!ormation, ne% behavioral models, or ne% %ays o! loo-ing at things. "he purpose is to help employees learn ne% concepts to implement change. *ole models, mentors, eCperts, benchmar-ing organization against %orld5class organizations and training are use!ul mechanisms to !acilitate change. /e free5ing "he !ocus o! this stage is stabilizing the change during re!reezing by helping employees integrate the changed behavior or attitude into their normal %ay o! doing things. "his is accomplished by !irst giving employees the chance to eChibit the ne% behaviors or attitudes. Once eChibited, positive rein!orcement is used to rein!orce the desired change. 8dditional coaching and modelling are also used at this point to rein!orce the stability o! the change. E=/ "4e4 ,!0'e** M04e6 Le%inEs model is very simple and straight!or%ard and virtually all models o! organizational change use his approach. ,o%ever, it does not deal %ith several important issues. 'Cpanded process model is illustrated in the !igure =A.=. "his model loo-s at planned change !rom the perspective o! top management. "he model incorporates Le%inEs concept as part o! the implementation phase.

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F#$2!e 2I.2 "op management according to this model perceives certain !orces or trends that call !or change and issues that are subFected to the organizationEs usual problem solving and decision5ma-ing processes. ;sually, the top management de!ines its goals in terms o! %hat the organization or certain processes, or outputs %ill be li-e a!ter the change. 8lternatives !or change are generated and evaluated and then an acceptable one is selected. RESISTANCE TO CHANGE 8lthough organizations initiate changes in order to adFust to the changes in their environments but people sometimes resist them. "here!ore, managers need to recognize the mani!estations o! resistance both in themselves and in others, i! they %ant to be more e!!ective in supporting change. +or eCample, managers can use the list given in !ollo%ing table.

8cceptance

'nthusiasm #ooperation #ooperation under pressure !rom management 8cceptance assive resignation (ndi!!erence

(ndi!!erence

8pathyB loss o! interest in the Fob &oing only %hat is ordered *egressive behavior )on5learning rotests 3or-ing to rule &oing as little as possible Slo%ing do%n ersonaH %ithdra%al Kincreased time o!! the FobL #ommitting DerrorsD Spoilage &eliberate sabotage

assive *esistance

8ctive *esistance

#+)

"he sources o! resistance to change %ithin organizations are classi!ied into organizational sources o! resistance and individual sources o! resistance. ORGANIZATIONAL SOURCES OF RESISTANCE 8ccording to &aniel 2antz and *obert L 2han, organizational sources o! resistance can be divided into !ollo%ing siC general groups. Over determination or structural inertia re!ers to the tendency o! an organizationEs rules, policies and structure to maintain the eCisting conditions and there!ore resist change even %hen change %ould bene!it the organization more than stability. 3hen an organization tries to change one o! its division or part o! the division %ithout recognizing the interdependence o! the division %ith other divisions o! the organization, then it is said to have a narro% !ocus o! change. O!ten a part o! division cannot be changed %ithout changing the %hole division. Group inertia may %ea-en an individualMs attempt to bring about change. *esistance may also ta-e the !orm o! threatened eCpertise i! the change lends to %ea-en special eCpertise built a!ter years o! eCperience. Organizational restructuring that involves reducing the number o! Fob categories o!ten meets this -ind o! resistance. 8ny change that may alter the po%er relationships %ithin an organization may meet the !orm o! resistance -no%n as Uthreatened po%erM. *esistance may occur %hen a change threatens $uantum o! resource allocation !rom one part o! the organization to another.

I"4#)#42 6 S02!'e* 0- Re*#*( "'e 8ccording to researchers, individuals have the !ollo%ing reasons !or resisting changeB Simple habits create a lot o! resistance. Most people pre!er to do their %or- the %ay they did it last %ee- rather than learn a ne% approach. erhaps the biggest cause o! employee resistance to change is uncertainty. (n the !ace o! impending change, employees are li-ely to become anCious and nervous. "hey %orry about their ability to meet ne% Fob demands there!ore, leading to !eeling o! Fob insecurity. Some people resist change to avoid !eeling o! loss. +or eCample, many organizations change interventions and alter %or- arrangements, thus disrupting eCisting social net%or-s. Social relationships are important to most people, so they resist any change that might adversely a!!ect those relationships. #hange may also threaten peopleEs !eelings o! !amiliarity and sel!5con!idence. eople may resist change because their perceptions o! underlying circumstances di!!er !rom the perceptions o! those %ho are promoting the change. <alerie Ste%art K./?:L, a British sychologist and business consultant, has listed the !ollo%ing characteristics o! people %ho are good at managing changes. .. "hey -no% clearly %hat they %ant to achieve. =. "hey can translate desires into practical action. :. "hey can propose changes not only !rom their o%n vie% point but also !rom that o! others. 7. "hey sho% reverence !or tradition and respect !or eCperience. 0. "hey are not discouraged by setbac-s. >. "hey harness circumstances to implement change. 1. "hey clearly eCplain change to people a!!ected by change. ?. "hey involve their sta!! in the management o! change and protect their security. /. "hey do not pile one change on another but %ait !or assimilation. .A. "hey present changes as a relational decision. ... "hey ma-e change by personally re%arding people, %herever possible. .=. "hey share maCimum in!ormation about possible outcomes. .:. "hey sho% that change is Urelated to business or FobM. .7. "hey have a history o! success!ul change. OVERCOMING RESISTANCE TO CHANGE Managers need not abandon planned change in the !ace o! resistance. Be!ore recommending speci!ic approaches to overcome resistance, there are three -ey conclusions that should be -ept in mind. +irst, an organization must be ready

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!or change. Second, the top management should in!orm the employees about the process o! change. "hird, the employees perceptions or interpretations o! a change should be considered. "he !ollo%ing methods o! overcoming5resistance to change are as !ollo%sB Participation: articipation is generally considered the most e!!ective techni$ue !or overcoming resistance to change. 'mployees %ho ta-e part in planning and implementing change are better able to understand the reasons !or the change than those %ho are not involved. "hey become committed to the change and ma-e it %or-. 'mployees %ho have the opportunity to eCpress their o%n ideas and to understand the perspectives o! others are li-ely to accept change grace!ully. (t is a time consuming process. E#ucation an# "ommunication: 'ducating employees about the need !or and the eCpected results o! an impending change help reduce their resistance. Managers should maintain an open channel o! communication %hile planning and implementing change. ,o%ever, it is also a time consuming process. ,acilitation of "hange: 2no%ing ahead o! lime that employees are li-ely to resist change then the manager should do as much as possible to help them cope %ith uncertainly and !eeling o! loss. (ntroducing change gradually, ma-ing only necessary changes, announcing changes in advance and allo%ing time !or people to adFust to ne% %ays o! doing things can help reduce resistance. ,orce!,iel# Analysis: (n almost any situation %here a change is being planned, there are !orces acting !or and against the change. (n !orce5!ield analysis, the manager list each set o! !orces and then try to remove or minimize some o! the !orces acting against the change. Negotiation: 3here someone or some group %ill clearly lose out in a change and %here that group has considerable po%er to resist, there negotiation is re$uired. Sometimes it is a relatively easy %ay to avoid maFor resistance. )anipulation an# "ooperation: "his is !ollo%ed %hen other tactics %ill not %or- or are too eCpensive. (t can be $uic- and ineCpensive, ,o%ever, it can lead to !urther problems i! people !eel manipulated. E1plicit an# Implicit "oercion: "his is adopted %here speed is essential and %here the change initiators possess considerable po%er. (t is speedy and can overcome resistance. 'ach o! the above methods has its advantages and disadvantages. "here is no universal strategy !or overcoming resistance to change. ,ence, an organization that plans to introduce certain changes must be prepared to !ace resistance !rom its employees. 8n organization should also have a planned approach to overcome such resistances. ORGANIZATIONAL DEVELO,MENT "he term Organizational &evelopment KO&L re!ers to a broad range o! behavioral science based strategies used to diagnose the need !or change in organizations and to implement changes %hen necessary. O& can be de!ined as a techni$ue !or bringing change in the entire organization, rather man !ocusing attention on individuals to bring change easily in the entire organization. N (2!e 0- OD O& is a general strategy or approach to organizational change mat is employed to analyze and diagnose the sources o! organizational problems and to develop and implement action plans !or their solution. 8ccording to Bennis, O& has the !ollo%ing characteristics; (t is an educational strategy !or bringing planned change. (t relates to real problems o! an organization. Laboratory training methods based on eCperienced behavior are primarily used to bring change. #hange agent applying O& techni$ue !or change is eCternal to the !orms o! consultants. "here is a close %or-ing relationship bet%een change agents and the people %ho are being changed. "he relationships involve mutual trust, Foint goals, means, and mutual in!luence. "he change agents share social philosophy about human value. "hey are humanists see-ing to get a humanistic philosophy in organization. OD I"(e!)e"(#0"* O& interventions re!er to various activities %hich consultant and client organization per!orm !or improving organizational !unctioning by enabling organization members to better manage their team and organization cultures. +rench and 3ell have de!ined O& interventions as Dsets o! structured activities in %hich selected organizational units Ktarget groups or individualsL engage %ith a tas- or a se$uence o! tas-s %here the tas- goals are related directly or indirectly to organizational improvement. (nterventions constitute the action thrust o! organization development; they ma-e things happen and are %hat is happening.V I"(e!)e"(#0" Te'1"#H2e* Sensitivity "raining

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rocess #onsultation "eam &evelopment Grid Organization &evelopment

Sensitivity Training: Sensitivity training is a small5group interaction under stress in an unstructured encounter group, %hich re$uires people to become sensitive to one anotherEs !eelings in order to develop reasonable group activity. (n sensitivity training, the actual techni$ue employed is "5group. "5group has several characteristic !eaturesB "he "5group is generally small, !rom ten to t%enty members "he group begins its activity %ith no !ormal agenda "he primary role o! trainer is to call attention o! members !rom time to time lo the ongoing process %ithin the group "he procedure lends to develop introspection and sel!5eCamination, %ith emotional levels o! involvement and behavior. "he obFectives o! such training are increased openness %ith others, more concern !or others, increased tolerance !or individual di!!erences, less ethnic preFudice, understanding o! a group process, enhanced listening s-ills and increased trust and support. Process "onsultation: rocess #onsultation K 5#L represents a method o! intervening in an ongoing system. "he basic content o! 5# is that the consultant %or-s %ith individuals and groups to help them learn about human and social processes and learn to solve problems that stem !rom process events. 5# consists o! many interventions and activities %hich a!!ect the various organizational processes such as. communication, roles and !unctions o! group members, group problem5solving and decision5ma-ing, group norms, authority and leadership and inter5group cooperation and con!licts. Team $evelopment: "he underlying aim o! team development is to increase trust among team members because people %or- better together %hen there is open and honest sharing about the problems and di!!iculties that they have %ith one another. 8s such, at the initial level, the attempt should be to develop such an environment %here such trust can be developed among the team members Gri# 'rgani5ation $evelopment: Grid organization development, developed by Bla-e and Mounton, is a comprehensive and systematic O& rogram. "he rogram aims at individuals, groups and the organization as a %hole. (t utilizes a considerable number o! instruments, enabling individuals and groups to assess their o%n strength and %ea-nesses. (t also !ocuses on s-ills, -no%ledge and processes necessary !or e!!ectiveness at the individual, group and inter5group and total organization levels. (n addition to these people !ocused interventions, there may be other types o! interventions too. e.g. structural and Fob interventions such as Fob enlargement, Fob enrichment, management by obFectives, rules, procedures and authority structure. O& o!!ers some very attractive methodologies and philosophies to practicing managers and academicians. 3illiam ,alal is right %hen he says DO& in !uture includes any method !or modi!ying the behavior in the organization, hereby, encompassing the entire spectrum o! applied behavioral scienceD. "here also have been eCperiences o! !ailure in O& but these are being recorded and collected to be revie%ed. (n general, O& sho%s a promising !uture, since there are no rigid sets o! procedures in O& %or- and di!!erent strategies have to be evolved !or di!!erent types o! organizations.

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MODEL <UESTION ,A,ER ORGANIZATIONAL BEHAVIOR T#.e9 3 H02!* M =. M !>*9 1II SECTION;A D5=@ L 4IE A"*3e! "5 F#)e H2e*(#0"* Note: All 9uestions carry e9ual mur0s .. 3hat do you understand by organizational behaviorJ Bring out its nature and importance. =. &iscuss the personality attributes in organization. :. 3hat is the organizational designJ 3hat are its !ormsJ 7. 3hat is group cohesivenessJ 3hat are its determinantsJ 0. 3hat are the !orms o! organizational communicationsJ >. 3hat are the sources o! po%erJ 1. 3hat are the causes o! stressJ ?. 3hat is organizational cultureJ ,o% it a!!ects the behavior o! the peopleJ SECTION; .. =. :. 7. 0. >. B D4=15 L 6IE A"*3e! "5 -02! H2e*(#0"*

#ompare the Maslo%Es "heory %ith '*G "heory o! Motivation. 3hat are the barriers to e!!ective communicationJ ,o% to overcome those barriersJ 3hat are the techni$ues o! managing political behaviorJ State the conse$uences o! stress and method o! managing the stress. Suggest strategies to resolve inter5group con!licts. 3hy do people resist changeJ 8s a manager ho% %ould you overcome such resistanceJ

MODEL <UESTION ,A,ER ORGANIZATIONAL BEHAVIOR T#.e9 3 H02!* M =. M !>*9 1II SECTION;A D5=@ L 4IE A"*3e! "5 F#)e H2e*(#0"* Note: All 9uestions carry e9ual mur0s /. 3hat do you understand by organizational behaviorJ Bring out its nature and importance. .A. &iscuss the personality attributes in organization. ... 3hat is the organizational designJ 3hat are its !ormsJ .=. 3hat is group cohesivenessJ 3hat are its determinantsJ .:. 3hat are the !orms o! organizational communicationsJ .7. 3hat are the sources o! po%erJ .0. 3hat are the causes o! stressJ .>. 3hat is organizational cultureJ ,o% it a!!ects the behavior o! the peopleJ SECTION; 1. ?. /. .A. ... .=. B D4=15 L 6IE A"*3e! "5 -02! H2e*(#0"*

#ompare the Maslo%Es "heory %ith '*G "heory o! Motivation. 3hat are the barriers to e!!ective communicationJ ,o% to overcome those barriersJ 3hat are the techni$ues o! managing political behaviorJ State the conse$uences o! stress and method o! managing the stress. Suggest strategies to resolve inter5group con!licts. 3hy do people resist changeJ 8s a manager ho% %ould you overcome such resistanceJ

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#1,2