ORGANISATIONAL BEHAVIOUR

(Prepared for CS entrance level)

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ORGANISATIONAL BEHAVIOUR
S$LLABUS
UNIT 1 Introduction to Organizational Behavior, Meaning; Elements; Need; Approaches; Models;
Global scenario.
UNIT 2 Individual Behavior; ersonalit!; "earning; Attitudes; erception; Motivation; Abilit!; #heir relevant
organizational behavior.
UNIT % Group dynamics; Group norms; Group cohesiveness;
Group Balance to organizational behavior.
UNIT & Leadership Styles; Qualities; Organizational communication; Meaning importance, process, barriers;
Methods to reduce barriers; rinciple o! e!!ective communication.
UNIT ' Stress; Meaning; "ypes; Sources; #onse$uences; Management o! stress. o%er and olitics;
&e!inition; "ypes o! o%ers; Sources; #haracteristics; '!!ective use o! o%er.
UNIT ( Organizational &ynamics; Organizational design; Organizational e!!ectiveness; Meaning, approaches;
Organizational culture; Meaning, signi!icance; Organizational #limate; (mplications on organizational
behavior.
Organizational #hange; Meaning; )ature; #auses o! change; *esistance o! change; Management o!
change; Organizational development; Meaning; O& (nterventions.
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CONTENTS

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LESSON ) *
INTRO+UCTION TO ORGANI,ATIONAL BEHAVIOUR
"he >no%ledge and in!ormation e?plosion, 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 comple? challenges. 9et
the simple but most pro!ound solution may be !ound in the %ords o! Sam =alton, the richest person in the %orld and
the !ounder o! =al@Mart. Sam %as once as>ed the >ey to success!ul organizations and management. Sam $uic>ly
replied, Aeople are the >eyA.
"he term paradigm comes !rom the Gree> %ord BparadigmaB, %hich means BBmodel, pattern or e?ampleA. 3irst
introduced over thirty years ago, by the philosophy and science historian "homas -hun, the term AparadigmA 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- PARA+IG#
"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! second@generation in!ormation technology and total $uality management
such as empo%erment, reengineering and benchmar>ing, and learning organization !or managing diversity o! %or>. "he
ne% paradigm sets the stage !or the study, understanding, and application o! the time@tested micro@variables, dynamics
and macro@variables. One must >no% %hy management needs a ne% perspective to meet the environmental
challenges and to shi!t to a ne% paradigm.
A NE- PERSPECTIVE .OR #ANAGE#ENT
Management is generally considered to have three maCor dimensionsDtechnical, conceptual and human. "he technical
dimension consists o! the managerBs e?pertise in particular !unctional areas. "hey >no% the re$uirements o! the Cobs
and have the !unctional >no%ledge to get the Cob done. But the practicing managers ignore the conceptual and human
dimensions o! their Cobs.
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 e?tremely comple? and that there is a need !or theoretical understanding given by empirical research
be!ore applications can be made !or managing people e!!ectively.
#O+ERN APPROACH TO ORGANI,ATIONAL 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 comple? process. (! one aims to manage an organization, it is necessary
to understand its operation. Organization is the combination o! science and people. =hile 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 BAC/GROUN+ .OR #O+ERN ORGANI,ATIONAL BEHAVIOUR
Sc0ent0f0c #ana1e2ent Approac3
Scienti!ic management approach %as developed by 3.=. "aylor at the beginning o! the 2;th century. "his theory
supported the use o! certain steps in scienti!ically studying each element o! a Cob, selecting and training the best
%or>ers !or the Cob arid ma>ing sure that the %or>ers !ollo% the prescribed method o! doing the Cob. (t provided a
scienti!ic rationale !or Cob 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.
9et, his theory %as criticized by many employers and %or>ers. =or>ers obCected 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
responding to management incentives. "here!ore, "aylorBs vie% is no% considered inade$uate and narro% due to the
points given by the critics.
Breacrat0c Approac3
=hile scienti!ic management %as !ocusing on the interaction bet%een %or>ers and the tas>, me researchers %ere
studying ho% to structure the organization more e!!ectively. (nstead o! trying to ma>e each %or>er more e!!icient,
classical organization theory sought the most e!!ective overall organizational structure !or %or>ers and managers.
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"he theoryBs most prominent advocate, Ma? =eber, proposed a Bbureaucratic !ormB o! structure, %hich he
thought %ould %or> !or all organizations. =eberBs ideaE bureaucracy %as , logical, rational and e!!icient. /e made the
naive assumption that one structure %ould %or> best !or all organizations.
/enry 3ord, /enry 3ayol and 3rederic> =. "aylor, the early management pioneers, recognized the behavioral
side o! management. /o%ever, they did not emphasize the human dimensions. ,lthough there %ere varied and
comple? reasons !or the emerging importance o! behavioral approach to management, it is generally recognized that
the /a%thorne studies mar> the historical roots !or the !ield o! organizational behaviour.
Ha4t3orne Std0e5
'ven, as "aylor and =eber brought attention %ith their rational, logical approaches to more e!!icient productivity, their
vie%s %ere criticized on the ground that both approaches ignored %or>erBs humanity.
"he real beginning o! applied research in the area o! organizational behaviour started %ith /a%thorne
'?periments. (n .:21, a group o! pro!essors began an en$uiry into the human aspects o! %or> and %or>ing conditions
at the /a%thorne plant o! =estern 'lectric #ompany, #hicago. "he !indings o! these studies %ere given a ne% name
Bhuman relationsB 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>.
APPROACHES TO ORGANI,ATIONAL BEHAVIOUR
"here are mainly !our approaches to organizational behaviour. "hey areF
G /uman resources approach B
G #ontingency approach
G roductivity approach
G Systems approach
H2an Re5orce5 Approac3
"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 Bsupportive approachB because the
managerBs primary role changes !rom control o! employees to providing an active support !or their gro%th and
per!ormance.
A Cont0n1enc6 Approac3
, 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 e?ist 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.
Prodct0v0t6 Approac3
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.
S65te25 Approac3
, 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. =ithin the organization BpeopleB employ BtechnologyB in per!orming the Btas>B that
they are responsible !or, %hile the BstructureB o! the organization serves as a basis !or co@ordinating all their di!!erent
activities. "he systems vie% emphasizes the interdependence o! each o! these elements %ithin the organization, i! the
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 %aysF $irst, the organization
re$uires BinputsB !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 Btrans!ormationB 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.
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=ithin 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 e?ist.
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.
Interd05c0pl0nar6 Approac3
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%ingF
=hat !acilitates accurate perception and attributionH
=hat in!luences individual, group and organizational learning and the development o! individual attitudes
to%ard .%or>H
/o% do individual di!!erences in personality, personal development, and career development a!!ect individualBs
behaviours and attitudesH
=hat motivates people to %or>, and ho%. does the organizational re%ard system in!luence %or>erBs behaviour
and attitudesH
/o% do managers build e!!ective teamsH
=hat contributes to e!!ective decision@ma>ingH
=hat are the constituents o! e!!ective communicationH
=hat are the characteristics o! e!!ective communicationH
/o% can po%er be secured and used productivelyH
=hat !actors contribute to e!!ective negotiationsH
/o% can con!lict Ibet%een groups or bet%een a manager and subordinatesJ be resolved or managedH
/o% can Cobs and organizations be e!!ectively designedH
/o% can managers help %or>ers deal e!!ectively %ith changeH
An Appl0ed Sc0ence
"he basic obCective o! organizational behaviour is to ma>e application o! various researches to solve the organizational
problems, particularly related to the human behavioral aspect.
Nor2at0ve and Vale Centered
Organizational behaviour is a normative science. , 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.
H2an05t0c and Opt0205t0c
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! highB concern. 3urther, there is optimism about the innate potential o! man to be
independent, creative, predictive and capable o! contributing positively to the obCectives o! the organization.
Or0ented to4ard5 Or1an07at0onal O89ect0ve5
Organizational behaviour is oriented to%ards organizational obCectives. (n !act, organizational behaviour tries to
integrate both individual and organizational obCectives so that both are achieved simultaneously.
A Total S65te2 Approac3
,n individualBs behaviour can be analyzed >eeping in vie% his psychological !rame%or>, interpersonal@orientation,
group in!luence and social and cultural !actors; "hus, individualBs nature is $uite comple? and organizational behaviour
by applying systems approach tries to !ind solutions !or this comple?ity.
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LESSON ):
.OUN+ATION O. ORGANISATIONAL BEHAVIOUR
+E.INITION O. #ANAGE#ENT
Management is commonly de!ined as AGetting %or> done through other peopleA. "his simple de!inition e?plains the
signi!icance o! the role o! people. "he %or> %ill not be done unless ApeopleA %ant to do the %or> and i! the %or> is not
done then there %ill be no organisation. /ence, the cooperation o! the %or>ers is crucial to the success or !ailure o! the
organisation.
+E.INITION O. ORGANISATION
,ccording to Gary <ohns, AOrganisations are social inventions !or accomplishing goals through group e!!ortsA. "his
de!inition covers %ide variety@o! groups such as businesses, schools, hospitals, !raternal groups, religious bodies,
government agencies and so on. "here are three signi!icant aspects in the above de!inition, %hich re$uire !urther
analysis. "hey are as !ollo%sF
Social Inventions: "he %ord AsocialA as a derivative o! society basically means gathering o! people. (t is the
people that primarily ma>e up an organisation.
Accomplishing Goals: ,ll organisations have reasons !or their e?istence. "hese reasons are the goals
to%ards %hich all organisational e!!orts are directed. =hile the primary goal .o! any commercial organisation is
to ma>e money !or its o%ners, this goal is inter@related %ith many other goals. ,ccordingly, 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 inter@dependent. (ndividuals in themselves have physical and intellectual limitations and
these limitations can only be overcome by group e!!orts.
#EANING AN+ +E.INITION O. ORGANISATIONAL BEHAVIOUR
Organisational behaviour is concerned %ith peopleBs 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>.
,s )adler and "ushman put it, A+nderstanding one individualBs 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 comple?. +ltimately, the organisationBs %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>Da tas> that involves the capacity to AunderstandA the behaviour patterns o! individuals,
groups and organisations, to BBpredictBA %hat behavioural responses %ill be elicited by various managerial actions and
!inally to use this understanding and these predictions to achieve AcontrolA.
Organisational behaviour can then be de!ined asF A"he study o! human behaviour in organisational settings, the
inter!ace bet%een human behaviour and the organisational conte?t, and the organisation itsel!.A
"he above de!inition has three partsDthe individual behaviour, the organisation and the Iinter!ace bet%een the
t%o. 'ach individual brings to an organisation a uni$ue set o! belie!s, values, attitudes and other personal
characteristics and these characteristics o! all individuals must interact %ith each other in order to create organisational
settings. "he organisational behaviour is speci!ically concerned %ith %or>@related behaviour, %hich ta>es place in
organisations.
(n addition to understanding; the on@going behavioural processes involved, in Btheir o%n Cobs, managers must
understand the basic human element o! their %or>. Organisational behaviour o!!ers three maCor %ays o! understanding
this conte?t; people as organisations, people as resources and people as people.
,bove all, organisations are people; and %ithout people there %ould be no organisations. "hus, i! managers are
to understand the organisations in %hich they %or>, they must !irst understand the people %ho ma>e up the
organisations.
,s resources, people are one o! the organisationBs most valuable assets. eople create the organisation, guide
and direct its course, and vitalise and revitalise it. eople ma>e the decisions, solve the problems, and ans%er the
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$uestions. ,s 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 comple?ities o! organisational behaviour.
3inally, there is people as people @ 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 e?pect
something in return beyond %ages and bene!its. "hey have a right to e?pect satis!action and to learn ne% s>ills. ,n
understanding o! organisational behaviour can help the manager better appreciate the variety o! individual needs andB
e?pectations.
Organisational behaviour is concerned %ith the characteristics and behaviours o! employees in isolation; the
characteristics and processes that are part o! the organisation itsel!; Band 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 individualKs behaviour completely %ithout learning something about that individualBs organisation.
Similarly, he cannot understand ho% the organisation operates %ithout; studying the people %ho@ma>e it up. "hus, the
organisation in!luences and is in!luenced by individuals.
ELE#ENTS O. 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 obCectives.
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! Cobs and they need to be Ielated in some structural %ay so that
their %or> can be e!!ectively co@ordinated.
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 restrictsB people in various %ays.
Environment: ,ll organisations operate %ithin an e?ternal environment. (t is the part o! a larger system that
contains many other elements such as government, !amily and other organisations. ,ll o! these mutually
in!luence each other in a comple? system that creates a conte?t !or a group o! people.
NATURE O. ORGANISATIONAL BEHAVIOUR
'ach individual brings to an organisation a uni$ue set o! personal characteristics, e?periences !rom other organisation,
the environment surrounding the organisation and
.
they also posses a personal bac>ground. (n considering the people
%or>ing in an organisation, organisational behaviour must loo> at the uni$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, co@%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 e?periences 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.
,n organisation, characteristically, e?ists be!ore a particular person Coins it and continues to e?ist a!ter he
leaves it. "hus, the organisation itsel! represents a crucial third perspective !rom %hich to vie% organisational
behaviour.
NEE+ .OR STU+$ING ORGANISATIONAL BEHAVIOUR
"he rules o! %or> are di!!erent !rom the rules o! play. "he uni$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.
#ore 5pec0f0call6; or1an05at0onal 8e3av0or 5erve5 t3ree prpo5e5<
=hat causes behaviourH
=hy particular antecedents cause behaviourH
=hich antecedents o! behaviour can be controlled directly and %hich are beyond controlH
, 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
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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 comple? and di!!erent behaviour puzzles o!
organisations. (t is only the intelligent Cudgement o! the manager in dealing %ith a speci!ic issue that can try to solve the
problem. Organisational behaviour only assists in ma>ing Cudgements that are derived !rom tenable assumptions;
Cudgement that ta>es into account the important variables underlying the situation; Cudgement that are assigned due
recognition to the comple?ity o! individual or group behaviour; Cudgement that e?plicitly ta>es into account the managers
o%n goals, motives, hang@ups, blind spots and %ea>nesses.
I#PORTANCE O. ORGANISATIONAL BEHAVIOUR
Organisational behaviour o!!ers several ideas to management as to ho% human !actor should be properly emphasised
to achieve organisational obCectives. 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 inter@group level.
Organisational behaviour helps to analyse B%hyB and Bho%B an individual behaves in a particular %ay. /uman
behaviour is a comple? phenomenon and is a!!ected by a large number o! !actors including the psychological, social
and cultural implications. Organisational behaviour integrates these !actors to provideL simplicity in understanding the
human behaviour.
Interpersonal evel: /uman behaviour can be understood at the level o! interpersonal interaction.
Organisational behaviour provides G means !or understanding the interpersonal relationships in an organisation.
,nalysis 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 comple? relationships to build
their process and substance. +nderstanding the e!!ect o! group relationships is important !or managers in
todayBs organisation. (nter@group relationship may be in the !orm o! co@operation or competition.
"he co@operative relationships help the organisation in achieving its obCectives. Organisational behaviour provides
means to understand and achieve co@operative group relationships through interaction, rotation o! members among
groups, avoidance o! %in@lose situation and !ocussing on total group obCectives.
"ontrolling an# $irecting %ehaviour: ,!ter understanding the mechanism o! human behaviour, managers
are re$uired to control and direct the behaviour so that it con!orms to the standards re$uired !or achieving the
organisational obCectives. "hus, managers are re$uired to control and direct the behaviour at all levels o!
individual interaction. "here!ore, organisational behaviour helps managers in controlling and directing in
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 e?plains ho% various means o!
po%er and sanction can ,be utilised so that both organisational and individual obCectives 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.
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"ommunication: #ommunication helps people to come in contact %ith each other. "o achieve organisational
obCectives, the communication must be e!!ective. "he communication process and its %or> in inter@personal
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$uate compensation, organisational climate includes creation o! an
atmosphere o! e!!ective supervision; the opportunity !or the realisation o! personal goals, congenial relations
%ith others at the %or> place and a sense o! accomplishment.
'rganisational A#aptation: Organisations, as dynamic entities are characterised by pervasive changes.
Organisations have to adapt themselves to the environmental changes by ma>ing suitable, internal
arrangements such as convincing employees %ho normally have the tendency o! resisting any changes.
LEVELS O. ANAL$SIS
Organisational behaviour can be vie%ed !rom di!!erent perspectives or levels o! analysis. ,t one level, the organisation
can be vie%ed as consisting o! individuals %or>ing on tas>s in the pursuit o! the organisational goals. , second level o!
analysis !ocuses upon the interaction among organisational members as they %or> inB teams, groups and departments.
3inally, 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 e?plains %hy individuals behave and react the %ay they do to di!!erent organisational policies,
practices and procedures. =ithin 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. 3actors such as attitudes, belie!s, perceptions and personalities are ta>en into account and
their impact upon individualsK behaviour and per!ormance on the Cob 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 groupsH =hat !actors determine %hether
group %ill be cohesive and productiveH =hat types o! tas>s could be assigned to groupsH "hese are some o!
the $uestions that can be as>ed about the e!!ective !unctioning o! groups in organisations. ,n important
component o! organisational behaviour involves the application o! >no%ledge and theories !rom social
psychology to the study o! groups in organisations.
'rganisation at the 'rganisational evel: Some organisational behaviour researchers ta>e the organisation
as a %hole as their obCect o! study. "his C macro perspective on organisational behaviour dra%s heavily on
theories and concepts !rom the discipline o! BsociologyB. *esearchers see> to understand the implications o! the
relationship bet%een the organisation and its environment !or the e!!ectiveness o! the organisation. 'mphasis is
placed upon understanding ho% organisational structure and design in!luences the e!!ectiveness o! an
organisation. Other !actors such as the technology employed by the organisation, the size o! the organisation
and the organisationBs age are also e?amined and their implications !or e!!ective organisational !unctioning are
e?plored.
"hese di!!erent perspectives on the study o! organisational behaviour are not in con!lict %ith one another. (nstead they
are complementary. , !ull and complete understanding o! the nature o! organisations and the determinants o! their
e!!ectiveness re$uires a blending o! >no%ledge derived !rom each perspective.
.UN+A#ENTAL CONCEPTS O. ORGANISATIONAL BEHAVIOUR
Organisational behaviour starts %ith the !ollo%ing si? !undamental concepts revolving around the nature o! people and
organisationsF
"he nature o! peopleF
(ndividual di!!erences
, %hole person
Motivated behaviour
0alue o! the person
"he nature o! organisationF
Social system
Mutual interest
In#ivi#ual $ifferences: (ndividuals are di!!erent in their physical and mental traits. "hey are di!!erent not only
in the physical appearance such as se?, age, height, %eight, comple?ion and so on but also di!!erent in their
psychological trait such as intelligence, attitude, motivation and perception. "his belie! that each person is
di!!erent !rom all others is typically called the BLa% o! (ndividual &i!!erencesB. (ndividual di!!erences mean that
the management has to treat them di!!erently to get the best out o! them.
#1,
A (hole Person: "hough the organisation may !eel that they are employing only the individualBs s>ill or
intelligence, in !act, they employ the B%hole personB. "his means that individual does not have only the s>ill and
intelligence but he has a personal li!e, needs and desires as %ell. (n other %ords, his personal li!e cannot be
separated !rom his %or> li!e since people !unction as total human beings.
=hen management practices organisational behaviour, it is not only trying to develop a better employee but it also
%ants to develop a Bbetter personB in terms o! all round gro%th and development. "he bene!it %ill e?tend beyond the
!irm into the larger society in %hich each employee lives.
)otivate# *ehaviour: (t is the urge o! the individual to satis!y a particular need that motivates him to do an act.
"he motivation could be positive or negative.
Motivation is essential !or the proper !unctioning o! organisations. "he organisation can sho% to its employees
ho% certain actions %ill increase their need !ul!ilment.
+alue of the Person: (t is more an ethical philosophy. (t stresses that people are to be treated %ith respect and
dignity. 'very Cob, ho%ever simple, entitles the people %ho do it to proper respect and recognition o! their
uni$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! tCie description o! !ollo%ing t%o pointsF
Social System: , system is a group o! independent and interrelated elements comprising a uni!ied %hole. (n
conte?t %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 categoriesF
o ,eu#al system: "his is a social system, %hich is developed in 'urope in the 8th #entury. , 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.
o 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.
o )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.
o )eritocracy: "his is a social system, in %hich po%er vests in the hands o! the person %ith superior intellects.
o "lass Structure: "his is a social system o! di!!erent classes %ith in a society.
o 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 obCectives. (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.
-olistic 'rganisational %ehaviour: =hen the above si? concepts o! organisational behaviour are considered
together, they provide a holistic concept o! the subCect. /olistic organisational behaviour interprets people@organisation
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.
#11
LESSON )%
#odel5 of or1an07at0onal 8e3av0or
Organizations have undergone tremendous change in the behaviour o! their employeeBs. '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 e?perimenting %ith ne% %ays to attract and motivate
their employees.
CONCEPT O. ORGANI,ATIONAL BEHAVIOUR S$STE#
Organizations achieve their goals by creating, communicating and operating an organizational behaviour system.
Organizational behaviour system de!ines organizational structure and culture and e?plains their impact on employees.
"he !igure 5.. sho%s the maCor elements o! a good organizational behaviour systemF
"hese systems e?ist 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 e?amined and updated to meet ne% and emerging
conditions. "he primary advantage o! organizational behaviour system is to identi!y the maCor human and organizational
variables that a!!ect organizational outcomes. 3or some variables managers can only be a%are o! them and
ac>no%ledge their impact %hereas !or other variables, managers can e?ert 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 e?ist 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 e?amined and updated to meet ne% and
emerging conditions. "he primary advantage o! organizational behaviour system is to identi!y the maCor human and
organizational variables that a!!ect organizational outcomes. 3or some variables managers can only be a%are o! them
and ac>no%ledge their impact %hereas !or other variables, managers can e?ert some control over them. "he outcomes
arc measured in terms o! $uantity and $uality o! products and services, level o! customer service, employee satis!action
and personal gro%th and development.
ELE#ENTS O. THE S$STE#
"he systemBs base rests in the !undamental belie!s and intentions o! those %ho Coin 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 e?plicit and occasionally implicit, in the minds managers.
Organizations di!!er in the $uality o! organizational behaviour that they develop. "hese di!!erences are
substantially caused by di!!erent models o! organizational behaviour that dominant managementBs thought in each
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organization. "he model that a manager holds usually begins %ith certain assumptions about people and thereby leads
to certain interpretations o! organizational events.
"he !ollo%ing !our models o! organizational behaviour are as !ollo%sF ,. ,utocratic model
B. #ustodial model
#. Supportive model
&. #ollegial model
Atocrat0c #odel
(n an autocratic modelB, the manager has the po%er to command his subordinates to do a speci!ic Cob. Management
believes that it >no%s %hat is best !or an organization and there!ore, employees are re$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.
C5tod0al #odel
"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. ,s a result o! economic re%ards and bene!its, employees are happy and contented
but they are not strongly motivated.
Spport0ve #odel
"he supportive model depends on BleadershipB 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, managementBs direction is to BSupportB the employeeBs Cob per!ormance rather than to BsupportB 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.
Colle10al #odel
"he term BcollegialB 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 Coint 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 Bsel!@
disciplineB. (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 employeesB per!ormance.
.OUR #O+ELS O. ORGANI,ATIONAL BEHAVIOUR
Autocratic "usto#ial Supportive "ollegial
Basis o! Model o%er 'conomic
resources
Leadership artnership
Managerial@
orientation
,uthority Money Support "eam%or>
'mployee
psychological
result
&ependence on
boss
&ependence on
organization
articipation Sel!@discipline
'mployee needs
met
Subsistence Security Status and
recognition
Sel!@actualization
er!ormance
result
Minimum assive
cooperation
,%a>ened
drives
Moderate enthusiasm
(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.
"he selection o! model by a manager is determined by a number o! !actors such as, the e?isting philosophy,
vision and goals o! manager. (n addition, environmental conditions help in determining %hich model %ill be the most
e!!ective model.
I#PORTANCE O. ORGANI,ATIONAL BEHAVIOUR TO #ANAGERS
Managers per!orm !our maCor !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 .:6;s a!ter a care!ul study o! e?ecutives at %or>. ,ll these
roles, in one !orm or other deal %ith people and their behaviour. "hese ten managerial roles are divided into three
#13
categories. "he !irst category called the interpersonal roles arises directly !rom the managerBs 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. 3igure 5.2 sho%s the categories o!
managerial roles.
"he roles, in the conte?t o! organizational behaviour, are as !ollo%sF
Interper5onal Role5
(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. ,ll these interactions re$uire an understanding o! interpersonal behaviour.
Studies sho% that interacting %ith people ta>es up nearly 8;M o! a managerBs time. "hese interactions involve the
!ollo%ing three maCor interpersonal rolesF
,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
subordinateBs %edding and spea>ing at !unctions in schools and churches. ,ll 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>@related 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 e?ternal environment
o! competition, social changes or changes in governmental rules and regulations. (n this role, the managers
build up their o%n e?ternal in!ormation system. "his can be achieved by attending meetings and pro!essional
con!erences, personal phone calls, trade Cournals and in!ormal personal contacts %ith outside agencies.
Infor2at0on Role5
, 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 e?ecutes the !ollo%ing three roles.
)onitor /ole: "he managers are constantly monitoring and scanning their internal and e?ternal 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.
#14
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: , 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.
+ec050on Role5
, 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 bo?es, holding
strategy meetings %ith proCect managers and *N& personnel.
"onflict -an#ling /ole: "he managers are constantly involved as Cudge 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 proCects 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.
,ll these ten roles are important in a managerBs Cob and are interrelated, even though some roles may be more
in!luential than others depending upon the managerial position. 3or e?ample, sales manager gives more importance to
interpersonal roles, %hile the production manager may give more importance to decisional roles.
LI#ITATIONS O. ORGANI,ATIONAL 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 Bbehavioral basisB, %hich gives them a narro% vie%
point, i.e., a tunnel vision that emphasizes on satis!ying employee e?periences %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. =hen that point is e?ceeded,
there is a decline in returns. 3or e?ample, too much security may lead to less employee initiative and gro%th.
"his relationship sho%s that organizational e!!ectiveness is achieved not by ma?imizing one human variable but
by %or>ing all system variables together in a balanced %ay.

, 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.
.UTURE O. ORGANI,ATIONAL 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. ,s 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.
,lthough 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 maCor social problems.
(n this %ay organizational behaviour %ill contribute to social improvements. (mproved organizational behaviour is not
easy to apply but opportunities are there. (t should produce a higher $uality o! li!e in %hich there is improved harmony
%ithin each individual, among people and among the organizations o! !uture.
RUPA/
#15
LESSON ) &
GLOBAL SCENARIO O. ORGANI,ATIONAL BEHAVIOUR
&ue to globalization o! economy, many organizations no% operate in more than one country. "hese multinational
operations add ne% dimensions to organizational behaviour. (t is a step into di!!erent social, political and economic
environments. "here!ore, communication and control becomes di!!icult. "he social, political and economic di!!erences
among countriesA in!luence international organizational behaviour.
SOCIAL CON+ITIONS
(n many countries due to poorly developed resources, there is shortage o! managerial personnel, scientists and
technicians. /ence the re$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.
,nother signi!icant social condition in many countries is that the local culture is not !amiliar %ith advanced
technology. , !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.
POLITICAL CON+ITIONS
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!@su!!iciency in latest technologies. =hen 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. 3or e?ample, %or>ersB participation in management are restricted by la% %hile in other countries they
are permitted.
ECONO#IC CON+ITIONS
"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 socio@economic and political conditions e?isting in countries in!luence the introduction o!
advanced technology and sophisticated organizational systems. , 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.
#ANAGING AN INTERNATIONAL -OR/.ORCE
=henever an organization e?pands 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 adCust
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 adCust 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.
Barr0er5 to Cltral Adaptat0on
Managers and other employees %ho come into a host country tend to e?hibit 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, BparochialB.
,nother category o! managers called BindividualisticB place greatest emphasis on their personal needs and
%el!are. "hey are more concerned about themselves than the host country.
,nother potential barrier to easy adaptation o! another culture occurs, %hen@people are predisposed to believe
that their homeland conditions are the@best. "his predisposition is >no%n as the Bsel!@re!erence criterionB or
BethnocentrismB. "his !eeling inter!eres %ith understanding humanF 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
#1(
t%o social systems. =hatever may be the amount o! cultural distance, it does a!!ect the responses o! all individuals to
business. "he managerBs Cob is to ma>e the employees adapt to the other culture and integrate the interests o! the
various cultures involved.
"ultural Shoc0
=hen 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!@con!idence or
may become emotionally upset. #ultural shoc> is virtually universal. Some o! the more !re$uent reasons !or cultural
shoc> are as !ollo%sF
&i!!erent management philosophies
)e% language
,lternative !ood, dress, availability o! goods
,ttitude to%ards %or> and productivity
Separation !rom !amily, !riends and colleagues
+ni$ue currency system
Many e?patriates report di!!iculty in adCusting to di!!erent human resource management philosophies, the language,
the di!!erent currency and %or> attitudes in another culture.
Overco20n1 Barr0er5 to Cltral Adaptat0on
#are!ul selection; o! employees, %ho can %ithstandOadCust cultural shoc>s !or international assignmentsL is
important.
re@departure 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. ,!ter adCusting to the culture o! another nation and enCoying its uni$ueness, it is
di!!icult !or e?patriates to re@adCust to the surroundings o! their home country. /ence, organizations need
repatriation policies and programs to help returning employees obtain suitable assignments and adCust to the
Bne%B environments.
Cltral Cont0n1enc0e5
roductive business practices !rom one country cannot be trans!erred directly to another country. "his re!lects the idea
o! cultural contingency that the most productive practices !or a particular nation %ill depend heavily on the culture,
social system, economic development and employeeBs values in the host country. /ence, the e?patriate managers must
learn to operate e!!ectively in a ne% environment %ith certain amount o! !le?ibility. Labor policy, personnel practices and
production methods need to be adapted to a di!!erent labor !orce. Organization structures and communication patterns
need to be suitable !or local operations.
#ANAGE#ENT=S INTEGRATING ROLE
Once managers are in a host country, their attention needs to be directed to%ard integrating the technological
approaches %ith the local cultures involved.
#ot0vat0n1 and Lead0n1 Local E2plo6ee5
Same motivational tools may not suit the employees o! all the nations. /ence, appropriate motivational techni$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 e?patriate manager and the employees o! the
host country. /ence, managers need to ma>e adCustments 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 cross@cultural adaptability can be developed in organizations %ith large
international operations. "hese employees are Btrans@culturalK employees because they operate e!!ectively in several
cultures. "hey are lo% in ethnocentrism and adapt readily to di!!erent cultures %ithout maCor cultural shoc>. "hey usually
can communicate !luently in more than one language.
"rans@cultural employees are especially needed in large, multinational !irms that operate in a@variety o! national
cultures. 3or a !irm to be truly multi@national 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.
#1)
LESSON ) '
.OUN+ATION O. IN+IVI+UAL BEHAVIOR
IN+IVI+UAL BEHAVIOR
/uman behavior, %hich is; considered a comple? phenomenon, is very di!!icult to de!ine in absolute terms. (t is primarily
a combination o! responses to e?ternal and internal stimuli. "hese responses %ould re!lect psychological structure o!
the person and may be resultsB 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 -urt 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.
=henever people buy something, !or e?ample, 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. , psychological contract is the overall set o! e?pectations that an
individual holds %ith respect to his or her contributions to the. organization and the organizationBs response to those
contributions. , psychological contract is not %ritten do%n li>e a legal contract.
,n individual ma>es a variety o! contributions to an organization in the !orm o!De!!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 Cob security to the employee.
<ust as the contributions available !rom the individual must satis!y the organizationBs needs, the incentives must serve
the employeesB 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. , maCor challenge !aced by an organization, thus, is to manage the psychological
contracts.
One speci!ic aspect o! managing psychological contracts is managing the person@Cob !it. "he Bperson@Cob !itB is
the e?tent 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! Cob related behaviors and abilities to contribute. (! the
organization can ta>e complete advantage o! those behaviors and abilities and e?actly !ul!ill the employeeBs needs, it
%ill achieve a per!ect person@Cob !it. O! course, such a precise, level o! person@Cob !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$uirements o! people and organization. "hus, the behavior o! individuals in organization is the primary concern o!
management and it is essential that the managers should have an understanding o! the !actors in!luencing the behavior
o! the employees they manage. "he !igure 7.. identi!ies !ive sets o! !actors that have an impact upon individual
behavior in organizations.
NATURE O. IN+IVI+UAL +I..ERENCES
(ndividual di!!erences are personal attributes that vary !rom one person to another. (ndividual di!!erences may be
physical and psychological. "he !igure 7.2 sho%s the attributes o! physical and psychological di!!erences.
P3650cal +0fference5 P56c3olo10cal +0fference5
/eight
=eight
Body Shape
,ppearance
#omple?ion
ersonality
,ttitudes
erception
Motivation
Learning
#1*
!igure
7.2
=henever an organization attempts to assess the individual di!!erences among its employees, it must consider
the situation in %hich that particular behavior occurs. (ndividuals %ho are satis!ied in one conte?t may prove to be
dissatis!ied in another conte?t. ,ssessing both individual di!!erences and contributions in relation to incentives and
conte?ts, then, is a maCor challenge !or organizations as they attempt to establish e!!ective psychological contracts %ith
their employees and achieve optimal !its bet%een people and Cobs.
(ndividual di!!erences ma>e the managerBs Cob e?tremely challenging. (n !act, according to a recent research,
Avariability among %or>ers is substantial at all levels but increases dramatically %ith Cob comple?ity. &ue to these
reasons, gro%ing %or> !orce diversity compel managers to vie% individual di!!erences in a !resh %ay. Leaders no% tal>
!re$uently about Avaluing di!!erencesA and learn to Amanage diversityA. So rather than limiting diversity, as in the past,
todayBs managers need to better understand and accommodate employee diversity and individual di!!erences.
I#PORTANT +I#ENSIONS O. IN+IVI+UAL +I..ERENCES
Sel!@concept
ersonality dimensions
,bilities, and
ersonal values and ethics.
Self>concept
Sel! is the core o! oneBs conscious e?istence. ,%areness o! sel! is re!erred to as oneBs sel!@concept. Sociologists 0i>tor
Gecas de!ines sel!@concept as Athe concept the individual has o! himsel! as a physical, social and spiritual or moral
beingA. (n other %ords, every individual recognizes himsel! as a distinct individual. , sel!@concept %ould be impossible
%ithout the capacity to thin>. "his brings us to the role o! cognitions. #ognitions represent, Aany >no%ledge, opinion, or
belie! about the environment about onesel!, or about oneBs behaviorA. ,mong many di!!erent types o! cognitions, those
involving e?pectation, planning, goal setting, evaluating and setting personal standards are particularly relevant to
organizational, behavior.
Self>e5tee2
Sel!@esteem is a belie! over oneBs o%n %orth based on an overall sel!@evaluation. "hose %ith lo% sel!@esteem 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!@doubts. /igh sel!@esteem individuals, in contrast, see themselves as %orth%hile,
capable and acceptable. ,lthough, high sel!@esteem 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!@esteem.
Speci!ically, high sel!@esteem subCects tended to become sel!@centered and boast!ul %hen !aced %ith situations under
pressure /ence moderate sel!@esteem is desirable.
Managers can build employee sel!@esteem in !our %aysF
.. Be supportive by sho%ing concern !or personal problems, interests, status and contribution.
2. O!!er %or> involving variety, autonomy and challenges that suit the individualBs values, s>ills and abilities.
5. Strive !or management@employee cohesiveness and trust building.
1. /ave !aith in each employeeBs sel!@management ability, re%ard successes.
Self>eff0cac6
Sel!@e!!icacy is a personBs belie! about hisB or her chances o! success!ully accomplishing a speci!ic tas>. ,ccording to
one organizational behavior %riter, ASel!@e!!icacy arises !rom the gradual ac$uisition o! comple?, cognitive, social,
linguistic, andOor physical s>ills through e?perienceA,
"here is strong lin>age bet%een high sel!@e!!icacy e?pectations and success in terms o! physical and mental
tas>s, an?iety reduction, addiction control, pain tolerance and illness recovery. Oppositely, those %ith lo% sel!@e!!icacy
e?pectations tend to have lo% success rates.
Self!efficacy Implications for )anagers
Managers need to nurture sel!@e!!icacy in them and in their employees. Sel!@e!!icacy re$uires constructive action in each
o! the !ollo%ing managerial areasF
"o design recruitment selection procedure.
"o design intervie% $uestions to probe applicantBs general sel!@e!!icacy !or determining orientation and training
needs.
#1+
3or designing Cob.
3or systematic sel!@management training.
3or goal@setting and $uality improvement.
"o evolve suitable leadership.
"o design suitable regards.
Per5onal0t6 +02en50on5
"he big, !ive personality dimensions areF e?troversion, agreeableness, thoroughness, emotional stability and openness
to e?perience. (deally, these personality dimensions that correlate positively and strongly %ith Cob per!ormance %ould be
help!ul in the selection, training and appraisal o! employees. "he individuals %ho e?hibit; traits associated %ith a strong
sense o! responsibility and determination generally per!orm better than those %ho do not.
PH$SICAL AN+ 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 obCective means.
"he abilitiesOs>ills and competencies o! employees are both physical and intellectual $ualities.
,bility re!ers to an individualBs s>ill to per!orm e!!ectively in one or more areas o! activity, such as physical,
mental or interpersonal %or>.
(ndividuals %ith numerical ability, !or e?ample, can be trained to apply their ability in the !ield o! engineering,
accounting and computer science. ,bilities develop !rom an individualBs natural aptitudes and subse$uent
learning opportunities. ,ptitudes are relatively stable capacities !or per!orming some activity e!!ectively.
Learning opportunities translate aptitude into abilities through practice, e?perience and !ormal training.
Organizations have to ensure that people possess the necessary abilities to engage in the behaviors re$uired
!or e!!ective per!ormance. "his can 6e accomplished either by care!ul selection o! people or by a combination o!
selection and training.
S>ills are generally thought o! as being more tas>@speci!ic capabilities than abilities. 3or e?ample, an individual
%ith numerical ability %ho goes to school to learn accounting develops a numerical s>ill speci!ic to that !ieldB.
"hus, %hen a particular ability is applied to a specialized area, I!or e?ample accountingJ, it becomes a s>ill.
#ompetencies are s>ills associated %ith specialization. #ompetencies are s>ills that have been re!ined by
practice and e?perience and that enable, the@individual to specialize in some !ield. 3or e?ample, an accountant
%ith numerical Aability and accounting s>ill ta>es a position in the "a?ation &epartment and as time passes, he
develops more competency as a ta? e?pert.
hysical abilities such as strength, !le?ibility, endurance and stamina can be developed %ith e?ercise and training.
Mental abilities such as reasoning, memory visualization, comprehension and inter@personal abilities can also be
developed through practice and education. 'ven in the absence o! such !ormal programs, many individuals manage
their o%n careers in such a %ay as to continually upgrade their abilities, s>ills and competencies in order to remain
valuable to their organizations.
PERSONAL VALUES AN+ ETHICS
,ccording to Milton *o>each, a value is Aan enduring belie! that a speci!ic mode o! conduct or end@stated o!
e?istence is personally or socially pre!erable to an opposite or converse mode o! conduct are end@state o! e?istenceA.
'thics involve the study o! moral issues and choices. (t is concerned %ith right versus %rong and good versus
bad. *elative to the %or>place, the terms business ethics and management ethics are o!ten heard.
Moral rinciples !or Managers
<udge actions by their conse$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$uitably.
(mproving OrganizationBs 'thical #limate
Managers are po%er!ul role models %hose habits and actual behavior send clear signals about the importance
o! ethical conduct. 'thical behavior is a . top to bottom proposition.
Screen potential employees by chec>ing re!erences, credentials, and other in!ormation !or ascertaining their
ethical behavior.
*+,-
#2,
LESSON > (
PERSONALIT$
ersonality is a comple?, multi@dimensional construct and there is no simple de!inition o! %hat personality is. Maddi
de!ines personality as,
Q
, 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 momentA.
3rom the above de!inition %e can in!er that all individuals have some universally common characteristics. 9et
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$ues to modi!y di!!erent individual behaviors. "he de!inition, ho%ever, does not mean
that people never change. (n simple terms, it asserts that individuals do not change all at once. "heir thoughts, !eelings,
values and actions remain relatively stable over time. #hanges in individualBs personality can, ho%ever, occur gradually
over a period o! time. "he managers should, there!ore, attempt to understand certain dimensions o! personality. "his
can enable them to predict the behavior o! their employees on a daily basis.
Some personality theorists stress the need 6! identi!ying person@situation as interaction. "his is e$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. 3rom this perspective,
personality means the %ay people a!!ect others. (t also involves peopleBs 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 e?ternal 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 Cob per!ormance have recently emerged !rom research. #haracteristics o! these traits can be summarized as
!ollo%sF
*" E1troversion: Sociable, tal>ative and assertive.
:" Agreea*leness: Good@natured, cooperative and trusting.
%" "onscientiousness: *esponsible, dependable, persistent and achievement@oriented.
&" Emotional Sta*ility: 0ie%ed !rom a negative standpoint such as tense, insecure and nervous.
'" 'penness to E1perience: (maginative, artistically sensitive and intellectual.
(denti!ying the above Abig !iveA 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!@concept such as sel!@esteem and sel!@e!!icacy and the person@situation interaction also play important roles.
PERSONALIT$ .OR#ATION
"he personality !ormation o! an individual starts at birth and continues throughout his li!e. "hree maCor types o! !actors
play important roles in personality !ormation, %hich are as !ollo%sF
$eterminants: "he most %idely studied determinants o! personality are biological, social and cultural. eople
gro% up in the presence o! certain hereditary characteristics Ibody shape and heightJ, the social conte?t I!amily
and !riendsJ and the cultural conte?t Ireligion and valuesJ. "hese three parts interact %ith G each other to shape
personality. ,s people gro% into adulthood, their personalities become very clearly de!ined and generally
stable.
Stages: ,ccording to Sigmund 3reud human personality progresses through !our stagesF dependent,
compulsive, oedipal and mature. "his concept o! stages o! gro%th provides a valuable perspective to
organizational behavior. '?perienced managers become a%are o! the stages that their employees o!ten go
through. "his helps them .: deal %ith these stages e!!ectively and promote ma?imum gro%th !or the individual
and !or the organization.
Traits: "raits to personality are also based on psychology. ,ccording to some trait theories, all people share
common traits, li>e social, Ipolitical, religious and aesthetic pre!erences but each individualBs nature di!!eren@
tiates that person !rom all others.
PERSONALIT$ .ACTORS IN ORGANISATI?N'
Some o! the important personality !actors that determine %hat >ind o! behaviors are e?hibited at %or> include the
!ollo%ingF
#21
)eed attern
Steers and Braunstein in .:46 Rdeveloped a scale !or the !our needs o! personality that became apparent in the B%or>
environment. "hey are as !ollo%sF
The nee# for achievement: "hose %ith a high achievement need engage themselves proactively in %or>
behaviors 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.
Loc5 of Control
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 e?ample, 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. Because@ these individuals thin> that
!orces beyond their control dictate the happenings around them, they are said to have an e?ternal locus o! control.
,s a personality attribute, locus o! control has clear implications !or organizations. 3or e?ample, 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 aB !reedom to do their Cobs. "hus, they may pre!er a decentralized
organization %here they have a right o! decision@ma>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 e?ternal 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 Cobs %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.
Introver50on and E@trover50on
(ntroversion is the tendency o! individuals, %hich directs them to be in%ard and process !eelings, thoughts and ideas
%ithin themselves. '?troversion, on the contrary, re!ers to the tendency in individuals to loo> outside themselves,
searching !or e?ternal stimuli %ith %hich they can interact. =hile there is some element o! introversion as %ell as
e?troversion in all o! us, people tend to be dominant as either e?troverts or introverts. '?troverts are sociable, lively and
gregarious and see> out%ard stimuli or e?ternal e?changes. 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 *N& %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 organizationBs goals, it is believed
that e?troverts are li>ely to be more success!ul as managers.
Tolerance for A28010t6
"his personality characteristic indicates the level o! uncertainty that people can tolerate to %or> e!!iciently %ithout
e?periencing undue stress. Managers have to %or> %ell under conditions o! e?treme uncertainty and insu!!icient
in!ormation, especially %hen things are rapidly changing in the organizationBs e?ternal 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.
Self>E5tee2 and Self>Concept
Sel!@esteem denotes the e?tent to %hich individuals consistently regard themselves as capable, success!ul, important
and %orthy individuals. Sel!@esteem is an important personality !actor that determines ho% managers perceive
themselves and their role in the organization. Sel!@esteem is important to sel!@concept, i.e., the %ay individuals, de!ine
themselves as to %ho they are and derive their sense o! identity. /igh sel!@esteem provides a high sense o! sel!@
concept, %hich, in turn, rein!orces high sel!@esteem. "hus, the t%o are mutually rein!orcing. (ndividuals %ith a high sel!@
esteem %ill try to ta>e on more challenging assignments and be success!ul. "hus, they %ill be enhancing their sel!@
concept i.e., they %ould tend to de!ine themselves as highly valued individuals in the organizational system. "he higher
the sel!@concept and sel!@esteem, the greater %ill be their contributions to the goals o! the organization, especially %hen
the system re%ards them !or their contributions.
#22
At3or0tar0an052 and +o12at052
,uthoritarianism is the e?tent to %hich an individual believes that po%er and status di!!erences are important %ithinB
hierarchical social systems li>e organizations. 3or e?ample, an employee %ho is highly authoritarian may accept
directives or orders !rom his superior %ithout much $uestioning. , person %ho is not highly authoritarian might agree to
carry out appropriate and reasonable directives !rom his boss. But he may also raise $uestions, e?press disagreement
and even re!use to carry out re$uests i! they arc !or some reason obCectionable.
&ogmatism is the rigidity o! a personBs belie!s and his or her openness to other vie%points. "he popular terms
Bclose@mindedB and Bopen@mindedB describe people %ho are more and less .dogmatic in their belie!s respectively. 3or
e?ample, 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 close@minded or highly dogmatic. , manager %ho is very receptive to hearing about and trying out
ne% ideas in the same circumstances might be seen as more open@minded 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.
R05! Propen50t6
*is>@propensity is the decree to %hich an individual is %illing to ta>e chances and ma>e ris>y decisions. , manager %ith
a high@ris> propensity might be e?pected to e?periment %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.
#ac30avell0an052
Machiavellianism is manipulating or in!luencing other people as a primary %ay o! achieving oneBs goal. ,n 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.
T6pe A and B Per5onal0t0e5
"ype , persons !eel a chronic sense o! time urgency, are highly achievement@oriented, e?hibit a competitive drive, and
are impatient %hen their %or> is slo%ed do%n !or any reason. "ype B persons are easy@going individuals %ho do not
!eel the time urgency, and %ho do not e?perience the competitive drive. "ype , individuals are signi!icantly more prone
to heart attac>s than "ype B individuals. =hile "ype , 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.
-or!>Et30c Or0entat0on
Some individuals are highly %or>@oriented %hile others try to do the minimum =or> that is necessary to get by %ithout
being !ired on@the@Cob. "he e?tremely %or> oriented person gets greatly involved in the Cob. '?treme %or> ethic values
could lead to traits o! A%or>ahollismA %here %or> is considered as the only primary motive !or living %ith very little
outside interests. 3or a %or>aholic turning to %or> can sometimes become a viable alternative to !acing non@%or>
related problems. , high level o! %or> ethic orientation o! members is good !or the organization to achieve its goals. "oo
much A%or>ahollismA, ho%ever, might lead to premature physical and mental e?haustion 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.
+ESIRE+ PERSONALIT$ CHARACTERISTICS .OR E..ECTIVE #ANAGERS
Obviously, there arc some personality Rpredispositions, %hich are !avourable Ato managerial e!!ectiveness and to the
success o! managers. ,part !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 e?ternal environment o! an
organization.. )aturally, several unpredictable !actors are involved in any comple? situation, %hich are beyond the
managersK control. "here!ore, they should be able to, handle situations as they come, %ithout e?periencing undue
stress. "hus, a high tolerance !or ambiguity is a desired managerial trait. Managers %ith a good mi? 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 Cob done through others. (n sales and other people@oriented roles, e?trovert
managers %ill !it better in their Cobs. Similarly, managers %ith internal locus o! control %ill be more e!!icient as
intellectual and s>illed per!ormers. Managers %ith good %or> ethic values, %ill get more involved in their Cobs and ma>e
things happen. "hey are li>ely to be more success!ul in their Cobs. Managers %ith "ype , personalities may suit very
%ell !or some Cobs, %hich have inbuilt per!ormance pressures and deadlines, but they need to >no% ho% to rela?
through e?ercises and sel!@monitor their stress levels.
ersonality is a relatively stable !actor, but our predispositions can be changed through conscious choice. 3or
instance, our tolerance !or ambiguity and ability to handle stress can be considerably enhanced; the attributions %e
#23
ma>e !or success such as internal versus e?ternal@locus o! control can be changed. ,lso, our latent needs can be
activated and our s>ills in decision@ma>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 SEL.>CONCEPT< SEL.>ESTEE# AN+ SEL.>E..ICAC$
eopleBs attempt to understand themselves is called the sel!@concept 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!@esteem and sel!@e!!icacy in the !ield o! organizational behavior.
eopleBs sel!@esteem has to do %ith their sel!@perceived competence and sel!@image. #onsiderable research
has been done on the role played by sel!@esteem outcomes in the organizational behavior. Most recently done studies
indicate that sel!@esteem plays an important moderating role in the areas o! emotional and behavioral responses and
stress o! organizational members. (t %as recently noted that, Aboth research and everyday e?perience con!irm that
employees %ith high sel!@esteem !eel uni$ue, competent, secure, empo%ered and connected, to the people around
themA
Sel!@e!!icacy is concerned %ith sel!@perceptions o! ho% %ell a person can cope %ith situations as they arise.
"hose %ith high sel!@e!!icacy !eel capable and con!ident o! per!orming %ell in a situation. (n the !ield o! organizational
behavior, sel!@e!!icacy is conceptually close to sel!@esteem. Miner points out the di!!erences by noting that sel!@esteem
tends to be a generalized trait Iit %ill be present in any situationJ, %hile sel!@e!!icacy tends to be situation speci!ic. Sel!@
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 comple? cognitive process. (t incorporates almost everything. ,s
de!ined above, personality means the %hole person. (t is concerned %ith e?ternal appearance and traits, sel! and
situational interactions. robably the best statement on personality %as made many years ago by -luc>hohn and
Murray, Ato some e?tent, a personBs personality is li>e all other peopleBs, li>e some other peopleBs, and li>e no other
peopleBs.A
*+,-
#24
LESSON ) A
LEARNING AN+ BEHAVIOR #O+I.ICATION
Learning is an important psychological process that@determines human behavior. Learning can be de!ined as Qrelatively
permanent change in behavior that occurs as a result o! e?perience or rein!orced practiceA. "here are !our important
points in the de!inition o! learningF
.. 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, preCudices,
stereotypes, and %or> restrictions are also learned.
2. "he, behavioral change must be relatively permanent. ,ny temporary change in behavior is not a part o!
learning.
5. "he behavioral change must be based oh some !orm o! practice or e?perience.
1. "he practice or e?perience must be rein!orced in order so as to !acilitate learning to occur.
CO#PONENTS O. THE LEARNING PROCESS
"he components o! learning process areF drive, cue stimuli, response, rein!orcement and retention.
+r0ve
Learning !re$uently occurs in the presence o! drive @ any strong stimulus that impels action. &rives are basically o! t%o
types @primary Ior physiologicalJ; and secondary Ior psychologicalJ. "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.
Ce St02l0
#ue stimuli are those !actors that e?ist 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 concernedF generalization and discrimination.
Generalization occurs %hen a response is elicited by a similar but ne% stimulus. (! t%o stimuli are e?actly 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 Bcompletely 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 e?periences to adCust 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 Borganizational
behavior. 3or e?ample, a supervisor can discriminate bet%een t%o e$ually high producing %or>ers, one %ith lo% $uality
and other %ith high $uality.
Re5pon5e5
"he stimulus results in responses. *esponses may be in the physical !orm or may be in terms o! attitudes, !amiliarity,
perception or other comple? phenomena. (n the above e?ample, 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
$uality conscious %or>er.
Re0nforce2ent
*ein!orcement is a !undamental condition o! learning. =ithout rein!orcement, no measurable modi!ication o! behavior
ta>es place. *ein!orcement may be de!ined as the environmental eventBs a!!ecting the probability o! occurrence o!
responses %ith %hich they are associated.
Retent0on
"he stability o! learned behavior over time is de!ined as retention and its contrary is >no%n as !orgetting. Some o! the
learning is retained over a period o! time %hile others may be !orgotten.
LEARNING THEORIES
Cla550cal Cond0t0on0n1
"he %or> o! the !amous *ussian physiologist (van avlov demonstrated the classical conditioning process. =hen
avlov presented a piece o! meat to the dog in the e?periment, avlov noticed a great deal o! salivation. /e termed the
!ood an unconditioned stimulus and the salivation an unconditioned response. =hen the dog sa% the meat, it salivated.
On the other hand, %hen avlov merely rang a bell, the dog did not salivate. avlov subse$uently introduced the sound
#25
o! a bell each time the meat %as given to the dog. "he dog eventually learned to salivate in response to the ringing o!
the@bell@even %hen there %as no meat. avlov had conditioned the dog to respond to a learned stimulus. "horndi>e
called this the Ala% o! e?erciseA %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. ,s 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. ,s such it e?plains simple and re!le?ive behaviors. But behavior o! people in organizations is emitted rather than
elicited, and it is voluntary rather than re!le?ive. "he learning o! these comple? behaviors can be e?plained or better
understood by loo>ing at operant conditioning.
Operant Cond0t0on0n1
,n 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. 3our 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, e?tinction and punishment.
Positive /einforcement
ositive rein!orcement strengthens and increases behavior by the presentation o! a desirable conse$uence Ire%ardJ. (n
other %ords, a positive rein!orce is a re%ard that !ollo%s behavior and is capable o! increasing the !re$uency o! that
behavior. "here are t%o typos o! positiveF rein!orcesF primary and secondary. rimary rein!orcers such as !ood, %ater
and se? are o! biological importance and have e!!ects, %hich arc independent o! past e?periences. 3or instance, a
primary rein!orcer li>e !ood satis!ies hunger need and rein!orced !ood@producing behavior. Secondary rein!orcers li>e
Cob 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
'?tinction is an e!!ective method o! controlling undesirable behavior. (t re!ers to non@rein!orcement. (t is based on the
principle that i! a response is not rein!orced, it %ill eventually disappear. '?tinction 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. =hen Mr. S observes that 9 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.
Co1n0t0ve Learn0n1
/ere the primary emphasis is on >no%ing ho% events and obCects 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.
#2(
LEARNING THEOR$ AN+ ORGANI,ATIONAL BEHAVIOR
"he relevance o! the learning theories !or e?plaining 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. =hen 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.
RUPA/
#2)
LESSON ) B
LEARNING AN+ BEHAVIOUR #O+I.ICATION
(n simple %ords, an AattitudeA is an individualBs point o! vie% or an individualBs %ay o! loo>ing at something. "o be more
e?plicit, an AattitudeA may be e?plained as the mental state o! an individual, %hich prepares him to react or ma>e him
behave in a particular pre@determined %ay.
,n attitude is de!ined as, Aa learned pre@disposition to respond in a consistently !avourable or un!avorable
manner %ith respect to a given obCectA.
,ttitude is the combination o! belie!s and !eelings that people have about speci!ic ideas, situations or other
people. ,ttitude is important because it is the mechanism through %hich most people e?press their !eelings.
CO#PONENTS O. ATTITU+E
,ttitude has three components, %hich are as !ollo%sF
,!!ective component
#ognitive component
(ntentional component
"he !igure 8.. sho%s the components o! attitude.
"he a!!ective component o! an attitude re!lects B!eelings and emotionsB that an individual has to%ards a
situation. "he cognitive component o! an attitude is derived !rom B>no%ledgeB that an individual has about a situation.
3inally, the intentional component o! an attitude re!lects ho% an individual Be?pects to behaveB to%ards or in the
situation. 3or e?ample, 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%sF
A( donBt li>e that companyAD,!!ective component.
A"hey are the %orst supply !irm ( have ever dealt %ithAD#ognitive component.
A( %ill never do business %ith them againABD(ntentional component.
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 e?perience among their o%n attitudes is called Bcognitive
dissonance.
ATTITU+E .OR#ATION AN+ CHANGE
(ndividual attitude are !ormed over time as a result o! repeated personal e?periences %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.
,n attitude may change as a result o! ne% in!ormation. , manager may have a negative attitude about a ne%
employee because o! his lac> o! Cob@related e?perience. ,!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.
#2*
-or!>Related Att0tde5
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 Cob satis!action or
dissatis!action, organizational commitment and Cob involvement.
Co8 Sat05fact0on
<ob satis!action is an attitude re!lects the e?tent to %hich an individual is grati!ied or !ul!illed .by his or her %or>.
'?tensive research conducted on Cob satis!action has indicated that personal .!actors such as an individualBs needs and
aspirations determine this attitude, along %ith group and organizational !actors such as relationships %ith co@%or>ers
and supervisors, %or>ing conditions, %or> policies and compensation.
, 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 e?perience stress that disrupts co@
%or>ers, and may >eep continually loo>ing !or another Cob.
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 co@%or>ers and supervisors also
in!luence Cob@ satis!action. Similarly, satis!action depends on individual !actors li>e individualBs needs and aspirations. (!
employees are satis!ied %ith their Cob, it may lead to lo% employee turnover and less absenteeism and vice@versa.
Or1an07at0onal Co220t2ent and Involve2ent
"%o other important %or>@related attitudes arc organizational commitment and involvement. Organizational commitment
is the individualBs !eeling o! identi!ication %ith and attachment to an organization. (nvolvement re!ers to a personBs
%illingness to be a team member and %or> beyond the usual standards o! the Cob. ,n employee %ith little involvement
is motivated by e?trinsic 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
employeeBs age and years %ith the organization, %ith his sense o! Cob security and participation in decision@ma>ing. (!
the organization treats its employees !airly and provides reasonable re%ards and Cob security, employees are more
li>ely to be satis!ied and committed. (nvolving employees in decision@ma>ing can also help to increase commitment. (n
particular, designing Cobs, %hich are interesting and stimulating, can enhance Cob involvement.
ATTITU+E< ITDS I#PORTANCE IN ORGANI,ATIONAL BEHAVIOUR
,ttitudes o! both %or>ers and management react to each other and determine mutual relationships.
,ttitude 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.
3rom 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.
Percept0on
erception is an important mediating cognitive process. "hrough this comple? process, people ma>e interpretations o!
the stimulus or situation they are !aced %ith. Both selectivity and organization go Binto perceptual, interpretations.
'?ternally, selectivity is a!!ected by intensity, size, contrast, repetition, motion and novelty and !amiliarity. (nternally,
perceptual selectivity is in!luenced by the individualBs motivation, learning and personality. ,!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. ,lthough 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. 3or e?ample, 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 e?plained by the perceptual process.
(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 e?pected to do and not to do. (n spite o! organizations
sending clear messages, those messages are subCect 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 obCect being perceived, by the characteristics o! the person and by the
situational processes.
#2+
#haracteristics o! the obCect include contrast, intensity, movement, repetition and novelty.
#haracteristics o! the person include attitude, sel!@concept and personality.
"he details o! a particular situation a!!ect the %ay a person perceives an obCect; the same person may perceive the
same obCect very di!!erently in di!!erent situations. "he processes through %hich a personBs perceptions are altered by
the situation include selection, organization, attribution, proCection, stereotyping process, and the halo e!!ect process.
,mong 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. 3or e?ample, 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.
3or e?ample, 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 peopleBs se? e?ist more or less in all %or> places. "ypically, these perceptions lead to the belie! that
an individualBs se? determines %hich tas>s he or she %ill be able to per!orm. 3or e?ample, 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 e?ecutive at !irst. But it %ould induce
holding an e?actly opposite assumption about a man. Stereotyping consists o! three stepsF identi!ying categories o!
people Ili>e %omen, politicianJ, associating certain characteristics %ith those categories Ili>e passivity, dishonesty
respectivelyJ and then assuming that any one %ho !its a certain category must have those characteristics. 3or e?ample,
i! dishonesty is associated %ith politicians, %e are li>ely to assume that all politicians are dishonest.
PERCEPTION AN+ ATTRIBUTION
erception is also closely lin>ed %ith another process called attribution. ,ttribution is a mechanism through %hich %e
observe behaviour and then attribute certain causes to it. ,ccording to ,ttribution theory, once %e observe behaviour
%e evaluate it in terms o! its consensus, consistency and distinctiveness. #onsensus is the e?tent 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 e?tent to %hich the same person behaves in the same %ay in other
situations. "he !orces %ithin the person IinternalJ or outside the person Ie?ternalJ lead to the behaviour.
3or instance, i! you observe that an employee is much more motivated than the people around Ilo%
consensusJ, is consistently motivated Ihigh consistencyJ, and seems to %or> hard no matter %hat the tas> Ilo%
distinctivenessJ you might conclude that internal !actors are causing that particular behaviour. ,nother e?ample is o! a
manager %ho observes that an employee is late !or a meeting. /e might realize that this employee is the only one %ho@
is laic Ilo% consensusJ, recall that he is o!ten late !or other meetings Ihigh consistencyJ, and subse$uently recall that
the same employee is sometimes late !or %or> Ilo% distinctivenessJ. "his pattern o! attributions might cause the
manager to decide that the individualBs behaviour re$uires a change. ,t this point, the manager might meet the
subordinate to establish some disciplinary conse$uences to avoid !uture delays.
I#PRESSION #ANAGE#ENT
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 considerableB implications !or activities li>e determining the validity o!
per!ormance appraisals. (t serves as a pragmatic, political tool !or someone to climb the ladder o! success in
organizations.
T3e Proce55 of I2pre550on #ana1e2ent
,s %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 @ 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
#3,
relevance that these impressions have on the individualBs 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 maCor process, is concerned %ith the speci!ic type o! impression people %ant
to ma>e and ho% they create it. ,lthough 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 constructF the sel!@concept,
desired and undesired identity images, role constraints, target values and current social image. ,lthough 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 othersB perceptions o! them.
E2plo6ee I2pre550on #ana1e2ent Strate10e5
"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 demotion@preventative strategy. On
the other hand, i! they are see>ing to ma?imize responsibility !or a positive outcome or to loo> better than %hat they
really are, then they lean use a promotion@enhancing strategy.
"he demotion@preventative strategy is characterized by the !ollo%ing activitiesF
'mployees attempt to e?cuse or Custi!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 activitiesF
'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 e?pect a higher credit.
'mployees ascertain that they are seen %ith the right people at the right times.
Cop0n1 40t3 Ind0v0dal +0fference5
(ndividual di!!erences and peopleBs 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$ue person
RUPA/
#31
LESSON ) E
#OTIVATION AN+ BEHAVIOR
"he %ord motivation is derived !rom UmotiveB, %hich means an active !orm o! a desire, craving or need that must be
satis!ied. Motivation is the >ey to organizational e!!ectiveness. "he manager in general has to get the %or> done
through others. "hese BothersB are human resources %ho need to be motivated to attain organizational obCectives.
+E.INITION
,ccording to George *. "erry, AMotivation is the desire %ithin an individual that stimulates him or her to action.A
(n the %ords o! *obert &ubin, it is Athe comple? o! !orces starting and >eeping a person at %or> in an
organizationA. 0iteles de!ines motivation as Aan unsatis!ied need %hich creates a state o! tension or dise$uilibrium,
causing the individual to move in a goal directed pattern to%ards restoring a state o! e$uilibrium, by satis!ying the
need.A
,ccording to 'ncyclopaedia o! Management. AMotivation 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.A
On the basis o! above de!initions, the !ollo%ing observations can be made regarding motivationF
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.
, highly motivated employee %or>s more e!!iciently and his level o! production tends to be higher than others.
Motivation originates !rom the@needs 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. , high degree o!
motivation may lead to high morale.
.EATURES O. #OTIVATION
"he !ollo%ing are the !eatures o! motivationF
(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.
I#PORTANCE O. #OTIVATION
Motivation is an important part o! managing process. , team o! highly $uali!ied and motivated employees is necessary
!or achieving obCectives o! an organization because o! the !ollo%ing reasonsF
Motivated employees ma>e optimum use o! available resources !or achieving obCectives.
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 e?isting level o! e!!iciency.
Motivated employees ma>e goal@directed e!!orts. "hey are more committed and cooperative !or achieving
organizational obCectives.
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 Cob satis!action and possess high morale.
Motivation also helps in improving the image o! an organization.
#32
"he motivation process begins %ith identi!ication o! individual needs. 3or e?ample, %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% Cob. /e then chooses to pursue one or more o! these options !or instance, %or>ing harder %hile
simultaneously loo>ing !or a Cob. (! 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. '?tensive 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. , 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.
NEE+>BASE+ THEORIES TO #OTIVATION
)eed@based theories try to ans%er the $uestion, A%hat !actorIsJ motivate people to choose certain behaviorsHA Some o!
the %idely >no%n need@based theories are as !ollo%sF
(a) #a5lo4=5 H0erarc36 of Need5
Maslo% ,braham proposed his theory in the .:1;s. "his theory, popularly >no%n as the /ierarchy o! )eeds assumes
that people are motivated to satis!y !ive levels o! needsF physiological, security, belongingness, esteem and sel!@
actualization needs. "he !igure :.. sho%s Maslo%Bs 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. ,n individual is motivated !irst and !oremost to satis!y physiological needs. =hen these
needs are satis!ied, he is motivated and Bmoves upB the hierarchy to satis!y security needs. "his Bmoving up process
continues until the individual reaches the sel!@actualization level.
hysiological needs represent the basic issues o! survival such as !ood, se?, %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$uirements !or a secure physical and emotional environment. '?amples
include the desire !or ade$uate housing and clothing, the need to be !ree !rom %orry about money and Cob security and
the desire !or sa!e %or>ing conditions. Security needs are satis!ied !or people in the %or> place by Cob 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 oneBs peers. 3or most people these needs are satis!ied by a combination o!
!amily and community relationships and !riendships on the Cob. Managers can help ensure the Bsatis!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! needsF
"he need !or a positive sel!@image and sel!@respect.
"he need !or recognition and respect !rom others.
Organizations can help address esteem needs by providing a variety o! e?ternal symbols o! accomplishment such
as Cob titles and spacious o!!ices. ,t a more !undamental level, organizations can also help satis!y esteem needs by
providing employees %ith challenging Cob assignments that can induce a sense o! accomplishment.
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,t the top o! the hierarchy are those needs, %hich Maslo% de!ines the sel!@actualization needs. "hese needs
involve realizing oneBs potential !or continuedF gro%th and individual development. Since these needs are highly
individualized and personal, sel!@actualization 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!@actualization needs. 3or instance, an organization can help in !ul!illment o! these
needs by encouraging employeeKs participation in decision@ma>ing process and by providing them %ith an opportunity
to learn ne% things about their Cobs and organization. "his process o! contributing to actual organizational per!ormance
helps employees e?perience personal gro%th and development associated %ith sel!@actualizing.
Maslo%Bs 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.
(8) ERG T3eor6 of #ot0vat0on
#layton ,lder!er has proposed an alternative hierarchy o! needs @ called the '*G "heory o! Motivation. "he letters ', *
and G stand !or '?istence, *elatedness and Gro%th. "he !igure :.2 sho%s '*G theoryF
'*G "heory the need hierarchy developed by Maslo% into three :.2. "he e?istence 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!@esteem and sel!@actualization needs.
,lthough '*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.
3irstly, '*G theory suggests that more than one >ind o! need might motivate a person at the same time. 3or
e?ample, it allo%s !or the possibility that people can be motivated by a desire !or money Ie?istenceJ; !riendship
IrelatednessJ, and an opportunity to learn ne% s>ills Igro%thJ all

at the same time.
Secondly, '*G theory has an element o! !rustrations@regression that is missing !rom Maslo%Bs need hierarchy.
Maslo% maintained that one heed must be satis!ied be!ore an individual can progress to needs at a higher
level, !or e?ample, !rom security needs to belongingness. "his is termed as satis!actionDprogression process.
,lthough 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. 3orA e?ample, a %or>er previously motivated by money Ie?istence needsJ 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
#34
eventually become !rustrated and regress to being motivated to earn even more money. "his is termed as
U!rustration@regressionB process.
"he '*G theory emphasis on the !ollo%ing >ey points regarding needsF
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.
(c) T3e +al>Strctre Approac3 to #ot0vat0on
,nother popular need@based approach to motivation is the dual@structure approach developed by 3rederic> /erzberg.
"his is also >no%n as "%o@!actor "heory. /erzberg developed this approach a!ter intervie%ing 2;; 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. 3or instance, an
individual %ho identi!ied Blo% payB as causing dissatis!action did not necessarily mention Bhigh payB 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 Cob itsel! and the
!actors causing dissatis!action are called hygiene !actors, %hich are related to the %or> environment in %hich the Cob is
per!ormed.
)otivators
,chievement
*ecognition
,dvancement
"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
<ob security
ersonal li!e
=or> 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 Cob enrichment as a means o! enhancing the availability o! motivation !actors.
,lthough %idely accepted by managers, /ertzbergKs 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 /erzbergBs 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
/erzbergBs theory is not held in high esteem by researchers in the !ield o! motivation. "he theory, ho%ever, had a maCor
impact on managers and has played a >ey role in increasing their a%areness o! motivation and its importance in type
%or> place.
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=F= AN+ G$= THEORIES O. #OTIVATION
&ouglas McGregor observed t%o diametrically opposing vie%points o! managers Babout their employees; one is
negative called A"heory o! SA and another is positive called A"heory o! 9A. (
T3eor6 of F
3ollo%ing are the assumptions o! managers %ho believe in the A"heory o! SA 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! Cob, most important o! all other !actors in the Cob and have very little
ambition.
T3eor6 of $
3ollo%ing are the assumptions o! managers %ho believe in the A"heory o! 9A regarding their employees.
'mployees love %or> as play or rest.
'mployees are sel!@directed and sel!@controlled and committed to the organizational obCectives.
'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 BSB in its applicability, places e?clusive reliance upon e?ternal control o! human behavior, %hile theory B9B, relies
heavily on sel!@control @and sel!@direction.
"heory BSB points to the traditional approach o! management. Literally, this theory o! behavior is related to
organizations that lay hard and rigid standards o! %or>@behavior. Some e?amples o! such organizations are
organizations that brea> do%n Cobs into specialized elements, establish Bnorms o! production, design e$uipment to
control %or>erBs pace o! %or>, have rigid rules and regulations, that are sometimes very vigorously en!orced.
"heory B9K, on the other hand, secures the commitment o! employees to organizational obCectives. "his
motivational theory places emphasis on satis!action o! employees. =hile applying this theory, the use o! authority, as an
instrument o! command and control is minimal. 'mployees e?ercise sel!@direction and sel!@control.
"he concepts o! B<obB 'nlargementB, BarticipationB and BManagement by ObCectivesB are $uite consistent %ith
theory B 9B.
McGregor supports the applicability o! motivational theory B9B, instead o! theory
U
SB. Organization should >eep in
mind that once theory BSB is employed !or organizational %or>ing, it is di!!icult !or the management to shi!t to theory B 9B,
all o! a sudden. /o%ever, %ith systematic, Cudicious and slo% steps, shi!ting in the practical applicability o! theory BSB to
theory B 9B usually can be achieved.
#C>CLELLAN+=5 NEE+ THEOR$ O. #OTIVATION
&avid #. Mc#lelland and his associate ,t>inson have contributed to an understanding o! motivation by identi!ying three
types o! basic motivating needs. "hese needs have been classi!ied asF
.. )eed !or o%er
2. )eed !or ,!!iliation
5. )eed !or ,chievement F F
Need for Po4er
,ccording 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 oneBs environment is an important motivation !actor. *esearch suggests that people %ith a strong need !or
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 e?ert 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
Cob that entails a good deal o! social interaction and o!!ers opportunities to ma>e !riends. "he principal characteristics o!
such peoplesB traits are as !ollo%sF
&esire to li>e and be li>ed.
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'nCoy company and !riendship.
re!er cooperative situation.
'?cel in group tas>.
Star attraction in gathering.
Leadership $ualities.
"his need is closely associated %ith the Asocial@typeV 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.
Need for Ac30eve2ent
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 Cobs done. "hese people are concerned %ith their progress, and !eel inclined to put in
longer hours o! %or>A 3ailures never dishearten them and they are al%ays ready to put in their best e!!orts !or e?cellent
per!ormance.
PROCESS>BASE+ THEORIES TO #OTIVATION
"he !ield o! organizational behavior has generally moved a %ay !rom the needs theories o! motivation. )eeds theories
are content@oriented @ that is, they e?plain %hat are the causes leading to motivated behaviors. "hey do not e?plain %hy
or ho% motivated behavior occurs. "hese $uestions relate to behaviors or actions, goals and !eelings o! satis!action.,
"hese concepts are addressed by various process@based theories to motivation.
rocess@based theories to motivation are concerned %ith ho% motivation occurs. "hey !ocus on %hy people
choose to enact certain behavioral options to !ul!ill their needs and ho% they evaluate their satis!action a!ter they have
attained these goals. "%o o! the most use!ul process@based approaches to motivation arc e?pectancy theory and e$uity
theory.
IaJ '?pectancy "heory o! Motivation
'?pectancy theory o! motivation %as developed by@ 0ictor 0room. Basically, 0roomBs e?pectancy theory vie%s
motivation as a@ process o! governing choices. "he e?pectancy theory tries to e?plain ho% and %hy people choose a
particular behavior over an alternative. "he theory suggests that motivation depends on t%o thingsF ho% much an
individual desires a particular goal and ho% li>ely he thin>s he can get it. 3or instance, a person is loo>ing !or a Cob and
reads an advertisement !or a position o! Mar>eting '?ecutive %ith a starting salary o! *s. 5 la>h per year. 'ven though
he might %ant the Cob, he probably does not apply because he is a%are that there is little chance o! getting it. )e?t he
sees an advertisement is !or 3ield Supervisor !or a salary o! *e. . la>h per year. (n this case he realizes that he .can
probably get the Cob, but still doesnBt apply simply because he doesnBt %ant it. "hen he comes across another
advertisement !or a Management "rainee in a big organization %ith a starting salary o! *s. 2 la>h per year. /e chooses
to apply !or this Cob because he %ants it and also thin>s that he has a reasonable chance o! getting it. 3igure :.5 sho%s
the e?pectancy theory o! motivation.
#3)
"he e?pectancy theory rests on !our assumptionsF
"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 e?tent 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 outcomesDeach o! %hich has an
associated value called its BvalenceB. ,ccording to this model, individuals develop some sense o! these e?pectations
be!ore they e?hibit motivated or non@motivated behavior.
Effort!to!Performance E1pectancy
"he e!!ort@to@per!ormance e?pectancy re!ers to an individualBs perception o! the probability that e!!ort %ill result in high
per!ormance. =hen an individual believes that e!!ort %ill lead directly to high per!ormance, e?pectancy is $uite strong,
that is close to ..;;. 3or instance, i! one !eels sure that studying hard !or an e?amination Ie!!ortJ %ill result in scoring
high mar>s Iper!ormanceJ, then his e!!ort@to@per!ormance e?pectancy is high, that is close to ..;. =hen an individual
believes that e!!ort and per!ormance are unrelated, the e!!ort@to@per!ormance e?pectancy is very %ea>, that is close to
;.;. +sually %e are not sure about our e?pectations, so they !all some%here bet%een ;.; and ..; %ith a moderate
e?pectancy. ;
Performance!to!'utcome E1pectancy
"he per!ormance@to@outcome e?pectancy means an individualBs perception o! the probability that per!ormance %ill result
in a speci!ic outcome. 3or e?ample, an individual %ho believes that high per!ormance %ill lead to a pay raise has a high
per!ormance@to@outcome e?pectancy, approaching to ..;;. ,n individual %ho believes that high per!ormance may
possibly lead to a pay raise has a moderate e?pectancy bet%een ..;; and ;. ,nd an individual %ho believes that
per!ormance has no relationship to re%ards has a lo% per!ormance@to@outcome e?pectancy that is close to ;.
'utcomes an# +alences
'?pectancy theory recognizes that an individual may e?perience a variety o! outcomes as a conse$uence, o! behavior
in an organizational environment. , high per!ormer, !or e?ample, may get big pay raises, !ast promotions and praise
!rom the boss. /o%ever, he may also be subCect to a lot o! stress and incur resentment !rom co@%or>ers. 'ach o! these
outcomes has an associated value or valence that is,, an inde? 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! e?pectancy theory that
goes beyond the need@based approaches to motivation.
#3*
"hus, !or motivated behavior to occur on the part o! any individual, three conditions must be met, %hich are as
!ollo%sF
3irst, the e!!ort@to@per!ormance e?pectancy must be greater than zero.
Second, the per!ormance@to@outcome e?pectancy must also be greater than zero.
"hird, the sum o! the valences !or all relevant outcomes must be greater than zero.
'?pectancy theory maintains that %hen all o! these conditions are met, the individual is motivated to e?pand e!!ort. "he
e?pectancy 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 @
&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 $uality. "he manager %ill particularly see that the
speci!ic system, as applicable in their case, is communicated to them, so as to ma>e them !eel con!ident that their
energized e!!orts %ill be re%arded.
,nother important point, %hich should not be ignored by the manger, is that re%ards must correspond to the
varying pre!erences o! an individual employee.
(n conclusion, no doubt Be?pectancyB theory has gained much popularity %ith theorists, but much more %or> still
needs to be put in, be!ore it can be accepted !or use as an e!!ective instrument o! e?planation o! BmotivationB %ith all its
implications.
The Porter!a&er E1tension
orter and La%ler have proposed an interesting e?tension to the e?pectancy theory. "he human relationists assumed
that employee satis!action causes good per!ormance but research has not supported such relationship. orter and
La%ler suggest that there may indeed be a relationship bet%een satis!action and per!ormance but that it goes in the
opposite direction, that is, superior per!ormance can lead to satis!action.
Porter!a&ler )o#el
3irst, an individualBs initial e!!ort is in!luenced by his perception regarding the value o! re%ard and the li>elihood that the
e!!ort %ill yield a re%ard. "he probability that increased e!!ort %ill lead to improved per!ormance is a!!ected by an
individualBs traits, abilities and perception o! his role in an organization. "he model also distinguishes bet%een intrinsic
and e?trinsic re%ards. 3inally, the orter@La%ler model borro%s !rom e$uity theory the idea that the employeeBs
satis!action depends on the perceived e$uity o! the re%ards relative to the Be!!ort e?pended and the level o!
per!ormance attained.
Implications for )anagers
'?pectancy theory can be use!ul !or organizations attempting to improve the motivation o! their employees. )adler and
La%ler suggest a series o! steps !or managers in applying the basic ideas o! the theory.
.. "hey should determine the primary outcomes that each employee li>ely desires.
2. "hey should decide %hat >ind and levels o! per!ormance are needed to meet organizational goals.
5. "hey should ascertain that the desired levels o! per!ormance are attainable.
1. "hey should ensure that desired outcomes and per!ormance are lin>ed.
7. "hey should also analyze the complete %or> situation !or con!licting e?pectancies.
6. "hey should ma>e sure that the re%ards are large enough.
4. "hey should ma>e sure that the overall system is e$uitable !or everyone.
"he e?pectancy theory has also its limitations. (t is $uite di!!icult to apply, !or e?ample, application o! this theory in
the %or> place %ould re$uire to identi!y all the potential outcomes !or each employee, to determine all relevant
e?pectancies and then to balance everything someho% to ma?imize employee motivation. '?pectancy theory also
assumes that people are rational @ there!ore, they %ill systematically consider all the potential outcomes and their
associated e?pectancies 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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(8) EH0t6 T3eor6
<. Stacy ,dams developed e$uity theory o! motivation. "he e$uity theory argues that motivations arise out o! simple
desire to be treated !airly. '$uity can be de!ined as an individualBs belie! that he is being treated !airly relative to the
treatment o! others. "he !igure :.1 sho%s the e$uity process.
, personBs perception o! e$uity develops
through a !our@step process as sho%n
belo%F
.. 3irst an individual evaluates
the %ay he is being treated
by an organization.
2. "he ne?t step is !or an individual to choose a co@%or>er %ho seems to be in a roughly similar situation and
to observe ho% an organization treats him.
5. (n the crucial step o! e$uity theory an individual BcomparesB the t%o treatments.
1. (n the !ourth step he evaluate a sense o! e$uity to see i! the t%o treatments seem similar or i! the are
di!!erent.
,dam suggests that employees ma>e these comparisons by !ocusing on input and outcome ratios. ,n employeeBs
contributions or input to an organization include time, education, e!!ort, e?perience and loyalty. Outcomes are %hat an
individual receives !rom an organization such as, pay, recognition and social relationships. "he theory suggests that
people vie% their outcomes and inputs as ratio and then@ compare their ratio to the ratio o! someone else. "his other
BpersonB may be someone in the %or> group. "he comparison may result in three types o! attitudesF
"he individual may !eel e$uitably re%arded,
+nder@re%arded.
Over@re%arded.
,n individual %ill e?perience 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.
Re0nforce2ent Ba5ed Approac3e5 to #ot0vat0on
, !inal approach to the motivation process !ocuses on %hy some behavior are maintained and changed overtime.
*ein!orcement@based approaches e?plain 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 e?pectancy theory and rein!orcement theory. Both consider the
processes by %hich an individual chooses behaviors in a particular situation. /o%ever, the e?pectancy theory !ocuses
more on behavior choices and the latter is more concerned %ith the conse$uences o! those choices.
/einforcement "ontingencies
*ein!orcement contingencies are the possible outcomes that an individual may e?perience as a result o! his or her
behaviors. "he !our types o! rein!orcement contingencies that can a!!ect individuals in an organizational setting are
positive rein!orcement, avoidance, punishment and e?tinction.
ositive *ein!orcement is a method o! strengthening behavior. (t is a re%ard or a positive outcome a!ter a
desired behavior is per!ormed. =hen a managerB observes an employee is doing a good Cob and o!!ers praise then this
praise helps in positive rein!orcement o! behavior. Other positive rein!orces include pay, promotions and a%ards.
"he other rein!orcement, contingency that can strengthen desired behavior is avoidance. "his occurs %hen an
individual chooses certain behavior in order to avoid unpleasant conse$uences. 3or 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 e?ample, punishing %ith !ine !or coming late.
'?tinction can also be used to %ea>en behavior, specially that has previously been re%arded. =hen an
employee tells a vulgar Co>e and the boss laughs, the laughter rein!orces the behavior and the employee may continue
#4,
to tell similar Co>es. By simply ignoring this behavior and not rein!orcing it, the boss can cause the behavior to
subside %hich eventually becomes Be?tinctB.
ositive rein!orcement and punishment are the most common rein!orcement contingencies practiced by
organizations. Most managers pre!er a Cudicious use o! positive rein!orcement and punishment. ,voidance and
e?tinction are generally used only in specialized circumstances.
NE- APPROACHES TO #OTIVATION IN ORGANI,ATIONS
)e% approaches are emerging to supplement the established models and theories o! motivation. "%o o! the most
promising are Goal@Setting "heory and the <apanese ,pproach.
(a) Goal>Sett0n1 T3eor6
"his approach to motivation has been pioneered in the +S, by 'd%in Loc>e and his associates in .:6;s and re!ined in
.:8;s. Goal@setting 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.
=hen involved in goal@settings, 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%sF
Speci!ic goal !i?es the needs o! resources and e!!orts.
(t increases per!ormance.
&i!!icult goals result higher per!ormance than easy Cob.
Better !eedbac> o! results leads to better per!ormances than lac> o! !eedbac>.
articipation o! employees in goal has mi?ed result.
articipation o! setting goal, ho%ever, increases acceptance o! goal and involvements.
Goal setting theory has de!ined t%o !actors,B %hich in!luences the per!ormance. "hese are given belo%F
o Goal commitment
o Sel!@e!!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 $ifficulty."hallenge
"here e?ists a relationship bet%een goal di!!iculty and %or> motivation. "he more di!!icult@ and challenging the goal is,
the higher the level o! motivation and per!ormance. /o%ever, it is essential that goals are set at realistic levels. Goals
that are very di!!icult to achieve are unable to motivate since it is beyond the capacity o! the concerned individual.
Goal Acceptance
(n order to in!luence motivation and per!ormance, a goal must be internalized by an individual. (n other %ords, the
person has to !eel some personal o%nership o! the goal and must have commitment to achieve it.
Goal Setting in Practice
"he most obvious implication o! goal@setting theory is that managers should be helping subordinates to set goals that
are speci!ic and reasonably di!!icult so that subordinates accept and internalize them as their o%n goals. Besides this,
there are a number o! issues that arise in implementing goal setting in practice.
"hough speci!icity o! goal is essential and measurability is desirable, it should not a!!ect in identi!ying
meaning!ul and valid obCective o! goal attainment.
"he manager can stimulate goal acceptance in at least three %aysF
o By involving subordinates in goal@setting process.
o By demonstrating a supportive attitude and approach to%ard his subordinates"
o By assigning various re%ards to the achievement o! goals.
#41
Management by ObCectives IMBOJ is a managerial techni$ue !or improving motivation and per!ormance using
goal@setting principles.
"ognitive Evaluation Theory
, researcher B#harmsB reported in .:6; that e?trinsic motivation li>e pay or re%ards !or a Cob, %hich has an intrinsic@
motivation content, %hich is prior to such re%ards. (t tends to decrease overall level o! motivation. "his proposal is
called cognitive 'valuation "heoryA %hich has been supported by a large number o! research studies conducted
subse$uently.
(8) Capane5e Approac3 to #ot0vat0on
"he <apanese 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 <apanese 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 BshareB o! an
organization. Li>e goal@setting meo%, the <apanese 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
intra@relationships are established. "his %ill also improve the understanding o! motivation. #ertain attempts are made in
+S, 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 organizationBs re%ard system. "he organization can enhance motivation in !ollo%ing %aysF
-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: (tBs great !or morale and simpli!ies hiring procedures.
Use incentive programs: (nducing the !eeling that Bi! youBre creative enough, you %onBt have to rely on
e?pensive !inancial bonuses.B
Esta*lish appropriate #ea#lines: 'very proCect should have a deadline.
%e li*eral &ith praise: (tBs 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.
#ana1er0al Approac3e5 for I2prov0n1 #ot0vat0on
, number o! approaches can help managers motivate %or>ers, to per!orm more e!!ectively. "he !ollo%ing steps promote
intrinsic motivationF
=or>ers articipation in Management I=MJ
Management by ObCectives IMBOJ
Organization Behavior Modi!ication
<ob@*edesign
,lternative =or> Schedules.
"%o approaches, ho%ever, have been especially e!!ectiveF lin>ing pay to Cot per!ormance and $uality o! %or>@li!e
programs.
Pay an# 6o* Performance
ay o!ten can be used to motivate employee per!ormance. But a pay plan also must be able to do the !ollo%ing tas>sF
#reate the belie! that good per!ormance leads to high levels o! pay;
#42
Minimize the negative conse$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! =or> Li!e IQ=LJ 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! Cob satis!action.
rograms !or Q=L improvements range !rom those re$uiring minor changes in an organization to those
re$uiring e?tensive modi!ications in structure, personnel and the utilization o! resources. "here are three types o! Q=L
programs, %hich are as !ollo%sF
7uality "ircles
Quality #ircles IQ#J are small groups o! %or>ers %ho meet regularly %ith their supervisor as their Bcircle leaderB to solve
%or>@related problems. Q#s give an employee an opportunity !or involvement, social@need 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 upper@level needs as stated by Maslo%, through the motivators described in
B/erzbergBs theory.
Alternat0ve -or! Sc3edle
Organizations also !re$uently use the modi!ied B%or>@%ee>B as a %ay to increase employee motivation. , modi!ied
B%or>@%ee>B can be any %or> schedule that does not con!orm to a traditional 8 hours a day or 7 days a %ee> !ormat.
"he modi!ied B%or>@%ee>B helps individual satis!y higher@level needs by providing more personal control over oneBs %or>
schedule. (t also provides an opportunity to !ul!il several needs simultaneously.
Co8>Rede501n
<ob@*edesign or changing the nature o! peopleBs Cob is also being used more as a motivational techni$ue. "he idea
pursued here is that mangers can use any o! the alternatives Cob rotation, Cob enlargement, Cob enrichment as part o!
motivational programme. '?pectancy theory helps e?plain the role o! %or> design in motivation.
#43
LESSON ) *I
COB SATIS.ACTION
"he term BCob satis!actionB re!ers to an employeeBs general happiness %ith his or her Cob. Loc>e de!ines Cob satis!action
as a Apleasurable or positive emotional state resulting !rom the appraisal o! oneBs Cob e?periencesA. 3or our purposes
Cob satis!action %ill be de!ined as the amount o! overall positive a!!ect or !eelings that individuals have to%ards their Cob.
<ob satis!action is the result o! various attitudes the employee holds to%ards his Cob, to%ards related !actors
and to%ards li!e in general.
"he importance o! Cob 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 $uality o!
his output %ill be lo%, there %ill be high absenteeism and employee turnover and increased unionism.
#aldur and Schurr in .:8. suggested that there are three di!!erent approaches to evaluating Cob satis!action.
"he !irst approach is that %or> attitudes such as Cob satis!action are dispositional in nature, i.e., they are stable, positive
or negative disposition learned through e?periences. "he second approach is the Bsocial in!ormation processing modelB,
%hich suggests that Cob satis!action and other %or> place attitudes are developed or constructed out o! e?periences
and in!ormation provided by others at the %or> place. "he third approach is the i! in!ormation processing modelB, %hich
is based on the accumulation o! cognitive in!ormation about the @%or> place and oneBs Cob. (n a sense, this is the most
obvious approach, as it argues that a personBs Cob satis!action is in!luenced directly by the characteristics o! their Cob.
.ACTORS RELATING TO COB SATIS.ACTION
Some o! the most important !actors relating to Cob satis!action are brie!ly stated belo%F
Per5onal .actor5
"hese !actors include the individual employeeBs personality, age, se?, educational level, intelligence etc.
Most o! the evidence on the relation bet%een age and satis!action seems to indicate that there is generally a
positive relationship bet%een the t%o variables up to the pre@retirement years and then there is a sharp decrease in
satis!action.
"here is no clear research evidence bet%een educational level and Cob satis!action. ,s regards the relationship
bet%een the intelligence level and Cob satis!action, it usually depends upon the level and range o! intelligence and the
challenge o! the Cob. "here is as yet no consistent evidence as to %hether %omen are more satis!ied %ith their Cobs than
men.
Co8 .actor5
"hese !actors include the type o! %or> to be per!ormed, s>ill re$uired !or %or> per!ormance, occupational status
involved in the Cob 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>. =here s>ill e?ists to a considerable degree it tends to become the
main source o! satis!action to the employee. ,s regards the relation o! occupational status to Cob satis!action, research
evidences indicate that employees are relatively more dissatis!ied in those Cobs, %hich have less social status or
prestige.
Or1an07at0onal .actor5
"hese !actors include security, %ages and salaries, !ringe bene!its, opportunities !or advancement, %or>ing conditions
etc. Social and economic security to employees increases Cob satis!action, the %ages and salaries and !ringe bene!its
are de!initely the main !actors that a!!ect Cob satis!action o! employees. ,s regards the relation o! opportunity !or
advancement to Cob 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 Cob satis!action. Besides, an
e!!ective do%n%ard !lo% o! communications in an organization is also important to Cob satis!action as employees are
>een to >no% more about the company and its plans, policies etc.
Basically, Cob satis!action is determined by the discrepancy bet%een %hat individuals e?pect to get out o! their
Cobs and %hat the Cob actually o!!ers. , person %ill be satis!ied i! there is no discrepancy bet%een desired and actual
conditions
I2portance of Co8 Sat05fact0on
Obviously, Cob satis!action signi!icantly contributes to employee productivity and morale. ,n organization can be
substantially bene!ited i! it develops general attitudes o! its employees that can e!!ectively contribute to Cob satis!action.
(! employees are satis!ied, turnover and absenteeism %ill be less and productivity %ill be more, 3urther, satis!action o!
individual e?pectations results in group integration and cohesiveness.
#ea5r0n1 Co8 Sat05fact0on
"here have been many measures o! Cob satis!action in the %or> place !rom the <ob &escription inde? to <ob
Satis!action Scales to the more recent Cob satis!action scale o! the Occupational Stress (ndicator IOS(J. "hey all tend to
#44
involve scales, %hich e?plore pay, %or> activities, %or>ing conditions, career prospects, and relationship %ith superiors
and relationship %ith colleagues. ,n e?ample o! a measure o! Cob satis!action !rom the OS(, %hich contains all o! the
elements that usually ma>e up a Cob satis!action measure, is given in the "able .;...
TABLE *I"*< ,n '?ample o! a Measure o! <ob Satis!action !rom the OS(
Ho4 $o .eel A8ot $or Co8J
0ery much satis!action 6
Much satis!action 7
Some satis!action 1
Some dissatis!action 5
Much dissatis!action 2
0ery much dissatis!action .
.. #ommunication and the %ay in!ormation !lo%s around your
organization.
6 7 1 5 2 .
2. "he relationships you have %ith other people at %or>. 6 7 1 5 2 .
5. "he !eeling you have about the %ay you and your e!!orts are
valued.
6 7 1 5 2 .
1. "he actual Cob itsel! 6 7 1 5 2 .
7. "he degree to %hich you !eel QmotivatedV by your Cob 6 7 1 5 2 .
6. #urrent career opportunities 6 7 1 5 2 .
4. "he level o! Cob security in your present Cob 6 7 1 5 2 .
8. "he e?tent to %hich you may identi!y %ith the public image or
goals o! your organization
6 7 1 5 2 .
:. "he style o! supervision that your superiors use 6 7 1 5 2 .
.;. "he %ay changes an innovations are implemented 6 7 1 5 2 .
... "he >ind o! %or> or tas>s that you are re$uired to per!orm 6 7 1 5 2 .
.2. "he degree to %hich you !eel that you can personally develop or
gro% in your Cob.
6 7 1 5 2 .
.5. "he %ay in %hich con!licts are resolved in your company. 6 7 1 5 2 .
.1. "he scope your Cob provides to help you achieve your aspirations
and ambitions
6 7 1 5 2 .
.7. "he amount o! participation %hich you are given in important
decision ma>ing
6 7 1 5 2 .
.6. "he degree to %hich your Cob taps the range o! s>ills %hich you
!eel you possess
6 7 1 5 2 .
.4. "he amount o! !le?ibility and !reedom you !eel you have in your
Cob.
6 7 1 5 2 .
.8. "he psychological Q!eelV or climate that dominates your
organization.
6 7 1 5 2 .
.:. 9our level o! salary relative to your e?perience 6 7 1 5 2 .
2;. "he design or shape o! your organizationKs structure 6 7 1 5 2 .
2.. "he amount o! %or> you are given to do %hether too much or too
little
6 7 1 5 2 .
22. "he degree to %hich you !eel e?tended in your Cob 6 7 1 5 2 .
#EASURES TO INCREASE COB SATIS.ACTION
,lthough management cannot change the personal !actors in Cob satis!action, it should appreciate the role@o! such
!actors and must ta>e care to place the employees %here the personal !actors o! the individual help him in achieving Cob
satis!action.
Similarly, the management can use the !actors inherent in the Cob to plan and administer Cobs more
advantageously !or its personnel. 3or e?ample, the policy o! Cob rotation, Cob enrichment, and Cob enlargement may help
increase Cob 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$uate rest pausing.
Management should also able to recognize and appreciate the good %or> done by the employees and give respect !or
their creative suggestion. roper delegation o! authority, !reedom to do %or> %ill also help increase Cob satis!action.
#45
,bove all, %hile >eeping in vie% the !actors related to Cob satis!action, the management must recognize the importance
o! the stability o! employee attitudes that may lead to high morale and production.
(t is evident !rom the above description that there are many !actors that in!luence Cob satis!action and the
managements must be able to %or> out a broad strategies that may help increase Cob satis!action and must also able to
identi!y the speci!ic !actors that causes the individual di!!erences and must evolve appropriate strategies that could
raise the Cob satis!action o! those particular segment.
#4(
LESSON > **
GROUP +$NA#ICS
, group consists o! a number o! individuals %or>ing together !or a common obCective. 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 .:2;, 'lton Mayo and his associates conducted the /a%thorne e?periments 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 conte?t o! group behavior. "he group in %hich he moves in!luences individual %or>, Cob
satis!action and e!!ective per!ormance.
+E.INITION O. A GROUP
, group is a t%o or more individual %ho interact regularly %ith each other to accomplish a common purpose or goal.
,ccording to Marvin Sha%, Aa 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 personB.
"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 co@ordinate
individual behavior in order to reach the organizational goals. Groups can ma>e a managerBs Cob easier because by
!orming a group, he need not e?plain the tas> to each and every individual. , manager can easily coordinate %ith the
%or> o! an individual by giving the group a tas> and allo% them to co@ordinate %ith each other. But !or a group to %or>
e!!ectively, the interactions bet%een its members should be productive. "here!ore, managers must pay attention to the
needs o! individuals.
Need for a Grop
"he reasons !or the need, o! groups are as !ollo%sF
Management o! modern organizations ma>e mutual e!!orts to introduce industrial democracy at %or>place.
"hey use proCect teams and %or> committees %here %or>ers get due recognition. "hey %illingly participate in
decision@ma>ing.
"he tas>s in modern industries are becoming more comple?, tedious arid o! repetitive nature. =or>
committees, %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.
,n individual cannot per!orm each and every tas>. Group e!!orts are re$uired !or its completion. 3or e?ample,
building a ship, ma>ing o! a movie, construction o! a !ly@over, etc. ,ll these re$uire coordinated and uni!ied
e!!orts o! many individuals, %or>ing in a group.
, group can Cudge in a better %ay as compared to an individual.
=hile 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.
T6pe5 of Grop5
(n an organization, there are three types o! groups, %hich are as !ollo%sF
.nct0onal or for2al 1rop5
3unctional groups are the groups !ormed by the organization to accomplish di!!erent organizational purposes.
,ccording to , L Stencombe, Aa !ormal group is said to be any social arrangement in %hich the activities o!
some persons are planned by others to achieve a common purposeA. "hese groups are permanent in nature.
"hey have to !ollo% rules, regulations and policy o! the organization. , !ormal organizational group includes
departments such as the personnel department, the advertising department, the $uality control department and
the public relations department.
#4)
Ta5! 1rop
"as>s groups are the groups !ormed by an organization to accomplish a narro% range o! purposes %ithin a
speci!ied time. "hese groups are temporary in nature. "hey also develop a solution to a problem or complete its
purpose. (n!ormal committees, tas> !orces and %or> teams are included in tas> groups. "he organization a!ter
speci!ying a group membership, assigns a narro% set o! purposes such as developing a ne% product, evaluating a
proposed grievance procedure, etc.
Infor2al 1rop
(n!ormal groups are the groups !ormed !or the purposes other than the organizational goals. (n!ormal groups
!orm %hen individuals are dra%n together by !riendship, by mutual interests or both. "hese groups are
spontaneous. ,ccording to -eith &avid, Athe net%or> o! persons and social relations %hich is not established or
re$uired !orm an in!ormal organizationA. "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 typesF
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
e?amples o! interest groups
o )em*ership group: Membership groups are the groups o! individualsB belonging to the same
pro!ession and >no%ing each other. 3or e?ample, teachers o! the same !aculty in a university.
o ,rien#ship group: 3riendship 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.
GROUP .OR#ATION AN+ +EVELOP#ENT
Groups can !orm %hen individuals %ith similar goals and motives come, together. Groups are !ormed voluntarily. "he
individuals o! a group can Coin 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 Coin a group, %hich are as !ollo%sF
'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 Coin in!ormal or interest groups !or unimportant
reasons. Since Coining these groups is voluntary, various personal motives a!!ect membership. Some o! these
are sho%n in the !igure ....F
#4*
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 se?, 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 Coin 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 enCoy.
Support for group goals: "he individuals may also be motivated goals by the other group members to Coin.
3or e?ample, a club, %hich is dedicated to environmental conservation, may motivate individuals to Coin.
(ndividuals Coin 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: ,nother reason !or individuals to Coin groups is to satis!y their need !or attachment.
*etiredOold aged individuals Coin groups to enCoy the companionship o! other individuals in similar situation.
Instrumental *enefits: Group membership sometimes also help!ul in providing other bene!its to an individual.
3or e?ample, a manager might Coin a *otaryO Lions club i! he !eels that being a member o! this club %ill lead to
important and use!ul business contacts.
STAGES O. +EVELOP#ENT
Members o! ne% group are un!amiliar %ith one anotherBs personalities and F hesitant in their interactions. "he ne%
group must pass s o! development, %hich are depicted in the !igure ...2.
Mutual ,cceptance
Ma>ing ,cceptance
Sharing ,c$uaintances
&iscussing SubCects
"esting 'ach Other
Being &e!ensive

#ommunication and &ecision@Ma>ing
'?pressing ,ttitudes
'stablishing )orms
'stablishing Goals
Openly &iscussing "as>s
Being &e!ensive
Motivation and roductivity
#ooperating
=or>ing ,ctively on "as>s
Being #reative
#ontrol and Organization
=or>ing (ndependently
,ssigning "as>s Based on ,bility
Being 3le?ible
3igure ...2
"hese di!!erent stages o! group development are e?plained as !ollo%sF
#tal Acceptance
"he very !irst stage o! a group development is called AMutual ,cceptanceA. &uring this stage, the members o!
the group get !amiliar %ith one another and chec>, %hich inter@personal behavior is acceptable and %hich is
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 ne?t stage easily.
Co22n0cat0on and +ec050on>2a!0n1
#4+
Slow Evolution to Next Stage
Burst of Activities to Next Stage
Slow Evolution to Next Stage
"he second stage o! group development is A#ommunication and &ecision@ma>ingBB. &uring this stage, group
members share their opinions and !ormulate the groupBs goals. "hrough communication and decision@ma>ing,
the structure becomes clear and the group moves to the third stage.
#ot0vat0on and Prodct0v0t6
"he third stage is AMotivation and roductivityA, %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.
Control and Or1an07at0on
"he !ourth stage is A#ontrol and OrganizationA, 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 O. #ATURE GROUPS
,s groups pass through the stages o! development to maturity, they begin sho% signs o! the !ollo%ing !our
characteristicsF a role structure, behavioral norms, cohesiveness and in!ormal leadership.
*ole Structures
, role is the part that an individual plays in a group to reach its goals. Some individuals are leaders, some !ocus
on the groupBs 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.
Be3av0oral nor25
,lthough 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 !actorsF
o "he e?tent o! cooperation %ith management.
o Maintenance o! an e!!icient communication system.
o Satis!action o! the needs o! group members.
K Infor2al leader530p
'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
F
leaders. "he primary leader has
more in!luence on the group members than the secondary leaders.
K Co3e50vene55
#ohesiveness is de!ined as the attractiveness o! group members to%ards the group. (t also emphasizes on the
groupBs 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.
,ccording to #art%right there are !our principal conse$uences o! cohesiveness, %hich are as !ollo%sF
o ,bility o! a group to retain its members.
o o%er o! the group to in!luence its members.
o &egree o! participation and loyalty o! members.
o 3eeling o! security on the part o! the members.
GROUP NOR#S
)orms re!er to group behavior standard, belie!s, attitudes, traditions and e?pectations shared by group members.
,ccording to Michael ,rgyle, AGroup norms are rules or guidelines o! accepted behavior %hich are established by a
group and used to monitor the behavior o! its membersA. "hey are !ramed to achieve obCectives o! the group. "hey can
be social and !air in nature. )orms de!ine boundaries bet%een acceptable and unacceptable behavior. "hey ma>e the
members to identi!y themselves %ith the group. )orms play a signi!icant role in disciplining the members o! a group to
ma>e them to %or> regularly and properly. "his reduces absenteeism and employee turnover. "he members o! the
group are e?pected !ollo% the norms strictly. "his %ill ma>e the group more organized
T6pe5 of Grop Nor25
"here are t%o types o! group norms, %hich arc as !ollo%sF
%ehavior norms: Behavior norms are rules that standardise ho% individuals act %hile %or>ing on a day@to@day
basis. '?amples are. Ado not come to committee meetings unless you have read the reports to be BAdiscussedAB,
Agreet every customer %ith a smileBB, etc. "hese norms tend to re!lect motivation, commitment to the
organization and there!ore result in high level o! per!ormance.
#5,
Performance norms: Per%$r-a./e .$r-0 are r&"e0 t1at 0ta.#ar#!2e e-p"$'ee $&tp&t a.#
.&-3er $% 1$&r0 4$r5e#6
Rea0$.0 %$r Str$.7 E.%$r/e-e.t $% N$r-0
Groups donBt have the time or energy, to regulate each and every action o! the group members. Only those behaviors
that sound to@be important by group members should be brought under control.
Groups, li>e individuals, try to operate in such a %ay that they ma?imize their chances o! tas> success and
minimize Iheir 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%sF
(! the norms !acilitate group success or ensure group survival,
(! the norms simpli!y or predict regarding the behavior %hich is e?pected !rom group members.
(! the norms emphasize the roles o! speci!ic members %ithin a group and
(! the norms help the group to solve the inter@personal problems themselves.
Un0Hene55 of Grop Nor25
"he norms o! one group cannot be easily mi?ed %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 norms@. "he
members o! one group may be !riendly %ith their supervisor %hereas those o! another group may not
Nor2 Confor20t6
)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%sF
Some groups may e?ert 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. 3or e?ample, 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 e?hibit other
behaviors.
Grop Co3e50vene55
,ccording to *cnsis Li>ert, Acohesiveness is the attractiveness o! the members to%ards the group or resistance o! the
members leaving itA. (t re!ers to the attachment o! members %ith the group.
,ccording lo -. ,s%alhappa, Acohesiveness is understood as the e?tent o! li>ing each member has to%ards
others and ho% !ar everyone %ants to remain as the member o! the groupA. ,ttractiveness is the >ey to cohesiveness.
#ohesiveness is the e?tent 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.
, 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.
Advanta1e5 of Grop Co3e50vene55
"he advantages o! group cohesiveness are as !ollo%sF
"he members o! cohesive groups have high morale.
"he members donBt 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 an?iety 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 cohesivenessF
#ompetitiveness %ith other groups.
(nter@personal attraction.
3avourable evaluation !rom outsiders.
,greement on goals.
3re$uent interaction. "he !ollo%ing !actors decrease cohesivenessF
Large group size.
&isagreement on goals.
#ompetitiveness %ithin group.
#51
&omination by one or more members.
+npleasant e?periences.
*+,-
LESSON > *:
LEARNING AN+ BEHAVIOR #O+I.ICATION
#on!lict arises !rom di!!erence o! opinion bet%een the group members %hile attaining the organizational goals. ,n
organization is an interloc>ing net%or> o! groups, departments, sections or %or> teams. (n organizations every%here,
con!lict among groups o! di!!erent interests is unavoidable. ,ccording to one survey, managers spend an estimated 2;
percent o! their time dealing %ith group con!licts. "he success o! an organization depends upon the harmonious
relations among all independent groups. Managers may either directly resolve the con!licts or they may act as
mediators bet%een t%o or more employees. (n either case, >no%ledge and understanding o! con!lict and the methods
o! resolving it are important.
(nter@group con!licts result !rom the %ays in %hich organizations co@ordinate the %or> o! di!!erent groups and
distribute re%ards among those groups.
T$PES O. CON.LICT
"he levels o! group con!lict are as !ollo%sF
Personal conflict: ,re 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: ,re the con!lict arising bet%een
levels o! an organization, %hich are o! t%o types. 0ertical con!lict arises bet%een higher and lo%er level o!
management. /orizontal con!lict arises among the employees at same level.
3ollo%ing is the se$uence in %hich a con!lict can ariseF
atent conflict: (s a situation %hen the conditions !or con!lict arise. 3or e?ample, t%o groups competing !or
scarce resources.
Perceive# conflict: (s a situation %hen both the groups realize that there e?ists con!lict bet%een them.
$elt con&lict' (s a situation %hen members involved in the con!lict !eel tense or an?ious.
)anifest conflict: (s a situation %hen both the group try to !rustrate each other.
"onflict outcome: (s a situation or conse$uence arising a!ter the con!lict is eliminated.
REASONS .OR CON.LICT
"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%sF
"ommunication pro*lems: Groups o!ten become very involved %ith their o%n areas o! responsibility. "hey
tend to develop their o%n uni$ue vocabulary. aying attention to an area o! responsibility is a %orthy
'ndeavour, but it can result in communication problems. "he receiver o! in!ormation should be considered
%hen a group communicates an idea, a proposal, or a decision. Misin!ormed receivers o!ten become irritated
and then hostile.
Incompati*le goals: (nter@group con!lict arises because o! goal incompatibility. (n other %ords, goal attainment
by one group may reduce the level o! goal attainment by other groups. "his may be due to horizontal
di!!erentiation and tas> specialization. "he con!lict bet%een production and mar>eting departments, line and
sta!! departments, union and management are !e% e?amples o! inter@group con!licts that arise because o! in@
compatibility o! goals.
Tas0 inter#epen#ence: "as> interdependence means to %hat e?tent a %or>, group relies on other
organizational groups to complete its tas>s. (n simple %ords, it re!ers to the dependence o! one group on
another !or resources or in!ormation. (t can be said in generaT that as interdependence increases, the potential
!or con!lict increases.
,ccording to <. "hompson, there are three types o! interdependence among groups, %hich are as !ollo%sF
o Poole# inter#epen#ence: (t arises %hen groups have little interaction %ith each other but are a!!ected
by each otherBs activities. 3or e?ample, a branch in &elhi does not need to interact %ith a branch in
#52
#hennai. "he only lin>age bet%een the t%o is that they share !inancial resources !rom a common pool
and the success o! each branch contributes to the success o! the organization.
o Se9uential tas0 inter#epen#ence: (t arises %hen one group is unable to commence its %or> until the
%or> o! other group gets completed. (n se$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. (nter@group
con!lict arises !rom reciprocal tas> interdependence over di!!erence in per!ormance e?pectations. 'ach
group is dissatis!ied %ill the $uality or $uantity o! %or> received; !rom the other group.
o Tas0 am*iguity: "he lac> o! clarity over Cob responsibilities is called tas> ambiguity and it !re$uently
leads to aggression bet%een groups. (nter@group 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 $uic>ly
or the organizationBs environment is changing rapidly. , good e?ample o! tas> ambiguity is inter@group
con!lict arising in the recruitment o! ne% employees. (t may be the responsibility o! either the personnel
department or any o! the !unctional departments such as mar>eting, !inance. "he con!usion may also
arise regarding %ho has the !inal authority to e?ecute the !inal decisions.
o /esource sharing: "he relation bet%een t%o groups can be a!!ected by the degree to %hich they
ma>e use o! a common pool o! resources and the degree to %hich this common pool o! resources is
ade$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 union@is the best e?ample. 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. 3irst, !unctional groups di!!er in their time
perspectives. 3or e?ample, *N& scientists have a longer@range o! goals than manu!acturing groups.
"he range o! %or> o! manu!acturing group is evaluated on ho% $uic>ly it can manu!acture high@$uality
products %hile the range o! *N& 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
e?tent. "he goals o! manu!acturing groups are more speci!ic and clear@cut than the goals o! *N&
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 co@ordinating 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 e?pense o! other
groups. 3or e?ample, 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 inter@group 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.
+$NA#ICS O. INTER>GROUP CON.LICT
"he !ollo%ing points are covered in the dynamics o! an inter@group con!lictF
"hanges &ithin each group: =hen there is inter@group con!lict in an organization, systematic changes ta>e
place in the perceptions, attitudes and behaviors o! the participants. "hey are as !ollo%sF
o "he group demands more loyalty !rom individual members %hile !acing an e?ternal threat. (n the !ace o!
an e?ternal threat, past di!!erences and di!!iculties bet%een group members are !orgotten and group
cohesiveness increases.
o (n an inter@group 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 inter@group con!lict, the organization and structure o! the %or> group
#53
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 inter@group con!licts. +nion@Management relationships during contract negotiations are
one o! the e?amples 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%sF
o "here are distortions o! perception about oneBs o%n group and about the other group.
o "he interaction and communication bet%een groupsB decreases.
o "here is a shi!t among the groups !rom a problem@solving motive to a %in@lose motive.
o "here is increased ill !eeling to%ards the rival group.
GROUP STRATEGIES TO GAIN PO-ER
"here are several strategies that various groups use to gain po%er in an inter@group con!lict situation. Some o! these
strategies allo% co@operation and sharing bet%een groups %hile other strategies are more competitive and increase the
po%er o! one group at the e?pense 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" e?ample,
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 policy@ma>ing committees. 3or e?ample, representatives !rom !inancial institutions are
included in the Board o! &irectors o! a #ompany to participate in decision@ma>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 co@operate %ith each other in order to
compete more e!!ectively %ith members o! other groups.
Influencing #ecision criteria: Groups can also sometimes e?ert po%er lo change criteria !or decision@ma>ing
that are selected as the basic !or resource distribution.
"ontrolling Information: Gaining access to sensitive in!ormation and then limiting other groupBs access lo it
increases the po%er o!A the in!ormation@B 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. 3or instance, a union might threaten to stri>e to pressurize management.
Management reaction to disruptive inter@group 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.
#et3od5 to Solve Inter>1rop Confl0ct Ind0rectl6
"he various methods to solve inter@group con!licts indirectly are as !ollo%sF
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. 3or e?ample,
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 $uality o! repairs to it be!ore going to management.
Bargaining bet%een t%o groups is success!ul i! both groups are com!ortable %ith the agreement bet%een them.
Persuasion: "his is the indirect method, in %hich the groups !ind the areas o! common interests among
themselves. "he groups try to !ind out those interests levels %here they have the same say. ,!ter%ardsB, the
groups try to sho% ho% important it is to each o! them in attaining organizational goals. But persuasion is
possible only i! there are no clashes bet%een the groups and its members
#et3od5 to Solve Inter>Grop Confl0ct
"he various methods to solve inter@group con!licts directly are as !ollo%sF
Ignoring the conflict: "his is a direct method used by Ihe managers to solve inter@group con!licts. (gnoring the
con!lict is characterized by the absence o! behavior %herein the members o! the groups avoids dealing %ith the
dys!unctional aspects o! the con!lict. (n this, a, group simply re!uses to attac> the other group. But the
disadvantage o! this method is that it ignores the causes o! con!licts and as a result, the con!lict situation
!re$uently continues or gets %orse over time.
#54
$omination *y the management: "his method o! solving inter@group con!licts emphasizes on improving the
inter@group relations. "o improve the inter@group relations, greater integration or collaboration among groups is
needed. Management can use domination to minimize the con!licts by e?ercising 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 inter@group 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 root@cause 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 Band procedures !or improving group interaction and
thereby attempt to solve the con!licts arising bet%een the groups.
o ,ppealing to super@ordinate goals. "he !inal method to minimize the con!licts is to !ind super@ordinate
goals. "hese are goals desired by t%o or more groups that can only be accomplished through the
cooperation o! the groups. =hen con!licting groups have to cooperate to accomplish a goal, con!lict
can be minimized. 3or e?ample, a %ide pro!it@sharing 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%sF "he assignment and co@
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 %in@lose con!licts among groups.
o "he use o! co@operative 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.
*+,-
#55
LESSON>*%
ORGANI,ATIONAL CO##UNICATIONS
#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$uisite !or the attainment o! organizational goals. "here!ore,
communication is considered to be the most important and most e!!ective ingredient o! the management process.
(nterpersonal communication is !undamental to all managerial activities. ,ll other management !unctions involve
communication in some !orm o! directions and !eedbac>. "hus, e!!ective management is a !unction o! e!!ective
communication.
+E.INITION O. CO##UNICATION
(n modern society, the term communication is !re$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 e?perts emphasize the behavioral implications o! communication
by pointing out that Athe only means by %hich one person can in!luence another is by the behaviors he sho%s that is,
the communicative e?changes bet%een people provide the sole method by %hich in!luence or e!!ects can be achievedA.
(n other %ords, the behaviors that occur in an organization are vital to the communication process. "his personal and
behavioral e?change vie% o! communication ta>es many !orms.
"he !igure .5.. can be used to identi!y the maCor categories o! communication that arc especially relevant to
the study o! organizational behavior.
#ommunication "echnology (nterpersonal "echnology 0erbal
"echnology
$igure ().(' *hain o& *ommunication in Organizational Behavior
O89ect0ve5 of Co22n0cat0on
Managements depend upon communication to achieve organizational obCectives. Since managers %or> %ith and
through other people, all their acts, policies, rules, orders and procedures must pass through some >ind o!
communication channel. ,lso there must be channel o! communication !or !eedbac>. ,ccordingly, some o! the purposes
o! communication areF
"o discourage the spread o! misin!ormation, ambiguity and rumors, %hich can cause con!lict and tension.
"o !oster any attitude, that is necessary !or motivation, cooperation and Cob satis!action.
"o develop in!ormation and understanding among all %or>ers. "his is necessary !or group e!!ort.
"o prepare %or>ers !or a change in methods o! environment by giving them necessary in!ormation in advance.
"o encourage subordinates to supply ideas and suggestions !or improving the product or %or> environment and
ta>ing these suggestions seriously.
"o improve labor management relations by >eeping the communications channels open and accessible.
"o improve social relations among %or>ers by encouraging intercommunication. "his %ould satis!y the basic
human need !or a sense o! belonging and !riendship.
I2portance of Co22n0cat0on
(nterpersonal roles re$uire managers to interact %ith supervisors, sub@ordinates, peers and others outside the
organization. "hus, !or co@ordinated 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.
#ommunication allo%s people to co@ordinate %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%@
%here they are heading and %hy. "hey also need directions !or their speci!ic tas>s.
#ommunication is especially important !or the tas> o! decision@ma>ing. &ecision@ma>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 e?ample, can communicate %ith other groups about changes
#5(
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 e?press their emotions. #ommunication o! !eelings can be very important
to employee morale and productivity. 'mployees %ho !eel that they cannot vent their anger or e?press their Coy on the
Cob 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.
CO##UNICATION PROCESS
"he !igure .5.2 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.
Sorce or Sender
"he communication cycle begins %hen one person called the sender %ants to transmit a !act, idea, opinion or other
in!ormation to someone else. , manager, !or instance, might call the research department to send the latest in!ormation
on a particular mar>et.
Encod0n1
"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 e?pressions, 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.
Tran520550on
,!ter the message has been encoded, it is transmitted through the appropriate channel or medium. #ommon channels
or media in organizations include !ace@to@!ace communication using the media o! sound %aves, light, letters and
reports.
+ecod0n1
"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 comple?. 'ven %hen you are
Cust reading a letter, you may need to use all your >no%ledge o! the language, your e?perience %ith the letter@%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%.
Rece0ver
"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>.
No05e
(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
#5)
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.
#ETHO+S O. CO##UNICATION
"here are mainly three primary methods o! communication in an organization, %hich are %ritten, oral, and non@verbal.
"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 .5.5 given
belo% sho%s various !orms each method can ta>e.
"ypically organizations produce a great deal o! %ritten communication o! many >inds. , 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 proCect and o!ten provide in!ormation to be used in decision@ma>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>@related problems. ,s such, they represent attempts to ma>e communication more e!!icient and in!ormation
more accessible. , per!ormance appraisal !orm is an e?ample.
ORAL CO##UNICATION
Oral communication, also >no%n as !ace@to@!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. =here one@%ay communication
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 audio@visual 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 Cudged in a !ace@to@!ace conversation rather than in %ritten %ords.
Advanta1e5
Some o! the advantages o! oral communication areF
#5*
(t is direct, simple, time saving and least e?pensive !orm o! communication.
(t allo%s !or !eedbac> and spontaneous thin>ing, so that i! the receiver Cs 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.
+05advanta1e5
"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
e?pressions.
-RITTEN CO##UNICATION
, %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.
Advanta1e5
(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.
+05advanta1e5
(t can be very time@consuming, 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 e?cessive !ormality in personal relations.
NON>VERBAL CO##UNICATION
Some o! the meaning!ul communication is conveyed through non@verbal %ays. 'ven some o! the verbal messages are
strengthened or diluted by non@verbal e?pressions. "hese non@verbal e?pressions include !acial e?pressions and
physical movement. (n addition, some o! the environmental elements such as building and o!!ice space can convey a
message about the authority o! the person. ,ccording to "ip>ins and Mc@#arter, !acial e?pressions can be categorized
asF
(nterest@e?citement
'nCoyment@Coy
Surprise@startle
&istress@anguish
3ear@terror
Shame@humiliation
#ontempt@disgust
,nger@rage
#5+
hysical movements or body language is >no%n as A>inesicsA. , handsha>e is probably the most common !orm o!
body language and tells a lot about a personBs disposition. Other e?amples o! body language are tilting o! head, !olding
o! arms or sitting position in a chair.
Our !acial e?pressions 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. ,s !ar as environmental elements are
concerned, a large o!!ice %ith lu?urious carpeting and e?pensive !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. ,ccordingly non@verbal actions have considerable impact on
the $uality o! communication.
Co22n0cat0on Net4or!5
, communication net%or> is the pattern o! in!ormation e?change used by the members o! a group.
=hen the members o! a group communicate mostly %ith the group leader, a %heel net%or> develops. =hen the
members o! a group are on di!!erent levelsOo! the organizationBs 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>@ !orce. (n!ormal groups that lac> a !ormal leader o!ten !orm an all@channel net%or> that
everyone uses to communicate %ith everyone else. 3igure .5.1 sho%s =heel #ommunication )et%or>. 3igure .5.7
sho%s #hain #ommunication )et%or>.
3igure .5.6 sho%s #ircle #ommunication )et%or>. 3igure .5.4 sho%s ,ll #hannel #ommunication )et%or>.
#(,
"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 membersB relative !reedom to use di!!erent paths to communicate. MembersB
commitment to the groupBs %or> is de!ined by the centrality o! the position o! the members. ,ll these provide insight into
possible communication problems. 3or instance, a group %ith high density and distance can e?pect 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 groupsF
Organizational #ommunications G .25
.. Type of Tas0' (! the tas> o! the group is simple, a chain or %heel net%or> is used. 3or hard tas>s, all channel
net%or>s arises.
2. Environment: 'nvironment including the groupBs seating arrangement and meeting place also a!!ects
communication patterns. 3or instance, i! members al%ays sit around a table, then circle net%or> arises.
5. Group Performance ,actors: "he group per!ormance !actors li>e groupBs size, composition, norms and
cohesiveness also a!!ect theB !ormation o! communication net%or>s. 3or instance, it is much easier to have an
all@channel 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 %or>
most e!!iciently. , manager, %ho sees that a %heel net%or> is !orming around an e?perienced, 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.
.OR#S O. ORGANI,ATIONAL CO##UNICATION
,lthough 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>. )on@verbal communication is also important and can be a part o! interpersonal, group and
organizational communication.
#(1
Vert0cal Co22n0cat0on
0ertical 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.
Up4ard Co22n0cat0on
+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 sub@ordinate thin>s is
o! importance to the superior.
+o4n4ard Co22n0cat0on
&o%n%ard #ommunication consists o! messages moving do%n the hierarchy !rom superiors to sub@ordinates. "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 sub@ordinate.
Tran5act0onal Co22n0cat0on
=enburg and =ilmont suggest that instead o! communication being Aup%ardA or Ado%n%ardA %hich is inter@
communication, it should be AtransactionalA communication, %hich is mutual and reciprocal because, Aall 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 otherA. (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.
Infor2al Co22n0cat0on
,nother 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>. 3or e?ample, the grapevine in an organization
may be carrying harm!ul in!ormation, !alse in!ormation or politically motivated in!ormation. =hen these >inds o! rumors
are being spread, managers may need to intervene. "hey can hold open meetings and obCectively 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 decision@ma>ing.
Ot3er .or2=5 of Co22n0cat0on
One that has become especially popular is in!ormally labelled as Amanagement by %andering aroundA. "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 sub@
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 CO##UNICATION
"he communication must be interpreted and understood in the same manner as it %as@meant 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 e?ternal
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%F
No05e Barr0er5
)oise is any e?ternal !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 areF
Poor Timing
, message sent on poor timing acts as a barrier. 3or instance, a last minute communication %ith a deadline may put too
much pressure on the receiver and may result in resentment. , 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
!ace@to@!ace conversation or a combination o! these modes.
#(2
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. ,mbiguity in use o! %ords %ill lead to di!!erent interpretations.
Physical $istractions
,ny physical distractions such as telephone interruptions or %al>@in visitors can inter!ere %ith the e!!ective !ace@to@!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 areF
"he managers may %ithhold important negative in!ormation.
"he secretary may !orget to !or%ard a memo.
"here may be pro!essional Cealousy resulting in closed channels.
Interper5onal Barr0er5
"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
areF
,iltering
3iltering 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. 3or e?ample, a nightclub advertisement sign,
Aclean and decent dancing every night e?cept SundayA, could lead to t%o interpretations. 3irst, 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 managerBs assessment o! people resulting in reduced e!!ectiveness
o! the communication areF
, manager may perceive people to belong to one category or another as stereotypes, rather than uni$ue and
distinct individuals. 3or e?ample, he may perceive %omen to be less e!!icient managers.
, manager may ma>e total assessment o! a person based on a single trait. , pleasant smile may ma>e a
positive !irst impression.
, manager may assume that his subordinateBs perception about things and situations are similar to his o%n.
"his perception limits the managerBs 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 multi@national companies
and enterprises.
#(3
Sen#er "re#i*ility
=hen 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 e?pert 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! e?pertise.
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. '?treme emotions are most li>ely to hinder e!!ective communication because rational
Cudgments are replaced by emotional Cudgments.
)ulti!meaning (or#s
Many %ords in 'nglish language have di!!erent meanings %hen used in di!!erent situations. ,ccordingly, 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 e?pected 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. 3eedbac> is the only %ay to ascertain as to ho%
the message %as interpreted.
Overco20n1 Co22n0cat0on Barr0er5
(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%sF
. ,ee#*ac0' 3eedbac> 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 $uestions about the
message. "%o@%ay communication, even though more time@consuming, avoids distrust and leads to trust
and openness, %hich helps in building a healthy relationship contributing to communication e!!ectiveness.
2 Improve istening S0ills: Good listening habits lead to better understanding and good relationships %ith
each other. Some guidelines !or e!!ective listening areF
Listening re$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 Ihe message content and respond positively to these !eelings.
,s> $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 preCudice or value the importance o! the message due to your previous dealings and
e?periences %ith the sender or your perceptions about him, positive or negative.
&o not Cump 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.
5 $evelop (riting S0ills: #learly %ritten messages can help avoid semantic and perception barriers. , %ell@
%ritten communication eliminates the possibility o! misunderstanding and misinterpretation. =hen %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%sF
: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 comple? and do not lend to a
clear single meaning.
#(4
$o not *e *oggart #o&n *y rules of composition: =hile 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
e?press your thoughts, opinions and ideas in the !e%est number o! %ords possible.
%e specific: 0agueness destroys accuracy, %hich leads to misunderstanding o! the meaning or
intent o! the message. ,ccordingly, be speci!ic and to the point.
1 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. ,ccordingly, 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. ,ccording to the studies conducted by <. Lu!t, openness and an atmosphere o!
trust builds healthy relationship and closes credibility gaps, thus contributing to communication e!!ectiveness.
GUI+ELINES .OR E..ECTIVE CO##UNICATION
"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.
T3e Idea5 and #e55a1e5 53old 8e Clear; Br0ef and Prec05e
"he ideas to be communicated must be %ell planned and clearly identi!ied. "his %ill eliminate ambiguity so that the
message %ill not be subCect 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.
Sen5e of T020n1
"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.
Inte1r0t6
"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. =hen these concerned levels are omitted or bypassed, it
creates bic>ering, distrust, con!usion and con!lict. ,ccordingly, the established channels must be used as re$uired.
Con5lt 40t3 ot3er5 43o are 0nvolved 0n Plann0n1 t3e Co22n0cat0on
(! 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% e?actly %hat they need and %hen they need the
communication.
Con50der t3e Rece0ver=5 Intere5t
"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.
#ode of +el0ver6
=hile delivering the communication, avoid negative statements li>e, A( am not sure it %ill %or>A, 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,
e?pressions and emotions e?hibited, attentiveness to the receiver and so on. "he %ritten communication should be
polite and unambiguous.
U5e proper .ollo4>p
,ll communications need a !ollo%@up 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.
Co22n0cat0on 53old 8e Co2pre3en50ve
#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, '@Mail and
(nternet have made the communication $uic> and convenient. (t is no% even possible !or managers !rom di!!erent cities
to meet by telecon!erencing method %ithout leaving their o!!ices. ,t the same time, psychologists are beginning to
discover some problems associates %ith these ne% advances in communication.
#(5
LESSON >*&
LEA+ERSHIP IN ORGANI,ATIONS
Leadership is an integral part o! management and plays a vital role in managerial operations. (t provides direction,
guidance, and con!idence to the employees and helps in the attainment o! goals in much easier %ay. (n business and
industrial organizations, managers play the role o! leader and ac$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.
+E.INITION
Leadership is the art o! in!luencing and inspiring subordinates to per!orm their duties %illingly, competently and
enthusiastically !or achievement o! groups obCectives.
,ccording to =endell 3rench, ALeadership 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,
,ccording to -eith &avis, QLeadership is the process o! encouraging and helping others to %or> enthusiastically
to%ards obCectivesV.
,ccording to -oontz and OB&onnell, ALeadership is the art or process o! in!luencing people so that they %ill
strive %illingly to%ards the achievement o! group goalsA.
,ccording to eter &ruc>er, ALeadership means the li!ting o! manBs visions to higher sights, the raising o! manBs
per!ormance to higher standard, the building o! manBs personality beyond its normal limitationsA.
,ccording to Grey and Star>e, ALeadership is both a process and a property. ,s a process, it is used !or non@
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. ,s a property, leadership is the set multi characteristics
attributed to those %ho are perceived to be leadersA.
"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.
.EATURES O. LEA+ERSHIP
"he !eatures o! leadership are as !ollo%sF
Leadership is the process o! in!luencing behavior o! individuals o! an organization.
Leadership uses non@coercive 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.
, 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 e?ercise in!luence over his
leader.
Leadership is meant !or a given situation, given group !or a pre@determined period o! lime.
Leadership is continuous process o! in!luencing behavior. (t encourages liveliness in the group.
I2portance of Leader530p
"he !ollo%ing points can Cudge the importance o! leadershipF
, leader should act as a !riend o! the people %hom he is leading.
, leader must have the capacity to recognize the potentials o! the individuals and trans!orm them into realities.
, leader should have the con!idence o! the individuals o! the organization.
, leader must be able to unite the people as a team and build up team spirit.
, leader should be able to maintain discipline among his group and develop a sense o! responsibility.

, leader must be able to build up a high morale among the individuals o! the organization.
, leader should motivate his people to achieve goals.
#((
, leader should try to raise the morale o! the individuals and should maintain ethical standards among the
individuals.
, leader should act as a lin> bet%een the %or> groups and the !orces outside the organization.
+0fference 8et4een Leader530p and #ana1e2ent
Leading and managing go together but some di!!erences e?ist bet%een the t%o. "he !ollo%ing are the di!!erences
bet%een the leadership and the managementF
Management ta>es rational and logical decisions %hile leadership ta>es decision on e?pectations 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.
,ll 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 obCectives. Leadership on the other hand, is a process o! in!luencing the behavior o! the people
to attain their assigned tas>s. , success!ul manager must possess both the managerial and leadership
$ualities.
T$PES O. LEA+ERSHIP
3ollo%ing are the main types o! leadershipF
Atocrat0c or At3or0tar0an
(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. ,ny negligence on the part o! subordinates
results in punishment. "here is no participation !rom the subordinates in decision@ma>ing. , leader thin>s that he is the
only competent person in the organization. ,ccording to 'd%in B. 3ilippo, there are !ollo%ing three types o! leaders in
autocraticF
.. -ar# %oile# or Strict Autocrat: Leader, under such type uses negative in!luence and e?pects that the
employees should obey his orders immediately. )on@compliance 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.
2. %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.
5. )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 decision@ma>ing processes. But he ma>es all
decisions by himsel!. )on@compliance o! his orders also results Cn punishment.
+e2ocrat0c or Part0c0pat0ve
&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 decision@ma>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 decision@ma>ing process is also re%arded. '?change 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 Cob 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.
La055e7>fa0re or .ree Re0n
(n this type o! leadership, there is virtual absence o! direct leadership. (t is, there!ore, >no%n as Ano leadership
at allA. "here is complete delegation o! authority to subordinates so that they can ma>e decisions by themselves.
,bsence o! leadership may have both positive and negative e!!ects. 3ree rein leadership may be e!!ective i! members
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! decision@ma>ing authority.
Breacrat0c
"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.
#an0plat0ve
"his type o! leadership manipulates the employees to attain their assigned tas>s. , manipulative leader is $uite sel!ish
and e?ploits 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.
Paternal05t0c
"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@pert Leader530p
"he e?pert leadership emerged as a result o! comple? 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 e?pert 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 e?hibit 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',&'*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. , 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 O. LEA+ERSHIP
, number o! theories and approaches to study leadership have been developed. "here are broadly three theories o!
leadership.
"rait "heory
Behavior "heory
#ontingency "heory
(a) Tra0t T3eor6
"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 non@leaders. 3or e?ample, the leadership traits might include intelligence, assertiveness, above average height,
sel!@con!idence, initiative and understanding o! interpersonal human relations. "he e?istence 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 $ualities, only those %ho have them %ould be considered potential leaders.
Some o! the %ea>ness o! this theory isF
,ll the traits are not identical %ith regard to essential characteristics o! a leader.
Some traits may not be inherited, but can only be ac$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 e?plain the leadership !ailures, in spite o! the re$uired traits.
(t has been !ound that many traits e?hibited by leaders are also !ound among !ollo%ers %ithout e?plaining 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.
(8) Be3av0or T3eor6
"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 .:1;s. &epending on broad discussions %ith both the managers and sub@ordinates, the
Michigan studies identi!ied t%o !orms o! leadership behavior. "hey are discussed as belo%F
#(*
6o*!centere# lea#ership *ehavior : "he !irst %as called Cob@centered leadership behavior, %hich
!ocuses on per!ormances and e!!icient completion o! the assigned tas>s. , Cob@centered leader
interacts %ith group members to e?plain 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 Cobs. "hus,
the leaderBs 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: ,t 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 maCor >inds o! leadership behaviors or styles,
%hich are as !ollo%sF
Initiating!structure *ehavior: (n initiating@structure behavior, the leader clearly de!ines the leader@
subordinate roles so that everyone >no%s %hat is e?pected. "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
!eelingsB 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 e?hibit 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 leaderKs 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 sub@ordinates, %hereas leaders rated highly on consideration structure
had lo%er@per!orming sub@ordinates %ho sho%ed signs o! higher satis!action.
Most e?perts 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 e?amine their o%n leadership characteristics and match them
against the traits most commonly identi!ied %ith good leaders. (n order to understand the !ull comple?ity o! leadership,
contingency theory is to be studied.
(c) Cont0n1enc6 T3eor6
"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%sF
The P" theory: "he !irst contingency theory o! leadership is 3red 3ielderBs Least re!erred #o@%or>er IL#J
Model. 3ielder identi!ied t%o types o! leadershipF tas>@oriented and relationship@oriented. 3ielder believes that a
leaderBs tendency to be tas>@oriented or relationship oriented remains constant. (n@ other %ords, a leader is
either tas>@oriented or relationship@oriented %hile leading his group members. 3ielder used the Least re!erred
#o@%or>er IL#J scale to measure the type o! leadership. , 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! si?teen
scales at each end, by a positive or negative adCective. 3or e?ample, three o! the scales 3ielder uses in the
L# areF
/elp!ul @@@@@@@@@@@@@@@@@@@@ 3rustrating 8 4 6 7 1 5 2 .
"ense @@@@@@@@@@@@@@@@@@@ *ela?ed . 2 5 1 7 6 4 8
Boring @@@@@@@@@@@@@@@@@@@ (nteresting . 2 5 1 7 6 4 8
"he leaderBs L# score is Ihen calculated by adding up the numbers belo% the line chec>ed on each scale. , 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 inde? o! behavior, personality or some other un>no%n !actor.
,ccording to 3ielder, the contingency !actor !avours the situation !rom the leaderBs point o! vie%. "his !actor is
determined by leader@member relations, tas>@structure and position@po%er, %hich are discussed as belo%F
ea#er!mem*er relations: A Leader@member relation re!ers to the nature o! relationship bet%een the leader
and his %or> group. (! the leader and the group enCoy 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>@structure is the degree to %hich the groupBs tas> is clearly de!ined. =hen the tas> is
routine, easily understood, and unambiguous and %hen the group has standard procedures, the structure is
#(+
assumed to be high. =hen the tas> is non@routine, ambiguous, comple?, %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 maCor role in guiding and directing the
groupBs activities. (! the tas> structure is high, the leader %ill not have to pay much attention.
Position!po&er: osition@po%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, position@po%er is assumed lo be strong. (! the leader does not have re$uired po%ers, the position@
po%er is %ea>. 3rom the leaderBs point o! vie%, strong position po%er is !avourable and %ea> position po%er is
un!avorable.
3ielder and his associates conducted various studies highlighting i! a situation !avors the leadership and
group e!!ectiveness or not.
=hen the situation includes good relations, high structure and strong po%er, a ris>@oriented leader to lie
most e!!ective. /o%ever, %hen relations are good but tas> structure is lo% and position@po%er is %ea>, L( relationship@
oriented leader is considered to be most e!!ective.
, !inal point about L# theory is that, 3ielder argues that any particular@type o! leadership, %hich is measured
by the L# is in!le?ible and cannot be changed. (n other %ords a leader cannot change his behavior to !it a
particular situation. 3ielderBs contingency theory has been criticized on the ground that L# measure lac>s
validity and that the assumption about the in!le?ibility o! the leaderBs behavior is unrealistic.
(d) T3e Pat3>Goal t3eor6
"he path@goal model o! leadership %as introduced by Martin 'vans and *obert /ouse. ath@goal theory says that a
leader can motivate subordinates by in!luencing their e?pectations. Leaders can motivate sub@ordinates by ma>ing
clear %hat they have to do to get the re%ard they desire. "he path@goal 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 behaviorF
directive, supportive, participative and achievement@oriented. ,ccording to this model managers can adCust their
behavior to include any !our >inds o! leadership behavior mentioned above. 3or instance, %hile leading a ne% group o!
sub@ordinates, 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. ,s 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. 3inally, the leader may use achievement@oriented behavior to encourage continued high
per!ormance o! sub@ordinates.
'nvironmental characteristics are !actors, %hich are beyond the control o! subordinates. (t includes tas>
structure, the primary %or> group and the !ormal authority system. 3or instance, %hen structure is high, directive
leadership is less e!!ective than %hen structure is lo%. Sub@ordinates do not usually need their boss to repeatedly tell
them ho% to do a routine Cob. ,ccording to the path@goal theory, these environmental !actors can create uncertainty !or
employees. , leader %ho helps employees reduce such uncertainty can motivate them. "he !igure .1.. sho%s the path
goal model o! leadership.
#),
Leaders do not al%ays have control over environmental !actors, but the theory emphasizes that leaders can use the
control they %ant, to adCust the environment and to motivate sub@ordinates.
(e) T3e Vroo2>$etton>Ca1o T3eor6 (V$C)
"he 0room@9etton@<ago model %as !irst introduced by 0room and 9etton in .:45 and %as revised by 0room and <ago
in .:88, "his model has a much less !ocus than the path@goal theory. (t helps a leader to determine the e?tent, to %hich
employees should participate in the decision@ma>ing processes,
"he 09< theory argues that decision@e!!ectiveness is best Cudged by the $uality o! decision and by the
acceptance o! that decision on the part o! employees. &ecision acceptance is the e?tent to %hich employees accept
and are loyal to their decisions.
"o ma?imize decision e!!ectiveness, the 09< theory suggests that leaders adopt one o! !ive decision@ma>ing
leaderships. "he appropriate leadership depends on the situation. ,s summarized in the !ollo%ing table, there are t%o
autocratic types o! leadership, %hich are ,( and ,ll, 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
,( Manager ma>es the decision alone.
,(( Manager as>s !or in!ormation !rom subordinates but ma>es Ihe
decision alone. Sub@ 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.
, W ,utocratic; #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. 3or e?ample, 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.
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 subordinatesB decision@ma>ing abilities.
"he 09< model %as criticized because o! its comple?ity. #omputer so!t%are has been developed to aid leaders
in de!ining the situation, ans%ering the $uestions about the problem attributes and developing a strategy !or decision@
ma>ing participation.
,lthough the 09< model is too ne% to have been thoroughly tested, evidence so !ar indicates that this model
can help leaders to choose the most e!!ective %ay to include the sub@ordinates in decision@ma>ing.
OTHER CONTINGENC$ APPROACHES
(n addition to these three maCor theories, there are other contingency models or theories developed in recent years. "he
other models are as !ollo%sF
+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 manager@subordinate relationship represents one vertical
dyad. "he 0ertical &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 Uin@groupK.
Other subordinates remain in the Uout@groupKs, %ho receive less o! leaderBs time and attention. "hose in the Bin@
groupB receive more o! the managerBs time and attention and are better per!ormers. *esearch sho%s that
people in the Uin@groupK are more productive and more satis!ied %ith their %or> than Uout groupK members.
ife "ycle )o#el: "he li!e cycle model suggests@that appropriate leader behavior depends on the maturity o!
the !ollo%ers. (n this conte?t, maturity includes motivation, competence and e?perience. "he model suggests
that as !ollo%ers become more mature, the leader needs to move gradually !rom high to lo% tas> orientation.
Simultaneously, the leaderBs employee@oriented behavior should start lo%, increase at a moderate rate and then
decline again.
#)1
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.
E#ERGING PERSPECTIVES ON LEA+ERSHIP IN ORGANI,ATIONS
"he ne% perspectives that have attracted attention are the concepts o! substitutes !or leadership and trans!ormational
leadership.
S85t0tte5 for Leader530p
"he e?isting leadership theories and models try to speci!y %hat >ind o! leaderKs 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
leadersB behaviors. 3or e?ample, %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 sub@ordinate may serve to replace or change .the behavior o! the leaders. 3or
e?ample, employees %ith much ability and e?perience may not need to be told %hat to do. Similarly, a strong need !or
independence by the sub@ordinate may result in ine!!ectiveness o! leadersK behavior.
#haracteristics o! the tas> that may substitute the leadership include, the availability o! !eedbac> and intrinsic
satis!action. 3or e?ample, %hen the Cob is routine and simple, the subordinate may not need direction. =hen the tas> is
challenging, the subordinate may not need or %ant support.
Organizational characteristics that may substitute !or leadership include !ormalization group cohesion,
in!le?ibility and a rigid re%ard structure. 3or e?ample, %hen policies are !ormal and rigid, leadership may not be needed.
Tran5for2at0onal Leader530p
,nother ne% concept o! leadership goes by a number o! labelsF charismatic leadership, inspirational leadership,
symbolic leadership and trans!ormational leadership. "his is a leadership that transmits a sense o! mission, increases
teaming e?periences 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!@con!ident and can in!luence others. "he !ollo%ers o!
a charismatic leader identi!y %ith the leaderBs belie!s, accept, trust and obey the leader %ithout $uestioning him and
thereby contribute to%ard the success o! the organizational goals.
Leader530p S!0ll5
"here is no% recognition in both leadership theory and practice o! the importance o! s>ills, ho% leaders should behave
and per!orm e!!ectively. ,lthough there are many s>ills, such as cultural !le?ibility, communication, /*&, creativity, and
sel!@management o! learning, the research@based s>ills identi!ied by =hetten and #ameron seem to be most valuable.
"heir personal s>ills model, involving developing sel!@a%areness, managing stress and solving problems creatively; the
interpersonal s>ills model, involving communicating supportively, gaining po%er and in!luence, motivating others and
managing con!lict, are especially comprehensive and use!ul. 3inally, the %idely recognized organizational behavior
.techni$ues such as, training, Cob design and leaders can also e!!ectively use behavioral management.
*+,-
#)2
LESSON >*'
STRESS #ANAGE#ENT
"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 Athe reactions o! individuals to ne% or threatening !actors in their %or>
environmentsV.
Stress can be either positive or negative. Some ne% %or> situations can bring us positive challenges and
e?citement. 3or e?ample, promotions to ne% Cobs present employees %ith positive stress. 'mployees may !eel an?ious
about their ne% %or> assignments; they also anticipate them eagerly and loo> !or%ard to the additional challenges,
re%ards, and e?citement. (n these cases, the ne% and uncertain Cob 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 an?iety@
arousing. 3or e?ample, depression in the economy can create negative stress !or sales personnel, because they %ill be
much more an?ious about ma>ing sales commissions and sales $uotas.
3or every individual there is an optimum level o! stress under %hich he or she may per!orm to !ull capacity. (!
the stress e?perienced is belo% this optimum level, then the individual gets bored, the motivational level to %or>
reaches a lo%, point, and apathy sets in. (! one operates in a very lo% stress environment and constantly e?periences
boredom, the person is li>ely to psychologically or physically %ithdra% !rom %or>. sychological %ithdra%al %ill result in
careless mista>es being !re$uently made, !orgetting to do things, and thin>ing o! things other than %or> during %or>
hours. 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 3orm 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!@
esteem seem to e!!ectively handle a high level o! stress. ,n individual possessing high degree o! tolerance !or
ambiguity allo%s him to e?perience 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 e?periencing its harm!ul e!!ects. "hose %ith high sel!@esteem also handle
stress %ith ease since a high sel!@esteem 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
oneKs capacity to handle in di!!erent situations.
SOURCES O. STRESS
Stress is a reality o! our everyday li!e. "here are both positive and negative stresses that come !rom our %or> and non@
%or> lives. ,s pointed out by )ear. *ice, and /unt I.:8;J and Sc>aran I.:86J, among others, the %or> and non@%or>
domains o! oneBs li!e are closely interrelated. "he stresses and strains e?perienced in one domain are carried over to
the other. "hus, i! one e?periences stress at %or>, that stress %ill be carried over to the home.
One maCor source o! Cob stress is the Cob itsel!. "he %ay the Cob is designed, the amount o! time pressure an
individual !aces and the amount o! e?pectations others have o! a person at %or> can all lead to Cob stress. (nterpersonal
relationships are a second source o! Cob 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 e?periences 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 O. COB STRESS
<ob #haracteristics
o *ole ambiguity
o *ole con!lict
o *ole overload o 'thical dilemmas
(nterpersonal *elationships
o ,mount o! contact %ith others
o &ealing %ith people in other departments
o Organizational climate
Organizational 3actors
ersonal 3actors
o #areer concerns
o Geographical mobility
o *ate o! li!e change
#)3
Co8 C3aracter05t0c5
, maCor source o! Cob stress is a personBs role in the organization. , role is simply the set o! e?pectations that other
people in the organization have !or an individual, 3or e?ample, supervisors, co%or>ers, customers and suppliers e?pect
an employee to behave in certain predictable %ays. "he e?pectations 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 e?periences stress.
/ole Am*iguity: =hen there is a lot o! uncertainty surrounding Cob de!initions or Cob e?pectations, people
e?perience role ambiguity. =ith the recent increase in mergers and ac$uisitions among maCor organizations,
more and more employees arc e?periencing Cob stress as a result o! role ambiguity. *ole ambiguity is an?iety
arousing among employees that leads to Cob stress.
/ole "onflict: O!ten employees discover that di!!erent groups o! people in an organization have %idely varying
e?pectations o! them, and that they cannot meet all those e?pectations. "his inconsistency o! e?pectations
associated %ith a role is called role con!lict, %hich results in stress.
/ole 'verloa#: *ole overload is a situation in %hich employees !eel they are being as>ed to do more than time
or ability permits. =or>ing under time pressure is especially stress!ul.
/ole Un#erloa#' *ole +nderload is the condition in %hich employees have too little %or> to do or too little
variety @in their %or>. 3or e?ample, salespeople in a store %ith no customer, standing around all day %ith
nothing to do, could be said to e?perience role underload. (ronically, role underload leads to lo% sel!@esteem,
increased !re$uency o! nervous symptoms and increased health problems.
Ethical $ilemmas: 'thical dilemmas such as %hether or not one should report the observed unethical
behaviors o! another person can cause e?treme levels o! stress in individuals. "his %ill be especially true !or
those %ho have strong moral values o! right and %rong and a deep sense o! personal and corporate social
responsibility. "ensions arise because one might have to contend against oneBs o%n colleagues %ho might be
close !riends, and may !ear o! reprisal and other undesirable conse$uences.
Interper5onal Relat0on530p5
,nother maCor source o! stress in organization is poor interpersonal relationships %ith supervisors, subordinates,
co%or>ers. or clients. =hen interpersonal relationships at %or> are unpleasant, employees develop a generalized
an?iety, a di!!use !eeling o! dread about upcoming meetings and interactions. "hree aspects o! interpersonal
relationships at %or>, %hich have a negative impact on Cob stress, are as !ollo%sF
Amount of contact &ith others: <obs 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 oneBs o%n
department creates a special sort o! stress. eople in other departments do not al%ays have an ade$uate
understanding o! Cobs outside their o%n areas, %hich can cause stress.
'rgani5ational climate: "he overall psychological climate o! the organization can create stress. =hen day@to@
day li!e in an organization is mar>ed by un!riendly, distant, or hostile e?changes, employees are continually
tense and this causes stress.
Or1an07at0onal .actor5
3ollo%ing are the organizational !actors that cause stress in individualsF
=or> environment !actors such as noise, heal, poor lighting, radiation and smo>e are stress@inducing agents.
(nsu!!icient resources such as time, budget, ra% materials, space or manpo%er also induce stress in the %or>
environment. =hen one has to produce and per!orm %ith inade$uate resources on a long@term basis, this
naturally imposes stresses and strains on the individuals %ho are responsible !or getting the Cob done.
Structural !actors in the organizational setting such as sta!! rules andB 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.
Per5onal .actor5
'mployeesK 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>.
3actors that in!luence ho% much stress people bring !rom their personaE lives to the %or> setting are as !ollo%sF
"areer "oncerns: One maCor career concern that can cause stress is lac> o! Cob security. , second career
concern that can cause employees stress is status incongruity, i.e., having Cobs %ith less status, po%er and
prestige than they thin> they deserve.
#)4
Geographical )o*ility: Geographical moves create stress because they disrupt the routines o! daily li!e.
=hen geographical moves arc underta>en as part o! a Cob 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 e?perience their ne% %or> environments
as unpredictable.
E..ECTS OR CONSE?UENCES O. COB STRESS
)egative stress has unpleasant conse$uences !or them, their !amilies and !or the organizations they serve.
Effect5 on t3e Ind0v0dal
"he impacts o! distress on individuals are o! !ollo%ing typesF
"he subCective or intrapersonal e!!ects o! stress are !eelings o! an?iety, boredom, apathy, nervousness, depression,
!atigue, and anger. Sometimes e?periencing the stress may cause aggressive behaviors on the part o! the
individual.
"he cognitive e!!ects include poor concentration, short attention span, mental bloc>s and inability to ma>e
decisions.
"he physiological e!!ects can be seen in increased heart and pulse rate, high blood pressure, dryness o! throat, and
e?cessive s%eating.
"he behavioral e!!ects arc mani!est in such things as accident proneness, drin>ing, e?cessive eating, smo>ing,
impulsive behaviors, depression, and %ithdra%al behaviors.
"he mani!est health e!!ects could be stomach disorders, asthma, eczema, and other psychosomatic disorders. (n
addition, the mental health, i.e. the ability lo !unction e!!ectively in oneBs daily li!e, %ill also decline as e?cessive
stress is e?perienced.
Con5eHence5 for t3e .a20l6
)egative stress, %hich is handled by individuals in dys!unctional %ays, such as drin>ing or %ithdra%al behaviors, %ill
have an adverse e!!ect on their home li!e. Spouse abuse, child abuse, alienation !rom !amily members, and even
divorce could result !rom dys!unctional coping mechanisms.
Con5eHence5 to Or1an07at0on5
"he adverse conse$uences on an organization include lo% per!ormance and productivity, high rates o! absenteeism
and poor decision@ma>ing. (t also leads to lost o! customers because o! poor %or>er attitudes, increased alienation o!
the %or>er !rom the Cob, and even destructive and aggressive behaviors resulting in stri>es and sabotage. "he stresses
e?perienced by employees %ho ta>e on critical roles and are responsible !or sa!ety can sometimes be detrimental to
the public. 3or instance, the stresses e?perienced 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.
#ETHO+S O. #ANAGING STRESS
Stress is a !actor that everybody has to contend %ith on a daily basis both in the %or> and non@%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$uences o! stress can
be reduced. Some o! them areF
Role Anal6505 Tec3n0He (RAT)
"he *ole ,nalysis "echni$ue helps both the manager and the employee to analyze the re$uirements and e?pectations
!rom the Cob. Brea>ing@do%n the Cob into various components clari!ies the role o! the Cob !or the entire system. "his also
helps to eliminate reduction o! %or> and thus lo%ering do%n the stress level.
Co8 Relocat0on
<ob 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 an?iety and stress !or the moving !amily.
Recreat0onal Pro1ra2
roviding recreational !acilities, arranging group meditation programs, help to reduce the stress levels o! the
employees.
E2plo6ee A5505tance Pro1ra2
#)5
,nother %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.
Career Con5el0n1
#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 $uali!ications or specialized
technical training, i! any, Ihat they should ac$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.
T02e #ana1e2ent
,nother %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.
+ele1at0on
,nother %ay o! coping %ith Cob stress is to delegate some responsibilities to others. &elegation can directly decrease
%or>load upon the manager and helps to reduce the stress. E
#ore Infor2at0on and Help
Some ne% employees have to spend more time on a Cob 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 an?iety and stress among the employees.
Healt3 #a0ntenance
robably the most !re$uently used organizational stress management program is health maintenance. Many companies
invest large sum o! money in gym and sport !acilities !or maintaining the health o! the employees.
Sperv05or Tra0n0n1
,nother type o! stress management rogram that organizations are e?perimenting %ith is supervisor training. "he
emphasis on supervisory training rogram is ho% to prevent Cob stress. Managers are trained to give better
per!ormance appraisals, to listen to employeesK problems more e!!ectively, and to communicate Cob assignments and
instructions more clearly.
Ind0v0dal Stre55 Redct0on -or!53op5
Some organizations have also sponsored individual stress reduction %or>shops !or their employees. "hese programs
include bio!eedbac>, meditation to career counseling, time management and interpersonal s>ills %or>shops. (n lectures
and seminars, participants are given a basic understanding o! the causes o! stress and its conse$uences. "hen,
participants are given materials to help them identi!y the maCor sources o! stress in their o%n lives, and some strategies
!or dealing %ith that stress more e!!ectively.
RUPA/
#)(
LESSON>*(
PO-ER AN+ POLITICS
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 personBs 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.
PO-ER AN+ AUTHORIT$
Sometimes po%er and authority is used synonymously because o! their obCective 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.
,uthority 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.
Sorce5 of Po4er
<ohn *. . 3rench and Bertram *aven identi!ied !ive bases or sources o! po%erF legitimate, re%ard, coercive, e?pert
and re!erent po%er.
Le10t02ate Po4er
, personBs 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. 3or instance, higher@level positions e?ercise more po%er than lo%er@level
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.
Re4ard Po4er
"his type o! po%er is the e?tent 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. , 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.
Coerc0ve Po4er
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. , managerKs coercive po%er increases %ith the number and severity o! the sanctions over
%hich the manager has control. ,lthough 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@pert Po4er
(t is more o! personal po%er than organizational po%er. '?pert po%er is that in!luence %hich one %ields as a result o!
oneBs e?perience, special s>ill or >no%ledge. "his po%er occurs %hen the e?pert 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 sub@ordinates vie% their superior as competent, and >no%ledgeable, naturally they %ill obey and respect the
superior. "o the e?tent, that a lo%@ran>ing %or>er has important >no%ledge not available to a superior, he is li>ely to
have more po%er.
Referent Po4er
, person %ho is respected by certain others !or %hatever reason has re!erent po%er over those people. , 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
imitated by others %ith the starBs actions, attitudes and dress. "his imitation re!lects the rising starBs po%er over the
imitations.
HO- PEOPLE USE PO-ER
,n 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 9u>l provides both a %ay to predict the conse$uences o! certain uses o! po%er and
guidelines !or using po%er. "he !ollo%ing table listR the !ive sources o! ;i leaderBs po%er and some o! the variables that
are li>ely to lead to three general types o! employee responses or outcomes@commitment, compliance and resistance@
%hen the leader uses the po%er. 3or instance, the table sho%s that a leaderBs use o! re!erent po%er %ill lead employees
to be committed lo the leaderKs proCect i! they see that the proCect is important to the leader. /o%ever a leader %ho
relics on coercive po%er is very unli>ely to have committed employees.
U50n1 Le10t02ate Po4er
"he use o! legitimate po%er is seldom challenged in an organization; %hen a superior as>s a sub@ordinate to do
something, the sub@ordinate usually complies %ithout resistance. /o%ever, the %ay the superior ma>es the re$uest and
!ollo%s it up are very important !or ensuring the sub@ordinateKs !uture compliance and the gro%th o! the superiorBs
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$uests and should %henever possible e?plain %hy a particular tas> needs to be done. "he secretary %ho
understands the importance o! a tas> %ill be more li>ely to %or> enthusiastically on it.
"he boss must !ollo% normal procedures and ma>e sure the re$uest is appropriate. 3or instance, a vice@
president %hose secretary is busy should not assume that he or she can Cust as> a supervisorBs 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.
U50n1 Re4ard Po4er
"he manager, be!ore giving a re%ard, must be sure that the employee has actually done the Cob and done it %ell.
'mployees must >no% that they get re%arded !or good %or>.
U50n1 Coerc0ve Po4er
3or 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. , good manager %ill be such that the
punishment !it the crime. 3or instance, %arning an individual %ho uses copying machine to ma>e @personal copies but
!iring someone %ho steals e$uipment !rom the organization. ublic punishment ma>es everyone uneasy and
humiliating and hence should be done private.
U50n1 E@pert Po4er
"o gain po%er !rom their e?pertise, managers must ma>e people a%are o! ho% much they >no%. Manager can use his
e?pert po%er most e!!ectively to address employee concerns. (! a particular sales person !aces any di!!iculty in selling a
particular product and turns to manager !or his help, the manager must be able to identi!y the de!ect and must be able
to help and educate him.
U50n1 Referent Po4er
Leaders have traditionally strengthened their re!erent po%er by hiring employees %ith bac>grounds similar to their o%n.
One o! the most positive and subtle uses o! re!erent po%er is the process o! rote modeling. , respected manager %ho
%ants her employees to be punctual, considerate and creative can simply demonstrate those behaviors hersel! and her
employees %ill li>ely imitate her actions.
POLITICAL BEHAVIOR AN+ ORGANI,ATIONAL POLITICS
o%er and politics are ine?tricably inter%oven %ith the !abric o! an organizationBs li!e. (n any organization, at any given
moment, a number o! people are see>ing to gain and use po%er to achieve their o%n ends. "his pursuit o! po%er is
political behavior. Organizational politics re!ers to the activities carried out by people to ac$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 maCor parameters o! the organization. &ecisions are not
made in rational or !ormal %ay but rather through compromise accommodation and bargaining.
#ana10n1 Pol0t0cal Be3av0or
"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$ues people usually employ has
the best chance to manage political behavior success!ully.
eople use political behavior in organizations in response to the !ive main !actorsF
#)*
,mbiguous goals
Scarce resources
"echnology and the environment
)on@rogrammed decisions
Organizational change
.ACTORS IN.LUENCING POLITICAL BEHAVIOR
A2801o5 Goal5
=hen the goals o! a department or the entire organization are ambiguous then there is more room available !or playing
politics. Some people may use the ambiguity to manipulate the situation !or their bene!it.
Scarce Re5orce5
=hen resources are scarce, people have the tendency to use political behavior to ma>e sure that they get the biggest
possible share o! the resource.
CHANGES IN TECHNOLOG$ AN+ ENVIRON#ENT
Organizational e!!ectiveness is largely a !unction o! the organizationKs ability to appropriately respond to e?ternal
environment %hich is highly dynamic and generally unpredictable as %ell as ade$uately adopt to comple? technological
developments. "hus, political behavior is increased %hen the internal technology is comple? and %hen e?ternal
environment is highly volatile.
Non>Pro1ra22ed +ec050on5
Sometimes, the companies have to ma>e a lot o! non@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
comple? in nature. /ence decisions are ta>en on intuition, bunch and guesses and all these subCective !eelings can be
a!!ected by political behavior.
Or1an07at0onal C3an1e
=henever 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 e?tensive research on @the
subCect o! po%er in organizations, states as !ollo%sF
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 $uiet e!!ective at it. (n situations in %hich
technologies are uncertain, pre!erences are con!licting, perceptions are selective and biased and in!ormation
processing capacities are constrained, the model o! an e!!ective politician may be an appropriate one !or both the
individual and !or the organization in the long@runV.
TECHNI?UES O. POLITICAL BEHAVIOR
"he most commonly used techni$ues o! political behavior areF
#ontrolling in!ormation
#ontrolling lines o! communication
#ontrolling agenda @
+sing outside e?perts
Game playing
F
(mage building
Building coalitions
One techni$ue o! political behavior is to control the dissemination o! critical in!ormation to others. "he more critical
Ihe in!ormation and !e%er the people %ho have it, the stronger is political po%er base o! those %ho possess these
in!ormation.
#ontrolling lines o! communication is another political techni$ue related to the !lo% o! in!ormation. eople %ho have
some control over lines o! communication can yield considerable political po%er. 3or e?ample, 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 meetingBs agenda,
!or instance, may consistently put a particular item last on the list and then ta>e up time so that meeting adCourns be!ore
considering the item.
#)+
"he opinions o! outside e?perts 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. 3or instance, a manager %ho does not %ant to ans%er a
committeeBs tough $uestions may, !or instance, avoid meeting by going out o! the to%n on the day o! meeting.
(mage building is creating positive impression re!lected by the personality, appearance and style. Some o! the
!actors that enhance a pre!erred image consist o! being %ell dressed, having a pleasant smile, being attractive, honest,
sociable and loyal to the organizational interests. (n addition, al%ays proCect an image o! competence and sel!@
assurance.
Building coalitions or alliance is another techni$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 $uoF ( %ill support you i! you %ill support
me.
#ana10n1 Pol0t0cal Be3av0or
"hough it is virtually impossible to eliminate political behavior in organizations, it is possible to reduce it, i! a manager
understands the reasons !or it and the techni$ues o! political behavior. olitics %hen carried to the e?treme can
damage morale, create enemies, destroy loyalty, damper co@operative spirit and much time and energy is spent
planning attac>s and counter attac>s %hich are detrimental to organizational health. ,ccordingly, combating politics
must be underta>en by the top management and some o! the steps that can be underta>en areF 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$ues to try to in!luence the
ne?t decision.
+ncertainty in the !orm o! ambiguous goals and changes that a!!ect the organization tends to increase the use
o! political activity. *educing such uncertainty can, there!ore, reduce the political behavior. Open communication is one
o! the %ays an organization can reduce uncertainty. 3or instance, laying do%n clear criteria and ma>ing it transparent to
the employees %ho %ill be laid o!!, in case o! lay o!! the organization can reduce political behavior.
3inally, managers %ho develop an ability to recognize and predict political activity are in the best position to
limit its e!!ects. Managers %ith this a%areness %ill e?pect an increase in political activity during times o! organizational
change and %ill learn ho% to handle it.
*+,-
#*,
LESSON >*A
ORGANI,ATIONAL +ESIGN
CONCEPT O. ORGANI,ATIONAL +ESIGN
Organizational design is the overall con!iguration o! structural components that de!ines Cobs, groupings o! Cobs, the
hierarchy, patterns o! authority, approaches to co@ordination and line@sta!! di!!erentiation into a single and uni!ied
organizational system. #onsider, !or e?ample, the di!!erences in organizational design that might e?ist bet%een a
computer manu!acturer and university. Since the computer manu!acturer has to respond to !re$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.
+ETER#INANTS O. ORGANI,ATIONAL +ESIGN
"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. <oan =ood%ard %as the !irst person to see the lin> bet%een
technology and organizational design. (n particular. =ood%ard de!ined three basic types o! technology.
(n unit or small@batch technology, products are manu!actured according to customer speci!ications in small
$uantities. '?amples are printing press and studios.
(n large batch or mass@production technology, products. are manu!actured in assembly@line !ashion by
combining component pans to create !inished goods. '?amples are home@appliance,A automobile and
computer manu!acturers.
(n continuous@process 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. '?amples are
petroleum re!iners, !ood processors and chemical manu!acturers.
=ood%ard vie%ed unit or small@batch technology as @the least comple? %hile the continuous process
technology as the most comple?. 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 e?amine 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 !le?ible structure !or organizations %ith rapidly changing
technology.
#harles erro% concluded that me >ey $uestion concerning an organizationKs technology is %hether it is
routine or non@routine. (n his vie%, a highly !ormalized centralized structure is appropriate !or an organization
that uses the same routine technology %hile a more !le?ible structure is necessary !or an organization that o!ten
uses ne% technology. +
,n organization that uses continuous process, non@routine 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
Cust 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, obCects, %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 organizationBs design to
respond to environmental changes.
'rgani5ational Si5e an# ife "ycle: Organization size re!ers to ho% large F the organization is, usually, in
terms o! the number o! its !ull@time employees. Li!e cycle re!ers to organizationBs maturity relative to that o!
other organizations.
Size can a!!ect organization design in many di!!erent %ays. , group o! researchers in 'ngland !ound that large
organizations tend to have more Cob specialization, more standard operating procedures, more rules and regulations,
#*1
and more decentralization than small organizations. "hus, as organizations gro% in size, they should be prepared to
adapt their design accordingly.
,n organizationBs li!e cycle is related to its size. Organizations tend to !ollo% a predictable pattern o! gro%th.
,!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.
,n organizationBs li!e cycle and gro%th rates are directly lin>ed to the strategy that the organization is pursuing. "he
!ollo%ing !igure .4.. sho%s the organization cycle.
CONTE#PORAR$ .OR#S O. ORGANI,ATIONAL +ESIGN
'very organization has its o%n uni$ue design depending on its technology. limits and potentials o!A its environment and
the li!e cycle stage it !ollo%s. 3ollo%ing are the various !orms o! an organization based on their designF
The U!,orm 'rgani5ation: (n the +@!orm organization. + stands !or +nity, (t is also called as A!unctional design
as it relies e?clusively on the !unctional approach to departmentalization. Members o! the organization %ho
per!orm the same !unctions arc grouped together into departments. Such organization re$uires per!ect co@
ordination to operate smoothly aiming the various departments, since each department is highly dependent on
another.
"he +@3orm design has several advantages. (t allo%s an organization to sta!! each department %ith e?perts; it
also !acilitates %ide spans o! management and helps the Managing &irector to maintain centralized authority.
/o%ever, the +@!orm design sho%s decision@ma>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. =hen the
organizations gro%, they o!ten !ind that the disadvantages o! the +@!orm tend .; become more signi!icant and
adopt di!!erent designs as they evolve through their li!e cycles.
The -!,orm 'rgani5ation: (n the /@!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. 3irst, 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 comple? and diverse thereby creating di!!iculty !or top managers in having >no%ledge about all products. "he !igure
.4.2 sho%s the /@!orm organization.
#*2
The )!,orm 'rgani5ation: (n the M@!orm organization M stands !or Multi@divisional and it is called the
divisional design. (t is similar to the /@!orm design but has one notable distinction. Most o! its businesses are in
the same or related industries. 3or e?ample, an organization %ith an M@!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. ,lthough each is distinct !rom the other but still related, in terms o! manu!acturing products that is used
by automobile o%ners. "hus, the M@!orm design is used to implement a corporate strategy o! related
diversi!ication.

, primary advantage o! the M@!orm organization is that it can achieve a great deal o! synergy in its operations.
3or e?ample, a consumer !amiliar %ith an organizationKs 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, co@ordinate and control them. /o%ever, i! the businesses are too closely related, Bthe organization
cannot escape !rom the e!!ect o! cyclical !luctuations.
The )atri1 'rgani5ation' , matri? organization is created by overlaying product@based departmentalization on
lo a !unctional structure. , matri? design is seldom used !or an entire organization and is o!ten used !or a
portion o! it. 3igure .4.5 sho%s the matri? organization.
, matri? 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 Bresulting 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
matri?.
Glo*al 'rgani5ation: ,n organization, %hich has assets in more than one country other than its home country
is called as global organization. Such companies have o!!ices andOor !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.

, 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. )estlXKs 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. ,s a result, )estle is almost a con!ederation o!
independent operating organizations. (ts design is similar to the M@!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.
#*3
LESSON >*B
ORGANI,ATIONAL CULTURE AN+ CLI#ATE
CONCEPT O. ORGANI,ATIONAL CULTURE
Organizational culture is the set o! values that states %hat an organization stands !or, ho% it operates and %hat it
considers important. ,ccording to &eal and -ennedy, a strong culture is. Aa system o! in!ormal rules that spells out ho%
people have to behave most o! the timeA. 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! e?ternal adaptation
and internal integration.
,ll the above de!initions stress acceptable and unacceptable behavior o! its members. 3or 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 e?pressing their cultural values. /o%ever, an organizationBs
values automatically enter every employeeBs 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.
I2portance of Cltre
#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 e?pects its managers to be aggressive or
conservative in decisions@ma>ing, generous or moderate in supporting social causes and ruthless or >ind in competitive
dealings.
Some organizations have clear, strong and %ell@de!ined culture %hereasF 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 decision@ma>ing and a %ide variety o! other
organizational activities.
,n organizational culture generally la>es shape over time and is o!ten deeply in!luenced by the values o! the
organizational !ounders. ,s 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.
C3an10n1 Or1an07at0onal Cltre
#hange is most o!ten needed %hen the organization has lost its e!!ectiveness and is struggling to eitherA 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 organizationBs 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. 3or this
managers must change employeeBs 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. ,n organizationBs
suggestion bo? is a symbol o! an organizationBs openness to the ideas o! the employees. Some organizations try to
emphasize the importance o! employeesK ideas by re%arding them !or their suggestions. /o%ever, i! the suggestion bo?
remains Cust a symbol and organization never translates the suggestions into actions, the bo? %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.
Or1an07at0onal Cl02ate
'ven though organizational culture and organizational climate are sometimes used interchangeably, there are certain
di!!erences bet%een the t%o. ,ccording to Bo%ditch and Buono. AOrganizational culture is concerned %ith the nature o!
belie!s and e?pectations about organizational li!e, %hile climate is an indicator o! %hether those belie!s and
e?pectations are being !ul!illed.A Organizational climate is a relatively enduring $uality o! the internal environment that is
e?perienced by its members, in!luences their behavior, and can be described in terms o! the values o! a particular set o!
characteristics.A
(t is a set o! characteristics and !actors o! the organization that are perceived by the employees and, %hich serve as a
maCor !orce in in!luencing their behavior. "hese !actors may include Cob descriptions, per!ormance arid evaluation
standards, leadership style, challenges and innovations.
#*4
.ACTORS A..ECTING ORGANI,ATIONAL CLI#ATE
(n every organization, there e?ist certain !actors that e?ert deep in!luence on the climate. Schneider and Barlett
describe si? !actors that have an in!luence over organizational climate such as managerial support, inter@agency
con!lict, agent dependence and general satis!action. La%rence <ames and ,llan <ones 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, -ahn 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 e?actly the !actors a!!ecting the climate.
Organizational climate has a maCor in!luence on human per!ormance through its impact on the motivation, Cob
satis!action and attitudes o! people.
#*5
LESSON > *E
ORGANI,ATIONAL E..ECTIVENESS
CONCEPT O. ORGANI,ATIONAL E..ECTIVENESS
Organizational e!!ectiveness is de!ined as an e?tent to %hich an organization achieves its predetermined obCectives %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 e?ists a di!!erence bet%een the
t%o concepts. "here!ore, it is important to e?plain 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.
3urther, 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
approachesF
Goal ,pproach,
3unctional ,pproach
System *esource ,pproach
Goal Approac3
Goal attainment is the most %idely used criterion o! organizational e!!ectiveness, in goal approach, e!!ectiveness re!ers
to ma?imization 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.
.nct0onal Approac3
"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 $uestion in determining e!!ectiveness is ho% %ell an organization is doing !or the
super@ordinate system.
"he limitation o! this approach is that %hen organizations have autonomy to !ollo% its independent courses o!
action, it is di!!icult to accept that ultimate goal o! organization %ill be to serve society. ,s such, it cannot be applied !or
measuring organizational e!!ectiveness in terms o! its contributions to social system.
Both the goal and !unctional approach do not give ade$uate consideration to the conceptual problem o! the
relations bet%een the organization and its environment.
S65te2 Re5orce Approac3
System@resource approach o! organizational e!!ectiveness emphasizes on interdependency o! processes that relate the
organization to its environment. "he interdependence ta>es the !orm o! input@output 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 goal@achieving behavior, i.e., the managerBs o%n behavior contributes to achievement o! organizational
goals.
.ACTORS A..ECTING ORGANI,ATIONAL E..ECTIVENESS
Li>ert has classi!ied the !actors a!!ecting organizational e!!ectiveness into !ollo%ing three variablesF
#ausal
(ntervening
'nd result
Ca5al Var0a8le5
#ausal variables are those independent variables that determine the course o! developments %ithin an
organization and the obCectives 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
managementBs policies, decisions, business and leadership strategies, s>ills and behavior.
Interven0n1 Var0a8le5
(ntervening variables according to Li>ert are those variables that re!lect the internal state and health o! an
organization. 3or e?ample, loyalties, attitudes, motivations, per!ormance goals and perceptions o! all the members and
their collective capacity !or e!!ective interaction, communication and decision@ma>ing.
End>Re5lt Var0a8le5
'nd@*esult variables are the dependent variables that re!lect achievements o! an organization such as its
productivity, costs, loss and earnings.
Inter>Relat0on530p of Var0a8le5
"he three variables such as causal, intervening and end@result ore interrelated. "he inter@relationship may be
visualized as psychological process %here stimuli or causal variables acting upon the organism or intervening variables
and creating certain responses or end@result variables. "he causal, intervening and end@result variables comprise a
comple? net%or> %ith many interdependent relationships. "he causal variables are the >ey to organizational e!!ective@
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. 3igure .:.. sho%s the relationship
among various variables.
Ca5al Var0a8le5 Interven0n1 Var0a8le5 End Re5lt5 Var0a8le5
Leadership Style #ommitment to
ObCective
roduction
#ost
Sales
'arning
"urnover
Management +nion
*elationship
Management
&ecision
Motivation and
Morale
Organizational
hilosophy
ObCectives and
policies
#ommunication
Leadership S>ills
#on!lict *esolution
"echnology &ecision YMa>ing
$igure (,.(' Inter-relationship o& .ariables
"he above model is $uiet simple. "he e!!ectiveness model can be presented in a more comple? %ay i.e. at
three di!!erent levels such as the individual, group and organizational levels in order to ma>e the organization more
e!!ective. 3igure .:.2 sho%s Levels o! 0ariables.
"he e!!ective organization is built o! e!!ective individuals %ho %or> collectively in groups.
"he e?tent to %hich individual and organizational goals are integrated, a!!ects the degree o! organizational
e!!ectiveness, i.e., each individual tries to satis!y his goal by %or>ing in an organization and simultaneously satis!ying
organizational minis. /e may sec his goal satis!action in satis!ying organizational goals. (! there is no per!ect integration
#*)
o! individual and organizational goals then organizational e!!ectiveness is a!!ected adversely. /o%ever, organizational
e!!ectiveness is not a result o! integration bet%een individual and organizational goals only but there are other causal
variables a!!ecting it.
Effect0vene55 t3ro13 Adapt0ve>Cop0n1 C6cle
"he organization must develop a system through %hich it can adapt or cope %ith the environmental re$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.
,daptive@#oping cycle is a continuous process. "here are si? stages in the adaptive@coping cycle as !ollo%sF
.. Sensing of "hange: "he !irst stage is the sensing o! change in internal or e?ternal environment. Most o! the
organizations have adaptive sub@system such as mar>eting research, research and development and other
similar devices !or e!!ective coping %ith the environment.
2. Importing the /elevant Information: Organizations must be able to ta>e the relevant in!ormation !rom the
environment, %hich constitutes the input.
5. "hanging "onversion Process: "he organization ta>es the inputs !rom environment !or !urther processing,
normally >no%n as conversion process.
1. Sta*ili5ing Internal "hanges: "he !ourth stage o! the cycle is to stabilize an internal sub@system o! an
organization, %hich is dependent on e?ternal, sub@system. "his is because change in one may a!!ect other
and this change can be either positive or negative.
7. E1ploring Ne& 'utputs: =hen the internal change is stabilised, the organization can e?port ne% outputs,
%hich are in accordance %ith environment re$uirements.
6. '*taining ,ee#*ac0: "he last stage in the cycle is to obtain !eedbac> on the outcome o! the changes !or
!urther sensing the state o! the e?ternal environment and the degree o! integration o! internal environment.
"his is similar to !irst stage.
, success!ul coping suggests that all the stages have to be success!ully@negotiated and !ailure at any o! these
stages may result into ine!!ectiveness.
3ollo%ing are the maCor organizational conditions !or e!!ective copingF
"here should be an e!!ective communication system through %hich reliable and valid in!ormation can be
passed.
"here should be enough internal !le?ibility so that changes can be brought and absorbed by an organization.
Success!ul coping re$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!le?ibility
and stimulation o! sel!@protection.
Maintaining organizational e!!ectiveness re$uires additional e!!orts, especially %hen the maCor organizational
changes ta>e place.
#**
LESSON > :I
#ANAGE#ENT O. CHANGE
#hange simply re!ers to alteration in the e?isting 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 e?ternal and internal sources o!
the organization.
EFTERNAL .ORCES
'?ternal !orces !or change originate outside an organization. "here are !our >ey e?ternal !orces !or changeF
$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 ma?imum 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 $uality
products at lo%er prices.
Social an# Political Pressures: "hese !orces are created by social and political events. ersonal values a!!ect
employeesK needs, priorities and motivation. "here!ore, managers need to adCust their managerial style according to the
changing employee values. olitical events also create substantial change in an organization. ,lthough it is di!!icult !or
organizations to predict changes in political !orces, many organizations hire lobbyists and consultants to help them
detect and respond to social and political changes.
INTERNAL .ORCES
(nternal !orces !or change come !rom inside the organization. "his may come !rom both human resource problems and
managerial behavior.
H2an Re5orce Pro8le25
"hese problems stem !rom employee perceptions about their %or> environment and con!lict bet%een an employee and
organization needs. Organizations might respond to these problems by using the various approaches to Cob design by
implementing realistic Cob previe%s and by reducing employeesB role con!lict, stress, %or> overload and ambiguity.
#ana1er0al Be3av0or
'?cessive interpersonal con!lict bet%een managers and their subordinates is a sign o! implementing an immediate
change. (nappropriate leader behavior such as inade$uate direction and support are the cause o! con!lict bet%een
managers and their subordinates.
Natre of C3an1e
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, e?pectations 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. ,lthough, 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.
"he attitudes to%ards change are largely dependent on the nature o! the situation and the manner in .%hich
changes are initiated and e?ecuted.
#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. OneBs attitude does not
necessarily get re!lected in oneBs behavior. 3or e?ample, %e >no% that honesty is the best policy and %e have
!avourable altitudes to%ards people@ %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 memberBs Uchanged behaviorK may revert to earlier normative behavior in order to maintain the
change in the e?isting conditions. /o%ever, due to the same reasons o! a groupBs over@riding 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 long@range
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! individualBs change o! >no%ledge,
attitude and behavior. Modi!ication in the organizationBs 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 membersK behavior and attitudes. ,s these t%o >inds o! changes are interdependent,
the comple?ity o! managing change increases mani!old.
APPROACHES TO ORGANI,ATIONAL CHANGE
,s organizational change is a comple? 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 une?pected events. (n contrast to planned
change, it is a piece@meal response to circumstances as they develop. '?ternal !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 e?ecuted 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 last@minute
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 CO#PREHENSIVE #O+EL O. CHANGE
"he comprehensive model o! change sho%n in the !igure 2;.. sho%s seven steps that can lead to e!!ective change.
"his model is use!ul !or both planned and reactive change.
#+,
"he seven steps o! comprehensive model o! change are as !ollo%sF
Reco1n07e need for c3an1e
"he !irst step in this model is recognizing need !or change. 3or 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, e?pert
indications about impending socio@economic change or a perceived opportunity to capitalize on a >ey technological
brea>through. "hese managers tend to Uinitiate change because they e?pect it to be necessary in the near !uture in any
caseK.
E5ta8l053 1oal5 for c3an1e
"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.
+0a1no5e relevant var0a8le5
,n important ne?t step is diagnosing organizational variables that have brought about the need !or change. "urnover,
!or e?ample, may be caused by a variety o! !actors such as lo% pay, poor %or>ing conditions, poor supervision, better
alternatives in the Cob mar>et or employee Cob 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.
Select c3an1e 0ntervent0on
,!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. ,n intervention is a speci!ic change induced in an organization %ith
the intention o! solving a particular problem or accomplishing a speci!ic obCective. 3or e?ample, 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$uired.
Plan 02ple2entat0on of c3an1e
"he manager must then care!ully plan the implementation o! change. lanning the implementation o! change involves
consideration o! the cost o! the change, ho% the change %ill a!!ect other areas o! the organization and the degree to
#+1
%hich employees should participate in bringing about the change. /astily implemented change can result in more harm
than bene!it. 3or e?ample, i! the change involves the use o! ne% e$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.
I2ple2ent c3an1e
, 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.
Evalate 02ple2entat0on
3inally, a!ter the change has been implemented, the manager should veri!y that it has accomplished its intended goals.
, 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.
#O+ELS AN+ +$NA#ICS O. PLANNE+ CHANGE
Managers are criticized !or emphasizing short@term, $uic> !i? solutions to organizational problems. Quic>@!i? solutions
do not really solve underlying problems and they have little staying po%er. *esearchers and managers have thus tried
to identi!y e!!ective %ays to manage the change process. "he !ollo%ing models have been developed to e!!ectively
manage changeF
Le40n=5 C3an1e #odel
Most theories o! organizational change originated !rom the landmar> %or> o! social psychologist -urt Le%in. Le%in
developed a three@stage model o! planned change, %hich e?plained ho% to initiate, manage and stabilize the change
process. "he three stages are un!reezing, changing and re!reezing. Be!ore revie%ing each stage, it is important to
highlight the assumptions on %hich, this model is basedF
.. "he change process involves learning something ne%, as %ell discontinuing current attitudes, behaviors and
organizational practices.
2. #hange %ill not occur unless there is motivation to change. "his is o!ten the most di!!icult part o! the change
process.
5. eople are the hub o! all organizational changes. ,ny change, %hether in terms o! structure, group process,
re%ard systems or Cob design re$uires individuals to change.
1. *esistance to change is !ound even %hen the goals o! change are highly desirable.
7. '!!ective change re$uires rein!orcing ne% behaviors, attitudes and organizational practices.
"he !ollo%ing are the three stages o! changeF
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, e?perts,
benchmar>ing organization against %orld@class 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 e?hibit the
ne% behaviors or attitudes. Once e?hibited, positive rein!orcement is used to rein!orce the desired change. ,dditional
coaching and modelling are also used at this point to rein!orce the stability o! the change.
E@panded Proce55 #odel
Le%inBs 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. '?panded process model is illustrated in the !igure 2;.2. "his
model loo>s at planned change !rom the perspective o! top management. "he model incorporates Le%inBs concept as
part o! the implementation phase.
#+2
.01re
"op management according to this model perceives certain !orces or trends that call !or change and issues that
are subCected to the organizationBs usual problem solving and decision@ma>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. ,lternatives !or change are generated and evaluated and then an acceptable one is selected.
RESISTANCE TO CHANGE
,lthough organizations initiate changes in order to adCust 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. 3or e?ample, managers can use the list given in !ollo%ing table.
,cceptance 'nthusiasm
#ooperation
#ooperation under pressure !rom
management
,cceptance
assive resignation
(ndi!!erence
(ndi!!erence ,pathyF loss o! interest in the Cob
&oing only %hat is ordered
*egressive behavior
assive
*esistance
)on@learning
rotests
=or>ing to rule
&oing as little as possible
,ctive
*esistance
Slo%ing do%n
ersonaE %ithdra%al Iincreased time o!!
the CobJ
#ommitting AerrorsA
Spoilage
&eliberate sabotage
#+3
"he sources o! resistance to change %ithin organizations are classi!ied into organizational sources o!
resistance and individual sources o! resistance.
ORGANI,ATIONAL SOURCES O. RESISTANCE
,ccording to &aniel -antz and *obert L -han, organizational sources o! resistance can be divided into !ollo%ing si?
general groups.
Over determination or structural inertia re!ers to the tendency o! an organizationBs rules, policies and structure
to maintain the e?isting conditions and there!ore resist change even %hen change %ould bene!it the
organization more than stability.
=hen 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 individualKs attempt to bring about change.
*esistance may also ta>e the !orm o! threatened e?pertise i! the change lends to %ea>en special e?pertise built
a!ter years o! e?perience. Organizational restructuring that involves reducing the number o! Cob categories o!ten
meets this >ind o! resistance.
,ny change that may alter the po%er relationships %ithin an organization may meet the !orm o! resistance
>no%n as Uthreatened po%erK.
*esistance may occur %hen a change threatens $uantum o! resource allocation !rom one part o! the
organization to another.
Ind0v0dal Sorce5 of Re505tance
,ccording to researchers, individuals have the !ollo%ing reasons !or resisting changeF
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 an?ious and nervous. "hey %orry about their ability to meet ne% Cob demands
there!ore, leading to !eeling o! Cob insecurity.
Some people resist change to avoid !eeling o! loss. 3or e?ample, many organizations change interventions and
alter %or> arrangements, thus disrupting e?isting 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
peopleBs !eelings o! !amiliarity and sel!@con!idence.
eople may resist change because their perceptions o! underlying circumstances di!!er !rom the perceptions o!
those %ho are promoting the change.
0alerie Ste%art I.:85J, 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.
2. "hey can translate desires into practical action.
5. "hey can propose changes not only !rom their o%n vie% point but also !rom that o! others.
1. "hey sho% reverence !or tradition and respect !or e?perience.
7. "hey are not discouraged by setbac>s.
6. "hey harness circumstances to implement change.
4. "hey clearly e?plain change to people a!!ected by change.
8. "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.
.;. "hey present changes as a relational decision.
... "hey ma>e change by personally re%arding people, %herever possible.
.2. "hey share ma?imum in!ormation about possible outcomes.
.5. "hey sho% that change is Urelated to business or CobK.
.1. "hey have a history o! success!ul change.
OVERCO#ING 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. 3irst, an organization must be ready
#+4
!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! overcoming@resistance to change are as !ollo%sF
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 e?press 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 e?pected 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: -no%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
adCust 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 !orce@!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: =here 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 maCor
resistance.
)anipulation an# "ooperation: "his is !ollo%ed %hen other tactics %ill not %or> or are too e?pensive. (t can
be $uic> and ine?pensive, /o%ever, it can lead to !urther problems i! people !eel manipulated.
E1plicit an# Implicit "oercion: "his is adopted %here speed is essential and %here the change initiators
possess considerable po%er. (t is speedy and can overcome resistance.
'ach o! the above methods has its advantages and disadvantages. "here is no universal strategy !or
overcoming resistance to change. /ence, an organization that plans to introduce certain changes must be prepared to
!ace resistance !rom its employees. ,n organization should also have a planned approach to overcome such
resistances.
ORGANI,ATIONAL +EVELOP#ENT
"he term Organizational &evelopment IO&J re!ers to a broad range o! behavioral science based strategies used to
diagnose the need !or change in organizations and to implement changes %hen necessary. O& can be de!ined as a
techni$ue !or bringing change in the entire organization, rather man !ocusing attention on individuals to bring change
easily in the entire organization.
Natre of O+
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. ,ccording 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 e?perienced behavior are primarily used to bring change.
#hange agent applying O& techni$ue !or change is e?ternal to the !orms o! consultants.
"here is a close %or>ing relationship bet%een change agents and the people %ho are being changed. "he
relationships involve mutual trust, Coint goals, means, and mutual in!luence.
"he change agents share social philosophy about human value. "hey are humanists see>ing to get a
humanistic philosophy in organization.
O+ Intervent0on5
O& interventions re!er to various activities %hich consultant and client organization per!orm !or improving organizational
!unctioning by enabling organization members to better manage their team and organization cultures. 3rench and =ell
have de!ined O& interventions as Asets o! structured activities in %hich selected organizational units Itarget groups or
individualsJ engage %ith a tas> or a se$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
Intervent0on Tec3n0He5
Sensitivity "raining
#+5
rocess #onsultation
"eam &evelopment
Grid Organization &evelopment
Sensitivity Training: Sensitivity training is a small@group interaction under stress in an unstructured encounter group,
%hich re$uires people to become sensitive to one anotherBs !eelings in order to develop reasonable group activity. (n
sensitivity training, the actual techni$ue employed is "@group. "@group has several characteristic !eaturesF
"he "@group 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!@e?amination, %ith emotional levels o! involvement and
behavior.
"he obCectives o! such training are increased openness %ith others, more concern !or others, increased
tolerance !or individual di!!erences, less ethnic preCudice, understanding o! a group process, enhanced listening s>ills
and increased trust and support.
Process "onsultation: rocess #onsultation I@#J represents a method o! intervening in an ongoing system. "he
basic content o! @# 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. @# consists o! many interventions and activities
%hich a!!ect the various organizational processes such as. communication, roles and !unctions o! group members,
group problem@solving and decision@ma>ing, group norms, authority and leadership and inter@group 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. ,s 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 inter@group and total organization levels.
(n addition to these people !ocused interventions, there may be other types o! interventions too. e.g. structural
and Cob interventions such as Cob enlargement, Cob enrichment, management by obCectives, rules, procedures and
authority structure.
O& o!!ers some very attractive methodologies and philosophies to practicing managers and academicians.
=illiam /alal is right %hen he says AO& in !uture includes any method !or modi!ying the behavior in the organization,
hereby, encompassing the entire spectrum o! applied behavioral scienceA. "here also have been e?periences 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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#O+EL ?UESTION PAPER
ORGANI,ATIONAL BEHAVIOR
T02e< % Hor5 #a@" #ar!5< *II
SECTION>A ('@B L &I)
An54er an6 .0ve He5t0on5
Note: All 9uestions carry e9ual mur0s
.. =hat do you understand by organizational behaviorH Bring out its nature and importance.
2. &iscuss the personality attributes in organization.
5. =hat is the organizational designH =hat are its !ormsH
1. =hat is group cohesivenessH =hat are its determinantsH
7. =hat are the !orms o! organizational communicationsH
6. =hat are the sources o! po%erH
4. =hat are the causes o! stressH
8. =hat is organizational cultureH /o% it a!!ects the behavior o! the peopleH
SECTION> B (&@*' L (I)
An54er an6 for He5t0on5
.. #ompare the Maslo%Bs "heory %ith '*G "heory o! Motivation.
2. =hat are the barriers to e!!ective communicationH /o% to overcome those barriersH
5. =hat are the techni$ues o! managing political behaviorH
1. State the conse$uences o! stress and method o! managing the stress.
7. Suggest strategies to resolve inter@group con!licts.
6. =hy do people resist changeH ,s a manager ho% %ould you overcome such resistanceH
#O+EL ?UESTION PAPER
ORGANI,ATIONAL BEHAVIOR
#S Y 'S'#+"(0' L'0'L
T02e< % Hor5 #a@" #ar!5< *II
SECTION>A ('@B L &I)
An54er an6 .0ve He5t0on5
Note: All 9uestions carry e9ual mur0s
:. =hat do you understand by organizational behaviorH Bring out its nature and importance.
.;. &iscuss the personality attributes in organization.
... =hat is the organizational designH =hat are its !ormsH
.2. =hat is group cohesivenessH =hat are its determinantsH
.5. =hat are the !orms o! organizational communicationsH
.1. =hat are the sources o! po%erH
.7. =hat are the causes o! stressH
.6. =hat is organizational cultureH /o% it a!!ects the behavior o! the peopleH
SECTION> B (&@*' L (I)
An54er an6 for He5t0on5
4. #ompare the Maslo%Bs "heory %ith '*G "heory o! Motivation.
8. =hat are the barriers to e!!ective communicationH /o% to overcome those barriersH
:. =hat are the techni$ues o! managing political behaviorH
.;. State the conse$uences o! stress and method o! managing the stress.
... Suggest strategies to resolve inter@group con!licts.
.2. =hy do people resist changeH ,s a manager ho% %ould you overcome such resistanceH
RUPA8
#+)

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