ORGANIZATION

BEHAVIOUR
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 Karishma Sirohi

UNIT 1
ORGANIZATION BEHAVIOUR

Organizational Behaviour is concerned with the understanding, prediction and control of

human behaviour in organizations. It focuses on the individuals, the groups and the
organization and also on their interactional relationships. It is the study and application of
knowledge about how people act with organizations.

It is a human tool for human benefit. It applies broadly to the behaviour of people in
all types of organizations. Wherever organizations are, there is a need to understand
organizational behaviour.

MODELS OF ORGANISATIONAIZATIONAL BEHAVIOUR

Since the dawn of industrial revolution, four models of organizational behaviour have been
followed by managers of different organizations at different times. These are autocratic,
custodial, supportive and collegial as shown in table 1.

Table 1: Models of Organizational Behaviour

Model Autocratic Custodial Supportive Collegial

Basis of Model Power Economic Leadership Partnership

resources
Managerial
orientation Authority Money Support Teamwork

Employee
orientation Obedience Security and Job Responsible
benefits performance behaviour
Employee
psychological Dependence on Dependence on Participation Self –
result boss organization discipline

Employee Security
needs met Subsistence Status and Self –
recognition actualization
Performance Passive co-
result Minimum operation Awakened Moderate
drives enthusiasm
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CONTRIBUTING DISCIPLINES TO THE OB FIELD

Behavioural Science Contribution

Learning
Motivation
Personality
Psychology Emotions
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work Stress

Fig.4 Contributing Discipline to the OB field

Group dynamics
Work teams
Communication
Power
Sociology Conflict
Sociology
Intergroup behaviour

Formal Organisation theory

Organisational technology
Orgnaisational change
Organizational cutlure

Behavioural change
Social Attitude change
Psychology
Pschology Communication
Group processes
Group decision making

Comparative Values
Comparative Attitudes
Cross-cultural analysis
Anthropology
Sociology

Organizational culture
Organizational
Development
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Conflict
Intraorganisational
Political Science
Politics
Power
 Karishma Sirohi

UNIT-2
MOTIVATION
Meaning : Motivation is a basic psychological process, Technically, the term ‘motivation’ can
be traced to the Latin word ‘movere’, which means “to move”. This meaning is evident in the
following comprehensive definition: “A motive is an inner state that energizes, activates or moves
(hence) motivation” and that directs or channels behaviour towards goals”. The key to understanding
motivation lies in the meaning of, and relationship between, needs, drives, and goals.

THE BASIC MOTIVATION PROCESS

NEEDS ------------------------ DRIVES -------------------------------- GOALS (Deprivation)

(Deprivation with (Reduction of
Direction) drives)

1. Needs: The best one-ward definition of a need is deficiency. For example, a need exists
when a cell in the body is deprived of food and water.

2. Drives:Drives or motives are set up to alleviate needs. A drive can simply be defined as a
deficiency with direction. The examples of the needs for food and water are translated into
the hunger and thirst drives, and the need for friends becomes a drive for affiliation.

3. Goals: At the end of the motivation cycle is the goal. A goal in the motivation cycle can be
defined as anything which will alleviate a need and reduce a drive. Food, Water and Friends
are the goals in our examples.

TYPES OF MOTIVES

Primary Motives: Hunger, thirst, sleep, avoidance of pain, sex etc, are classified as primary
motives.

General Motives: The motives of competence, curiosity, manipulation activity, and affection
are called general motives.

Secondary Motives: Power, achievement, affiliation, security and status are important secondary
motives.

FINANCIAL AND NON – FINANCIAL REWARDS

FINANCIAL REWARDS :

1. Basic pay

2. Dearness Allowance (DA)

3. House Rent Allowance (HRA)

4. City Compensatory Allowance (CCA)

5. Overtime Allowance (OT)

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6. Leave Travel Concession (LTC)

7. Incentive Plans (Piece rates, Bonus or Profit sharing)

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NON – FINANCIAL REWARDS :

The following table summaries some of the major categories of non – financial rewards. Even though
these are considered non – financial, they may still cost the organization.
THEORIES OF MOTIVATION

I. THE CONTENT THEORIES OF WORK MOTIVATION

The content theories of work motivation attempt to determine what it is that motivates people at work.
They are concerned with the types of incentives or goals that people strive to attain in order to be
satisfied and perform well. Now, let us discuss four important content theories of motivation in the
following section.

1. Maslow’s Hierarchy of Needs: Abraham Maslow thought that a person’s motivational needs
can be arranged in a hierarchical manner. In essence, he believed that once a given level of need is
satisfied, it no longer serves to motivate. The next higher level of need has to be activated in order to
motivate the individual Maslow identified five levels in his need hierarchy.

Self - actualization

Esteem Needs

Love Needs

Safety Needs

Physiological Needs

Fig.14 Maslow’s hierarchy of Needs

1. Physiological needs:The needs of hunger, thirst, sleep and sex are physiological needs. According
to the theory, once these basic needs are satisfied, they no longer motivate.

2. Safety needs: Maslow stressed emotional as well as physical safety. The whole
organization may become a safety – seeking mechanism. For example, membership in a trade union
is a safety need. Once these safety needs are satisfied, they no longer motivate.

3. Love needs:Maslow’s use of the word love has many misleading connotations, such as sex, which
is actually a physiological need. Perhaps a more appropriate word describing this level would be
belongingness or affiliation. Membership in formal and informal work groups is a belongingness
need.

4. Esteem needs: The esteem level represents the higher needs of humans. The needs for
power, achievement, and status can be considered to be part of this level.

5. Needs for self – actualization: This level represents the culmination of all the lower,
intermediate, and higher needs of humans. People, who have become self – actualized, are self
fulfilled and have realized all their potential. Self – actualization is the person’s motivation to
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transform perception of self into reality.

 Karishma Sirohi

2.Herzberg’s Two – Factor Theory

According to Herzberg, there are satisfiers and dis-satisfiers in a job for the individuals. Herzberg
labeled satisfiers motivators, and he called the dissatisfiers hygiene factors. Taken together, they
became known as Herzberg’s two – factor theory of motivation.
Herzberg’s theory is closely related to Maslow’s need hierarchy. The hygiene factors are preventive
and environmental in nature, and they are roughly equivalent to Maslow’s lower – level needs.

Hygiene Factors Motivators

Company policy and Administration Achievement

Technical supervision Recognition

Salary Work itself

Inter-personal relations Responsibility

Working conditions Advancement

These hygiene factors prevent dissatisfaction, but they do not lead to satisfaction. By themselves, the
hygiene factors do not motivate. Only the motivators motivate humans on the job. They are roughly
equivalent to Maslow’s higher – level needs. According to the Herzberg theory, an individual must
have a job with a challenging content in order to be truly motivated.

3.Alderfer’s ERG Theory

The most recent extension of the Herzberg and, especially, the Maslow content theories of work
motivation come from the work of Clayton Alderfer. He formulated a need category model that was
more in line with the existing empirical evidence. Similar to Maslow and Herzberg, he does feel that
there is value in categorizing needs and that here is basic distinction between lower – order needs and
higher order needs. Alderfer identified three groups of core needs; Existence, Relatedness, and
Growth (hence ERG theory). The existence needs are concerned with survival (physiological Well-
being). The relatedness needs stress the importance of interpersonal, social relationships. The growth
needs are concerned with the individual’s intrinsic desire for personal development.
Fig 16. Shows how these groups of needs are related to the Maslow and Herzberg categories.
Obviously, they are very close but the ERG needs do not have strict lines of democration.

Herzberg’s Maslow’s Alderfer’s

Two factors Hierarchy of Needs ERG Needs

SELF – ACTUALIZATION
GROWTH
ESTEEM
MOTIVATORS
RELATEDNESS
LOVE
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SAFETY
HYGIENE EXISTENCE
FACTORS
PHYSIOLOGICAL
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Alderfer is suggesting more of a continuous of needs than hierarchical levels or two factors of
prepotency needs. Unlike Maslow and Herzberg, he does not contend that a lower level need has to
be fulfilled before a higher level need is motivating. For example, under ERG theory the person’s
background or cultural environment may dictate that the relatedness needs will take precedence cover
unfulfilled existence needs and that the more the growth needs are satisfied, the more they will
increase in intensity.

4. McGregor’s ‘Theory X’ and ‘Theory Y’

Douglas McGregor propounded two contrasting theories of human behavior which he called theory X
and theory Y.

Theory X: Theory X indicates the traditional approach to managerial motivation and control. It
represents old stereotyped and authoritarian management style of motivation. It suggests that threats
of punishment and strict control are the ways to manage people.

Theory Y: Theory Y indicates that if people are properly motivated, they could really be
creative. The main task of management is to unleash the potential in the employees. An employee
who is properly motivated can achieve his goals by directing his own efforts and, thus, he can help in
accomplishing the organizational goals. This theory emphasizes the satisfaction of need of the
workers. It does not rely heavily on the use of authority as an instrument of command and control. It
suggests that decentralization and delegation, job enlargement, participation and consultative
management style are the ways to motivate people.

Fig. 17 Comparison of Theory X and Theory Y

Theory X Theory Y
Based on the assumption that people are Based on the assumption that people like
basically lazy and so shirk work work as children like play
People do not take initiative. They like to be People like to take initiative. They seek self
directed. – direction.
People avoid responsibility whenever People assume responsibility gladly if
possible conditions are favourable.
For getting things done, people must be People do not require close and strict
supervised strictly. supervision for properly performing their
jobs.
Autocratic style of leadership is likely to be Democratic or participative style of
more effective leadership is likely to be more effective.
Applicable to illiterate, unskilled and lower – Applicable to educated and skilled employees
level workers who occupy high positions in the
organizations.
Believes in mental sickness and so negative Believes in mental health and so positive and
motivation of employees intrinsic motivation of employees

Appraisal of McGregor’s contribution

Douglas McGregor’s Theory X and Theory Y represent extremes to draw the fencing within which
the organizational man is seen to behave. No man would belong completely to either Theory X or
Theory Y. He possesses the traits of both in varying degrees under different situations. Thus, these
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theories are important tools in understanding the behaviour of human beings and in designing the
incentive schemes to motivate the employees. Neither of the two theories is fully applicable in all the
situations and to all types of human beings. Therefore, the management should use an amalgamation
of both the theories to motivate the different kinds of employees at different levels in the organization.
 Karishma Sirohi

II. THE PROCES S THEORIES OF WORK MOTIVATION

The content models attempted to identify what motivates people at work (for example, self –
actualization, responsibility, and growth); they tried to specify correlates of motivated behaviour. The
process theories on the other hand, are more concerned with the cognitive concepts that go into
motivation or effort and, more important, with the way they relate to one another. Now, let us discuss
two important process theories of motivation.

1. Vroom’s Expectancy theory of Motivation:

The following Fig. 18 briefly summarises the vroom model. As shown, the model is built around the
concepts of Valence, Instrumentality and Expectancy and is commonly called the VIE theory.

Expectancy INSTRUMENTALITIES

First level
Outcome
Outcome 1a
Outcome 1

MOTIVATIONAL Force Outcome 1b

F = Valence X Expectancy

Outcome 2 Outcome 2a

Outcome 2b

Outcome 2c

By Valence, Vroom means the strength of an individual’s preference for a particular outcome. In
Fig.18: to
order for the valence ThebeVroom
positive,Expectancy, or VIE
the person must prefertheory of the
attaining work motivation
outcome to not attaining it. A
Valence of Zero occurs when the individual is indifferent towards the outcome; the valence is
negative when the individual prefers not attaining the outcome to attaining it.

According to Vroom, there are tow levels of outcome namely first level outcome and second level
outcome. The first – level outcome is instrumental in obtaining the second – level outcome.
Therefore, the first – level outcome is called instrumentality input in valence. For ex, assume past
performance is the first – level outcome and promotion is the second – level outcome. Past
performance is instrumental in obtaining promotion. Therefore, past performance (first – level
outcome) is known as instrumentality input in our example.

Another major variable in the Vroom motivational process is expectancy. Expectancy is the
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probability that a particular action or effort will lead to a particular first – level outcome. Expectancy
is different from instrumentality input in valence. Expectancy relates efforts to first level outcome
whereas instrumentality relates first – level outcome to second – level outcome.
 Karishma Sirohi

2.The Porter – Lawler Model:

Porter and Lawler start with the premise that motivation (effort or force) does not equal satisfaction
and/or performance. Motivation, satisfaction, and performance are all separate variables and relate in
ways different from what was traditionally assumed. The following Figure 19 depicts the porter and
Lawler model.

Intrinsic Rewards

Satisfaction
Efforts Performance

Extrinsic
Rewards

Effort: Effort is defined as the amount of energy exerted by an employee on a given task.

Performance: Effort leads to performance. But both may not be equal.

Rewards and Satisfaction: According to Vroom, there are two types of rewards, viz., intrinsic
rewards and extrinsic rewards. Intrinsic rewards refer to a sense of self – accomplishment and self –
actualization. Extrinsic rewards include working conditions and status. Both intrinsic and extrinsic
rewards lead to satisfaction.

III. CONTEMPORARY THEORIES OF MOTIVATION

1. THEORY ‘Z’

International attention is being focused on the outstanding performance of the Japanese economy and
the success of management practices being adopted by Japanese firms. Interest in Japanese
management has rapidly increased in America and other countries. William Ouchi made a
comparative study of American and Japanese management practices. He came to the conclusion that
many of the Japanese management practices can be adapted in American context. He suggested the
adoption of Theory Z which represents an integration of American and Japanese management
practices.

Japanese Management: Japanese Management is characterized by the following principles.

1. Emphasis on the group rather than the individual.

2. Emphasis on human relations rather than functional relationships.
3. Role of top management as generalists and facilitators rather than as decision – makers.

Table 6 : Comparison of Japanese and American Management styles

Japanese Organizations American Organizations

Lifetime Employment Short – term Employment
Slow Advancement Rapid Advancement
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Collective Decision Making Personal Decision Making

Group Responsibilities Individual Responsibilities
Holistic concern for Employees Segmented concern for Employees
General career Specialization in Career
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Features of Theory Z

1. Strong bond between the company and the employees

2. Employees’ participation
3. Mutual trust
4. Integrated organization – Team work
5. Human Resources Development

Appraisal of theory Z

Theory Z may suffer from the following drawbacks:

1. Provision of life time employment to employees to develop a strong bond between the
organizations and its employees seems to be misplaced. An entrepreneur may not like to keep a
less productive employee. Moreover, an employee may leave the organization, if he gets higher
emoluments and other benefits somewhere else. Thus, theory Z fails to motivate those having
higher level needs.

2. Theory Z emphasizes a common culture in the organization. But people have different
backgrounds; they differ in attitudes, values, habits, languages, religion, etc. Thus, it may not be
possible to develop a common culture in the organization.

3. Involvement of workers through participation in decision – making is very difficult. The

management may dislike this idea because of Theory X assumptions about people, or the workers
may be reluctant to participate in decision making because of fear of criticism and lack of proper
motivation.

4. Theory Z emphasizes organization without any structure. But in a large organization,the absence
of any structure may bring about chaos in the organization as nobody will know who is
responsible to whom.

2. EQUITY THEORY

Many employees are concerned not only with satisfying their own needs but also compare what others
receive. They feel satisfied or dissatisfied with comparative observations of their friends, neighbours
and colleagues. The equity theory was developed on this hypothesis. Employees feel they are lacking
with the comparison of others possessions. This lacking tension motivates people to work hard to
reach the levels of others. J. Stacy Adams has propounded that this negative tension provides
motivation to employees to exert themselves. People are motivated by the inequity they note with
others.

1. Person’s Outcomes < Other’s Outcomes

Person’s Inputs Other’s Inputs
→ Inequity due to being under rewarded
2. Person’s Outcomes = Other’s Outcomes
Person’s Inputs Other’s Inputs
→ Equity
3. Person’s Outcomes > Other’s Outcomes
Person’s Inputs Other’s Inputs
→ Inequity due to being over rewarded
Inputs refer to education, seniority, work experience, capacity to contribute, commitment, efforts and
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job performance. Outcomes refer to direct pay, bonus, awards, rewards, fringe benefits, recognition
and socio – psychological satisfaction. The equity theory is a cognitive based motivation theory.
Perception plays a great role in motivating a person.
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If a person is getting less than another, inequity exists because of being under rewarded. He tries to
improve himself so that he can reach the level of others. In case both the ratios are equal, equity
exists and the person is at a constant level. He is not motivated on this ground. On the other hand, if
a person’s outcome as compared to his input is more than others in terms of his inputs, the person is
over rewarded and tries hard to remain higher than those of others.

3. THE ACHIEVEMENT MOTIVATION

Characteristics of high achievers:

David C McClelland, a Harvard psychologist is most closely associated with study of the achievement
motive. Beginning in 1947, McClelland thoroughly investigated and wrote about all aspects of n Ach
(achievement). Out of this extensive research has emerged a clear profile of the characteristics of the
high achiever. Very simply, the achievement motive can be expressed as a desire to perform in terms
of a standard of excellence or to be successful in competitive situations. The specific characteristics
of a high achiever can be summarized as follows:

1. Moderate risk taking: Low achievers take either a high or low risk, and high achievers take
a moderate risk.

2. Need for immediate feedback: People with high n Ach prefer activities which provide
immediate and precise feedback information on how they are progressing towards a goal. High
achievers tend to be more satisfied in jobs or careers, such as sales or certain managerial positions, in
which they are frequently evaluated by specific performance criteria. On the other end of the scale,
high achievers tend to be frustrated in research and development or teaching, where feedback on
performance is very imprecise, vague.

3. Satisfaction with accomplishment perse: High achievers find accomplishing a task intrinsically
satisfying in and of itself or they do not expect or necessarily want the accompanying material
rewards. A good illustration of this characteristic involves money, but not for the usual reasons of
wanting money for its own sake or for the material benefits that it can buy. Rather, high n Ach people
look at money as a form of feedback or measurement of how they are doing. Given the choice
between a simple task with a good payoff for accomplishment, and a more difficult task with a lesser
payoff, other things being equal, high achievers generally choose the latter.
4. Preoccupation with the tasks: Once high achievers select a goal, they tend to be totally
preoccupied with the task until it is successfully completed. They cannot stand to leave a job half
finished and are not satisfied with themselves until they have given their maximum efforts. High
achievers often strike others as being unfriendly and as “loners”. They tend to be very realistic about
their abilities and do not allow other people to get in the way of their goal accomplishments.
Obviously, with this type of approach, high achievers do not always get along well with other people.

The four characteristics noted above have evolved out of McClelland’s basic research over the years.
More recently, Jay Hall and his colleagues have reported the results of a comprehensive study that
compared the managerial styles and methods of 16,000 high – medium – low – achieving managers.
The following are some of their major finding.

1. Low n Ach mangers are pessimistic and have a basic distrust of the intent and competence of
their subordinates. High n Ach managers are optimistic and view their subordinates
favourably.

2. High n ach managers are concerned with aspects of the job that provide personal fulfillment;
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they talk to their subordinates about these things and attempt to structure the job so that their
subordinates can receive such fulfillment. On the other hand, moderate achievers are
concerned mainly with status symbols, and low achievers with job security, and both try to
motivate their subordinates the same way.
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3. High n Ach managers readily use participative methods with their subordinates, while
moderate and low n Ach managers do not tend to involve their subordinates in the decision –
making process.

4. High n Ach managers tend to be very open in their interactions and communications with
others (both bosses and subordinates), while moderate achievers are preoccupied with their
own ideas and feelings and low achievers tend to avoid interacting and communicating
altogether.

5. High achievers show concern for both people and production, whereas moderate achievers
show high concern for production and low concern for people, and low achievers are
concerned mainly with self-preservation and do not seem to care about people or production.

PERCEPTION
Perception is much more complex and much broader than sensation. The perceptual process can be
defined as a complicated interaction of selection, organisation, and interpretation. Although
perception depends largely upon the sense for raw-data, cognitive process may filter, modify, or
completely change these data. A simple illustration may be seen by looking at one side of a stationary
object, for ex, a statue or a tree. By slowly turning the eyes to the other side of the object, the person
probably senses that the object is moving. Yet the person perceives the object as stationary. The
perceptual process overcomes the sensual process and the person “sees” the object as stationary.
• The process by which an individual selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world
• How we see the world around us
 According to Robbins, “Perception is a process by which an individual organise their sensory
& in order to give meaning to their environment”.
 According to Joseph Ritz, “Perception includes all those processes by which an individual
receive information about his environment-seeing, feeling, hearing, tasting etc. are the main
elements of perception.

Nature of Perception:

1. Sensory experience.
2. Subjective
3. Filter
4. Unique interpretation.
5. Seeing things differently
6. Basis of human behaviour.

 Perception is a psychological process the way one perceives the environment affecting his
behaviour.
 Perception being an intellectual process becomes subjective.
 Different people perceive the same situation and environment differently.
 Reality perceived by different people will be different.
 People’s actions, thoughts, emotions are triggered by the perception of their surroundings.
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Sub-processes of perception

punishment or some
(eg. Reinforcement
CONSEQUENCE
psycholog

as rushing off or
BACK for

Kinestheti

orgnl. Outcome)
clarificati

(e.g) over such

BEHAVIOUR

covert such as
on (eg.

an attitude)
FEED

ical)
c or
stimulus (eg.

productivity)
INTERPRE

Motivation,
learning &
TATION

Fig. 10 The Sub-Processes of perception

Of the
REGISTRAT

mechanisms)
(eg. Sensory
Of stimulus

and newral
ION
CONFRONT

supervisor or
stimulus (eg

procedure)
ATION of
specific

new
Research laboratory
Sensual Stimulation

Management styles

Discrimination etc
Environment

Sociocultural
Environment
Factory floor
environment

Climate etc.
External

Physical

Values
Office

Store

Importance of perception:

 Through perception a person select the data from the environment and organise it and
interpret it.
 It is a psychological process that manner in which a person perceive the environment which
effect his or her behaviour.
 Perception is a subjective process and different people may perceive the same thing in
different way.

PERCEPTUAL SELECTIVITY
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External Attention Factors: Various external and internal attention factors affect perceptual
selectivity. The external factors consist of outside environmental influences such as intensity, size,
contrast, repetition, motion and novelty and familiarity.
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1. Intensity: The intensity principle of attention states that the more intense the external stimulus,
the more likely it is to be perceived. A loud noise, or bright light will be noticed more than a soft
sound or dim light.
Advertisers use intensity to gain the consumers’ attention. Examples include bright packaging and
television commercials that are slightly louder than the regular programme.

2. Size: Closely related to intensity is the principle of size. It says that the larger the object, the
more likely it will be perceived. The maintenance engineering staff may pay more attention to a
big machine than to a smaller one, even though the smaller one costs as much and is as important
to the operation. In advertising, a full page spread is more attention-getting than a few lines in the
classified section.

3.Contrast: The contrast principle states that external stimuli which stand out against background
or which are not what people are expecting will receive their attention. The following figure 11
demonstrates this perceptual principle.

The black circle on the right appears much larger than the one on the left because of the contrast with
the background circles. Both black circles are exactly the same size.

4. Repetition: The repetition principle states that a repeated external stimulus is more attention-
getting than a single one. Thus, a worker will generally “hear” better when directions for a dull
task are given more than once. Advertisers trying to create a unique image for a product which is
undifferentiated from its competitors – such medicine, soap and deodorant – rely heavily on
repetitious advertising.

5. Motion: The motion principle says that people will pay more attention to moving objects in
their field of vision than they will to stationary objects. Workers will notice materials moving by
them on a conveyor belt, but they may fail to give proper attention to the maintenance needs of
the stationary machine next to them.

6. Novelty and Familiarity: The novelty and familiarity principle states that either a novel or a
familiar external situation can serve as an attention getter. New objects or events in a familiar
setting or familiar objects or events in a new setting will draw the attention of the perceiver. Job
rotation is an example of this principle. Changing workers’ jobs from time to time will tend to
increase the attention they give to the task.

Internal set factors:

The concept of set is an important cognition in selectivity. It can be thought of as an internal

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form of attention-getting and is based largely on the individual’s complex psychological make up.
People will select out stimuli or situations from the environment that appeal to and are compatible
with their learning, motivation, and personality. A brief discussion of these factors will help in the
understanding of perception.
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1. Learning and Perception: Although inter-related with motivation and personality, learning may
play the single biggest role in developing perceptual set. Read the sentence in the triangle below.
(Fig.12)

T URN OFF T HE
T HE ENGINE

It may take several seconds to realise there is something wrong. Because of familiarity with the
sentence from prior learning, the person is perceptually set to read “Turn off the engine”. This
illustration shows that learning affects set by creating an expectancy to perceive in a certain manner.
Such expectancies are a vital element in the cognitive explanations of behaviour. This view states
simply that people see and hear what they expect to see and hear. This can be further demonstrated by
pronouncing the following words very slowly.

M-A-C-T-A-V-I-S-H

M-A-C-D-O-N-A-L-D

M-A-C-B-E-R-T-H

M-A-C-H-I-N-E-R-Y

If the last word was pronounced “Mac-Hinery” instead of “Machinery”, the reader was caught in a
verbal response set.

2. Perceptual set in the workplace: Perceptual set has many direct implications for organizational
behaviour. In organizational life, some employees have learned to perceive the world around them in
the same way. For example, the single sentence “I cannot recommend this young man too highly” was
reproduced and distributed to several managers in the same organization. Although this statement is
ambiguous and unclear, without exception all the managers interpreted this to be a positive
recommendation. They had all learned to perceive this statement the same way – positive and
favourable.

3. Motivation and Perception: Besides the learned aspects of perceptual set, motivation also has a
vital impact on perceptual selectivity. The primary motives of sex and hunger could be used to
demonstrate the role that motivation plays in perception. In traditional Amercian culture, the sex drive has
been largely suppressed, with the result being an unfulfilled need for sex. Accordingly, any mention of sex or a
visual stimulus dealing with sex is very attention-getting to the average American. The secondary motives
also play an important role in developing perceptual set. A person who has a relatively high need for
power, affiliation or achievement will be more attentive to the relevant situational variables.

4. Personality and Perception: Closely related to learning and motivation is the personality of the
perceiving person, which affects what is attended to in the confronting situation. For example,.
Senior-level executives often complain that the new young “hot shots” have trouble making the
“tough” personnel decisions concerning terminating or reassigning people and paying attention to
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details and paperwork. The young managers, in turn, complain about the “old guard” resisting change
and using rules and paper works as ends in themselves. The Senior – and Junior-level executives
personalities largely explain these perceptions. There is also a generation gap that may contribute to
differing perceptions. An example can be found in the perceptions of modern movies. Older people
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tend either to be disgusted by or to not understand some of the popular movies of recent years. Those
in the 35-45 age group tend to perceive these movies as “naughty but neat”. Young, college-age
people tend to perceive them as “Where it’s at”.
Process of Perception

1. Stimuli: perception process cannot commence in the

absence of stimuli. Stimuli is in the form of people,
objects, events, etc. events in a given situation can be
Stimuli
termed as inputs or stimuli.
2. Receiving stimuli: perception starts with the receipt of
stimuli. Stimuli is received through the experience Receiving
such as hearing, smelling, touching, tasting. Thus Stimuli
receiving stimuli is a psychological aspect of
perception process.
3. Selection: an individual confronts with several things,
in a situation. But everything is not necessary. Hence Selection
selectivity occurs. Individual then prefer to select the
stimuli that are relevant to him. Thus the process of
choosing certain stimuli for further processing is
known as selection. Organisation
Selection depends on the
– Nature of the stimulus
– Expectations
– Motives Interpretation
Selection process involves:

• Selective Exposure : Individual seek out messages which:

-Are pleasant
-They can sympathize
-Reassure them of good purchases

• Selective Attention: -Heightened awareness when stimuli meet their needs

-Consumers prefer different messages and medium

• Perceptual Defense: -Screening out of stimuli which are threatening

• Perceptual Blocking: Consumers avoid being bombarded by:

-Tuning out
-TiVo
4. Organization: it means putting the inputs to form into a meaningful whole. This process is
also called as gestalt process. There are many ways the people organize inputs.
• Figure and ground: -People tend to organize perceptions into figure-and-ground
relationships.
-The ground is usually hazy.
-Marketers usually design so the figure is the noticed stimuli.
• Grouping: -People group stimuli to form a unified impression or concept.
-Grouping helps memory and recall.
• Closure: -People have a need for closure and organize perceptions to form a
complete picture.
-Will often fill in missing pieces
-Incomplete messages remembered more than complete
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5. Interpretation: the perceiver has to interpret the inputs. Without interpretation information
the situation will be confusing. Manager interprets the situation in terms of his assumptions.
 Karishma Sirohi

Factor influencing perception:

Perceiver
Situation
-Attitude
Target
-Beliefs -Time
-Motives -Social Setting -Novelty
-Interests -Work Setting -Motion
-Experience -Sounds
-Size
-Background

Laws of Perception:

There are five laws of perception which are as follows:

1. Law of proximity: Items that are located close together are usually perceived as a single
group. The items in that group are considered to be distinct and different from items located
further away.

2. Law of similarity: Gestalt theory states that things which share visual characteristics such as
shape, size, color, texture, or value will be seen as belonging together in the viewer’s mind

3. Law of closure : Closure describes our tendency to look for unity in objects and to see lines
as a single unit. Therefore, given the mere suggestion of an object, we will tend to fill in the
details. For example, it is likely that you perceive the series of disconnected lines represented
below as a square, and the series of disconnected dots as forming a single circle
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 Karishma Sirohi

4. Law of continuation: Describes our tendency to perceive objects that seem to have a
relationship to each other as being continuous.

5. Law of simplicity: This law states that when a pattern is viewed it is broken down and
perceived as the simplest form of an object. For example the picture on the left is perceived
as a triangle and a square instead of a compilation of complex shapes

IMPRESSION MANAGEMENT
People in organizations are always judging each other. An Impression towards a work shows the
attitude and behaviour of a person. Managers must appraise their subordinate‟s performance. These
judgements have important consequences for the organizations. The applications of perceptions in
organizations:
1. Employee Interview:- A major input into who is hired and who is rejected in any
organization is the employment interview. Interviewers generally draw early impressions that
become very quickly entrenched. The employment interview is an important input into the
hiring decision and a manager must recognize that perceptual factors influence who is hired.
2. Performance Evaluation:- An employees performance appraisal very much depends on the
perceptual process. The performance appraisal represents an assessment of an employees
work. The evaluator forms a general impression of an employee‟s work. What the evaluator
perceives to be “good” or “bad” employee characteristics will significantly influence the
appraisal outcome.
3. Perception Expectations:- A manager‟s expectations of an individual affect both the
manager‟s behaviour towards the individual and the individual‟s response. This is
particularly relevant when we consider performance expectations on the job.
4. Employee Loyality:- Another important judgement that managers make about employees is
wheather they are loyal to the organization. The assessment of an employee‟s loyality or
commitment is highly judgemental. What is perceived as loyality by one may be seen as
excessive by another.
PERSONALITY
Personality refers to the sum total of ways in which an individual reacts and interacts with others.
Personality determinants include heredity, environment and situation.

Determinants of Personality
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(1) Biological Factors:

(i) Heredity: It means the transmission of the qualities such as physical stature, facial
attractiveness, sex, temperament, muscle composition, reflexes etc, from the
 Karishma Sirohi

ancestors and parents to the descendants. Heredity is generally more important in

determining a person’s temperament than his values and ideals.
(ii) Brain: There is a general feeling that brain plays an important role in the
development of one’s personality. However, no conclusive proof is available so far
about the nature of relationship between the brain and personality.
(iii) Physical features: An individual’s external appearance may have a tremendous
effect on his personality. Such factors include height, weight, colour, facial features,
etc. of the individual.
(2) Family and Social factors: The development of individual’s personality is also influenced by his
family and other social groups. The infant acquires those behaviour patterns that are customary and
acceptable to the standards of the family and the community where the family lives. The status of the
family in the society influences individual’s perception about self, others, work, money, etc.,
(3) Situational factors: An individual’s personality may change in different situations. The demands
of different situations may call for different aspects of one’s personality. Therefore, we should not
look at the personality factor in isolation.
Group and culture are the early environmental factors that influence later behaviour. Family and the
social setting during early stages of education are the important factors which influence the initial
formation of personality. Whatever the child learns lasts for life time. Later in life, it is the peer
groups of primary affiliations at work, social activities etc. which shape the personality of an
individual.
(4) Other factors:

a) Temperament: Temperament is the degree to which one responds emotionally.

b) Interest: An Individual normally has many interests in various areas. The successful persons in
the same occupation have to a large extent, the same interests.
c) Character: Character primarily means honesty. It is resistance to stealing and cheating others.
d) Schema: It is an individual’s belief, frame of reference, perception and attitude which the
individual possesses towardss the management, the job, working conditions, pay, fringe benefits,
incentive system, and development programmes in the organization.
e) Motives: Motives are the inner drives of an individual. They represent goal directed behaviour of
individual.

Personality type:

Type A Profile Type B Profile

Is always moving Is not concerned about time
Walks rapidly Is Patient
Talks rapidly Doesn’t brag
Eats rapidly Plays for fun, not to win
Is impatient Relaxes without guilt
Des two things at once Has not pressing deadlines
Can’t cope with leisure time Is mild-mannered
Is obsessed with numbers Is never in a hurry
Measures success by quantity
Is aggressive
Is competitive
Constantly feels under time pressure

Theories of Personality:
1. Psychoanalytic theory: Sigmund Freud propounded psychoanalytic theory of personality
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which is based on the notion that man is motivated more by unseen forces than by conscious
and rational thought. Freud noted that his clients’ behaviour could not always be consciously
explained. This clinical finding led him to conclude that major motivating force in man is
 Karishma Sirohi

unconscious framework. This framework contains three aspects, though inter-related but often
conflicting. These are Id, Ego and Superego. Their brief description is as follows:
(i) The Id: The id is the source o psychic energy and seeks immediate gratification for biological
or instinctual needs such as hunger, thirst and sex. The id would proceed unchecked to satisfy
motives, particularly the sexual relations and pleasures, were it not for the channeling activity
into acceptable ways by the ego. As an individual matures, he learns to control the id. But
even then, it remains a driving force throughtout life and an important source of thinking and
behaving.
(ii) The Ego: The ego is the conscious and logical part of human personality and is associated
with the reality principle. While id represents the unconscious part, ego is conscious about the
realities of the external environment. The ego keeps the id in check through intellect and
reason.
(iii) The Super ego: The super ego represents societal and personal norms and serves as an ethical
constraint on behaviour. It can best be described as the conscience. The superego provides
norms to ego to determine what is wrong or right. However, a person is not aware of the
working of the super ego, and conscience is developed by absorption of cultural values and
norms of the society.
2. Big Five Model: Five personality traits (the so called big five) have recently emerged from
research as being especially related to job performance. Characteristics of these traits can be
summarized briefly as follows:

(1) Extraversion – Sociable, talkative and assertive

(2) Agreeableness – Good natured, co-operative, and trusting
(3) Conscientiousness – Responsible, dependable, persistent and achievement-oriented
(4) Emotional Stability -- Viewed from a negative stand point:
tense, insecure and nervous
(5) Openness to experience – Imaginative, artistically sensitive and
intellectual

3. Trait Theory: Traits are characteristics of a person in which he/she differs from others.
-Based on 3 assumptions
 Traits are common to many individual but vary in absolute amount.
 Traits are relatively stable.
 One’s trait can be inferred by measuring his/her behaviour.
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 Karishma Sirohi

UNIT 3
GROUP BEHAVIOUR
Group: - A group is defined as two or more individual, interacting and interdependent, who
have come together to achieve particular objectives.

According to Smith, “a group is the set of two or more individual who are jointly
characterized by a network of communication with a shared sense of collective identity and
one or more shared dispositions with associated normative strength”.

A group is collection of people having common interest, interaction, and awareness of one
other.

Features of Group:-
1. More Persons: a group consists of two or more persons. There is no maximum limit
of members.
2. Shared Interest: the members subscribe for group objectives. It is not necessary that
each member agrees with all the objectives. But each subscribes to at least one
objective. The shared objectives bind them together.
3. Aware of Group: in a group, members know personally each other more closely.
They are aware their membership, each member that he is a participant in some
specific group.
4. Interaction: members of the group interact with each other. They have the
opportunity to communicate with others face to face, in writing or through telephone
or network.
5. Enduring relationship: the members endure tighter social relationships. They are
less organized.
6. Rules and regulations: group starts with mutual awareness and establishes rule for
comfortable coexistence.
7. Interdependence: the members are often dependent on each other to serve common
purpose.
8. Social interaction.
9. Stability
10. Recognition as being a group.

Types of Groups:
Groups can be either formal or informal.
1. Formal Groups:- A designated work group defined by organization‟s structure. In formal
groups, the behaviours that one should engage in are stipulated by and directed towards
organizational goals. Examples:- A book-keeping department, an executive committee.
Formal groups can be divided into command groups, task groups and committee.
 Command Group:- A command group consists of a manager and the employee who
report to him or her. Membership in the group arises from each employee‟s position
on the organizational chart.
 Task Group:- A task group is made up of employees who work together to complete
a particular task or project. It may be temporary with an established life span ot they
may be open ended.
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 Committee:- A group of people officially delegated to perform a function, such as

investing, considering or reporting on a matter.
 Karishma Sirohi

2. Informal Group:- An organization’s informal groups are groups that evolve to meet social
or affiliation needs by bringing people together based on shared interest or friendship. These
groups are natural formations in the work environment. It can be divided into various types.
 Friendship group:- Groups often develop because individual members have one or
more common characteristics and it is meant for friendship.
 Interest group:- People who may or may not be aligned into common command or
task groups may affiliate to attain a specific objective with which each is concerned.
This is an interest group.
 Reference group:- When a group is used as a basis for comparison in making
decisions or forming opinions, then it is called as a reference group.
 Membership group:- When a person does belong to a group, then the group is called
a membership group for that person.
 Cliques:- A relatively permanent informal groups that involves friendship. Most of
the relationships came down to two cliques, each with a hanger-on and some isolates.
The cliques served as a system for sense making about organizational events.

Stages for group development:

Group generally pass through a standardized sequence in their evolution. This sequence is
called the five-stage model of group development characterizes as : Forming, storming,
norming, performing and adjourning.
1. Forming:- It is characterized by a great deal of FORMING
uncertainty about the group‟s purpose, structure and
leadership. Members assess one another with regard to STORMING
trustworthiness, emotional comfort and evaluative
acceptance. This stage is complete when members
have begun to think of themselves as part of a group.
NORMING
2. Storming:- The Storming-stage is one of inter-
group conflict. Members accept the existence of the PERFORMING
group, but resist the constraints the group imposes on
individuality. Furthermore, there is conflict over who ADJOURNING
will control the group. When this stage is complete,
there will be a relatively clear hierarchy of leadership within the group.
3. Norming:- In this stage close relationship develop and the group demonstrates
cohesiveness. There is now a strong sense of group identity. This stage is complete when the
group structure solidifies and the group has assimilated a common set of expectations.
4. Performing:- The structure at this point is fully functional and accepted. Group energy has
moved from getting to know and understand each other to performing the task at hand. For
permanent group this is the last stage.
5. Adjourning:- For temporary committees, teams, there is an adjourning stage. High task
performance is no longer the group‟s top priority. Instead, attention is directed towards
wrapping up activities.

Purpose of a Group:
The most popular reason are:
1. Security: by forming into groups one can reduce the feeling of insecurity. Being part
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of a group individuals get reassurance from interacting with others.

2. Status: inclusion in a group viewed as important by others. Group provides
recognition and status for its members.
 Karishma Sirohi

3. Self esteem: membership provides people feeling of self worth. Self esteem of an
individual is bolstered.
4. Affiliation: group feeling provides workers a feeling of job satisfaction and fulfill
their needs of friendship and social relations.
5. Power: by the formation of groups employees can increase their bargaining power
with management. Informal groups provide additional power to influence others.
6. Good achievement: group helps in achieving a goal that would be difficult if pursued
by a single person.
7. Economic benefits: individual believe that they can derive greater economic benefits
if they form into groups.
8. Relieves boredom: mutual interaction relieves people from boredom and monotony
on the job.
9. Mutual interaction: groups help people to interact with each other.
10. Opportunity to learn: group provides opportunity to members for exchange of ideas,
thoughts.
11. Source of information: groups helps others to know about others and give
information when they are sick.

Teams in work places:

A team is relatively permanent work group whose Members must coordinate their activities
to achieve one or more common objectives. A work team generates positive synergy Through
coordinated effort.
Types of Teams:- Based on the objectives, teams may be classified as problem solving, self-
managed and cross-functional teams.
1. Problem-solving Teams:- It consists of groups of 5-10 employees from the same
department, who meet for a few hours each week to discuss ways of improving
quality, efficiency and the work environment.
2. Self-managed Teams:- A self-managed team includes collective control over the
place of work, determination of work assignments and collective choice of inspection
procedures.
3. Cross-functional Teams:- Cross-functional teams are made up of employees from
the same hierarchical level, but from different work areas, who come together to
accomplish a task. Cross-functional teams are an effective way to allow people from
diverse areas within an organization
Reasons for using Teams:- Organizations use teamwork because it meets organizational
objectives better than individual efforts.
 Many organizations have credited teamwork with improvements in quality,
productivity and profitability.
 Employees on teams also tend to deliver high quality because their involvement and
authority make them highly committed.
 When quality and productivity rises, profit rises. Team work also boosts profitability
by reducing costs.
 Greater Flexibility:- Teams can improve flexibility because team members have the
skills, information and authority to direct their expertise and commitment towards
satisfying those needs.
 Greater Responsiveness to change:- A logical way to create the necessary
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involvement is to use teams.

 Meets Social needs:- Teamwork offers a change to meet social needs and enjoy a
sense of involvement and achievement.
 Karishma Sirohi

Leadership
A “Leader” is a one who guides and directs other people. He gives the efforts of his followers
a direction and purpose by influencing their behaviour. “Leadership” is the ability to
influence a group towards the achievement of a vision or set of goals. It is the ability to
secure desirable actions from a group of followers voluntarily without the use of coercion.

“Leadership is the process of influencing people towards the accomplishment of goals.”

Nature of Leadership:
Characteristic of Leadership
1. Leadership implies the existence of followers.
2. Leadership involves a community of interest between leader and his followers
3. Leadership involves an unequal distribution of authority among leaders and group
members
4. Leadership is a process of influence
5. Leadership is the function of stimulation
6. A leader must be exemplary
7. A leader ensures absolute justice
8. Leadership is a personal quality
9. Leadership is a continuous process of influencing.
10. Situation variables influence the effectiveness of leadership.

Importance of leadership:
1. Motivating employees
2. Creating confidence
3. Morale
4. Inspires employees
5. Secures co operation
6. Provides good working climate
7. Cohesive force

Functions of Leaders:
1. Develop teamwork: leader has to identify strength and weakness of organization and
try to integrate the three elements: environment, group goals, individual.
2. Represents follower’s grievances: leader takes personal risk, ensures better service,
working condition, solve the problems of organization and in turn ensure smooth
functioning.
3. Counsels the employees: leader should act as a friend, philosopher to his employees
by counseling them from time to time on their organization problems which they
encounter. He should go across the barriers and ensures effective performance.
4. Use powers judiciously: by his judicious use of power he balances the groups and
pressures they create to imbalance the organization. Leader enjoys powers both
formal by virtue of positions and informal by way of compel others sometimes and
reward legitimately.
5. Strives for effectiveness: leader should take right decision at right time to keep the
effectiveness intact. He should reward and punish people. He should balance the
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relationship by appropriately fixing responsibilities and sharing authority.

 Karishma Sirohi

Qualities of a Leader:

1. Energy: he is energetic both mentally and physically to carry out his duties
successfully.
2. Emotional stability: it enables a leader to act with self-confidence, avoid danger and
deal with his follower subordinates with an understanding
3. Knowledge of human relation: he should have requisite knowledge of behaviour of
people of various background in different situation.
4. Empathy: it enables him to look at things objectively.
5. Personal motivation: he should have enough enthusiasm to get the job done
6. Communication skill: a leader should be able to communicate clearly that other
should not have any ambiguity.
7. Social skill: he should understand people and be approachable. He should be friendly
with others.
8. Objectivity: he should not get emotionally involved and not loose sight of
organizational and national objectives.
9. Technical competence: he should have complete knowledge of all the operations
under his guidance and know the consequences of things either way.
10. Inner drive: leader should set goals for himself and should have intense urge to
accomplish them.

Leadership styles:
1. Autocratic or authoritarian: here manager centralizes decision making power. He
designs the work situation and employees to do what is told to them. Followers are
afraid and feel insecure of superior. Leader makes subordinates to act as he directs.
He uses fear, threats, and insists on getting his own way.
Edwin B. Flippo divided the autocratic into three types:
a) Hard boiled: leader uses negative approach heavily and influence through
order, which results in employees becoming resentful.
b) Benevolent: though decision making power is kept in his hands, the leader
uses positive approach by praising followers to receive personal acceptance of
his own decisions.
c) Manipulative: manager takes decisions by himself and makes the
subordinates to feel that they are really participating in decision making.
Autocratic people presume that people are generally lazy, will avoid work and shrink
responsibility. It stresses that people work basically for money. Basing on this
assumption leader exercises tight control subordinates who are driven by fear than
through job satisfaction. Over use of authority results in strikes. Further it causes
frustration among people who work just to escape punishment.

Advantages:
 There are many subordinates who work under strict supervision only, for them it is
good.
 It provides strong motivation and reward a manager exercising this style.
 It permits quick decision.
 Incompetent subordinates work well.
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Disadvantages:
 People dislike if negative approach is in excess.
 Employees do not subordinate their goal to organizational goals.
 Karishma Sirohi

 Employees lack motivation and keep low morale.

2. Democratic Leadership: leader persuades and encourages participation of people in
decision making. Duglas McGregor labeled this style under Y theory that
subordinates involve in decision making and assume responsibility. Instead of taking
his own decision leader emphasizes participation of followers in decision making.
Leader who wishes to seek the welfare of subordinates, which in turn enables him to
achieve organizational goals. The subordinates can better utilize their energies and
potentialities for the sake of organizations.

Advantages:
 Followers are motivated to work when their suggestions are going into the
decision making
 Employees will work productivity since they implement decision whole
heartedly.
 The follower strengthens the hands of superior.
 It enhances the morale of employees to new heights and upholds the attitudes
of employees.
 It provides organizational stability.
Disadvantages:
 Subordinates may view superior as incompetent to handle the situation
independently.
 There is some danger of misinterpretation of decision sharing.
 Participative decision making is time consuming.
 For some leaders participative leadership means passing the decision to the
subordinates.
3. Laissez faire or free rein leadership style: in this style leader does not exercise
control over people and gives no direction. Leader tries to pass the responsibility on to
the subordinates. The leader prefers to lead his group with loose rein allowing his
subordinates a great deal of freedom. Here, leader completely delegates power to
subordinates who have to plan, motive, and control themselves otherwise they will be
held responsible for their own actions.
4. Paternalistic leadership: leader adopts parental attitude as the right one for the
relationship between himself and followers. He wishes to keep them happy as family
members. He emphasizes good working conditions with a desire to be good with
them. Leader’s philosophy is that happy employees work harder.
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 Karishma Sirohi

UNIT 4
CONFLICT
Conflict is a process in which an effort is made by one person to further his interest by
effecting other’s interest.
According to Robbins, “a process that begins when one party perceives that another party has
negatively affected, or is about to negatively affects something that the first party cares
about”.
It encompasses the wide range of conflicts that people experience in organizations,
incompatibility of goals, differences over interpretations of facts, disagreement based on
behavioral expectations etc.
Features of conflict:
1. It is a disagreement.
2. Conflicts occurs when two persons interest are different.
3. Conflict takes place when perception of two persons vary.
4. Conflict arises when one interferes in other’s activities willfully.
5. Conflict begins when one starts acquire resources before others start to act.
6. Conflict is not organizational abnormality.
7. Conflict is inevitable.
8. Conflict is the integral part of change.
9. Conflict is desired.
10. Optimum level of conflict is healthy.
Symptoms of Conflict:
1. Frustration
2. No desire to communicate.
3. Work not done properly.
4. Anger occurs equally and easily.
5. Falling productivity.
6. Slipping morale.
7. Absenteeism.
8. Accidents.
9. Escalating costs.
10. Shouting.
Types of Conflicts:

1. Individual conflict: at individual level two types of conflicts take place:

a) Inter individual conflict: interpersonal conflicts occur between two
individual. Such conflicts results in between two persons who INTER
hold polarized point of view. There may be several forms of INDIVIDUAL
interpersonal conflicts such as hierarchy conflicts (between INTRA
superior and subordinates), functional conflicts (between
occupational and specialists) and professional
INTER
conflicts. Interpersonal conflict takes place at
horizontal level i.e., among equals and at CONFLICT GROUP

vertical level i.e., between superior and INTRA

subordinates.
b) Intra individual conflict: it is difficult to analyze since it
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INTER
is internal to a person. Man works at home or at workplace ORGANIZATION
only to satisfy his individual needs. Organization is a place
INTRA
for individuals to satisfy his needs.
 Karishma Sirohi

2. Group conflict: at group level conflicts may be of two types:

a) Inter Group Conflicts: inter group conflicts refers to conflict between an individual
and a group or between two groups. When the groups exist in an organization they
should try to coexist with harmony to each others. But due to various reasons they fail
to live in harmony with others.
b) Intra Group Conflicts: it is a conflict that occurs within the group or internally. It
may occur between two persons of the same group or between group leader and
followers. Thus when group interest is not compatible to members at a given time,
conflicts arise.
3. Organization Conflicts: at group level conflicts may be of two types:
a) Inter organization conflicts: when conflict arises two organizations operating under
different ownerships, such conflict is called inter-organizational conflicts. Conflicts
may arise between an individual and organization also. Sometimes two different
groups, belonging to different organizations may develop clashes. At times conflict
may happen between a group and an organization having different ideas in their
minds.
b) Intra organization conflicts: one such conflict is intra-organizational conflict. The
following are such intra-organizational conflicts:
 Horizontal Conflicts: horizontal conflicts are called the conflict arising at the
same level of two group or departments which are interdependent and tend to
act independently. Here the department people develop the spirit of
competition and try to achieve their goals, at the cost of other groups or
departments.
 Vertical Conflicts: vertical conflicts occurs between people at two levels,
possibly between superior and subordinates. Normally these conflicts take
place for the following reasons: 1. Inadequate communication. 2. Perceptual
variations etc.
 Line and Staff Conflicts: in general line people are held responsible for
failures as they take decisions and responsible to solve problems of the
organization. Staff persons are expected to advise the line in solving problems.

Impacts of Conflicts:
1. Stimulant for change: conflicts draw attention of the authorities for finding better
solutions. It initiates a search for ways to derive objectives, methods and procedures.
2. Counteracts lethargy: conflict counteracts the lethargy that often overtakes
organization. Sometimes group thinking prevents from making rational decisions.
3. Fosters creativity and innovation: it stimulates curiosity and interest. It prevents
stagnation. In open confrontation people tend to put forward more practicable
solutions. A climate of challenge compels individuals to think productivity and
creatively. It helps the people to test their capacities to learn and develop.
4. Cohesion: conflict and competition drive groups of closer. Group membership and
association with members gives satisfaction. According to BOULDING organization
are creation of their enemies and it is through a common hatred of the enemy they
establish their internal unity.
5. Optimum level of conflict is desirable: conflict is inevitable and also necessary for
organizational life. It serves to balance power relationship between departments. It
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helps individuals to get relief from the tensions and ill feelings among them.
6. Rational actions: it provides opportunities to people and groups to think and act
rationally.
 Karishma Sirohi

7. Competition: conflict brings cohesiveness in groups and infuses spirit of

competition.

Methods of resolving organizational conflicts:

Managers have a variety of conflict management styles. The way they handle conflict
depends on the degree to which they seek to satisfy their own concerns and the degree to
which they try to satisfy the other person’s concerns.
1. Avoiding:- Avoiding include trying to just ignore a conflict and avoiding others with
whom the managerial views disagree. It is a style low on both assertiveness and
cooperativeness. Avoiding is a deliberate decision to take no action on a conflict or to
stay out of a conflict situation.
2. Accommodating:- When one party needs to be willing to be self-sacrificing; this
intention is referred as accommodating. Here one person attempts to satisfy another
person’s objectives. Accommodating is cooperative but unassertive.
3. Competing:- A competing strategy involves attempting to win, with the presumption
that others will lose. Under this strategy, a person wants to satisfy his own interests
and is willing to do so at the other party’s expense. It is a style that is very assertive
and uncooperative.
4. Compromising:- It refers bargaining for something ”acceptable”, so each party wins
and loss a bit. In compromising, there is no clear winner or loser. There is a
willingness to ration the object of the conflict and accept a solution that provides
incomplete satisfaction of both parties concern. This style is intermediate in both
assertiveness and cooperativeness.
5. Collaborating:- In collaborating, the intention of the parties is to solve a problem by
clarifying differences rather than by accommodating various points of view. This
strategy seeks to make everyone a winner. Collaborating is a win-win style that is
high on both assertiveness and cooperativeness.

Empowerment: is any process that provides greater autonomy to employees through

the sharing of relevant information and the provision of control over factors affecting job
performance.

Approaches to Empowerment:
1. Helping employees to achieve job mastery.
2. Allowing more control.
3. Provide successful role models.
4. Using social reinforcement and persuasion.
5. Giving emotional support.

Process of Empowerment:
This model is called Randolphi’s model.
1. Share information
2. Create autonomy through structure.
3. Remove conditions of powerlessness.
4. Enhance job related self-efficiency.
5. Perception of empowerment.
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6. Let teams became the hierarchy.

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Participation: it is the mental and emotional involvement of people in group situation

that encourages them to contribute to group goals and share responsibility for them.

Features:
1. Mental and emotional involvement.
2. Contribution to goals.
3. Share the responsibilities of organization.

Objectives:
Primary Objectives Secondary Objectives
 Industrial Harmony  Economical
 Sense of commitment  Social
 Sense of belongingness  Psychological
 Good communication skills
 Handles the resistance
Benefits of Participation:
1. Increase productivity.
2. Increase efficiency of employees.
3. Establish industrial peace.
4. Establish industrial democracy.
5. Well being of individual.
6. Personality development.
7. Mutual understanding.
8. Social well being.
9. Welcomes changes.
10. Rapid industrialization.

Demerits of Participation:
1. Inactive trade union.
2. Chances and suspicious.
3. Employee may lead a careless life.

Pre-requisites to Participation:
1. Adequate time of participate.
2. Potential benefits greater than cost.
3. Relevant to employee interests.
4. Adequate employee ability to deal with the subject.
5. Mutual ability to communicate.
6. No feeling of threat.
7. Restriction to the area of job freedom.

Methods of participation:
1. Co-partnership / co ownership
2. Worker’s committee
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3. Joint management council

4. Suggestions
5. Board representation
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UNIT 5
ORGANIZATION CHANGE AND DEVELOPMENT
Organizational change: - It refers to a modification or transformation of the organization’s
structure, process or goods. Flexibility requires that organization be open to change in all
areas, including the structure of organization.
It is a structured approached in an organization for ensuring that changes are smoothly and
successfully implemented to achieve lasting benefits.
Change management is the process during which the changes of a system are implemented
in a controlled manner by following a pre-defined framework. Organizational Change is of
two types.
Planned Change - change resulting from a deliberate decision to alter the organization.
Unplanned Change - change that is imposed on the organization and is often unforeseen.

Types of changes:
1. Proactive change: proactive change is something that is desirable and management
vitiates it in the larger interests of organization. Proactive change is identified by the
management.
2. Reactive Changes: they are changes introduced when some body demands for it.
This change is proposed and pressed for by the outside forces.
3. Strategic Changes: this is a change in the very mission of the organization. A single
mission may have to be changed to multiple missions.
4. Structural Changes: decentralized operations and participative management style
have been in force to meet the situation to enable the organization for making the spot
decisions. The structural changes have shifted authority and responsibility to lower
levels of organization.
5. Process oriented changes: these changes include use of machines, computers etc. in
the processing operations. This means replacing the personnel making heavy capital
investment for machines and operational changes.
6. People oriented change: any organizational change affects people in some form or
the other. The changes are directed towards performance improvements, group
cohesion, and dedication. These changes develop a sense of self actualization among
the members.
Forces for change
There are both external and internal forces that result in pressure for change,
External Forces:
The external forces that create the need for change come from various sources. Some of
them are as follows:
1. Competitive Market Force: Competition is changing. The global economy means
that competitors are as likely to come from across the ocean as from across town.
Heightened competition also means the established organizations need to defend
themselves against both traditional competitors that develop new products and
services and small, entrepreneurial firms with innovative offers. Successful
organizations will be the ones that can change in response to the competitor.
2. Government laws and regulations: These are frequent impetus for change. Creation
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of special economic zones and foreign direct investment in India sparked off major
changes in the IT Industries, Insurance, and Car manufacturing industries. More
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foreign automobile industries are setting up manufacturing plants and generating more
employment opportunities in India.
3. Technology: It creates the need for change. For example, technological developments
in sophisticated and extremely expensive diagnostic equipment have created
significant economy of scale for hospitals and medical centers. Assembly-line
technology is undergoing dramatic change as organizations replace human labor with
robots. Even in the greetings card industry, electronic mail and internet have
influenced the way people send greetings.
4. Labor Markets: The fluctuation in labor markets forces managers to change. For
instance, the demand for webpage designers and website managers made it necessary
for organizations that need those kinds of employees to change their human resources
management activities to attract and retain skilled employees in the areas of greatest
need.
5. Economic Changes: Economic changes affect almost all organization. The
appreciation of rupee value against the US dollar affects the export prospects of
knitwear products from India to America as those products cost more to Americans.
But even in strong economy, uncertainties about interest rates, government budgets
deficits and current exchange rates create conditions that may force organizations to
change.
Internal Forces:
Internal forces can also stimulate the need for change. These internal forces tend to originate
primarily from the internal operations of the organizations or from the impact of external
changes.
1. Structural factors: A structural force would be the inability to transmit important
information from the top of the organization to the lower level cadre. Because of
numerous layers in the hierarchy, information moves slowly from one level to the
next. This could be viewed as a process or a behavioral problem involving a failure to
communicate effectively.
2. Strategy: A redefinition or modification of an organization’s strategy often
introduces a host of change. The strategic move of Reliance Industries in getting into
retail business in urban and rural markets made them to introduce a change in the
managerial approach as well as the human relations approach to gain acceptance from
the different cross section of the customers.
3. Organizations Workforce: In recent times, the work force composition is varied and
is not very static. Its composition changes in terms of age, education, sex and so forth.
In a stable organization with a large pool of seasoned executives, there might be a
need to restructure jobs in order to retain younger managers who occupy lower ranks.
The compensation and benefit system might also need to be adapted to reflect the
needs of an older work force
4. Technology: The introduction of new equipment represents another internal force for
change. Employees may have their jobs redesigned, they need to undergo training on
how to operate the new equipment or they may be required to establish new
interactions patterns with their work group.
5. Employee Attitudes: Employee attitudes such as increased job satisfaction may lead
to increased absenteeism, more voluntary resignations, and even labor strikes. Such
events will often lead to changes in management policies and practices.
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Approaches/ Process of organizational change:

1. Unfreezing
2. Changing
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3. Refreezing

1. Unfreezing: Unfreezing: It is actually the process of preparing the system for change
through disconfirmation of the old practices, attitudes, tendencies, or behaviors. This is the
initial phase where those involved in the change experience a need for something different
and a sense of restlessness with the status quo. In essence, the feeling that the system is
hurting itself badly now and desperately requires a change to survive, is sensed by all.
Initiative for changes efforts are taken to overcome the pressures of both individual resistance
and group conformity.

2. Movement to a new state: Changing or moving is the phase where the changes that have
been planned are actually initiated and carried out. Changes could relate to the mission,
strategy, objectives, people, tasks, work roles, technology, structure, corporate culture, or any
other aspects of the organization. Well thought out changes have to be carefully implemented
with participation of the members who will be affected by the change. Changes incorporated
too quickly without adequate preparation will result in resistance to change.

3. Refreezing: It is the last phase of the planned change process. Refreezing ensures that the
planned changes that have been introduced are working satisfactorily, that any modifications,
extra considerations, or support needed for making the changes operational are attended to,
and that there is reasonable guarantee that the changes will indeed fill the gap and bring the
system to the new, desired state of equilibrium. This necessarily implies that the results are
monitored and evaluated, and wherever necessary corrective measures are taken up to reach
the new goal. If the refreezing phase is neglected or temporarily attended to, the desired
results will not ensure and the change may even be total disaster.

Organizational development: Organizational development is a planned process of change in

organization’s culture through the utilization of behavioral science, technology, research and
theory.

Organizational development is an improvement strategy and it is a technique for bringing

change in the entire organization.

Organizational development techniques:- The term organizational development essentially

focuses on techniques or programs to change people and nature and quality of interpersonal
work relationships. Some of the OD interventions techniques are:-
1. Sensitivity Training:- It is also known as laboratory training, encounter groups and T-
group. It is a method of changing behaviour through unstructured group interaction.
2. Survey Feedback:- It makes use of questionnaires to identify discrepancies among
member perceptions and attempts to solve these differences.
3. Process Consultations:- The purpose of process consultation is for an outside
consultant to assist a client to perceive, understand and act upon process events. The
consultant then goes on to identify the processes that need improvement.
4. Team building:- Team building utilizes high-interaction group activities to increase
trust and openness among team members. Team building can be applied within
groups or at the inter-group level where activities are interdependent.
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Objectives of OD programs
The objectives of organizational development are:-
1. Decision making on the basis of competence rather than authority.
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2. Creatively resolving conflicts through confrontation designed to replace win-lose

situations with win-win type.
3. Reducing dysfunctional competition and maximizing collaboration.
4. Increasing commitment and a sense of “ownership” of organization objectives
throughout the workforce.
5. Increasing the degree of interpersonal trust and support.
6. Creating a climate in which human growth, development and renewal are a natural
part of the enterprise’s daily operation.
7. Developing a communication system characterized by mutual openness in solving
organizational problems.
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