ORGANISATIONAL BEHAVIOUR

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LESSON
INTRODUCTION TO ORGANISATIONAL BEHAVIOUR
FOUNDATION OF ORGANISATIONAL BEHAVIOUR
MODELS OF ORGANISATIONAL BEHAVIOUR
GLOBAL SCENARIO OF ORGANISATIONAL BEHAVIOUR
FOUNDATION OF INDIVIDUAL BEHAVIOUR
PERSONALITY
LEARNING AND BEHAVIOUR MODIFICATION
ATTITUDE AND PERCEPTION
MOTIVATION AND BEHAVIOUR
JOB SATISFACTION
GROUP DYNAMICS
GROUP CONFLICT
ORGANISATIONAL COMMUNICATIONS
LEADERSHIP IN ORGANISATIONS
STRESS MANAGEMENT
POWER AND POLITICS
ORGANISATIONAL DESIGN
ORGANISATIONAL CULTURE AND CLIMATE.
ORGANISATIONAL EFFECTIVENESS
MANAGEMENT OF CHANGE CASE ANALYSIS

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LESSON 1
INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

Learning Objectives
After reading this lesson, you should be able to understand:

The major environmental challenges and the paradigm shift that the management
faces today
The management perspective of organizational behaviour
The historical background of modern organizational behaviour
The modern approach to organizational behaviour

The knowledge and information explosion, global competition, total quality and diversity are some of the
bitter realities that the managers are facing today. There are many solutions being offered to deal with
these complex challenges. Yet the simple but most profound solution may be found in the words of Sam
Walton, the richest person in the world and the founder of Wal-Mart. Sam was once asked the key to
successful organizations and management. Sam quickly replied, "People are the key".
The term paradigm comes from the Greek word 'paradigma', which means ''model, pattern or
example". First introduced over thirty years ago, by the philosophy and science historian Thomas Khun,
the term "paradigm" is now used as, a broad model, a framework, a way of thinking, and a scheme for
understanding reality. The impact of information technology, total quality and diversity mentioned earlier
has led to a paradigm shift.
NEW PARADIGM
The organizational behaviour has a goal lo help the managers make a transition to the new paradigm.
Some of the new paradigm characteristics include coverage of second-generation information technology
and total quality management such as empowerment, reengineering and benchmarking, and learning
organization for managing diversity of work. The new paradigm sets the stage for the study,
understanding, and application of the time-tested micro-variables, dynamics and macro-variables. One
must know why management needs a new perspective to meet the environmental challenges and to shift
to a new paradigm.
A NEW PERSPECTIVE FOR MANAGEMENT
Management is generally considered to have three major dimensionstechnical, conceptual and human.
The technical dimension consists of the manager's expertise in particular functional areas. They know the
requirements of the jobs and have the functional knowledge to get the job done. But the practicing
managers ignore the conceptual and human dimensions of their jobs.
Most managers think that their employees are lazy, and are interested only in money, and that if
you could make them happy in terms of money, they would be productive. If such assumptions are
accepted, the human problems that the management is facing are relatively easy to solve.
But human behaviour at work is much more complicated and diverse. The new perspective
assumes that employees are extremely complex and that there is a need for theoretical understanding
given by empirical research before applications can be made for managing people effectively.
MODERN APPROACH TO ORGANIZATIONAL BEHAVIOUR
The modern approach to organizational behaviour is the search for the truth of why people behave the
way they do. The organizational behaviour is a delicate and complex process. If one aims to manage an
organization, it is necessary to understand its operation. Organization is the combination of science and
people. While science and technology is predictable, the human behaviour in organization is rather
unpredictable. This is because it arises from deep needs and value systems of people.
HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR
Scientific Management Approach

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Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This
theory supported the use of certain steps in scientifically studying each element of a job, selecting and
training the best workers for the job arid making sure that the workers follow the prescribed method of
doing the job. It provided a scientific rationale for job specialization and mass production. His assumption
was that employees are motivated largely by money. To increase the output, Taylor advised managers to
pay monetary incentives to efficient workers.
Yet, his theory was criticized by many employers and workers. Workers objected to the pressure
of work as being harder and faster. Critics worried that the methods took the humanity out of labor,
reducing workers to machines responding to management incentives. Therefore, Taylor's view is now
considered inadequate and narrow due to the points given by the critics.
Bureaucratic Approach
While scientific management was focusing on the interaction between workers and the task, me
researchers were studying how to structure the organization more effectively. Instead of trying to make
each worker more efficient, classical organization theory sought the most effective overall organizational
structure for workers and managers.
The theory's most prominent advocate, Max Weber, proposed a 'bureaucratic form' of structure,
which he thought would work for all organizations. Weber's idea! bureaucracy was , logical, rational and
efficient. He made the naive assumption that one structure would work best for all organizations.
Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized
the behavioral side of management. However, they did not emphasize the human dimensions. Although
there were varied and complex reasons for the emerging importance of behavioral approach to
management, it is generally recognized that the Hawthorne studies mark the historical roots for the field of
organizational behaviour.
Hawthorne Studies
Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient
productivity, their views were criticized on the ground that both approaches ignored worker's humanity.
The real beginning of applied research in the area of organizational behaviour started with
Hawthorne Experiments. In 1924, a group of professors began an enquiry into the human aspects of work
and working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of
these studies were given a new name 'human relations' the studies brought out a number of findings
relevant to understanding human behaviour at work. The Human element in the workplace was
considerably more important. The workers are influenced by social factors and the behaviour of the
individual worker is determined by the group.
Hawthorne studies have been criticized for their research methods and conclusions drawn. But
their impact on the emerging field of organizational behaviour was dramatic. They helped usher in a more
humanity centered approach to work.
APPROACHES TO ORGANIZATIONAL BEHAVIOUR
There are mainly four approaches to organizational behaviour. They are:
Human resources approach '
Contingency approach
Productivity approach
Systems approach
Human Resources Approach
The human resources approach is concerned with the growth and development of people towards higher
levels of competency, creativity and fulfillment, because people are the central resource in any
organization. This approach help employees become better in terms of work and responsibility and then it
tries to create a climate in which they can contribute to the best of their improved abilities. This approach
is also known as 'supportive approach' because the manager's primary role changes from control of
employees to providing an active support for their growth and performance.

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A Contingency Approach
A contingency approach to organizational behaviour implies that different situations require different
behavioral practices for effectiveness instead of following a traditional approach for all situations. Each
situation must be analyzed carefully to determine the significant variables that exist in order to establish
the more effective practices. The strength of this approach is that it encourages analysis of each situation
prior to action. Thus, it helps to use all the current knowledge about people in the organization in the most
appropriate manner.
Productivity Approach
Productivity is a ratio that compares units of output with units of input. It is often measured in terms of
economic inputs and outputs. Productivity is considered to be improved, if more outputs can be produced
from the same amount of inputs. But besides economic inputs and outputs, human and social inputs and
outputs also arc important.
Systems Approach
A system is an interrelated part of an organization or a society that interacts with everyone related to that
organization or society and functions as a whole. Within the organization 'people' employ 'technology' in
performing the 'task' that they are responsible for, while the 'structure' of the organization serves as a
basis for co-ordinating all their different activities. The systems view emphasizes the interdependence of
each of these elements within the organization, if the organization as a whole is to function effectively.
The other key aspect of the systems view of organization is its emphasis on the interaction between the
organization and its broader environment,, which consists of social, economic, cultural and political
environment within which they operate.
Organizations arc dependent upon their surrounding environment in two main ways: First, the
organization requires 'inputs' from the environment in the form of raw material, people, money, ideas and
so on. The organization itself can be thought of as performing certain 'transformation' processes, on its
inputs in order to create outputs in the form of products or services. Secondly, the organization depends
on environment such as, public to accept its output. The systems view of organization thus emphasizes
on the key interdependencies that organizations must manage. Within themselves the organizations must
trade off the interdependencies among people, tasks, technology and structure in order to perform their
transformation processes effectively and efficiently. Organizations must also recognize their
interdependence with the broader environments within which they exist.

CONTEMPORARY ORGANIZATIONAL BEHAVIOUR

A Separate Field of Study
Organizational behaviour can be treated as a distinct field of study. It is yet to become a science. Now
efforts are being made to synthesize principles, concepts and processes in this field of study.
Interdisciplinary Approach
Organizational behaviour is basically an interdisciplinary approach. It draws heavily from other disciplines
like psychology, sociology and anthropology. Besides, it also takes relevant things from economics,
political science, law and history. Organizational behaviour integrates the relevant contents of these
disciplines to make them applicable for organizational analysis. e.g. it addresses issues, which may be
relevant to the case, such as the following:
What facilitates accurate perception and attribution?
What influences individual, group and organizational learning and the development of individual
attitudes toward .work?
How do individual differences in personality, personal development, and career development
affect individual's behaviours and attitudes?
What motivates people to work, and how. does the organizational reward system influence
worker's behaviour and attitudes?
How do managers build effective teams?
What contributes to effective decision-making?
What are the constituents of effective communication?

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What are the characteristics of effective communication?

How can power be secured and used productively?
What factors contribute to effective negotiations?
How can conflict (between groups or between a manager and subordinates) be resolved or
managed?
How can jobs and organizations be effectively designed?
How can managers help workers deal effectively with change?

An Applied Science
The basic objective of organizational behaviour is to make application of various researches to solve the
organizational problems, particularly related to the human behavioral aspect.
Normative and Value Centered
Organizational behaviour is a normative science. A normative science prescribes how the various findings
of researches can be applied to get organizational results, which are acceptable to the society. Thus, what
is acceptable by the society or individuals engaged in an organization is a matter of values of the society
and people concerned.
Humanistic and Optimistic
Organizational behaviour focuses the attention on people from humanistic point of view. It is based on the
belief that needs and motivation of people are of high' concern. Further, there is optimism about the
innate potential of man to be independent, creative, predictive and capable of contributing positively to the
objectives of the organization.
Oriented towards Organizational Objectives
Organizational behaviour is oriented towards organizational objectives. In fact, organizational behaviour
tries to integrate both individual and organizational objectives so that both are achieved simultaneously.
A Total System Approach
An individual's behaviour can be analyzed keeping in view his psychological framework, interpersonalorientation, group influence and social and cultural factors; Thus, individual's nature is quite complex and
organizational behaviour by applying systems approach tries to find solutions for this complexity.

LESSON 2
FOUNDATION OF ORGANISATIONAL BEHAVIOUR
Learning Objectives
After reading this lesson, you should be able to:

Define and explain the meaning of organizational behaviour

Understand the nature and importance of organizational behaviour
Relate the organizational behaviour to managers job

DEFINITION OF MANAGEMENT
Management is commonly defined as "Getting work done through other people". This simple definition
explains the significance of the role of people. The work will not be done unless "people" want to do the
work and if the work is not done then there will be no organisation. Hence, the cooperation of the workers
is crucial to the success or failure of the organisation.

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DEFINITION OF ORGANISATION
According to Gary Johns, "Organisations are social inventions for accomplishing goals through group
efforts". This definition covers wide variety-of groups such as businesses, schools, hospitals, fraternal
groups, religious bodies, government agencies and so on. There are three significant aspects in the
above definition, which require further analysis. They are as follows:
Social Inventions: The word "social" as a derivative of society basically means gathering of
people. It is the people that primarily make up an organisation.
Accomplishing Goals: All organisations have reasons for their existence. These reasons are the
goals towards which all organisational efforts are directed. While the primary goal .of any
commercial organisation is to make money for its owners, this goal is inter-related with many
other goals. Accordingly, any organisational goal must integrate in itself the personal goals of all
individuals associated with the organisation.
Group Effort: People, both as members of the society at large and as a part of an organisation
interact with each other and are inter-dependent. Individuals in themselves have physical and
intellectual limitations and these limitations can only be overcome by group efforts.
MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour is concerned with people's thoughts, feelings, emotions and actions in setting
up a work. Understanding an individual behaviour is in itself a challenge, but understanding group
behaviour in an organisational environment is a monumental managerial task.
As Nadler and Tushman put it, "Understanding one individual's behaviour is challenging in and of
itself; understanding a group that is made up of different individuals and comprehending the many
relationships among those individuals is even more complex. Ultimately, the organisation's work gets
done through people, individually or collectively, on their, own or in collaboration with technology.
Therefore, the management of organisational behaviour is central to the management taska task that
involves the capacity to "understand" the behaviour patterns of individuals, groups and organisations, to
''predict'" what behavioural responses will be elicited by various managerial actions and finally to use this
understanding and these predictions to achieve "control".
Organisational behaviour can then be defined as: "The study of human behaviour in
organisational settings, the interface between human behaviour and the organisational context, and the
organisation itself."
The above definition has three partsthe individual behaviour, the organisation and the (interface
between the two. Each individual brings to an organisation a unique set of beliefs, values, attitudes and
other personal characteristics and these characteristics of all individuals must interact with each other in
order to create organisational settings. The organisational behaviour is specifically concerned with workrelated behaviour, which takes place in organisations.
In addition to understanding; the on-going behavioural processes involved, in 'their own jobs,
managers must understand the basic human element of their work. Organisational behaviour offers three
major ways of understanding this context; people as organisations, people as resources and people as
people.
Above all, organisations are people; and without people there would be no organisations. Thus, if
managers are to understand the organisations in which they work, they must first understand the people
who make up the organisations.
As resources, people are one of the organisation's most valuable assets. People create the
organisation, guide and direct its course, and vitalise and revitalise it. People make the decisions, solve
the problems, and answer the questions. As managers increasingly recognise the value of potential
contributions by their employees, it will become more and more important for managers and employees to
grasp the complexities of organisational behaviour.

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Finally, there is people as people - an argument derived from the simple notion of humanistic
management. People spend a large part of their lives in ; organisational settings, mostly as employees.
They have a right to expect something in return beyond wages and benefits. They have a right to expect
satisfaction and to learn new skills. An understanding of organisational behaviour can help the manager
better appreciate the variety of individual needs and' expectations.
Organisational behaviour is concerned with the characteristics and behaviours of employees in
isolation; the characteristics and processes that are part of the organisation itself; 'and the characteristics
and behaviours directly resulting from people with their individual needs and motivations working within
the structure of the organisation. One cannot understand an individuals behaviour completely without
learning something about that individual's organisation. Similarly, he cannot understand how the
organisation operates without; studying the people who-make it up. Thus, the organisation influences and
is influenced by individuals.
ELEMENTS OF ORGANISATIONAL BEHAVIOUR
The key elements in the organisational behaviour are people,, structure, technology and the environment
in which the organisation operates.
People: People make up the internal and social system of the organisation. They consist of
individuals and groups. The groups may be big or small; formal or informal; official or unofficial.
Groups are dynamic and they work in the organisation to achieve their objectives.
Structure: Structure defines the formal relationships of the people in organisations. Different
people in the organisation are performing different type of jobs and they need to be (elated in
some structural way so that their work can be effectively co-ordinated.
Technology: Technology such as machines and work processes provide the resources with
which people work and affects the tasks that they perform. The technology used has a significant
influence on working relationships. It allows people to do more and work better but it also restricts'
people in various ways.
Environment: All organisations operate within an external environment. It is the part of a larger
system that contains many other elements such as government, family and other organisations.
All of these mutually influence each other in a complex system that creates a context for a group
of people.
NATURE OF ORGANISATIONAL BEHAVIOUR
Each individual brings to an organisation a unique set of personal characteristics, experiences from other
organisation, the environment surrounding the organisation and 1 they also posses a personal
background. In considering the people working in an organisation, organisational behaviour must look at
the unique perspective that each individual brings to the work setting.
But individuals do not work in isolation. They come in contact with other individuals and the
organisation in a variety of ways. Points of contact include managers, co-workers, formal policies and
procedures of the organisation, and various changes implemented by the organisation. Over time, the
individual, too, changes, as a function of both the personal experiences and the organisation. The
organisation is also affected by the presence and eventual absence of the individual. Clearly, the study of
organisational behaviour must consider the ways in which the individual and the organisation interact.
An organisation, characteristically, exists before a particular person joins it and continues to exist
after he leaves it. Thus, the organisation itself represents a crucial third perspective from which to view
organisational behaviour.
NEED FOR STUDYING ORGANISATIONAL BEHAVIOUR
The rules of work are different from the rules of play. The uniqueness of rules and the environment of
organisations forces managers to study organisational behaviour in order to learn about normal and
abnormal ranges of behaviour.
More specifically, organisational behaviour serves three purposes:

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What causes behaviour?

Why particular antecedents cause behaviour?
Which antecedents of behaviour can be controlled directly and which are beyond control?

A more specific and formal course in organisational behaviour helps an individual to develop more
refined and workable sets of assumption that is directly relevant to his work interactions. Organisational
behaviour helps in predicting human behaviour in the organisational setting by drawing a clear distinction
between individual behaviour and group behaviour.
Organisational behaviour does not provide solutions to all complex and different behaviour puzzles of
organisations. It is only the intelligent judgement of the manager in dealing with a specific issue that can
try to solve the problem. Organisational behaviour only assists in making judgements that are derived
from tenable assumptions; judgement that takes into account the important variables underlying the
situation; judgement that are assigned due recognition to the complexity of individual or group behaviour;
judgement that explicitly takes into account the managers own goals, motives, hang-ups, blind spots and
weaknesses.
IMPORTANCE OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour offers several ideas to management as to how human factor should be properly
emphasised to achieve organisational objectives. Barnard has observed that an organisation is a
conscious interaction of two or more people. This suggests that since an organisation is Ihe interaction of
persons, they should be given adequate importance in managing the organisation. Organisational
behaviour provides opportunity to management to analyse human behaviour and prescribe means for
shaping it to a particular direction.
Understanding Human Behaviour Organisational behaviour provides understanding the human
behaviour in all directions in which the human beings interact. Thus, organisational behaviour can be
understood at the individual level, interpersonal level, group level and inter-group level.
Organisational behaviour helps to analyse 'why' and 'how' an individual behaves in a particular
way. Human behaviour is a complex phenomenon and is affected by a large number of factors including
the psychological, social and cultural implications. Organisational behaviour integrates these factors to
provide* simplicity in understanding the human behaviour.

Interpersonal Level: Human behaviour can be understood at the level of interpersonal

interaction. Organisational behaviour provides means for understanding the interpersonal
relationships in an organisation. Analysis of reciprocal relationships, role analysis and
transactional analysis are some of the common methods, which provide such understanding.
Group Level: Though people interpret anything at their individual level, they are often modified
by group pressures, which then become a force in shaping human behaviour, Thus, individuals
should be studied in groups also.. Research in group dynamics has contributed vitally to
organisational behaviour and shows how a group behaves in its norms, cohesion, goals,
procedures, communication pattern and leadership. These research results are advancing
managerial knowledge of understanding group behaviour, which is very important for
organisational morale and productivity.
Inter-group Level: The organisation is made up of many groups that develop complex
relationships to build their process and substance. Understanding the effect of group relationships
is important for managers in today's organisation. Inter-group relationship may be in the form of
co-operation or competition.

The co-operative relationships help the organisation in achieving its objectives. Organisational behaviour
provides means to understand and achieve co-operative group relationships through interaction, rotation
of members among groups, avoidance of win-lose situation and focussing on total group objectives.

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Controlling and Directing Behaviour: After understanding the mechanism of human behaviour,
managers are required to control and direct the behaviour so that it conforms to the standards
required for achieving the organisational objectives. Thus, managers are required to control and
direct the behaviour at all levels of individual interaction. Therefore, organisational behaviour
helps managers in controlling and directing in different areas such as use of power and sanction,
leadership, communication and building organisational climate favourable for better interaction.
Use of Power and Sanction: The behaviours can be controlled and directed by the use of power
and sanction, which are formally defined by the organisation. Power is referred to as the capacity
of an individual to take certain action and may be utilised in many ways. Organisational behaviour
explains how various means of power and sanction can ,be utilised so that both organisational
and individual objectives are achieved simultaneously.
Leadership: Organisational behaviour brings new insights and understanding to the practice and
theory of leadership. It identifies various leadership styles available to a manager and analyses
which style is more appropriate in a given situation. Thus, managers can adopt styles keeping in
view the various dimensions of organisations, individuals and situations.
Communication: Communication helps people to come in contact with each other. To achieve
organisational objectives, the communication must be effective. The communication process and
its work in inter-personal dynamics have been evaluated by organisational behaviour.
Organisational Climate: Organisational climate refers to the total organisational situations
affecting human behaviour. Organisational climate takes a system perspective that affect human
behaviour. Besides improving the satisfactory working conditions and adequate compensation,
organisational climate includes creation of an atmosphere of effective supervision; the opportunity
for the realisation of personal goals, congenial relations with others at the work place and a sense
of accomplishment.
Organisational Adaptation: Organisations, as dynamic entities are characterised by pervasive
changes. Organisations have to adapt themselves to the environmental changes by making
suitable, internal arrangements such as convincing employees who normally have the tendency
of resisting any changes.

LEVELS OF ANALYSIS
Organisational behaviour can be viewed from different perspectives or levels of analysis. At one level, the
organisation can be viewed as consisting of individuals working on tasks in the pursuit of the
organisational goals. A second level of analysis focuses upon the interaction among organisational
members as they work in' teams, groups and departments. Finally, organisational behaviour can be
analysed from the perspective of the organisation as a whole.
Organisation at the Individual Level: Organisational behaviour can be studied in the
perspective of individual members of the organisation. This approach to organisational behaviour
draws heavily on the discipline of psychology and explains why individuals behave and react the
way they do to different organisational policies, practices and procedures. Within this perspective,
psychologically based theories of learning, motivation, satisfaction and leadership are brought to
bear upon the behaviour and performance of individual members of an organisation. Factors such
as attitudes, beliefs, perceptions and personalities are taken into account and their impact upon
individuals behaviour and performance on the job is studied.
Organisation at the Group Level: People rarely work independently in organisations; they have
to necessarily work in coordination to meet the organisational goals. This frequently results in
people working together in teams, committees and groups. How do people work together in
groups? What factors determine whether group will be cohesive and productive? What types of
tasks could be assigned to groups? These are some of the questions that can be asked about the
effective functioning of groups in organisations. An important component of organisational
behaviour involves the application of knowledge and theories from social psychology to the study
of groups in organisations.
Organisation at the Organisational Level: Some organisational behaviour researchers take the
organisation as a whole as their object of study. This j macro perspective on organisational
behaviour draws heavily on theories and concepts from the discipline of 'sociology'. Researchers
seek to understand the implications of the relationship between the organisation and its

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environment for the effectiveness of the organisation. Emphasis is placed upon understanding
how organisational structure and design influences the effectiveness of an organisation. Other
factors such as the technology employed by the organisation, the size of the organisation and the
organisation's age are also examined and their implications for effective organisational
functioning are explored.
These different perspectives on the study of organisational behaviour are not in conflict with one another.
Instead they are complementary. A full and complete understanding of the nature of organisations and the
determinants of their effectiveness requires a blending of knowledge derived from each perspective.
FUNDAMENTAL CONCEPTS OF ORGANISATIONAL BEHAVIOUR
Organisational behaviour starts with the following six fundamental concepts revolving around the nature
of people and organisations:
The nature of people:
Individual differences
A whole person
Motivated behaviour
Value of the person
The nature of organisation:
Social system
Mutual interest
Individual Differences: Individuals are different in their physical and mental traits. They are
different not only in the physical appearance such as sex, age, height, weight, complexion and so
on but also different in their psychological trait such as intelligence, attitude, motivation and
perception. This belief that each person is different from all others is typically called the 'Law of
Individual Differences'. Individual differences mean that the management has to treat them
differently to get the best out of them.
A Whole Person: Though the organisation may feel that they are employing only the individual's
skill or intelligence, in fact, they employ the 'whole person'. This means that individual does not
have only the skill and intelligence but he has a personal life, needs and desires as well. In other
words, his personal life cannot be separated from his work life since people function as total
human beings.
When management practices organisational behaviour, it is not only trying to develop a better
employee but it also wants to develop a 'better person' in terms of all round growth and development.
The benefit will extend beyond the firm into the larger society in which each employee lives.
Motivated behaviour: It is the urge of the individual to satisfy a particular need that motivates
him to do an act. The motivation could be positive or negative.
Motivation is essential for the proper functioning of organisations. The organisation can show to
its employees how certain actions will increase their need fulfilment.
Value of the Person: It is more an ethical philosophy. It stresses that people are to be treated
with respect and dignity. Every job, however simple, entitles the people who do it to proper
respect and recognition of their unique aspirations and abilities. Since organisational behaviour
involves people, ethical philosophy is involved in one way or the other.
The nature of an organisation can be understood with the help of tjie description of following two points:

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Social System: A system is a group of independent and interrelated elements comprising a

unified whole. In context with an organisation, the individuals of a society are considered as a
system organised by a characteristic pattern of relationships having a distinctive culture and
values. It is also called social organisation or social structure. It can be further divided into
following categories:
Feudal system: This is a social system, which is developed in Europe in the 8th Century. A
political and economic system based on the holding of. land and relation of lord to vassal and
characterized by homage, legal and military service of tenants, and forfeiture.
Patriarchate: This is social system, in which a male is considered to be the family head and title
or surname is traced through his chain. In other words, power lies in his hands.

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Matriarchate: This is social system, in which a female is considered to be the family head and
title or surname is traced through her chain. In other words, power lies in her hands.
Meritocracy: This is a social system, in which power vests in the hands of the person with
superior intellects.
Class Structure: This is a social system of different classes with in a society.
Segregation: This is a social system, which provides separate facilities for minority groups of a
society.
Mutual Interest: Organisational relationships are most likely to be strong if different groups can
negotiate strategies. This can be defined as the interests that are common to both the parties and
are related to the accomplishment of their respective goals. This space for sharing ideas builds
trust. Individuals who have shared mutual interests are likely to make their organisation the
strongest, because even though the views are different they have a shared concern for similar
objectives. It is important for the individuals to think about their issues openly, and to incorporate
the perspectives of their colleagues. This helps to build sustainable and harmonious activities that
can operate in the mutual direct interests of the organisation.

Holistic Organisational Behaviour: When the above six concepts of organisational behaviour are
considered together, they provide a holistic concept of the subject. Holistic organisational behaviour
interprets people-organisation relationships in terms of the whole person, whole group, whole
organisation and whole social system.
Thus, the blending of nature of people and organisation results in an holistic organisational
behaviour.

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LESSON 3
Models of organizational behaviour
Learning Objectives
After reading this lesson, you should be able to understand:

The concept of organizational behaviour system

The different models of organizational behaviour
The importance of organizational behaviour to managers
The future of organizational behavior

Organizations have undergone tremendous change in the behaviour of their employee's. Earlier
employers had no systematic program for managing their employees instead their simple rules served as
a powerful influence on employees. However, today increasing many organizations are experimenting
with new ways to attract and motivate their employees.
CONCEPT OF ORGANIZATIONAL BEHAVIOUR SYSTEM
Organizations achieve their goals by creating, communicating and operating an organizational behaviour
system. Organizational behaviour system defines organizational structure and culture and explains their
impact on employees. The figure 3.1 shows the major elements of a good organizational behaviour
system:

These systems exist in every organization, but sometimes in varying forms. They have a greater chance
of being successful, though, if they have been consciously created, regularly examined and updated to
meet new and emerging conditions. The primary advantage of organizational behaviour system is to
identify the major human and organizational variables that affect organizational outcomes. For some
variables managers can only be aware of them and acknowledge their impact whereas for other
variables, managers can exert some control over them. The outcomes are measured in terms of quantity
and quality of products and services, level of customer service, employee satisfaction and personal
growth and development.

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These systems exist in every organization, but sometimes in varying forms. They have a greater
chance of being successful, though, if they have been consciously created, regularly examined and
updated to meet new and emerging conditions. The primary advantage of organizational behaviour
system is to identify the major human and organizational variables that affect organizational outcomes.
For some variables managers can only be aware of them and acknowledge their impact whereas for other
variables, managers can exert some control over them. The outcomes arc measured in terms of quantity
and quality of products and services, level of customer service, employee satisfaction and personal
growth and development.
ELEMENTS OF THE SYSTEM
The system's base rests in the fundamental beliefs and intentions of those who join together to create it
such as owners and managers who currently administer it. The philosophy of organizational behaviour
held by management consists of an integrated set of assumptions and beliefs about the way things are,
the purpose for these activities, and the way they should be. These philosophies are sometimes explicit
and occasionally implicit, in the minds managers.
Organizations differ in the quality of organizational behaviour that they develop. These differences
are substantially caused by different models of organizational behaviour that dominant management's
thought in each organization. The model that a manager holds usually begins with certain assumptions
about people and thereby leads to certain interpretations of organizational events.
The following four models of organizational behaviour are as follows: A. Autocratic model
B. Custodial model
C. Supportive model
D. Collegial model
Autocratic Model
In an autocratic model', the manager has the power to command his subordinates to do a specific job.
Management believes that it knows what is best for an organization and therefore, employees are
required to follow their orders. The psychological result of this model on employees is their increasing
dependence on their boss. Its main weakness is its high human cost.
Custodial Model
This model focuses better employee satisfaction and security. Under this model organizations satisfy the
security and welfare needs of employees. Hence, it is known as custodian model. This model leads to
employee dependence on an organization rather than on boss. As a result of economic rewards and
benefits, employees are happy and contented but they are not strongly motivated.
Supportive Model
The supportive model depends on 'leadership' instead of power or money. Through leadership,
management provides a climate to help employees grow and accomplish in the interest of an
organization. This model assumes that employees will take responsibility, develop a drive to contribute
and improve them if management will give them a chance. Therefore, management's direction is to
'Support' the employee's job performance rather than to 'support' employee benefit payments, as in the
custodial approach. Since management supports employees in their work, the psychological result is a
feeling of participation and task involvement in an, organization.
Collegial Model
The term 'collegial' relates to a body of persons having a common purpose. It is a team concept.
Management is the coach that builds a better team. The management is seen as joint contributor rather
than as a boss. The employee response to this situation is responsibility. The psychological result of the
collegial approach for the employee is 'self-discipline'. In this kind of environment employees normally feel
some degree of fulfillment and worthwhile contribution towards their work. This results in enthusiasm in
employees' performance.
FOUR MODELS OF ORGANIZATIONAL BEHAVIOUR
Autocratic

Custodial

Supportive

Collegial

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Basis of Model

Power

Leadership

Partnership

Authority

Economic
resources
Money

Managerialorientation
Employee
psychological
result
Employee needs
met
Performance
result

Support

Teamwork

Dependence on
boss

Dependence on
organization

Participation

Self-discipline

Subsistence

Security

Self-actualization

Minimum

Passive
cooperation

Status
and
recognition
Awakened
drives

Moderate enthusiasm

It is wrong to assume that a particular model is the best model. This is because a model depends
on the knowledge about human behaviour in a particular environment, which is unpredictable. The
primary challenge for management is to identify the model it is actually using and then assess its current
effectiveness.
The selection of model by a manager is determined by a number of factors such as, the existing
philosophy, vision and goals of manager. In addition, environmental conditions help in determining which
model will be the most effective model.
IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR TO MANAGERS
Managers perform four major functions such as planning, organizing, directing and controlling. In addition
to these functions there are ten managerial roles, which can be defined as organized set of behaviors
identified with the position. These roles are developed by Henry Mintzberg in 1960s after a careful study
of executives at work. All these roles, in one form or other deal with people and their behaviour. These ten
managerial roles are divided into three categories. The first category called the interpersonal roles arises
directly from the manager's position and the formal authority given to him. The second category, the
informational role arises as a direct result of the interpersonal roles and these two categories give rise to
the third category called decisional roles. Figure 3.2 shows the categories of managerial roles.

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The roles, in the context of organizational behaviour, are as follows:

Interpersonal Roles
In every organization managers spend a considerable amount of time in interacting with other people both
within their own organizations as well as outside. These people include peers, subordinates, superiors,
suppliers, customers, government officials and community leaders. All these interactions require an
understanding of interpersonal behaviour. Studies show that interacting with people takes up nearly 80%
of a manager's time. These interactions involve the following three major interpersonal roles:
Figure/lead Role: Managers act as symbolic figureheads performing social or legal obligations.
These duties include greeting visitors, signing legal documents, taking important customers to
lunch, attending a subordinate's wedding and speaking at functions in schools and churches. All
these, primarily, are duties of a ceremonial nature but are important for the smooth functioning of
an organization.
Leadership Role: The influence of the manager is most clearly seen in the leadership role as a
leader of a unit or an organization. Since he is responsible for the activities of his subordinates
therefore he must lead and coordinate their activities in meeting task-related goals and motivate
them to perform better. He must be an ideal leader so that his subordinates follow his directions
and guidelines with respect and dedication.
Liaison Role: The managers must maintain a network of outside contacts. In addition, they need
to have a constant contact with their own subordinates, peers and superiors in order to assess
the external environment of competition, social changes or changes in governmental rules and
regulations. In this role, the managers build up their own external information system. This can be
achieved by attending meetings and professional conferences, personal phone calls, trade
journals and informal personal contacts with outside agencies.
Information Roles
A manager, by virtue of his interpersonal contacts, emerges as a source of information about a variety of
issues concerning an organization. In this capacity of information processing, a manager executes the
following three roles.

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Monitor Role: The managers are constantly monitoring and scanning their internal and external
environment, collecting and studying information regarding their organization. This can be done
by reading reports and periodicals, interrogating their liaison contacts and through gossip,
hearsay and speculation.
Information Disseminator Role: The managers must transmit the information regarding
changes in policies or other matters to their subordinates, their peers and to other members
of an organization. This can be done through memos, phone calls, individual meetings and group
meetings.

Spokesman Role: A manager has to be a spokesman for his unit and represent his unit in either
sending relevant information to people outside his unit or making some demands on behalf of his
unit.
Decision Roles
A manager must make decisions and solve organizational problems on the basis of the environmental
information received. In that respect, a manager plays four important roles.
Entrepreneur Role: Managers, as entrepreneurs are constantly involved in improving their units
and facing the dynamic technological challenges. They are constantly on the lookout for new
ideas for product improvement or product addition. They initiate feasibility studies, arrange capital
for new products and ask for suggestions from the employees to improve organization.
This can be achieved through suggestion boxes, holding strategy meetings with project managers
and R&D personnel.
Conflict Handling Role: The managers are constantly involved as judge in solving conflicts
among the employees and between employees and management. Mangers must anticipate such
problems and take preventive action and take corrective action once the problem arises. These
problems may involve labor disputes, customer complaints, employee grievances, machine
breakdowns, cash flow shortages and interpersonal conflicts.
Resource Allocation Role: The managers establish priorities among various projects or
programs and make budgetary allocations to different activities of an organization based on these
priorities.
Negotiator Role: The managers in their negotiator role represent their organization in negotiating
deals and agreements within and outside of an organization. They negotiate contracts with the
unions. Sales managers may negotiate prices with prime customers. Purchasing managers may
negotiate prices with vendors.
All these ten roles are important in a manager's job and are interrelated, even though some roles may be
more influential than others depending upon the managerial position. For example, sales manager gives
more importance to interpersonal roles, while the production manager may give more importance to
decisional roles.
LIMITATIONS OF ORGANIZATIONAL BEHAVIOUR

Organizational behaviour cannot abolish conflict and frustration but can only reduce them. It is a
way to improve but not an absolute answer to problems.

It is only one of the many systems operating within a large social system.

People who lack system understanding may develop a 'behavioral basis', which gives them a
narrow view point, i.e., a tunnel vision that emphasizes on satisfying employee experiences while
overlooking the broader system of an organization in relation to all its public.

The law of diminishing returns also operates in the case of organizational behaviour. It states, that
at some point increase of a desirable practice produce declining returns and sometimes, negative
returns. The concept implies that for any situation there is an optimum amount of a desirable
practice. When that point is exceeded, there is a decline in returns. For example, too much
security may lead to less employee initiative and growth. This relationship shows that
organizational effectiveness is achieved not by maximizing one human variable but by working all
system variables together in a balanced way.

A significant concern about organizational behaviour is that its knowledge and techniques could
be used to manipulate people without regard for human welfare. People who lack ethical values
could use people in unethical ways.

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FUTURE OF ORGANIZATIONAL BEHAVIOUR

The growing interest in organizational behaviour stems from both a philosophical desire by many people
to create more humanistic work places and a practical need to design more productive work
environments. As a result of these forces, organizational behaviour is now a part of the curriculum of
almost all courses including engineering and medical.
The field of organizational behaviour has grown in depth and breadth. The keys to its past and
future success revolve around the related processes of theory development, research and managerial
practice.
Although organizational behaviour has certain limitations, it has a tremendous potential to
contribute to the advancement of civilisation. It has provided and will provide much improvement in the
human environment. By building a better climate for people, organizational behaviour will release their
creative potential to solve major social problems. In this way organizational behaviour will contribute to
social improvements. Improved organizational behaviour is not easy to apply but opportunities are there.
It should produce a higher quality of life in which there is improved harmony within each individual, among
people and among the organizations of future.
LESSON 4
GLOBAL SCENARIO OF ORGANIZATIONAL BEHAVIOUR
Learning Objectives
After reading this lesson, you should be able to understand:

The global scenario of organizational behaviour

The barriers to cultural adaptation and measures to overcome those barriers

Due to globalization of economy, many organizations now operate in more than one country. These
multinational operations add new dimensions to organizational behaviour. It is a step into different social,
political and economic environments. Therefore, communication and control becomes difficult. The social,
political and economic differences among countries" influence international organizational behaviour.
SOCIAL CONDITIONS
In many countries due to poorly developed resources, there is shortage of managerial personnel,
scientists and technicians. Hence the required skills must be temporarily imported from other countries,
and training programs need to be developed to train the local workers. Trained locals become the nucleus
for developing others, thereby spreading the training through masses.
Another significant social condition in many countries is that the local culture is not familiar with
advanced technology. A few countries arc agriculture dominated and a few other manufacturing industries
dominated. Naturally, the nature of their culture and work life will be different.
POLITICAL CONDITIONS
Political conditions that have a significant effect on organizational behaviour include instability of the
government, restricting industries to a particular area and nationalistic drives such as self-sufficiency in
latest technologies. When the government is unstable, organizations become cautious about further
investments. This organizational instability leaves workers insecure and causes them to be passive and
low in taking any initiatives.
In spite of instability, a nationalistic drive is strong for locals to run their country and their
organizations by themselves without any interference by foreign nationals.
In some nations, organized labor is mostly an arm of the authoritarian state and in some other
nations labor is somewhat independent. In some nations, State tends to be involved in collective
bargaining and other practices that affect workers. For example, workers' participation in management are
restricted by law while in other countries they are permitted.
ECONOMIC CONDITIONS

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The most significant economic conditions in less developed nations are low per capita income and rapid
inflation. Inflation makes the economic life of workers insecure when compared to developed countries.
The different socio-economic and political conditions existing in countries influence the
introduction of advanced technology and sophisticated organizational systems. A developed country can
easily adopt advanced technology when compared to a less developed country. These limiting conditions
cannot be changed rapidly because they arc too well established and woven into the whole social fabric
of a nation.
MANAGING AN INTERNATIONAL WORKFORCE
Whenever an organization expands its operations to other countries, it tends to become multicultural and
will then face the challenge of blending various cultures together. The managerial personnel entering
another nation need to adjust their leadership styles, communication patterns and other practices to fit
their host country. Their role is to provide fusion of cultures in which employees from both countries adjust
to the new situation seeking a greater productivity for the benefit of both the organization and the people
of the country in which it operates.
Barriers to Cultural Adaptation
Managers and other employees who come into a host country tend to
exhibit
different
behaviors and somewhat, see situation around them from their own perspectives. They may
fail to recognize the key differences between their own and other cultures. These people are
called, 'parochial'.
Another category of managers called 'individualistic' place greatest emphasis on their personal
needs and welfare. They are more concerned about themselves than the host country.
Another potential barrier to easy adaptation of another culture occurs, when-people are
predisposed to believe that their homeland conditions are the-best. This predisposition is known
as the 'self-reference criterion' or 'ethnocentrism'. This feeling interferes with understanding
human: behaviour in other cultures and obtaining productivity from local employees.
Cultural Distance
To decide the amount of adaptation that may be required when personnel moves to another country, it is
helpful to understand the cultural distance between the two countries. Cultural distance is the amount of
distance between any two social systems. Whatever may be the amount of cultural distance, it does affect
the responses of all individuals to business. The manager's job is to make the employees adapt to the
other culture and integrate the interests of the various cultures involved.
Cultural Shock
When employees enter another nation they tend to suffer cultural shock, which is the insecurity and
disorientation caused by encountering a different culture. They may not know how to act. may fear losing
face and self-confidence or may become emotionally upset. Cultural shock is virtually universal. Some of
the more frequent reasons for cultural shock are as follows:
Different management philosophies
New language
Alternative food, dress, availability of goods
Attitude towards work and productivity
Separation from family, friends and colleagues
Unique currency system
Many expatriates report difficulty in adjusting to different human resource management philosophies,
the language, the different currency and work attitudes in another culture.
Overcoming Barriers to Cultural Adaptation
Careful selection; of employees, who can withstand/adjust cultural shocks for international
assignments* is important.
Pre-departure training in geography, customs, culture and political environment in which the
employee will be living will help for cultural adaptation.

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Incentives and guarantees for better position will motivate employees for cultural adaptation in the
new country.
Employees who return to their home country after working in another nation for sometime tend to
suffer cultural shock in their own homeland. After adjusting to the culture of another nation and
enjoying its uniqueness, it is difficult for expatriates to re-adjust to the surroundings of their home
country. Hence, organizations need repatriation policies and programs to help returning
employees obtain suitable assignments and adjust to the 'new' environments.
Cultural Contingencies
Productive business practices from one country cannot be transferred directly to another country. This
reflects the idea of cultural contingency that the most productive practices for a particular nation will
depend heavily on the culture, social system, economic development and employee's values in the host
country. Hence, the expatriate managers must learn to operate effectively in a new environment with
certain amount of flexibility. Labor policy, personnel practices and production methods need to be adapted
to a different labor force. Organization structures and communication patterns need to be suitable for local
operations.
MANAGEMENT'S INTEGRATING ROLE
Once managers are in a host country, their attention needs to be directed toward integrating the
technological approaches with the local cultures involved.
Motivating and Leading Local Employees
Same motivational tools may not suit the employees of all the nations. Hence, appropriate motivational
techniques need to be implemented depending on the requirement of employees of that particular nation.
Similarly, communication problems may also arise between the expatriate manager and the
employees of the host country. Hence, managers need to make adjustments in their communication
suited to< local cultures. If local culture is ignored, the resulting imbalance in the social system interferes
with the productivity.
Eventually, a cadre of employees with cross-cultural adaptability can be developed in
organizations with large international operations. These employees are 'trans-cultural employees
because they operate effectively in several cultures. They are low in ethnocentrism and adapt readily to
different cultures without major cultural shock. They usually can communicate fluently in more than one
language.
Trans-cultural employees are especially needed in large, multinational firms that operate in avariety of national cultures. For a firm to be truly multi-national in character, it should have ownership,
operations, markets and managers truly diversified. Its leaders look to the world as an economic and
social unit; but they recognize each local culture, respect its integrity, acknowledge its benefits and use its
differences effectively in their organization.
LESSON 5
FOUNDATION OF INDIVIDUAL BEHAVIOR
Learning Objectives
After reading this lesson, you should be able to:

Understand the nature of individual differences in organizations

Identify the individual factors affecting organizational behavior

INDIVIDUAL BEHAVIOR
Human behavior, which is; considered a complex phenomenon, is very difficult to define in absolute
terms. It is primarily a combination of responses to external and internal stimuli. These responses would
reflect psychological structure of the person and may be results' of the combination of biological and
psychological processes, which interpret them, respond to them in an appropriate manner and learn from
the result of these responses.

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Psychologist Kurt Levin has conducted; considerable research into the human behavior and its
causes. He believes that people are influenced by a number of diversified factors, which can be both
genetic and environmental. The influence of these factors determines the pattern of human behavior.
Whenever people buy something, for example, a car, both the buyer and the seller sign a contract
that specifies the terms of the sales agreement. Similarly, most people, when they begin a working
relationship with an organization formulate a psychological contract with their employer. A psychological
contract is the overall set of expectations that an individual holds with respect to his or her contributions to
the. organization and the organization's response to those contributions. A psychological contract is not
written down like a legal contract.
An individual makes a variety of contributions to an organization in the form ofefforts, skills,
ability, time, loyalty and so forth. These contributions presumably satisfy various needs and requirements
of the organization. In return for contributions, the organization provides incentives such as pay,
promotion, and job security to the employee. Just as the contributions available from the individual must
satisfy the organization's needs, the incentives must serve the employees' needs in return.
If both the individual and the organization consider the psychological contract fair and equitable,
they will be satisfied with the relationship and are likely to continue it. If either party perceives an
imbalance or iniquity in the contract, it may initiate a change. A major challenge faced by an organization,
thus, is to manage the psychological contracts.
One specific aspect of managing psychological contracts is managing the person-job fit. The
'person-job fit' is the extent to which the contributions made by the individual match the incentives offered
by the organization. In theory, each employee has a specific set of needs to fulfill and a set of job related
behaviors and abilities to contribute. If the organization can take complete advantage of those behaviors
and abilities and exactly fulfill the employee's needs, it will achieve a perfect person-job fit. Of course,
such a precise, level of person-job fit is seldom achieved due to various reasons such as imperfect
selection procedures, differences in individual skills, constant change in the needs and requirements of
people and organization. Thus, the behavior of individuals in organization is the primary concern of
management and it is essential that the managers should have an understanding of the factors
influencing the behavior of the employees they manage. The figure 5.1 identifies five sets of factors that
have an impact upon individual behavior in organizations.

NATURE OF INDIVIDUAL DIFFERENCES

Individual differences are personal attributes that vary from one person to another. Individual differences
may be physical and psychological. The figure 5.2 shows the attributes of physical and psychological
differences.

Physical Differences
Height
Weight
Body Shape
Appearance
Complexion

figure
5.2

Psychological Differences
Personality
Attitudes
Perception
Motivation
Learning

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Whenever an organization attempts to assess the individual differences among its employees, it
must consider the situation in which that particular behavior occurs. Individuals who are satisfied in one
context may prove to be dissatisfied in another context. Assessing both individual differences and
contributions in relation to incentives and contexts, then, is a major challenge for organizations as they
attempt to establish effective psychological contracts with their employees and achieve optimal fits
between people and jobs.
Individual differences make the manager's job extremely challenging. In fact, according to a
recent research, "variability among workers is substantial at all levels but increases dramatically with job
complexity. Due to these reasons, growing work force diversity compel managers to view individual
differences in a fresh way. Leaders now talk frequently about "valuing differences" and learn to "manage
diversity". So rather than limiting diversity, as in the past, today's managers need to better understand and
accommodate employee diversity and individual differences.
IMPORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES
Self-concept
Personality dimensions
Abilities, and
Personal values and ethics.
Self-concept
Self is the core of one's conscious existence. Awareness of self is referred to as one's self-concept.
Sociologists Viktor Gecas defines self-concept as "the concept the individual has of himself as a physical,
social and spiritual or moral being". In other words, every individual recognizes himself as a distinct
individual. A self-concept would be impossible without the capacity to think. This brings us to the role of
cognitions. Cognitions represent, "any knowledge, opinion, or belief about the environment about oneself,
or about one's behavior". Among many different types of cognitions, those involving expectation, planning,
goal setting, evaluating and setting personal standards are particularly relevant to organizational,
behavior.
Self-esteem
Self-esteem is a belief over one's own worth based on an overall self-evaluation. Those with low selfesteem tend to view themselves in negative terms. They do not feel good about themselves, tend to have
trouble in dealing effectively with others, and are hampered by self-doubts. High self-esteem individuals,
in contrast, see themselves as worthwhile, capable and acceptable. Although, high self-esteem is
generally considered a positive trait because it is associated with better performance and greater
satisfaction, recent research uncovered flaws among those having high self-esteem. Specifically, high
self-esteem subjects tended to become self-centered and boastful when faced with situations under
pressure Hence moderate self-esteem is desirable.
Managers can build employee self-esteem in four ways:
Be supportive by showing concern for personal problems, interests, status and contribution.
Offer work involving variety, autonomy and challenges that suit the individual's values, skills
and abilities.
3.
Strive for management-employee cohesiveness and trust building.
4.
Have faith in each employee's self-management ability, reward successes.
1.
2.

Self-efficacy
Self-efficacy is a person's belief about his' or her chances of successfully accomplishing a specific task.
According to one organizational behavior writer, "Self-efficacy arises from the gradual acquisition of
complex, cognitive, social, linguistic, and/or physical skills through experience",
There is strong linkage between high self-efficacy expectations and success in terms of physical
and mental tasks, anxiety reduction, addiction control, pain tolerance and illness recovery. Oppositely,
those with low self-efficacy expectations tend to have low success rates.

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Self-efficacy Implications for Managers

Managers need to nurture self-efficacy in them and in their employees. Self-efficacy requires constructive
action in each of the following managerial areas:
To design recruitment selection procedure.
To design interview questions to probe applicant's general self-efficacy for determining orientation
and training needs.
For designing job.
For systematic self-management training.
For goal-setting and quality improvement.
To evolve suitable leadership.
To design suitable regards.
Personality Dimensions
The big, five personality dimensions are: extroversion, agreeableness, thoroughness, emotional stability
and openness to experience. Ideally, these personality dimensions that correlate positively and strongly
with job performance would be helpful in the selection, training and appraisal of employees. The
individuals who exhibit; traits associated with a strong sense of responsibility and determination generally
perform better than those who do not.
PHYSICAL AND INTELLECTUAL QUALITIES
Physical differences among individuals are the most visible of all differences. They are also relatively easy
to assess. Intellectual differences are somewhat more difficult to discern, but they too can be assessed by
fairly objective means. The abilities/skills and competencies of employees are both physical and
intellectual qualities.
Ability refers to an individual's skill to perform effectively in one or more areas of activity, such as
physical, mental or interpersonal work.
Individuals with numerical ability, for example, can be trained to apply their ability in the field of
engineering, accounting and computer science. Abilities develop from an individual's natural
aptitudes and subsequent learning opportunities. Aptitudes are relatively stable capacities for
performing some activity effectively. Learning opportunities translate aptitude into abilities through
practice, experience and formal training. Organizations have to ensure that people possess the
necessary abilities to engage in the behaviors required for effective performance. This can 6e
accomplished either by careful selection of people or by a combination of selection and training.
Skills are generally thought of as being more task-specific capabilities than abilities. For example,
an individual with numerical ability who goes to school to learn accounting develops a numerical
skill specific to that field'. Thus, when a particular ability is applied to a specialized area, (for
example accounting), it becomes a skill.
Competencies are skills associated with specialization. Competencies are skills that have been
refined by practice and experience and that enable, the-individual to specialize in some field. For
example, an accountant with numerical "ability and accounting skill takes a position in the
Taxation Department and as time passes, he develops more competency as a tax expert.
Physical abilities such as strength, flexibility, endurance and stamina can be developed with exercise and
training. Mental abilities such as reasoning, memory visualization, comprehension and inter-personal
abilities can also be developed through practice and education. Even in the absence of such formal
programs, many individuals manage their own careers in such a way as to continually upgrade their
abilities, skills and competencies in order to remain valuable to their organizations.
PERSONAL VALUES AND ETHICS
According to Milton Rokeach, a value is "an enduring belief that a specific mode of conduct or
end-stated of existence is personally or socially preferable to an opposite or converse mode of conduct
are end-state of existence".

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Ethics involve the study of moral issues and choices. It is concerned with right versus wrong and
good versus bad. Relative to the workplace, the terms business ethics and management ethics are often
heard.
Moral Principles for Managers
Judge actions by their consequences; achieve the greatest good for the greatest number of
people.
Basic human rights should be respected.
Rules and rewards should be administered impartially, fairly and equitably.
Improving Organization's Ethical Climate
Managers are powerful role models whose habits and actual behavior send clear signals about
the importance of ethical conduct. Ethical behavior is a 1 top to bottom proposition.
Screen potential employees by checking references, credentials, and other information for
ascertaining their ethical behavior.

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LESSON - 6
PERSONALITY
Learning Objectives
After reading this lesson, you should be able to:

Understand perceptual clarity about personality

Discuss main determinants of personality
Explain nature and dimensions of personality
Describe personality attributes that are relevant to organizational behavior

Personality is a complex, multi-dimensional construct and there is no simple definition of what personality
is. Maddi defines personality as, A stable set of characteristics and tendencies that determine those
commonalities and differences in the psychological behavior and that may not be easily understood as
the sole result of the social and biological pressures of the moment".
From the above definition we can infer that all individuals have some universally common
characteristics. Yet they differ in some other specific attributes. This makes it difficult for the managers to
assume that they can apply same reward types or motivation techniques to modify different individual
behaviors. The definition, however, does not mean that people never change. In simple terms, it asserts
that individuals do not change all at once. Their thoughts, feelings, values and actions remain relatively
stable over time. Changes in individual's personality can, however, occur gradually over a period of time.
The managers should, therefore, attempt to understand certain dimensions of personality. This can
enable them to predict the behavior of their employees on a daily basis.
Some personality theorists stress the need 6f identifying person-situation as interaction. This is
equivalent to recognizing thd social learning aspects related to personality. Such a social learning
analysis is one of the most comprehensive and meaningful ways included in the overall study of
organizational behavior. From this perspective, personality means the way people affect others. It also
involves people's understanding themselves, as well as their pattern of inner and outer measurable traits,
and the person and situation interaction. People affect others depending primarily upon their external
appearance such as height, weight, facial features, color and other physical aspects and traits.
Personality traits are very important in organizational behavior. In particular, five personality traits
especially related to job performance have recently emerged from research. Characteristics of these traits
can be summarized as follows:
1.
2.
3.
4.
5.

Extroversion: Sociable, talkative and assertive.

Agreeableness: Good-natured, cooperative and trusting.
Conscientiousness: Responsible, dependable, persistent and achievement-oriented.
Emotional Stability: Viewed from a negative standpoint such as tense, insecure and
nervous.
Openness to Experience: Imaginative, artistically sensitive and intellectual.

Identifying the above "big five" traits related to performance reveals that personality plays an
important role in organizational behavior. Besides physical appearance and personality traits, the aspects
of personality concerned with the self-concept such as self-esteem and self-efficacy and the personsituation interaction also play important roles.
PERSONALITY FORMATION
The personality formation of an individual starts at birth and continues throughout his life. Three major
types of factors play important roles in personality formation, which are as follows:
Determinants: The most widely studied determinants of personality are biological, social and
cultural. People grow up in the presence of certain hereditary characteristics (body shape and
height), the social context (family and friends) and the cultural context (religion and values).
These three parts interact with each other to shape personality. As people grow into adulthood,
their personalities become very clearly defined and generally stable.

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Stages: According to Sigmund Freud human personality progresses through four stages:
dependent, compulsive, oedipal and mature. This concept of stages of growth provides a
valuable perspective to organizational behavior. Experienced managers become aware of the
stages that their employees often go through. This helps them 19 deal with these stages
effectively and promote maximum growth for the individual and for the organization.
Traits: Traits to personality are also based on psychology. According to some trait theories, all
people share common traits, like social, (political, religious and aesthetic preferences but each
individual's nature differentiates that person from all others.

PERSONALITY FACTORS IN ORGANISATIQN5

Some of the important personality factors that determine what kind of behaviors are exhibited at work
include the following:
Need Pattern
Steers and Braunstein in 1976 ^developed a scale for the four needs of personality that became apparent
in the 'work environment. They are as follows:

The need for achievement: Those with a high achievement need engage themselves
proactively in work behaviors in order to feel proud of their achievements and successes.
The need for affiliation: Those in greater need for affiliation like to work cooperatively with
others.
The need for autonomy: Those in need for autonomy function in the best way when not closely
supervised.
The need for dominance: Those high in need for dominance are very effective while operating
in environments where they can actively enforce their legitimate authority.

Locus of Control
Locus of control is the degree to which an individual believes that his or her behavior has direct impact on
the consequences of that behavior. Some people, for example, believe that if they work hard they will
certainly succeed. They, strongly believe that each individual is in control of his or her life. They are said
to have an internal locus of control. By contrast, some people think that what happens to them is a result
of fate, chance, luck or the behavior of other people, rather than the lack of skills or poor performance on
their part. Because- these individuals think that forces beyond their control dictate the happenings around
them, they are said to have an external locus of control.
As a personality attribute, locus of control has clear implications for organizations. For example,
certain individuals have an internal locus of control, which means they have a relatively strong desire to
participate in the management of their organizations and have a' freedom to do their jobs. Thus, they may
prefer a decentralized organization where they have a right of decision-making and work with a leader
who provides them freedom and autonomy. They may like a reward system that recognizes individual
performance and contributions.
Conversely, people with an external locus of control, are likely to prefer a more centralized
organization where they need not take any decisions. They may incline to structured jobs where standard
procedures are defined for them. They may prefer a leader who makes most of the decisions and a
reward system that considers seniority rather than merit.
Introversion and Extroversion
Introversion is the tendency of individuals, which directs them to be inward and process feelings, thoughts
and ideas within themselves. Extroversion, on the contrary, refers to the tendency in individuals to look
outside themselves, searching for external stimuli with which they can interact. While there is some
element of introversion as well as extroversion in all of us, people tend to be dominant as either extroverts
or introverts. Extroverts are sociable, lively and gregarious and seek outward stimuli or external
exchanges. Such individuals are likely to be most successful while working in the sales department,

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publicity office, personal relations unit, and so on, where they can interact face to face with others.
Introverts, on the other Hand, are quiet, reflective, introspective, and intellectual people, preferring to
interact with a small intimate circle of friends. Introverts are more likely to be successful when they can
work on highly abstract ideas such as R&D work, in a relatively quiet atmosphere. Since managers have
to constantly interact with individuals both in and out of the organization and influence people to achieve
the organization's goals, it is believed that extroverts are likely to be more successful as managers.
Tolerance for Ambiguity
This personality characteristic indicates the level of uncertainty that people can tolerate to work efficiently
without experiencing undue stress. Managers have to work well under conditions of extreme uncertainty
and insufficient information, especially when things are rapidly changing in the organization's external
environment. Managers who have a high tolerance for ambiguity can cope up well under these conditions.
Managers, who have a low tolerance for ambiguity may be effective in structured work settings but find it
almost impossible to operate effectively when things are rapidly changing and much information about the
future events is not available. Thus, tolerance for ambiguity is a personality dimension necessary for
managerial success.
Self-Esteem and Self-Concept
Self-esteem denotes the extent to which individuals consistently regard themselves as capable,
successful, important and worthy individuals. Self-esteem is an important personality factor that
determines how managers perceive themselves and their role in the organization. Self-esteem is
important to self-concept, i.e., the way individuals, define themselves as to who they are and derive their
sense of identity. High self-esteem provides a high sense of self-concept, which, in turn, reinforces high
self-esteem. Thus, the two are mutually reinforcing. Individuals with a high self-esteem will try to take on
more challenging assignments and be successful. Thus, they will be enhancing their self-concept i.e.,
they would tend to define themselves as highly valued individuals in the organizational system. The
higher the self-concept and self-esteem, the greater will be their contributions to the goals of the
organization, especially when the system rewards them for their contributions.
Authoritarianism and Dogmatism
Authoritarianism is the extent to which an individual believes that power and status differences are
important within' hierarchical social systems like organizations. For example, an employee who is highly
authoritarian may accept directives or orders from his superior without much questioning. A person who is
not highly authoritarian might agree to carry out appropriate and reasonable directives from his boss. But
he may also raise questions, express disagreement and even refuse to carry out requests if they arc for
some reason objectionable.
Dogmatism is the rigidity of a person's beliefs and his or her openness to other viewpoints. The
popular terms 'close-minded' and 'open-minded' describe people who are more and less .dogmatic in their
beliefs respectively. For example, a manager may be unwilling to listen to a new idea related to doing
something more efficiently. He is said to be a person who is close-minded or highly dogmatic. A manager
who is very receptive to hearing about and trying out new ideas in the same circumstances might be seen
as more open-minded or less dogmatic. Dogmatism can be either beneficial or detrimental to
organizations, but given the degree of change in the nature of organizations and their environments,
individuals who are, not dogmatic are most likely to be useful and productive organizational members.
Risk Propensity
Risk-propensity is the decree to which an individual is willing to take chances and make risky decisions. A
manager with a high-risk propensity might be expected to experiment with new ideas and to lead the
organization in new directions. In contrast, a manager with low risk propensity might lead to a stagnant
and overly conservative organization.
Machiavellianism
Machiavellianism is manipulating or influencing other people as a primary way of achieving one's goal. An
individual tends to be Machiavellian, if he tends to be logical in assessing the system around, willing to
twist and turn facts to influence others, and try to gain control of people, events and situations by
manipulating the system to his advantage.

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Type A and B Personalities

Type A persons feel a chronic sense of time urgency, are highly achievement-oriented, exhibit a
competitive drive, and are impatient when their work is slowed down for any reason. Type B persons are
easy-going individuals who do not feel the time urgency, and who do not experience the competitive drive.
Type A individuals are significantly more prone to heart attacks than Type B individuals. While Type A
persons help the organization to move ahead in a relatively short period of time they may also suffer
health problems, which might be detrimental to both themselves and the organization in the long run.
Work-Ethic Orientation
Some individuals are highly work-oriented while others try to do the minimum Work that is necessary to
get by without being fired on-the-job. The extremely work oriented person gets greatly involved in the job.
Extreme work ethic values could lead to traits of "workahollism" where work is considered as the only
primary motive for living with very little outside interests. For a workaholic turning to work can sometimes
become a viable alternative to facing non-work related problems. A high level of work ethic orientation of
members is good for the organization to achieve its goals. Too much "workahollism", however, might lead
to premature physical and mental exhaustion and health problems, which is dysfunctional for both
organization and the workaholic members.
The above ten different personality predispositions are important for individual, managerial
and organizational effectiveness.
DESIRED PERSONALITY CHARACTERISTICS FOR EFFECTIVE MANAGERS
Obviously, there arc some personality ^predispositions, which are favourable "to managerial effectiveness
and to the success of managers. Apart from possessing the necessary skills and abilities, managers need
to develop a high tolerance for ambiguity. There are many changes taking place in the internal and the
external environment of an organization.. Naturally, several unpredictable factors are involved in any
complex situation, which are beyond the managers control. Therefore, they should be able to, handle
situations as they come, without experiencing undue stress. Thus, a high tolerance for ambiguity is a
desired managerial trait. Managers with a good mix of achievements, affiliations and power will be
successful in most situations. This is because they will have the drive to achieve the goals and the
interpersonal orientation to get the job done through others. In sales and other people-oriented roles,
extrovert managers will fit better in their jobs. Similarly, managers with internal locus of control will be
more efficient as intellectual and skilled performers. Managers with good work ethic values, will get more
involved in their jobs and make things happen. They are likely to be more successful in their jobs.
Managers with Type A personalities may suit very well for some jobs, which have inbuilt performance
pressures and deadlines, but they need to know how to relax through exercises and self-monitor their
stress levels.
Personality is a relatively stable factor, but our predispositions can be changed through conscious
choice. For instance, our tolerance for ambiguity and ability to handle stress can be considerably
enhanced; the attributions we make for success such as internal versus external-locus of control can be
changed. Also, our latent needs can be activated and our skills in decision-making can be increased
through training programs and by deliberately making the necessary changes. Recognizing the essential
ingredients for managerial success is the first step towards making the changes.
THE SELF-CONCEPT: SELF-ESTEEM AND SELF-EFFICACY
People's attempt to understand themselves is called the self-concept in personality theory. The human
self is made of many interacting parts and may be thought of as the personality viewed from within. This
self is particularly relevant to the concepts of self-esteem and self-efficacy in the field of organizational
behavior.
People's self-esteem has to do with their self-perceived competence and self-image.
Considerable research has been done on the role played by self-esteem outcomes in the organizational
behavior. Most recently done studies indicate that self-esteem plays an important moderating role in the
areas of emotional and behavioral responses and stress of organizational members. It was recently noted

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that, "both research and everyday experience confirm that employees with high self-esteem feel unique,
competent, secure, empowered and connected, to the people around them"
Self-efficacy is concerned with self-perceptions of how well a person can cope with situations as
they arise. Those with high self-efficacy feel capable and confident of performing well in a situation. In the
field of organizational behavior, self-efficacy is conceptually close to self-esteem. Miner points out the
differences by noting that self-esteem tends to be a generalized trait (it will be present in any situation),
while self-efficacy tends to be situation specific. Self-efficacy; has been shown to have an empirical
relationship with organizational performance and other dynamics of organizational behavior.
In summary, personality is a very diverse and complex cognitive process. It incorporates almost
everything. As defined above, personality means the whole person. It is concerned with external
appearance and traits, self and situational interactions. Probably the best statement on personality was
made many years ago by Kluckhohn and Murray, "to some extent, a person's personality is like all other
people's, like some other people's, and like no other people's."

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LESSON 7
LEARNING AND BEHAVIOR MODIFICATION
Learning Objectives
After reading this lesson, you should be able to:

Understand various factors affecting human behavior

Explain implications of behavior modification
Describe reinforcement for inducing positive behavior

Learning is an important psychological process that-determines human behavior. Learning can be defined
as relatively permanent change in behavior that occurs as a result of experience or reinforced practice".
There are four important points in the definition of learning:
1.
Learning involves a change in behavior, though this change is not necessarily an
improvement over previous behavior. Learning generally has the connotation of improved
behavior, but bad habits, prejudices, stereotypes, and work restrictions are also learned.
2.
The, behavioral change must be relatively permanent. Any temporary change in behavior is
not a part of learning.
3.
The behavioral change must be based oh some form of practice or experience.
4.
The practice or experience must be reinforced in order so as to facilitate learning to occur.
COMPONENTS OF THE LEARNING PROCESS
The components of learning process are: drive, cue stimuli, response, reinforcement and retention.
Drive
Learning frequently occurs in the presence of drive - any strong stimulus that impels action. Drives are
basically of two types -primary (or physiological); and secondary (or psychological). These two categories
of drives often interact with each other. Individuals operate under many drives at the same time. To
predict a behavior, it is necessary to establish which drives are stimulating the most.
Cue Stimuli
Cue stimuli are those factors that exist in the environment as perceived by the individual. The idea is to
discover the conditions under which stimulus will increase the probability of eliciting a specific response.
There may be two types i of stimuli with respect to their results in terms of response concerned:
generalization and discrimination.
Generalization occurs when a response is elicited by a similar but new stimulus. If two stimuli are exactly
alike, they will have the same probability of evoking a specified response. The principle of generalization
has important implications for human learning. Because of generalization, a person does not have to
'completely relearn each of the new tasks. It allows the members to adapt to overall changing conditions
and specific new assignments. The individual can borrow from past learning experiences to adjust more
smoothly to new learning situations.
Discrimination is a procedure in which an organization learns to emit a response to a stimulus but avoids
making the same response to a similar but somewhat different stimulus. Discrimination has wide
applications in 'organizational behavior. For example, a supervisor can discriminate between two equally
high producing workers, one with low quality and other with high quality.
Responses
The stimulus results in responses. Responses may be in the physical form or may be in terms of
attitudes, familiarity, perception or other complex phenomena. In the above example, the supervisor
discriminates between the worker producing low quality products and the worker producing high quality
products, and positively responds only to the quality conscious worker.

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Reinforcement
Reinforcement is a fundamental condition of learning. Without reinforcement, no measurable modification
of behavior takes place. Reinforcement may be defined as the environmental event's affecting the
probability of occurrence of responses with which they are associated.
Retention
The stability of learned behavior over time is defined as retention and its contrary is known as forgetting.
Some of the learning is retained over a period of time while others may be forgotten.
LEARNING THEORIES
Classical Conditioning
The work of the famous Russian physiologist Ivan Pavlov demonstrated the classical conditioning
process. When Pavlov presented a piece of meat to the dog in the experiment, Pavlov noticed a great
deal of salivation. He termed the food an unconditioned stimulus and the salivation an unconditioned
response. When the dog saw the meat, it salivated. On the other hand, when Pavlov merely rang a bell,
the dog did not salivate. Pavlov subsequently introduced the sound of a bell each time the meat was
given to the dog. The dog eventually learned to salivate in response to the ringing of the-bell-even when
there was no meat. Pavlov had conditioned the dog to respond to a learned stimulus. Thorndike called
this the "law of exercise" which states that behavior can be learned by repetitive association between a
stimulus and a response.
Classical conditioning has a limited value in the study of organizational behavior. As pointed out
by Skinner, classical conditioning represents an insignificant part of total human learning. Classical
conditioning is passive. Something happens and we react in a specific or particular fashion. It is elicited in
response to a specific, identifiable event. As such it explains simple and reflexive behaviors. But behavior
of people in organizations is emitted rather than elicited, and it is voluntary rather than reflexive. The
learning of these complex behaviors can be explained or better understood by looking at operant
conditioning.
Operant Conditioning
An operant is defined as a behavior that produces effects. Operant conditioning, basically a product of
Skinnerian psychology, suggests that individuals emit responses that are either not rewarded or are
punished. Operant conditioning is a voluntary behavior and it is determined, maintained and controlled by
its consequences.
Operant conditioning is a powerful tool for managing people in organizations. Most behaviors in
organizations are learned, controlled and altered by the consequences; i.e. operant behaviors.
Management can use the operant conditioning process successfully to control and influence the behavior
of employees by manipulating its reward system. Reinforcement is anything that both increases the
strength of response and tends to induce repetitions of the behavior. Four types of reinforcement
strategies can be employed by managers to influence the behavior of the employees, viz., positive
reinforcement, negative reinforcement, extinction and punishment.
Positive Reinforcement
Positive reinforcement strengthens and increases behavior by the presentation of a desirable
consequence (reward). In other words, a positive reinforce is a reward that follows behavior and is
capable of increasing the frequency of that behavior. There are two typos of positive: reinforces: primary
and secondary. Primary reinforcers such as food, water and sex are of biological importance and have
effects, which arc independent of past experiences. For instance, a primary reinforcer like food satisfies
hunger need and reinforced food-producing behavior. Secondary reinforcers like job advancement,
recognition, praise and esteem result from previous association with a primary reinforcer. Primary
reinforcers must be learned. In order to apply reinforcement procedures successfully, management must
select reinforcers that are sufficiently powerful and durable.
Negative Reinforcement
The threat of punishment is known as negative reinforcement. Negative reinforcers also serve to
strengthen desired behavior responses leading to their removal or termination.

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Extinction
Extinction is an effective method of controlling undesirable behavior. It refers to non-reinforcement. It is
based on the principle that if a response is not reinforced, it will eventually disappear. Extinction is a
behavioral strategy that does not promote desirable behaviors but can help to reduce undesirable
behaviors.
Punishment
Punishment is a control device employed in organizations to discourage and reduce annoying behaviors
of employees.
OBSERVATIONAL LEARNING
Observational learning results from watching the behavior of another person and appraising the
consequences of that behavior. It does not require an overt response. When Mr. X observes that Y is
rewarded for superior performance, X learns the positive relationship between performance and rewards
without actually obtaining the reward himself. Observational learning plays a crucial role in altering
behaviors in organizations.
Cognitive Learning
Here the primary emphasis is on knowing how events and objects are related to each other. Most of the
learning that takes place in the classroom is cognitive learning. Cognitive learning is important because it
increases the change that the learner will do the right thing first, without going through a lengthy operant
conditioning process.

LEARNING THEORY AND ORGANIZATIONAL BEHAVIOR

The relevance of the learning theories for explaining and predicting of organizational behavior is marginal.
This does not mean that learning theories are totally irrelevant. Learning concepts provide a basis for
changing behaviors that are unacceptable and maintaining those behavior that are acceptable. When
individuals engage in various types of dysfunctional behavior such as late for work, disobeying orders,
poor performance, the manager will attempt to educate more functional behaviors.
Learning theory can also provide certain guidelines for conditioning organizational
behavior. Managers know that individuals capable of giving superior performance must be given more
reinforces than those with average or low performance.
Managers can successfully use the operant conditioning process to control and influence the
behavior of employees; by manipulating its reward system.

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LESSON 8
LEARNING AND BEHAVIOUR MODIFICATION
Learning Objectives
After reading this lesson, you should be able to:

Explain the concept of attitude in organizations

Understand the method of formation of attitude
Discuss individual attitude in organizations and indicate their effect on behaviour
Explain the concept of perception and perceptual process
Describe perception attribution in organizations

In simple words, an "attitude" is an individual's point of view or an individual's way of looking at

something. To be more explicit, an "attitude" may be explained as the mental state of an individual, which
prepares him to react or make him behave in a particular pre-determined way.
An attitude is defined as, "a learned pre-disposition to respond in a consistently favourable or
unfavorable manner with respect to a given object".
Attitude is the combination of beliefs and feelings that people have about specific ideas, situations
or other people. Attitude is important because it is the mechanism through which most people express
their feelings.
COMPONENTS OF ATTITUDE
Attitude has three components, which are as follows:
Affective component
Cognitive component
Intentional component
The figure 8.1 shows the components of attitude.

The affective component of an attitude reflects 'feelings and emotions' that an individual has
towards a situation. The cognitive component of an attitude is derived from 'knowledge' that an individual
has about a situation. Finally, the intentional component of an attitude reflects how an individual 'expects
to behave' towards or in the situation. For example, the different components of an attitude held towards a
firm, which supplies inferior products and that too irregularly could be described as follows:

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"I don't like that company"Affective component.

"They are the worst supply firm I have ever dealt with"Cognitive component.
"I will never do business with them again"'Intentional component.

People try to maintain consistency among the three components of their attitudes. However,
conflicting circumstances often arise. The conflict that individuals may experience among their own
attitudes is called 'cognitive dissonance.
ATTITUDE FORMATION AND CHANGE
Individual attitude are formed over time as a result of repeated personal experiences with ideas,
situations or people. One of the very important ways to understand individual behaviour in an organization
is that of studying attitude, which is situationally specific and learned.
An attitude may change as a result of new information. A manager may have a negative attitude
about a new employee because of his lack of job-related experience. After working with a new person, a
manager may come to realise that he is actually very talented and subsequently may develop a more
positive attitude toward him.
Work-Related Attitudes
People in an organization form attitude about many things such as about their salary, promotion
possibilities, superiors, fringe benefits, food in the canteen, uniform etc. Especially some important
attitudes are job satisfaction or dissatisfaction, organizational commitment and job involvement.
Job Satisfaction
Job satisfaction is an attitude reflects the extent to which an individual is gratified or fulfilled .by his or her
work. Extensive research conducted on job satisfaction has indicated that personal .factors such as an
individual's needs and aspirations determine this attitude, along with group and organizational factors
such as relationships with co-workers and supervisors, working conditions, work policies and
compensation.
A satisfied employee also tends to be absent less often, makes positive contributions, and stays
with the organization. In contrast, a dissatisfied employee may be absent more often may experience
stress that disrupts co-workers, and may keep continually looking for another job.
Organizational factors that influence employee satisfaction include pay, promotion, policies and
procedures of the organizations and working conditions. Group factors such as relationship with coworkers and supervisors also influence job- satisfaction. Similarly, satisfaction depends on individual
factors like individual's needs and aspirations. If employees are satisfied with their job, it may lead to low
employee turnover and less absenteeism and vice-versa.
Organizational Commitment and Involvement
Two other important work-related attitudes arc organizational commitment and involvement.
Organizational commitment is the individual's feeling of identification with and attachment to an
organization. Involvement refers to a person's willingness to be a team member and work beyond the
usual standards of the job. An employee with little involvement is motivated by extrinsic motivational factor
and an employee with strong involvement is motivated by intrinsic motivational factors.
There are a number of factors that lead to commitment and involvement. Both may increase with
an employee's age and years with the organization, with his sense of job security and participation in
decision-making. If the organization treats its employees fairly and provides reasonable rewards and job
security, employees are more likely to be satisfied and committed. Involving employees in decisionmaking can also help to increase commitment. In particular, designing jobs, which are interesting and
stimulating, can enhance job involvement.
ATTITUDE: ITS IMPORTANCE IN ORGANIZATIONAL BEHAVIOUR
Attitudes of both workers and management react to each other and determine mutual relationships.

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Attitude is an understanding or learning of why employees feel and act the way; they do and help
supervisors in winning cooperation from them. So, it is very essential for the efficient working of an
organization.
From a personal perspective, attitudes provide knowledge base or prepare, our mental state, for
our interaction with others, and with the world around us. This directly affects organizational behaviour,
and in turn organizational working.
Perception
Perception is an important mediating cognitive process. Through this complex process, people make
interpretations of the stimulus or situation they are faced with. Both selectivity and organization go 'into
perceptual, interpretations. Externally, selectivity is affected by intensity, size, contrast, repetition, motion
and novelty and familiarity. Internally, perceptual selectivity is influenced by the individual's motivation,
learning and personality. After the selective process filters the stimulus situation, the incoming information
is organized into a meaningful whole.
Individual differences and uniqueness are largely the result of the cognitive processes. Although
there arc a number of cognitive processes, it is generally recognized that the perceptual process is a very
important one. It is a process that takes place between the situation and the behaviour and is most
relevant to the study of organizational behaviour. For example, the observation that a department head
and a subordinate may react quite differently to the same top management directive can be better
understood and explained by the perceptual process.
In the process of perception, people receive many different kinds of information through all five
senses, assimilate them and then interpret them. Different people perceive the same information
differently.
Perception plays a key role in determining individual behaviour in organizations. Organizations
send messages in a variety of forms to their members regarding what they are expected to do and not to
do. In spite of organizations sending clear messages, those messages are subject to distortion in the
process of being perceived by organizational members. Hence, managers need to have a general
understanding of the basic perceptual process.
Basic Perceptual Process
Perception is influenced by characteristics of the object being perceived, by the characteristics of the
person and by the situational processes.
Characteristics of the object include contrast, intensity, movement, repetition and novelty.
Characteristics of the person include attitude, self-concept and personality.
The details of a particular situation affect the way a person perceives an object; the same person may
perceive the same object very differently in different situations. The processes through which a person's
perceptions are altered by the situation include selection, organization, attribution, projection, stereotyping
process, and the halo effect process. Among these, selective perception and stereotyping are particularly
relevant to organizations.
Selective Perception
Selective perception is the process of screening out information that we are uncomfortable with or that
contradicts our beliefs. For example, a manager has a very positive attitude about a particular worker and
one day he notices that the worker seems to be goofing up. Selective perception may make the manager
to quickly disregard what he observed. For example, a manager who has formed a very negative attitude
about a particular worker and he happens to observe a high performance from the same worker. In this
case influenced by the selective perception process he too will disregard it.
In one sense, selective perception is beneficial because it allows us to disregard minor bits of
information. But if selective perception causes managers to ignore important information, it can become
quite detrimental.
Stereotyping
Stereotyping is the process of categorizing or labeling people on the basis of a single attribute.
Perceptions based on stereotypes about people's sex exist more or less in all work places. Typically,

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these perceptions lead to the belief that an individual's sex determines which tasks he or she will be able
to perform. For example, if a woman is sitting behind the table in the office, she will be very often,
perceived as a clerk and not an executive at first. But it would induce holding an exactly opposite
assumption about a man. Stereotyping consists of three steps: identifying categories of people (like
women, politician), associating certain characteristics with those categories (like passivity, dishonesty
respectively) and then assuming that any one who fits a certain category must have those characteristics.
For example, if dishonesty is associated with politicians, we are likely to assume that all politicians are
dishonest.
PERCEPTION AND ATTRIBUTION
Perception is also closely linked with another process called attribution. Attribution is a mechanism
through which we observe behaviour and then attribute certain causes to it. According to Attribution
theory, once we observe behaviour we evaluate it in terms of its consensus, consistency and
distinctiveness. Consensus is the extent to which other people in the same situation behave in the same
way. Consistency is the degree to which the same person behaves in the same way at different times.
Distinctiveness is the extent to which the same person behaves in the same way in other situations. The
forces within the person (internal) or outside the person (external) lead to the behaviour.
For instance, if you observe that an employee is much more motivated than the people around
(low consensus), is consistently motivated (high consistency), and seems to work hard no matter what the
task (low distinctiveness) you might conclude that internal factors are causing that particular behaviour.
Another example is of a manager who observes that an employee is late for a meeting. He might realize
that this employee is the only one who-is laic (low consensus), recall that he is often late for other
meetings (high consistency), and subsequently recall that the same employee is sometimes late for work
(low distinctiveness). This pattern of attributions might cause the manager to decide that the individual's
behaviour requires a change. At this point, the manager might meet the subordinate to establish some
disciplinary consequences to avoid future delays.
IMPRESSION MANAGEMENT
Social perception is concerned with how one individual perceives other individuals. Conversely,
impression management is the process by which the general people attempt to manage or control the
perceptions that others form about them. People often tend to present themselves in such a way so as to
impress others in a socially desirable manner. Thus, impression management has considerable'
implications for activities like determining the validity of performance appraisals. It serves as a pragmatic,
political tool for someone to climb the ladder of success in organizations.
The Process of Impression Management
As with other cognitive processes, impression management has many possible conceptual dimensions
arid has been researched in relation to aggression, attitude change; attributions and social facilitation,
among other things. Most recently, however, two separate components of impression management have
been identified - impression motivation and impression construction. Especially in an employment
situation, subordinates may be; motivated to control how their boss perceives them. The degree of this
motivation to manage impression will depend on factors like the relevance that these impressions have on
the individual's goals, the value of these goals, the discrepancy between the image one would like others
to hold and the image one believes others already hold.
Impression construction, the other major process, is concerned with the specific type of
impression people want to make and how they create it. Although some theorists limit the type of
impression only to personal characteristics others include such things as attitudes, physical status,
interests, or values. Using this broader approach, five factors have been identified as being especially
relevant to the] kinds of impression people try to construct: the self-concept, desired and undesired
identity images, role constraints, target values and current social image. Although there has been a
considerable research done on how these five factors influence the type of impression that people try to
make, there is still little known of how they select the way to manage others' perceptions of them.
Employee Impression Management Strategies

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There are two basic strategies of impression management that employees can use. If employees are
trying to minimize responsibility for some negative event or to stay out of trouble, they may employ a
demotion-preventative strategy. On the other hand, if they are seeking to maximize responsibility for a
positive outcome or to look better than what they really are, then they lean use a promotion-enhancing
strategy.
The demotion-preventative strategy is characterized by the following activities:
Employees attempt to excuse or justify their actions.
Employees apologies to the boss for some negative event.
Employees secretly tell their boss that they fought for the right thing, but were overruled.
Employees using this approach try to disassociate themselves from the group and from the
problem.
The promotion enhancing strategies involve the following activities:
Employees harbor a feeling that they have not been given credit for a positive outcome.
Employees point out that they did more, but received a lesser credit.
Employees identify cither personal or organizational obstacles they had to overcome to
accomplish an outcome and expect a higher credit.
Employees ascertain that they are seen with the right people at the right times.
Coping with Individual Differences
Individual differences and people's perception of them affect every aspect of behaviour in organizations.
Managers must never underestimate, the differences between individuals. Successful managers
constantly monitor their own assumptions, perceptions and attributions, trying to treat each individual as a
unique person

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LESSON 9
MOTIVATION AND BEHAVIOR
Learning Objectives
After reading this lesson, you should be able to:

Understand the meaning, nature and importance of motivation

Explain need-based theories of motivation
Discuss expectancy theory of motivation
Explain ways of enhancing employee motivation

The word motivation is derived from motive', which means an active form of a desire, craving or need that
must be satisfied. Motivation is the key to organizational effectiveness. The manager in general has to get
the work done through others. These 'others' are human resources who need to be motivated to attain
organizational objectives.
DEFINITION
According to George R. Terry, "Motivation is the desire within an individual that stimulates him or her to
action."
In the words of Robert Dubin, it is "the complex of forces starting and keeping a person at work in
an organization". Viteles defines motivation as "an unsatisfied need which creates a state of tension or
disequilibrium, causing the individual to move in a goal directed pattern towards restoring a state of
equilibrium, by satisfying the need."
According to Encyclopaedia of Management. "Motivation refers to the degree of readiness of an
organism to pursue some designated goals and implies the determination of the nature and locus of force
inducing a degree of readiness."
On the basis of above definitions, the following observations can be made regarding motivation:
Motivation is an inner psychological force, which activates and compels the person to behave in a
particular manner.
The motivation process is influenced by personality traits, learning abilities, perception and
competence of an individual.
A highly motivated employee works more efficiently and his level of production tends to be higher
than others.
Motivation originates from the-needs and wants of an individual. It is a tension of lacking
something in his mind, which forces him to work more efficiently.
Motivation is also a process of stimulating and channelising the energy of an individual for
achieving set goals.
Motivation also plays a crucial role in determining the level of performance. Highly motivated
employees get higher satisfaction, which may lead to higher efficiency.
Motivating force an^ its degree, may differ from individual to individual depending on his
personality, needs, competence and other factors.
The process of Motivation helps the manager in analysing and understanding human behavior
and finding but how an individual can be inspired to produce desirable working behavior.
Motivation may be positive as well as negative. Positive motivation includes incentives, rewards
and other benefits while negative motivation implies some punishment, fear, use of force etc.
The motivation procedure contributes to and boosts up the morale of the employees. A high
degree of motivation may lead to high morale.
FEATURES OF MOTIVATION
The following are the features of motivation:
It is an internal feeling and forces a person to action.
It is a continuous activity.

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It varies from person to person and from time to time.

It may be positive or negative.

IMPORTANCE OF MOTIVATION
Motivation is an important part of managing process. A team of highly qualified and motivated employees
is necessary for achieving objectives of an organization because of the following reasons:
Motivated employees make optimum use of available resources for achieving objectives.
Motivation is directly related to the level of efficiency of employees.
Motivated employees make full use of their energy and other abilities to raise the existing level of
efficiency.
Motivated employees make goal-directed efforts. They are more committed and cooperative for
achieving organizational objectives.
Motivated employees are more loyal and sincere to an organization. These factors help reduce
absenteeism and labor turnover.
Motivation is considered as a backbone of good industrial relations.
Effectively motivated employees get more job satisfaction and possess high morale.
Motivation also helps in improving the image of an organization.
The motivation process begins with identification of individual needs. For example, when an
employee feels underpaid then what, then he tries to fulfill his needs by asking for a raise or by working
harder to earn a raise or by seeking a new job. He then chooses to pursue one or more of these options
for instance, working harder while simultaneously looking for a job. If his hard work resulted in a pay rise,
he probably feels satisfied and will continue to work hard. But if no raise has been provided he is likely to
try another option. Since people have many different needs, the satisfaction of one need or set of needs
is likely to give rise to the identification of other needs. Thus, the cycle of motivation is constantly
repeated.
Understanding human motivation is crucial for managing people. Extensive research has been
performed to find out what makes people work and how to motivate them. This includes managers, social
scientists, behaviorists and psychologists. A number of theories have been developed, even though there
is no universally acceptable motivation theory. Understanding these theories facilitates the managers to
get a better insight into the human behavior.
NEED-BASED THEORIES TO MOTIVATION
Need-based theories try to answer the question, "what factor(s) motivate people to choose certain
behaviors?" Some of the widely known need-based theories are as follows:
(a) Maslow's Hierarchy of Needs
Maslow Abraham proposed his theory in the 1940s. This theory, popularly known as the Hierarchy of
Needs assumes that people are motivated to satisfy five levels of needs: physiological, security,
belongingness, esteem and self-actualization needs. The figure 9.1 shows Maslow's hierarchy of needs

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Maslow suggested that the five levels of needs are arranged in accordance with their importance,
starting from the bottom of the hierarchy. An individual is motivated first and foremost to satisfy
physiological needs. When these needs are satisfied, he is motivated and 'moves up' the hierarchy to
satisfy security needs. This 'moving up process continues until the individual reaches the selfactualization level.
Physiological needs represent the basic issues of survival such as food, sex, water and air. In
organizational settings, most physiological needs are satisfied by adequate wages and by the work
environment itself, which provides employees with rest rooms, adequate lighting, comfortable
temperatures and ventilation.
Security or safety needs refer to the requirements for a secure physical and emotional
environment. Examples include the desire for adequate housing and clothing, the need to be free from
worry about money and job security and the desire for safe working conditions. Security needs are
satisfied for people in the work place by job continuity, a grievance resolving system and an adequate
insurance and retirement benefit package.
Belonging or social needs are related to the, social aspect of human life. They include the need
for love and affection and the need to be accepted by one's peers. For most people these needs are
satisfied by a combination of family and community relationships and friendships on the job. Managers
can help ensure the 'satisfaction of these important needs by allowing social interaction and by making
employees feel like part of a team or work group.
Esteem needs actually comprise of two different sets of needs:
The need for a positive self-image and self-respect.
The need for recognition and respect from others.
Organizations can help address esteem needs by providing a variety of external symbols of
accomplishment such as job titles and spacious offices. At a more fundamental level, organizations can
also help satisfy esteem needs by providing employees with challenging job assignments that can induce
a sense of accomplishment.
At the top of the hierarchy are those needs, which Maslow defines the self-actualization needs. These
needs involve realizing one's potential for continued: growth and individual development. Since these
needs are highly individualized and personal, self-actualization needs are perhaps the most difficult for
managers to address. Therefore, an employee should try to meet these needs on his own end. However,
an organization can help his employee by creating a climate for fulfillment of self-actualization needs. For
instance, an organization can help in fulfillment of these needs by encouraging employees participation in
decision-making process and by providing them with an opportunity to learn new things about their jobs
and organization. This process of contributing to actual organizational performance helps employees
experience personal growth and development associated with self-actualizing.
Maslow's concept of the need hierarchy possesses a certain intuitive logic and has been accepted
universally by managers. But research has revealed several shortcomings of the theory such as some
research has found that five levels of needs are not always present and that the order of the levels is not

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always the same as assumed by Maslow. Moreover, it is difficult for organizations to use the need
hierarchy to enhance employee motivation.
(b) ERG Theory of Motivation
Clayton Alderfer has proposed an alternative hierarchy of needs - called the ERG Theory of Motivation.
The letters E, R and G stand for Existence, Relatedness and Growth. The figure 9.2 shows ERG theory:

ERG Theory the need hierarchy developed by Maslow into three 9.2. The existence needs in this
theory refers to the physiological and security needs of Maslow. Relatedness needs refers to
belongingness and esteem needs. Growth needs refers to both self-esteem and self-actualization needs.
Although ERG Theory assumes that motivated behavior follows a hierarchy in somewhat the
same fashion as suggested by Maslow, there are two important differences.
Firstly, ERG theory suggests that more than one kind of need might motivate a person at the
same time. For example, it allows for the possibility that people can be motivated by a desire for
money (existence); friendship (relatedness), and an opportunity to learn new skills (growth) all at
the same time.
Secondly, ERG theory has an element of frustrations-regression that is missing from Maslow's
need hierarchy. Maslow maintained that one heed must be satisfied before an individual can
progress to needs at a higher level, for example, from security needs to belongingness. This is
termed as satisfactionprogression process. Although the ERG theory includes this process, it
also suggests that if needs remain unsatisfied at some higher level, the individual will become
frustrated, regress to a lower level and will begin to pursue low level needs again. For" example,
a worker previously motivated by money (existence needs) is awarded a pay rise to satisfy this
needs. Then he attempts to establish more friendship to satisfy relatedness needs. If for some
reason an employee finds that it is impossible to become better friends with others in the work
place, he may eventually become frustrated and regress to being motivated to earn even more
money. This is termed as frustration-regression' process.

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The ERG theory emphasis on the following key points regarding needs:
o Some needs may be more important than others.
o People may change their behavior after any particular set of needs has been satisfied.
(c) The Dual-Structure Approach to Motivation
Another popular need-based approach to motivation is the dual-structure approach developed by
Frederick Herzberg. This is also known as Two-factor Theory. Herzberg developed this approach after
interviewing 200 accountants and engineers in Pittsburg. He asked them to recall such occasions when
they had been dissatisfied and less motivated. He found that entirely different sets of factors were
associated with satisfaction and dissatisfaction. For instance, an individual who identified 'low pay' as
causing dissatisfaction did not necessarily mention 'high pay' as a cause of satisfaction. Instead, several
other factors, such as recognition or accomplishment, were cited as causing satisfaction.
This finding suggests that satisfaction and dissatisfaction are at opposite ends of a single scale.
Employees would, therefore, be satisfied, dissatisfied or somewhere in between. Herzberg argued that
attitudes and motivation consists of a dual structure. One structure involves a set of factors that result in
feelings ranging from satisfaction to no satisfaction. The other structure involves a set of factors that result
in feelings ranging from dissatisfaction to no satisfaction.
Herzberg identified two sets of factors responsible for causing either satisfaction or
dissatisfaction. The factors influencing satisfaction are called motivation factors or motivators, which are
related specifically to the job itself and the factors causing dissatisfaction are called hygiene factors,
which are related to the work environment in which the job is performed.
Motivators
Achievement
Recognition
Advancement
The work itself
The possibility of personal growth
Responsibility
Hygiene or Maintenance Factors
Company policies
Technical supervision
Interpersonal relations with supervisor
Interpersonal relations with peers
Interpersonal relations with subordinates
Salary
Job security
Personal life
Work conditions
Status
Based on these findings, Herzberg recommended that managers seeking to motivate employees
should first make sure that hygiene factors are taken care of and that employees are not dissatisfied with
pay, security and working conditions. Once a manager has eliminated employee dissatisfaction,
Hertzberg recommends focusing on a different set of factors to increase motivation, by improving
opportunities for advancement, recognition, advancement and growth. Specifically, he recommends job
enrichment as a means of enhancing the availability of motivation factors.
Although widely accepted by managers, Hertzbergs dual structure approach however suffers from
certain drawbacks. Other researchers who measured satisfaction and dissatisfaction based on different
aspects reached very different conclusions. They have also criticized Herzberg's theory for its inability to

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define the relationship between satisfaction and motivation and to pay enough attention to differences
between individuals. Hence, at present Herzberg's theory is not held in high esteem by researchers in the
field of motivation. The theory, however, had a major impact on managers and has played a key role in
increasing their awareness of motivation and its importance in type work place.
'X' AND Y' THEORIES OF MOTIVATION
Douglas McGregor observed two diametrically opposing viewpoints of managers 'about their employees;
one is negative called "Theory of X" and another is positive called "Theory of Y". I
Theory of X
Following are the assumptions of managers who believe in the "Theory of X" regarding their employees.
Employees dislike work.
Employees must be coerced, controlled or threatened to do the work.
Employees avoid responsibilities and seek formal direction.
Most employees consider security of job, most important of all other factors in the job and have
very little ambition.
Theory of Y
Following are the assumptions of managers who believe in the "Theory of Y" regarding their employees.
Employees love work as play or rest.
Employees are self-directed and self-controlled and committed to the organizational objectives.
Employees accept and seek responsibilities.
Innovative spirit is not confined to managers alone, some employees also possess it.
Applicability of Theories 'X' and 'Y'
Theory 'X' in its applicability, places exclusive reliance upon external control of human behavior, while
theory 'Y', relies heavily on self-control -and self-direction.
Theory 'X' points to the traditional approach of management. Literally, this theory of behavior is
related to organizations that lay hard and rigid standards of work-behavior. Some examples of such
organizations are organizations that break down jobs into specialized elements, establish 'norms of
production, design equipment to control worker's pace of work, have rigid rules and regulations, that are
sometimes very vigorously enforced.
Theory 'Y, on the other hand, secures the commitment of employees to organizational objectives.
This motivational theory places emphasis on satisfaction of employees. While applying this theory, the
use of authority, as an instrument of command and control is minimal. Employees exercise self-direction
and self-control.
The concepts of 'Job' Enlargement', 'Participation' and 'Management by Objectives' are quite
consistent with theory ' Y'.
McGregor supports the applicability of motivational theory 'Y', instead of theory X'. Organization
should keep in mind that once theory 'X' is employed for organizational working, it is difficult for the
management to shift to theory ' Y', all of a sudden. However, with systematic, judicious and slow steps,
shifting in the practical applicability of theory 'X' to theory ' Y' usually can be achieved.
MC-CLELLAND's NEED THEORY OF MOTIVATION
David C. McClelland and his associate Atkinson have contributed to an understanding of motivation by
identifying three types of basic motivating needs. These needs have been classified as:
1.
Need for Power
2.
Need for Affiliation
3.
Need for Achievement : :
Need for Power

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According to this theory the need for power, which might be defined as the desire to be influential in a
group and to control one's environment is an important motivation factor. Research suggests that people
with a strong need for power, are likely to be superior performers and occupy supervisory positions. Such
types of individuals generally look for positions of leadership, they act effectively, are outspoken, have a
stubborn character and exert authority.
Need for Affiliation
The need for affiliation means the desire for human companionship and acceptance. Those with a high
need for affiliation often behave the way they think other people want them to, in an effort to maintain
friendship. They prefer a job that entails a good deal of social interaction and offers opportunities to make
friends. The principal characteristics of such peoples' traits are as follows:
Desire to like and be liked.
Enjoy company and friendship.
Prefer cooperative situation.
Excel in group task.
Star attraction in gathering.
Leadership qualities.
This need is closely associated with the "social-type of personality, who are sociable, friendly,
cooperative and understanding. Persons with high motivation for power and affiliation have better
chances of becoming good managers.
Need for Achievement
People with a high need for achievement, always feel ambitious to be successful; are ever prepared to
face challenging situations and set arduous goals .for themselves. They are prone to take calculated
risks; and possess a high sense of personal responsibility in getting jobs done. These people are
concerned with their progress, and feel inclined to put in longer hours of work" Failures never dishearten
them and they are always ready to put in their best efforts for excellent performance.
PROCESS-BASED THEORIES TO MOTIVATION
The field of organizational behavior has generally moved a way from the needs theories of motivation.
Needs theories are content-oriented - that is, they explain what are the causes leading to motivated
behaviors. They do not explain why or how motivated behavior occurs. These questions relate to
behaviors or actions, goals and feelings of satisfaction., These concepts are addressed by various
process-based theories to motivation.
Process-based theories to motivation are concerned with how motivation occurs. They focus on
why people choose to enact certain behavioral options to fulfill their needs and how they evaluate their
satisfaction after they have attained these goals. Two of the most useful process-based approaches to
motivation arc expectancy theory and equity theory.
(a) Expectancy Theory of Motivation
Expectancy theory of motivation was developed by- Victor Vroom. Basically, Vroom's expectancy theory
views motivation as a- process of governing choices. The expectancy theory tries to explain how and why
people choose a particular behavior over an alternative. The theory suggests that motivation depends on
two things: how much an individual desires a particular goal and how likely he thinks he can get it. For
instance, a person is looking for a job and reads an advertisement for a position of Marketing Executive
with a starting salary of Rs. 3 lakh per year. Even though he might want the job, he probably does not
apply because he is aware that there is little chance of getting it. Next he sees an advertisement is for
Field Supervisor for a salary of Re. 1 lakh per year. In this case he realizes that he .can probably get the
job, but still doesn't apply simply because he doesn't want it. Then he comes across another
advertisement for a Management Trainee in a big organization with a starting salary of Rs. 2 lakh per
year. He chooses to apply for this job because he wants it and also thinks that he has a reasonable
chance of getting it. Figure 9.3 shows the expectancy theory of motivation.

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The expectancy theory rests on four assumptions:

The theory assumes that behavior is determined by a combination of forces in the individual and
in the environment.
It assumes that people make decisions about their own behavior in organizations.
It assumes that different people have different types of needs, desires and goals.
It assumes that people make choices from among alternative plans of behavior based on their
perceptions of the extent to which a given behavior will lead to desired outcomes.
The above model suggests that motivation leads to efforts and that effort, when combined with
individual ability and environmental factors, result in performance. Performance, in turn, leads to various
outcomeseach of which has an associated value called its 'valence'. According to this model,
individuals develop some sense of these expectations before they exhibit motivated or non-motivated
behavior.
Effort-to-Performance Expectancy
The effort-to-performance expectancy refers to an individual's perception of the probability that effort will
result in high performance. When an individual believes that effort will lead directly to high performance,
expectancy is quite strong, that is close to 1.00. For instance, if one feels sure that studying hard for an
examination (effort) will result in scoring high marks (performance), then his effort-to-performance
expectancy is high, that is close to 1.0. When an individual believes that effort and performance are
unrelated, the effort-to-performance expectancy is very weak, that is close to 0.0. Usually we are not sure
about our expectations, so they fall somewhere between 0.0 and 1.0 with a moderate expectancy. ;
Performance-to-Outcome Expectancy
The performance-to-outcome expectancy means an individual's perception of the probability that
performance will result in a specific outcome. For example, an individual who believes that high
performance will lead to a pay raise has a high performance-to-outcome expectancy, approaching to 1.00.
An individual who believes that high performance may possibly lead to a pay raise has a moderate
expectancy between 1.00 and 0. And an individual who believes that performance has no relationship to
rewards has a low performance-to-outcome expectancy that is close to 0.
Outcomes and Valences

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Expectancy theory recognizes that an individual may experience a variety of outcomes as a

consequence, of behavior in an organizational environment. A high performer, for example, may get big
pay raises, fast promotions and praise from the boss. However, he may also be subject to a lot of stress
and incur resentment from co-workers. Each of these outcomes has an associated value or valence that
is,, an index of how much an individual desires a particular outcome. If an individual wants an outcome,
its valence is positive. If an individual does not want an outcome, its valence is negative. If an individual is
indifferent to an outcome, its valence is zero. It is this advantage of expectancy theory that goes beyond
the need-based approaches to motivation.
Thus, for motivated behavior to occur on the part of any individual, three conditions must be met,
which are as follows:
First, the effort-to-performance expectancy must be greater than zero.
Second, the performance-to-outcome expectancy must also be greater than zero.
Third, the sum of the valences for all relevant outcomes must be greater than zero.
Expectancy theory maintains that when all of these conditions are met, the individual is motivated to
expand effort. The expectancy theory also has several other important practical implications, which
managers should keep in mind. The managers can perform the following activities in relation to this Determine what outcomes employees prefer.
Define, communicate and clarify the level of performance that is desired.
Establish attainable performance goals.
Link desired outcomes to performance goal achievement.
Practical Applicability of Expectancy Theory
If a manager wishes to motivate his employees for increased and better performance, then he has to
make sure whether the reward system is highly supportive to hard work or high quality. The manager will
particularly see that the specific system, as applicable in their case, is communicated to them, so as to
make them feel confident that their energized efforts will be rewarded.
Another important point, which should not be ignored by the manger, is that rewards must
correspond to the varying preferences of an individual employee.
In conclusion, no doubt 'expectancy' theory has gained much popularity with theorists, but much
more work still needs to be put in, before it can be accepted for use as an effective instrument of
explanation of 'motivation' with all its implications.
The Porter-Lawer Extension
Porter and Lawler have proposed an interesting extension to the expectancy theory. The human
relationists assumed that employee satisfaction causes good performance but research has not
supported such relationship. Porter and Lawler suggest that there may indeed be a relationship between
satisfaction and performance but that it goes in the opposite direction, that is, superior performance can
lead to satisfaction.
Porter-Lawler Model
First, an individual's initial effort is influenced by his perception regarding the value of reward and the
likelihood that the effort will yield a reward. The probability that increased effort will lead to improved
performance is affected by an individual's traits, abilities and perception of his role in an organization. The
model also distinguishes between intrinsic and extrinsic rewards. Finally, the Porter-Lawler model borrows
from equity theory the idea that the employee's satisfaction depends on the perceived equity of the
rewards relative to the 'effort expended and the level of performance attained.
Implications for Managers
Expectancy theory can be useful for organizations attempting to improve the motivation of their
employees. Nadler and Lawler suggest a series of steps for managers in applying the basic ideas of the
theory.

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1.
2.
3.
4.
5.
6.
7.

They should determine the primary outcomes that each employee likely desires.
They should decide what kind and levels of performance are needed to meet organizational
goals.
They should ascertain that the desired levels of performance are attainable.
They should ensure that desired outcomes and performance are linked.
They should also analyze the complete work situation for conflicting expectancies.
They should make sure that the rewards are large enough.
They should make sure that the overall system is equitable for everyone.

The expectancy theory has also its limitations. It is quite difficult to apply, for example, application of
this theory in the work place would require to identify all the potential outcomes for each employee, to
determine all relevant expectancies and then to balance everything somehow to maximize employee
motivation. Expectancy theory also assumes that people are rational - therefore, they will systematically
consider all the potential outcomes and their associated expectancies before selecting a particular
behavior. However, few people actually make decisions in such a precise and rational manner.

(b) Equity Theory

J. Stacy Adams developed equity theory of motivation. The equity theory argues that motivations arise out
of simple desire to be treated fairly. Equity can be defined as an individual's belief that he is being treated
fairly relative to the treatment of others. The figure 9.4 shows the equity process.
A person's perception of
equity develops through a
four-step process as shown
below:
1.
First
an
individual
2.
3.
4.

evaluates the way he is being treated by an organization.

The next step is for an individual to choose a co-worker who seems to be in a roughly similar
situation and to observe how an organization treats him.
In the crucial step of equity theory an individual 'compares' the two treatments.
In the fourth step he evaluate a sense of equity to see if the two treatments seem similar or if
the are different.

Adam suggests that employees make these comparisons by focusing on input and outcome ratios.
An employee's contributions or input to an organization include time, education, effort, experience and
loyalty. Outcomes are what an individual receives from an organization such as, pay, recognition and
social relationships. The theory suggests that people view their outcomes and inputs as ratio and thencompare their ratio to the ratio of someone else. This other 'person' may be someone in the work group.
The comparison may result in three types of attitudes:
The individual may feel equitably rewarded,
Under-rewarded.
Over-rewarded.
An individual will experience a feeling of equity when the two ratios are equal. If an individual has
the feeling of equity then he should maintain the status quo. If he has a feeling of inequity then he is likely
to change the input.
The single most important idea for managers to remember about equity theory is that if rewards
are to motivate employees, they must be perceived as being equitable and^ fair. However, managers
must remember that different employees have different sense towards basis for a reward and this may

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result in problems. Hence, the best way to avoid such problems is to make all employees aware of the
basis for rewards.
Reinforcement Based Approaches to Motivation
A final approach to the motivation process focuses on why some behavior are maintained and changed
overtime. Reinforcement-based approaches explain the role of those rewards as they cause behavior to
change or remain the same over time. Specifically, reinforcement theory is based on the fairly simple
assumption that behaviors that result in rewarding consequences are likely to be repeated, whereas
behavior that results in punishing consequences are less likely to be repeated. There arc similarities
between expectancy theory and reinforcement theory. Both consider the processes by which an individual
chooses behaviors in a particular situation. However, the expectancy theory focuses more on behavior
choices and the latter is more concerned with the consequences of those choices.
Reinforcement Contingencies
Reinforcement contingencies are the possible outcomes that an individual may experience as a result of
his or her behaviors. The four types of reinforcement contingencies that can affect individuals in an
organizational setting are positive reinforcement, avoidance, punishment and extinction.
Positive Reinforcement is a method of strengthening behavior. It is a reward or a positive
outcome after a desired behavior is performed. When a manager' observes an employee is doing a good
job and offers praise then this praise helps in positive reinforcement of behavior. Other positive reinforces
include pay, promotions and awards.
The other reinforcement, contingency that can strengthen desired behavior is avoidance. This
occurs when an individual chooses certain behavior in order to avoid unpleasant consequences. For
instance, an employee may come to work on time to avoid criticism.
Punishment is used by some managers to weaken undesired behaviors. The logic is that the
unpleasant, consequence will reduce an undesirable behavior again, for example, punishing with fine for
coming late.
Extinction can also be used to weaken behavior, specially that has previously been rewarded.
When an employee tells a vulgar joke and the boss laughs, the laughter reinforces the behavior and the
employee may continue
to tell similar jokes. By simply ignoring this behavior and not reinforcing it, the boss can cause the
behavior to subside which eventually becomes 'extinct'.
Positive reinforcement and punishment are the most common reinforcement contingencies
practiced by organizations. Most managers prefer a judicious use of positive reinforcement and
punishment. Avoidance and extinction are generally used only in specialized circumstances.
NEW APPROACHES TO MOTIVATION IN ORGANIZATIONS
New approaches are emerging to supplement the established models and theories of motivation. Two of
the most promising are Goal-Setting Theory and the Japanese Approach.
(a) Goal-Setting Theory
This approach to motivation has been pioneered in the USA by Edwin Locke and his associates in 1960s
and refined in 1980s. Goal-setting theory suggests that managers and subordinates should set goals for
an individual on a regular basis, as suggested by MBO. These goals should be moderately difficult and
very specific and of type that an employee will accept and make a commitment to accomplishing them.
Rewards should be tied directly to accomplished goals. When involved in goal-settings, employees see
how their effort will lead to performance, rewards and personal satisfaction.
Salient features of this theory are as follows:
Specific goal fixes the needs of resources and efforts.
It increases performance.
Difficult goals result higher performance than easy job.
Better feedback of results leads to better performances than lack of feedback.

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Participation of employees in goal has mixed result.

Participation of setting goal, however, increases acceptance of goal and involvements.
Goal setting theory has defined two factors,' which influences the performance. These are given
below:
o Goal commitment
o Self-efficiency.

The mere act of goal setting does not ensure higher levels of motivation among employees. In
fact, there seem to be three important criteria that goals must meet if they are to influence the behavior of
organization members. They are goal specificity, goal difficulty and goal acceptance.
Goal Specificity
Goals must be stated in specific terms if they are to motivate effective performance. Goals must be set in
terms of measurable criteria of work performance, i.e., number of units produced, new sales etc. and
must specify a lime period within which the goal is to be attained. It also gives a sense of personal
satisfaction and accomplishment to workers if he is able to meet the specific goal.

Goal Difficulty/Challenge
There exists a relationship between goal difficulty and work motivation. The more difficult- and challenging
the goal is, the higher the level of motivation and performance. However, it is essential that goals are set
at realistic levels. Goals that are very difficult to achieve are unable to motivate since it is beyond the
capacity of the concerned individual.
Goal Acceptance
In order to influence motivation and performance, a goal must be internalized by an individual. In other
words, the person has to feel some personal ownership of the goal and must have commitment to
achieve it.
Goal Setting in Practice
The most obvious implication of goal-setting theory is that managers should be helping subordinates to
set goals that are specific and reasonably difficult so that subordinates accept and internalize them as
their own goals. Besides this, there are a number of issues that arise in implementing goal setting in
practice.
Though specificity of goal is essential and measurability is desirable, it should not affect in
identifying meaningful and valid objective of goal attainment.
The manager can stimulate goal acceptance in at least three ways:
o By involving subordinates in goal-setting process.
o By demonstrating a supportive attitude and approach toward his subordinates.
o By assigning various rewards to the achievement of goals.
Management by Objectives (MBO) is a managerial technique for improving motivation and
performance using goal-setting principles.
Cognitive Evaluation Theory
A researcher 'Charms' reported in 1960 that extrinsic motivation like pay or rewards for a job, which has
an intrinsic-motivation content, which is prior to such rewards. It tends to decrease overall level of
motivation. This proposal is called cognitive Evaluation Theory" which has been supported by a large
number of research studies conducted subsequently.
(b) Japanese Approach to Motivation
The Japanese approach to motivation has gained increasing popularity around the world during the past
few years. This approach is rather a philosophy of management than a theory or model. The basic tenet
of the Japanese approach is that managers and workers should perform together as partners. Since both

#49

of them see themselves as one group, ail members are committed and motivated to work in the best
interests of an organization. No one is called an employee; instead everyone is a team member, team
leader or coach and everyone owns the 'share' of an organization. Like goal-setting meow, the Japanese
approach is likely to become more common in businesses throughout the world.
Integration of Motivation Theories
Thus several theories complicate our understanding. Some of these theories are compatible and some
are not. The real challenge that a researcher has to face is integration of all or at least some of these
together so that their inter and intra-relationships are established. This will also improve the
understanding of motivation. Certain attempts are made in USA and elsewhere.
Enhancing Motivation in Organizations
Managers trying to enhance the motivation of their employees can, of course, draw on any of the theories
described above. They may in practice adopt specific interventions derived from one or more theories or
they may influence motivation through the organization's reward system. The organization can enhance
motivation in following ways:
Humanize the work environment: Respect the need to treat each employee as an individual.
Publicize both short and long-term organizational goals:
Encourage personal and
departmental goal setting.
Promote from within: It's great for morale and simplifies hiring procedures.
Use incentive programs: Inducing the feeling that 'if you're creative enough, you won't have to
rely on expensive financial bonuses.'
Establish appropriate deadlines: Every project should have a deadline.
Be liberal with praise: It's almost impossible to over praise and easy to under praise.
Be consistent in your own work and in your relations with others.
Show a personal interest in the people who work for you: Relations are always smoother
between people who know each other on a personal basis than relations between people who
merely want something from each other.
Admit mistakes: People will respect you for it and will be less likely to hide their own mistakes.
Don't
whitewash
unpleasant
assignments: Prepare
subordinates for unpleasant
assignments well in advance and offer what support you can.
Managerial Approaches for Improving Motivation
A number of approaches can help managers motivate workers, to perform more effectively. The following
steps promote intrinsic motivation:
Workers Participation in Management (WPM)
Management by Objectives (MBO)
Organization Behavior Modification
Job-Redesign
Alternative Work Schedules.
Two approaches, however, have been especially effective: linking pay to jot performance and quality
of work-life programs.
Pay and Job Performance
Pay often can be used to motivate employee performance. But a pay plan also must be able to do the
following tasks:
Create the belief that good performance leads to high levels of pay;
Minimize the negative consequences of good performance; and
Create conditions in which rewards other than pay are evaluated as related to good performance.
Quality of Work Life Programs

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Quality of Work Life (QWL) is defined as an attempt through a formal program to integrate employee
needs and well being with the intention of improved productivity, greater worker involvement and higher
levels of job satisfaction.
Programs for QWL improvements range from those requiring minor changes in an organization to
those requiring extensive modifications in structure, personnel and the utilization of resources. There are
three types of QWL programs, which are as follows:
Quality Circles
Quality Circles (QC) are small groups of workers who meet regularly with their supervisor as their 'circle
leader' to solve work-related problems. QCs give an employee an opportunity for involvement, socialneed satisfaction, participation in work improvement and challenge and opportunity for growth. They are,
in essence, vehicles for providing employees with opportunities to satisfy lower and upper-level needs as
stated by Maslow, through the motivators described in 'Herzberg's theory.
Alternative Work Schedule
Organizations also frequently use the modified 'work-week' as a way to increase employee motivation. A
modified 'work-week' can be any work schedule that does not conform to a traditional 8 hours a day or 5
days a week format. The modified 'work-week' helps individual satisfy higher-level needs by providing
more personal control over one's work schedule. It also provides an opportunity to fulfil several needs
simultaneously.
Job-Redesign
Job-Redesign or changing the nature of people's job is also being used more as a motivational technique.
The idea pursued here is that mangers can use any of the alternatives job rotation, job enlargement, job
enrichment as part of motivational programme. Expectancy theory helps explain the role of work design in
motivation.

#51

LESSON 10
JOB SATISFACTION
Learning Objectives
After reading this lesson, you should be able to understand:

The concept of job satisfaction

The various factors relating to job satisfaction
The methods of enhancing job satisfaction

The term 'job satisfaction' refers to an employee's general happiness with his or her job. Locke defines
job satisfaction as a "pleasurable or positive emotional state resulting from the appraisal of one's job
experiences". For our purposes job satisfaction will be defined as the amount of overall positive affect or
feelings that individuals have towards their job.
Job satisfaction is the result of various attitudes the employee holds towards his job, towards
related factors and towards life in general.
The importance of job Satisfaction is that if the people are satisfied with their work, then there is
an improvement in both the quality and quantity of production. If they are not satisfied, then both the
quantity and quality of his output will be low, there will be high absenteeism and employee turnover and
increased unionism.
Caldur and Schurr in 1981 suggested that there are three different approaches to evaluating job
satisfaction. The first approach is that work attitudes such as job satisfaction are dispositional in nature,
i.e., they are stable, positive or negative disposition learned through experiences. The second approach is
the 'social information processing model', which suggests that job satisfaction and other work place
attitudes are developed or constructed out of experiences and information provided by others at the
work place. The third approach is the if information processing model', which is based on the
accumulation of cognitive information about the -work place and one's job. In a sense, this is the most
obvious approach, as it argues that a person's job satisfaction is influenced directly by the characteristics
of their job.
FACTORS RELATING TO JOB SATISFACTION
Some of the most important factors relating to job satisfaction are briefly stated below:
Personal Factors
These factors include the individual employee's personality, age, sex, educational level, intelligence etc.
Most of the evidence on the relation between age and satisfaction seems to indicate that there is
generally a positive relationship between the two variables up to the pre-retirement years and then there
is a sharp decrease in satisfaction.
There is no clear research evidence between educational level and job satisfaction. As regards
the relationship between the intelligence level and job satisfaction, it usually depends upon the level and
range of intelligence and the challenge of the job. There is as yet no consistent evidence as to whether
women are more satisfied with their jobs than men.
Job Factors
These factors include the type of work to be performed, skill required for work performance, occupational
status involved in the job etc.
The type of work is very important, as a number of research studies have shown that varied work
generally brings about more satisfaction than routine work. Where skill exists to a considerable degree it
tends to become the main source of satisfaction to the employee. As regards the relation of occupational
status to job satisfaction, research evidences indicate that employees are relatively more dissatisfied in
those jobs, which have less social status or prestige.
Organizational Factors
These factors include security, wages and salaries, fringe benefits, opportunities for advancement,
working conditions etc. Social and economic security to employees increases job satisfaction, the wages

#52

and salaries and fringe benefits are definitely the main factors that affect job satisfaction of employees. As
regards the relation of opportunity for advancement to job satisfaction, it has been found that this factor is
most important to skilled personnel and least important to unskilled personnel. Desirable working
conditions are also important to job satisfaction. Besides, an effective downward flow of communications
in an organization is also important to job satisfaction as employees are keen to know more about the
company and its plans, policies etc.
Basically, job satisfaction is determined by the discrepancy between what individuals expect to
get out of their jobs and what the job actually offers. A person will be satisfied if there is no discrepancy
between desired and actual conditions
Importance of Job Satisfaction
Obviously, job satisfaction significantly contributes to employee productivity and morale. An organization
can be substantially benefited if it develops general attitudes of its employees that can effectively
contribute to job satisfaction. If employees are satisfied, turnover and absenteeism will be less and
productivity will be more, Further, satisfaction of individual expectations results in group integration and
cohesiveness.
Measuring Job Satisfaction
There have been many measures of job satisfaction in the work place from the Job Description index to
Job Satisfaction Scales to the more recent job satisfaction scale of the Occupational Stress Indicator
(OSI). They all tend to involve scales, which explore pay, work activities, working conditions, career
prospects, and relationship with superiors and relationship with colleagues. An example of a measure of
job satisfaction from the OSI, which contains all of the elements that usually make up a job satisfaction
measure, is given in the Table 10.1.
TABLE 10.1: An Example of a Measure of Job Satisfaction from the OSI
How You Feel About Your Job?
Very much satisfaction 6
Much satisfaction 5
Some satisfaction 4
Some dissatisfaction 3
Much dissatisfaction 2
Very much dissatisfaction 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Communication and the way information flows around your

organization.
The relationships you have with other people at work.
The feeling you have about the way you and your efforts are
valued.
The actual job itself
The degree to which you feel motivated by your job
Current career opportunities
The level of job security in your present job
The extent to which you may identify with the public image or
goals of your organization
The style of supervision that your superiors use
The way changes an innovations are implemented
The kind of work or tasks that you are required to perform
The degree to which you feel that you can personally develop or
grow in your job.
The way in which conflicts are resolved in your company.
The scope your job provides to help you achieve your aspirations
and ambitions
The amount of participation which you are given in important

6
6

5
5

4
4

3
3

2
2

1
1

6
6
6
6
6

5
5
5
5
5

4
4
4
4
4

3
3
3
3
3

2
2
2
2
2

1
1
1
1
1

6
6
6
6

5
5
5
5

4
4
4
4

3
3
3
3

2
2
2
2

1
1
1
1

6
6

5
5

4
4

3
3

2
2

1
1

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16.
17.
18.
19.
20.
21.
22.

decision making
The degree to which your job taps the range of skills which you
feel you possess
The amount of flexibility and freedom you feel you have in your
job.
The psychological feel or climate that dominates your
organization.
Your level of salary relative to your experience
The design or shape of your organizations structure
The amount of work you are given to do whether too much or too
little
The degree to which you feel extended in your job

6
6
6

5
5
5

4
4
4

3
3
3

2
2
2

1
1
1

MEASURES TO INCREASE JOB SATISFACTION

Although management cannot change the personal factors in job satisfaction, it should appreciate the
role-of such factors and must take care to place the employees where the personal factors of the
individual help him in achieving job satisfaction.
Similarly, the management can use the factors inherent in the job to plan and administer jobs
more advantageously for its personnel. For example, the policy of job rotation, job enrichment, and job
enlargement may help increase job satisfaction. Management should also take necessary steps to raise
the occupational status of the workers.
The management should carefully develop appropriate policies and practices for promotions and
transfers, working conditions, wages, grievance handling, fringe benefits, satisfactory hours of work and
adequate rest pausing. Management should also able to recognize and appreciate the good work done by
the employees and give respect for their creative suggestion. Proper delegation of authority, freedom to
do work will also help increase job satisfaction. Above all, while keeping in view the factors related to job
satisfaction, the management must recognize the importance of the stability of employee attitudes that
may lead to high morale and production.
It is evident from the above description that there are many factors that influence job satisfaction
and the managements must be able to work out a broad strategies that may help increase job satisfaction
and must also able to identify the specific factors that causes the individual differences and must evolve
appropriate strategies that could raise the job satisfaction of those particular segment.

#54

LESSON - 11
GROUP DYNAMICS
Learning Objectives
After reading this lesson, you should be able to:

Define the term group and describe types of groups

Understand group formation and development
Discuss group norms and group cohesiveness

A group consists of a number of individuals working together for a common objective. Groups have
significant influence on an organization and are inseparable from an organization. They are useful for the
organization as they form foundation of human resources.
The study of group behavior is essential for an organization to achieve its goals. Individual and
group behavior vary from each other. In 1920, Elton Mayo and his associates conducted the Hawthorne
experiments and came to know that the group behavior has great impact on productivity. The importance
of group behavior has been realized from time to time.
Human behavior consists of individuals, who move in groups. The knowledge of group behavior
as well as individual behavior is necessary for a manager. He must understand group psychology and
should also understand individual behavior in the context of group behavior. The group in which he moves
influences individual work, job satisfaction and effective performance.
DEFINITION OF A GROUP
A group is a two or more individual who interact regularly with each other to accomplish a common
purpose or goal.
According to Marvin Shaw, "a group comprises, of two or more persons who interact with one
another in such a manner that each person influences and is influenced by each other person'.
The key parts of this definition are the concepts of interaction and influence, which also limit the
size of the group. It is difficult for members to interact sufficiently in a large group.
Groups or work teams are the primary tools used by managers. Managers need groups to coordinate individual behavior in order to reach the organizational goals. Groups can make a manager's job
easier because by forming a group, he need not explain the task to each and every individual. A manager
can easily coordinate with the work of an individual by giving the group a task and allow them to coordinate with each other. But for a group to work effectively, the interactions between its members should
be productive. Therefore, managers must pay attention to the needs of individuals.
Need for a Group
The reasons for the need, of groups are as follows:
Management of modern organizations make mutual efforts to introduce industrial democracy at
workplace. They use project teams and work committees where workers get due recognition.
They willingly participate in decision-making.
The tasks in modern industries are becoming more complex, tedious arid of repetitive nature.
Work committees, work groups and teams are formed to monitor the work. They also make the
environment at workplace more lively.
Groups help in making participative management more effective.
Groups of all kinds and types help by cooperating in all the matters related to production and
human relations to work effectively in the organization.
An individual cannot perform each and every task. Group efforts are required for its completion.
For example, building a ship, making of a movie, construction of a fly-over, etc. All these require
coordinated and unified efforts of many individuals, working in a group.
A group can judge in a better way as compared to an individual.
While accomplishing tasks, all members of a group together use their creative and innovative
ideas than a single individual.

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In a group, individuals communicate with each oilier, discuss their work performances and take
suggestions from each other to make it better.
Group efforts affect an individual, his attitude and behavior.
Group has the ability to satisfy the needs of its members.

Types of Groups
In an organization, there are three types of groups, which are as follows:
Functional or formal groups
Functional groups are the groups formed by the organization to accomplish different
organizational purposes. According to A L Stencombe, "a formal group is said to be any social
arrangement in which the activities of some persons are planned by others to achieve a common
purpose". These groups are permanent in nature. They have to follow rules, regulations and
policy of the organization. A formal organizational group includes departments such as the
personnel department, the advertising department, the quality control department and the public
relations department.
Task group
Tasks groups are the groups formed by an organization to accomplish a narrow range of
purposes within a specified time. These groups are temporary in nature. They also develop a solution to a
problem or complete its purpose. Informal committees, task forces and work teams are included in task
groups. The organization after specifying a group membership, assigns a narrow set of purposes such as
developing a new product, evaluating a proposed grievance procedure, etc.
Informal group
Informal groups are the groups formed for the purposes other than the organizational goals.
Informal groups form when individuals are drawn together by friendship, by mutual interests or
both. These groups are spontaneous. According to Keith David, "the network of persons and
social relations which is not established or required form an informal organization". These are the
groups formed by the employees themselves at the workplace while working together. The
organization does not take any active interest in their formation.
Informal groups are very effective and powerful. These groups work as an informal
communication network forming a part of the grapevine to the organizations. They are also like a
powerful force, which an organization cannot avoid. Some managers consider them to be harmful
to the interest of an organization. They suspect their integrity and consider as a virtual threat.
Some managers do not consider them as threat and seek the help of group members in getting
the organizational task accomplished. Informal groups are of following types:
o Interest group: Interest groups are the groups formed to attain a common purpose.
Employees coming together for payment of bonus, increase in salary, medical benefit and
other facilities are the examples of interest groups
o Membership group: Membership groups are the groups of individuals' belonging to the
same profession and knowing each other. For example, teachers of the same faculty in a
university.
o Friendship group: Friendship groups are the groups of individuals belonging to same
age group, having similar views, tastes and opinions. These groups can also be formed
outside the plant or office and can be in the form of clubs and associations.
o Reference group: Reference groups are the group where individuals shape their ideas,
beliefs, values etc. They want support from the group.
GROUP FORMATION AND DEVELOPMENT
Groups can form when individuals with similar goals and motives come, together. Groups are formed
voluntarily. The individuals of a group can join and leave the group any time and they can also change
their tasks. Hence, understanding how groups form and develop is important for managers. There are
certain motives because of which, the individuals join a group, which are as follows:

#56

Organizational motives to join groups: Organizations form functional and task groups because
such groups help the organization in structuring and grouping the organizational activities
logically and efficiently.
Personal motives to join groups: Individuals also choose to join informal or interest groups for
unimportant reasons. Since joining these groups is voluntary, various personal motives affect
membership. Some of these are shown in the figure 11.1:
Interpersonal attraction: Individuals conic together to form informal or interest group, as they
arc also attracted to each other. The factors that contribute to interpersonal attraction are sex,
similar attitudes, personality and economic standing. The closeness of group members may also
be an important factor.
Interest in-group activities: Individuals may also be motivated to join an informal or interest
group because the activities of the group appeal to them. Playing tennis, discussing current
events or contemporary literature, all these are group activities that individuals enjoy.
Support for group goals: The individuals may also be motivated goals by the other group
members to join. For example, a club, which is dedicated to environmental conservation, may
motivate individuals to join. Individuals join groups, such as these in order to donate their money
and time to attain the goals they believe in and to meet other individuals with similar values.
Need for affiliation: Another reason for individuals to join groups is to satisfy their need for
attachment. Retired/old aged individuals join groups to enjoy the companionship of other
individuals in similar situation.
Instrumental benefits: Group membership sometimes also helpful in providing other benefits to
an individual. For example, a manager might join a Rotary/ Lions club if he feels that being a
member of this club will lead to important and useful business contacts.
STAGES OF DEVELOPMENT
Members of new group are unfamiliar with one another's personalities and : hesitant in their
interactions. The new group must pass s of development, which are depicted in the figure 11.2.
Mutual Acceptance
Making Acceptance
Sharing Acquaintances

Discussing Subjects
Testing Each Other
Being Defensive

Slow Evolution to Next Stage

#57

Communication and Decision-Making

Expressing Attitudes
Establishing Norms
Establishing Goals
Openly Discussing Tasks
Being Defensive

Burst of Activities to Next Stage

Motivation and Productivity
Cooperating
Working Actively on Tasks
Being Creative

Slow Evolution to Next Stage

Control and Organization
Working Independently
Assigning Tasks Based on Ability
Being Flexible
Figure 11.2
These different stages of group development are explained as follows:
Mutual Acceptance
The very first stage of a group development is called "Mutual Acceptance". During this stage, the
members of the group get familiar with one another and check, which inter-personal behavior is
acceptable and which is unacceptable by the other members of the group. This helps all the
members of a group to know each other better and helps the group to move to the next stage
easily.

Communication and Decision-making

The second stage of group development is "Communication and Decision-making''. During this
stage, group members share their opinions and formulate the group's goals. Through
communication and decision-making, the structure becomes clear and the group moves to the
third stage.
Motivation and Productivity
The third stage is "Motivation and Productivity", which is characterized by a shared acceptance
among members of what the group is trying to do. Each person recognizes and accepts his role
as well as to accept and to understand the roles to others. Members also become more
comfortable with each other and develop a sense of group identity and unity.
Control and Organization
The fourth stage is "Control and Organization", in which the members perform the roles they have
accepted and direct their group efforts toward goal attainment. In reality, this developmental
sequence varies from group to group, depending on the time, personal characteristics of group
members and frequency of interaction.

CHARACTERISTICS OF MATURE GROUPS

As groups pass through the stages of development to maturity, they begin show signs of the following four
characteristics: a role structure, behavioral norms, cohesiveness and informal leadership.
Role Structures
A role is the part that an individual plays in a group to reach its goals. Some individuals are
leaders, some focus on the group's task; some interact with other groups and so on. Role
structure is the set of defined roles and interrelationships among those roles that the group

#58

members define and accept. The failure in role development result in role ambiguity, role conflict
and role overload. Managers have to take steps to avoid role ambiguity, role conflict and role
overload.
Behavioral norms
Although informal groups do not have any specific goals to accomplish, but they must have some
goals over a period of time. These goals are temporary and can be changed in accordance with
the needs of the group members. The goals can be achieved effectively depending on the
following factors:
o The extent of cooperation with management.
o Maintenance of an efficient communication system.
o Satisfaction of the needs of group members.
Informal leadership
Each informal group has one or more leaders. These leaders come forward on the basis of acceptance of
all the group members. Every informal group has one primary leader apart from the secondary : leaders.
The primary leader has more influence on the group members than the secondary leaders.
Cohesiveness
Cohesiveness is defined as the attractiveness of group members towards the group. It also
emphasizes on the group's ability to satisfy its members needs. It, therefore, helps the group
members to work more consistently and make greater contribution to the achievement of the
organizational goals. It is also psychologically more satisfying to all of its members.
According to Cartwright there are four principal consequences of cohesiveness, which are as
follows:
o Ability of a group to retain its members.
o Power of the group to influence its members.
o Degree of participation and loyalty of members.
o Feeling of security on the part of the members.
GROUP NORMS
Norms refer to group behavior standard, beliefs, attitudes, traditions and expectations shared by group
members. According to Michael Argyle, "Group norms are rules or guidelines of accepted behavior which
are established by a group and used to monitor the behavior of its members". They are framed to achieve
objectives of the group. They can be social and fair in nature. Norms define boundaries between
acceptable and unacceptable behavior. They make the members to identify themselves with the group.
Norms play a significant role in disciplining the members of a group to make them to work regularly and
properly. This reduces absenteeism and employee turnover. The members of the group are expected
follow the norms strictly. This will make the group more organized
Types of Group Norms
There are two types of group norms, which arc as follows:
Behavior norms: Behavior norms are rules that standardise how individuals act while working on
a day-to-day basis. Examples are. "do not come to committee meetings unless you have read the
reports to be '"discussed"', "greet every customer with a smile'', etc. These norms tend to reflect
motivation, commitment to the organization and therefore result in high level of performance.
Performance norms: Performance norms are rules that standardize employee

output and number of hours worked.

Reasons for Strong Enforcement of Norms
Groups don't have the time or energy, to regulate each and every action of the group members. Only
those behaviors that sound to-be important by group members should be brought under control.
Groups, like individuals, try to operate in such a way that they maximize their chances of task
success and minimize (heir chances of task failure. Groups want to facilitate their performance and
overcome barriers to reach their goals. Moreover, groups want to increase morale and prevent any
interpersonal discomfort to their members. Norms that will help groups meet these aims of performing
successfully and keeping morale high are likely to be strongly enforced.
Conditions where group norms will be strongly enforced are as follows:

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 If the norms facilitate group success or ensure group survival,

If the norms simplify or predict regarding the behavior which is expected from group members.
If the norms emphasize the roles of specific members within a group and
If the norms help the group to solve the inter-personal problems themselves.
Uniqueness of Group Norms
The norms of one group cannot be easily mixed with another group. Some differences are primarily due
to the difference in structure of the groups. However, even very similar work groups may develop different
norms-. The members of one group may be friendly with their supervisor whereas those of another group
may not
Norm Conformity
Norms have the power to force a certain degree of conformity. There are several factors consist of norm
conformity, which are as follows:
Some groups may exert more pressure for conformity than others because of the personalities of
the group members.
The history of the group and its members also plays a part in conformity. For example, if the
group has always been successful by following certain behaviors, new group members are also
asked to follow the same. If the group was not successful in the past, a new group member may
have greater freedom to exhibit other behaviors.
Group Cohesiveness
According to Rcnsis Likert, "cohesiveness is the attractiveness of the members towards the group or
resistance of the members leaving it". It refers to the attachment of members with the group.
According lo K. Aswalhappa, "cohesiveness is understood as the extent of liking each member
has towards others and how far everyone wants to remain as the member of the group". Attractiveness is
the key to cohesiveness. Cohesiveness is the extent to which group members are loyal and committed lo
the group and to each other. In a highly cohesive group, the members work well together, support and
trust one another and are generally effective at achieving their chosen goals.
A group that lacks cohesiveness will not be very much coordinated. Its members will not support
one another and they may face difficulty in reaching their goals.
Managers should develop an understanding of the factors that increase and reduce group
cohesiveness.
Advantages of Group Cohesiveness
The advantages of group cohesiveness are as follows:
The members of cohesive groups have high morale.
The members don't have conflicting views, which decreases the chances of in clash among the
views of group members at the workplace or elsewhere.
Individuals of cohesive groups have no anxiety at the workplace.
Members of cohesive groups are regular at their work.
Cohesiveness increases productivity.
Organizations gain from the members of cohesive group because they communicate better they
share ideologies and respect opinions of fellow employees.
The following factors can increase group cohesiveness:
Competitiveness with other groups.
Inter-personal attraction.
Favourable evaluation from outsiders.
Agreement on goals.
Frequent interaction. The following factors decrease cohesiveness:
Large group size.
Disagreement on goals.
Competitiveness within group.
Domination by one or more members.
Unpleasant experiences.
LESSON - 12

#60

LEARNING AND BEHAVIOR MODIFICATION

Learning Objectives
After reading this lesson, you should be able to understand:

Conceptual clarity about nature and levels of conflicts

The sources and effects of conflicts to manage conflicts

Conflict arises from difference of opinion between the group members while attaining the organizational
goals. An organization is an interlocking network of groups, departments, sections or work teams. In
organizations everywhere, conflict among groups of different interests is unavoidable. According to one
survey, managers spend an estimated 20 percent of their time dealing with group conflicts. The success
of an organization depends upon the harmonious relations among all independent groups. Managers may
either directly resolve the conflicts or they may act as mediators between two or more employees. In
either case, knowledge and understanding of conflict and the methods of resolving it are important.
Inter-group conflicts result from the ways in which organizations co-ordinate the work of different
groups and distribute rewards among those groups.
TYPES OF CONFLICT
The levels of group conflict are as follows:
Personal conflict: Are the conflicts that arise among employees, individuals because of
their competitive roles.
Group conflict: Are the conflicts arising within two or more groups due to difference in their
attitudes and behavior.
Infra-organizational conflict: Are the conflict arising between
levels of an organization, which are of two types. Vertical conflict arises between higher and lower level of
management. Horizontal conflict arises among the employees at same level.
Following is the sequence in which a conflict can arise:
Latent conflict: Is a situation when the conditions for conflict arise. For example, two groups
competing for scarce resources.
Perceived conflict: Is a situation when both the groups realize that there exists conflict between
them.
Felt conflict: Is a situation when members involved in the conflict feel tense or anxious.
Manifest conflict: Is a situation when both the group try to frustrate each other.
Conflict outcome: Is a situation or consequence arising after the conflict is eliminated.
REASONS FOR CONFLICT
There are many reasons for conflicts among groups and its members. Some of them are related to limited
resources, communication problems, differences in interests and goals, different perceptions, attitudes
and lack of clarity about responsibilities. The reasons for group conflicts are as follows:
Communication problems: Groups often become very involved with their own areas of
responsibility. They tend to develop their own unique vocabulary. Paying attention to an area of
responsibility is a worthy Endeavour, but it can result in communication problems. The receiver of
information should be considered when a group communicates an idea, a proposal, or a decision.
Misinformed receivers often become irritated and then hostile.
Incompatible goals: Inter-group conflict arises because of goal incompatibility. In other words,
goal attainment by one group may reduce the level of goal attainment by other groups. This may
be due to horizontal differentiation and task specialization. The conflict between production and
marketing departments, line and staff departments, union and management are few examples of
inter-group conflicts that arise because of incompatibility of goals.
Task interdependence: Task interdependence means to what extent a work, group relies on
other organizational groups to complete its tasks. In simple words, it refers to the dependence of

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one group on another for resources or information. It can be said in genera] that as
interdependence increases, the potential for conflict increases.
According to J. Thompson, there are three types of interdependence among groups, which are as
follows:
o Pooled interdependence: It arises when groups have little interaction with each other
but are affected by each other's activities. For example, a branch in Delhi does not need
to interact with a branch in Chennai. The only linkage between the two is that they share
financial resources from a common pool and the success of each branch contributes to
the success of the organization.
o Sequential task interdependence: It arises when one group is unable to commence its
work until the work of other group gets completed. In sequential task interdependence,
the output of one group becomes the input of another group. In such situations, the
potential for conflict is greater. Life and staff groups often have conflicts resulting from this
type of interdependence.
o Reciprocal interdependence: It arises between the groups, which depend on each
other for their respective task such as production department and quality department. The
production department provides the goods to the marketing department to sell and the
marketing department prepares the orders and estimates on the basis of the volume
produced by the production department. Inter-group conflict arises from reciprocal task
interdependence over difference in performance expectations. Each group is dissatisfied
will the quality or quantity of work received; from the other group.
o Task ambiguity: The lack of clarity over job responsibilities is called task ambiguity and it
frequently leads to aggression between groups. Inter-group conflict also arises when it is
not clear which group is responsible for certain activities. Task ambiguity often arises
where the organization is growing quickly or the organization's environment is changing
rapidly. A good example of task ambiguity is inter-group conflict arising in the recruitment
of new employees. It may be the responsibility of either the personnel department or any
of the functional departments such as marketing, finance. The confusion may also arise
regarding who has the final authority to execute the final decisions.
o Resource sharing: The relation between two groups can be affected by the degree to
which they make use of a common pool of resources and the degree to which this
common pool of resources is adequate to meet the demands of both the groups. Thus,
conflict of this nature; arises because of the differences between aggregate demand of a
group and available resources to meet them. Each party of the conflict competes with
each other to get a larger share. The conflict between management and the labor unionis the best example. Such conflicts take place in the quantum of wages, amenities,
working conditions and other related matters.
o Difference in work orientation: The ways in which employees do their work and deal
with others vary widely with the functional areas of an organization. First, functional
groups differ in their time perspectives. For example, R&D scientists have a longer-range
of goals than manufacturing groups. The range of work of manufacturing group is
evaluated on how quickly it can manufacture high-quality products while the range of
R&D scientists can be evaluated on the basis of product development and testing after a
long period of time. Second, the goals of different functional groups vary to a large extent.
The goals of manufacturing groups are more specific and clear-cut than the goals of R&D
groups.
The greater the differences in goal and time between two groups, the more likely it is that
conflict will arise between them while co-ordinating their work efforts. These differences
between groups result in frustration, misinterpretation of the behaviors and activities of
other groups.
o Conflicting reward systems: Sometimes the ways in which reward systems in
organizations arc designed create a situation in which one group can only. accomplish its
goal at the expense of other groups. For example, staff departments may be rewarded for
cutting costs and personnel while line departments are rewarded for increasing the
amount of products sold or services provided. To increase the amount of products sold,

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the line group may have to depend even more heavily on staff groups such as
advertising. However the staff groups are being rewarded for cutting costs and personnel
provided the types of services asked for by line groups can prevent them from meeting
their own goals. Conflicting reward systems inevitably result in poor inter-group relations.
Different perceptions and attitudes: The attitudes, values and perceptions of members
of various groups towards each other can be a cause and a consequence of the nature of
their relationship. If the group relations begin with the attitudes of distrust,
competitiveness, secrecy and closed communications, there is a possibility of conflicts,
disagreements in their views and among themselves. This can affect the success of a
group to accomplish their work in an effective manner.

DYNAMICS OF INTER-GROUP CONFLICT

The following points are covered in the dynamics of an inter-group conflict:
Changes within each group: When there is inter-group conflict in an organization, systematic
changes take place in the perceptions, attitudes and behaviors of the participants. They are as
follows:
o The group demands more loyalty from individual members while facing an external
threat. In the face of an external threat, past differences and difficulties between group
members are forgotten and group cohesiveness increases.
o In an inter-group conflict, it is important for a group to respond quickly and in a unified
manner to the activities of other groups. In an inter-group conflict, the organization and
structure of the work group becomes more rigid. It leads to more coordination of
activities, allocution of responsibilities to different group members.
o Changes in relation between groups: The nature of the relationships between groups
also changes markedly during inter-group conflicts. Union-Management relationships
during contract negotiations are one of the examples of the group dynamics. It becomes
difficult for each group to see the positive behavior and attitude of the other group. Each
party undervalues the interests of the other group. The changes that occur arc as follows:
o There are distortions of perception about one's own group and about the other group.
o The interaction and communication between groups' decreases.
o There is a shift among the groups from a problem-solving motive to a win-lose motive.
o There is increased ill feeling towards the rival group.
GROUP STRATEGIES TO GAIN POWER
There are several strategies that various groups use to gain power in an inter-group conflict situation.
Some of these strategies allow co-operation and sharing between groups while other strategies are more
competitive and increase the power of one group at the expense of others.
Contracting: It refers to the negotiation or an agreement between two groups. Each group
makes some compromises so that there can be some predictability and stability in their
relationships. POT example, contracting occurs between labor and management at the time
collective bargaining.
Co-opting: It occurs when a group gives some of its leadership positions to members of other
groups or includes them in its policy-making committees. For example, representatives from
financial institutions are included in the Board of Directors of a Company to participate in
decision-making activities.
Forming association: In forming an association, two or more groups cooperate or combine their
resources in order to increase their power over other groups. Members of groups co-operate with
each other in order to compete more effectively with members of other groups.
Influencing decision criteria: Groups can also sometimes exert power lo change criteria for
decision-making that are selected as the basic for resource distribution.
Controlling Information: Gaining access to sensitive information and then limiting other group's
access lo it increases the power of" the information-' rich group and other subunits.
Pressure tactics: These are applied to force other to use the most competitive strategy a group
can use to gain power. For instance, a union might threaten to strike to pressurize management.

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Management reaction to disruptive inter-group conflict can take many different forms. But
management usually tries to minimize the conflict indirectly and if this fails, become directly involved.
Methods to Solve Inter-group Conflict Indirectly
The various methods to solve inter-group conflicts indirectly are as follows:
Avoidance: It is an indirect method often used by the managers. It includes avoidance of direct
approaches on the part of managers to solve among groups. But avoidance does not always
minimize the problem. Matters can get worse if nothing is done and the groups can become more
aggressive and unfriendly.
Encouragement: This is another indirect method to solve the group conflicts. It includes
encouragement on the part of managers to the groups so that they will be able to meet and
discuss their differences. By doing so, they can find out a solution without the involvement of
management.
Bargaining: This is the indirect method, in which the groups agree as to what each of them will
get and give others regarding their work. This makes the accomplishment of the assigned task
much easier. For example, one group may agree to give the other, a quick turn around time on
the repairs of needed equipment only if the Second group agrees to bring complaints about the
quality of repairs to it before going to management. Bargaining between two groups is successful
if both groups are comfortable with the agreement between them.
Persuasion: This is the indirect method, in which the groups find the areas of common interests
among themselves. The groups try to find out those interests levels where they have the same
say. Afterwards', the groups try to show how important it is to each of them in attaining
organizational goals. But persuasion is possible only if there are no clashes between the groups
and its members
Methods to Solve Inter-Group Conflict
The various methods to solve inter-group conflicts directly are as follows:
Ignoring the conflict: This is a direct method used by (he managers to solve inter-group
conflicts. Ignoring the conflict is characterized by the absence of behavior wherein the members
of the groups avoids dealing with the dysfunctional aspects of the conflict. In this, a, group simply
refuses to attack the other group. But the disadvantage of this method is that it ignores the
causes of conflicts and as a result, the conflict situation frequently continues or gets worse over
time.
Domination by the management: This method of solving inter-group conflicts emphasizes on
improving the inter-group relations. To improve the inter-group relations, greater integration or
collaboration among groups is needed. Management can use domination to minimize the conflicts
by exercising its authority and power over the groups and their members.
Removing the key figures in the conflict: This is another direct method to solve the inter-group
conflicts. If a conflict arises because of personality differences between two individuals, removing
them is a possible solution. It includes the removal of the key figures in the conflict. The key
figures that are to be removed may be leaders of the groups and removing them could lead to
greater conflict. It is also difficult to pinpoint accurately the individuals who are the root-cause of
conflicts.
Problem solving: Management can also establish a task force with representatives from groups
in conflict to work on problems. The task force develops the ideas 'and procedures for improving
group interaction and thereby attempt to solve the conflicts arising between the groups.
o Appealing to super-ordinate goals. The final method to minimize the conflicts is to find
super-ordinate goals. These are goals desired by two or more groups that can only be
accomplished through the cooperation of the groups. When conflicting groups have to
cooperate to accomplish a goal, conflict can be minimized. For example, a wide profitsharing plan of a company may encourage groups to work together. If the profits of a
company are distributed among employees at the end of the year, the conflicts among
groups can reduce. The super ordinate goals are as follows: The assignment and coordination of work among groups should be clarified so that the daily disputes over minor
issues can be avoided.

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o
o
o

Managers should monitor reward systems to eliminate any win-lose conflicts among
groups.
The use of co-operative approaches among groups in organizations often leads to more
positive results than does the use of competitive approaches.
Managers can establish rules and standard procedures to regulate conflict in more
constructive and effective ways.

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LESSON-13
ORGANIZATIONAL COMMUNICATIONS
Learning Objectives
After reading this lesson, you should be able to understand:

The meaning and importance of communication

Communication process
Various types of organizational communication
The barriers and the methods of overcoming barriers to effective communication

Communication is one of the most frequently discussed dynamics in the entire field of organizational
behavior. In practice, effective communication is a basic prerequisite for the attainment of organizational
goals. Therefore, communication is considered to be the most important and most effective ingredient of
the management process. Interpersonal communication is fundamental to all managerial activities. All
other management functions involve communication in some form of directions and feedback. Thus,
effective management is a function of effective communication.
DEFINITION OF COMMUNICATION
In modern society, the term communication is frequently and freely used by everyone, including
members of the general public, organizational behavior scholars, and management practitioners.
Communication is the process of transmitting information from one person to another. Broadly, it
means who says what, to whom, through which channel and with what effect. It is a way of reacting to the
other person with ideas, facts, thoughts, feelings and values. Communication experts emphasize the
behavioral implications of communication by pointing out that "the only means by which one person can
influence another is by the behaviors he shows that is, the communicative exchanges between people
provide the sole method by which influence or effects can be achieved". In other words, the behaviors that
occur in an organization are vital to the communication process. This personal and behavioral exchange
view of communication takes many forms.
The figure 13.1 can be used to identify the major categories of communication that arc especially
relevant to the study of organizational behavior.
Communication Technology

Interpersonal Technology

Verbal
Technology

Figure 13.1: Chain of Communication in Organizational Behavior

Objectives of Communication
Managements depend upon communication to achieve organizational objectives. Since managers work
with and through other people, all their acts, policies, rules, orders and procedures must pass through
some kind of communication channel. Also there must be channel of communication for feedback.
Accordingly, some of the purposes of communication are:

To discourage the spread of misinformation, ambiguity and rumors, which can cause conflict and
tension.
To foster any attitude, that is necessary for motivation, cooperation and job satisfaction.
To develop information and understanding among all workers. This is necessary for group effort.
To prepare workers for a change in methods of environment by giving them necessary
information in advance.
To encourage subordinates to supply ideas and suggestions for improving the product or work
environment and taking these suggestions seriously.

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To improve labor management relations by keeping the communications channels open and
accessible.
To improve social relations among workers by encouraging intercommunication. This would
satisfy the basic human need for a sense of belonging and friendship.

Importance of Communication
Interpersonal roles require managers to interact with supervisors, sub-ordinates, peers and others outside
the organization. Thus, for co-ordinated action, communication is necessary. Communication transforms a
group of unrelated individuals into a team that knows what its goals are and how it will try to reach them.
Communication allows people to co-ordinate with each other by providing them with a way to
share information. The first type of information that needs to be shared is what the goals of the
organizations are. People need to know-where they are heading and why. They also need directions for
their specific tasks.
Communication is especially important for the task of decision-making. Decision-makers must
share their views on what the problem is and what the alternatives are. Once a decision has been made,
communication is necessary to implement the decision and to evaluate its results.
Changes in market or in customer preferences can lead to uncertainty about whether a product
Or a marketing strategy needs to be updated or overhauled. The uncertainty resulted from the lack of
information, can be reduced by communicating that information. Market researchers, for example, can
communicate with other groups about changes in the market place. The greater the uncertainty about a
task, the more important the communication of information becomes.
Communication also allows people to express their emotions. Communication of feelings can be
very important to employee morale and productivity. Employees who feel that they cannot vent their anger
or express their joy on the job may feel frustrated and repressed.
On any given day, a manager may communicate for all the purposes described above.
Communication goes up, down and across the levels of the hierarchy of an organization.
COMMUNICATION PROCESS
The figure 13.2 presents a general view of the communication process, as a loop between the source and
the receiver. In the simplest kind of communication, both the sender and the receiver perform the
encoding and decoding functions automatically.

Source or Sender
The communication cycle begins when one person called the sender wants to transmit a fact, idea,
opinion or other information to someone else. A manager, for instance, might call the research department
to send the latest information on a particular market.
Encoding
The second step is to encode the message into a form appropriate to the situation. The encoding might
take the form of words, facial expressions, gestures, physical actions and symbols such as numbers,
pictures, graphs etc. Indeed, most communication involves a combination of these. The encoding process

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is influenced by the content of the message, the familiarity of the sender and receiver and other
situational factors.
Transmission
After the message has been encoded, it is transmitted through the appropriate channel or medium.
Common channels or media in organizations include face-to-face communication using the media of
sound waves, light, letters and reports.
Decoding
The person to whom the message is sent, called the receiver interprets the meaning of the message
through the process of decoding. This process may be simple and automatic, but it can also be quite
complex. Even when you are just reading a letter, you may need to use all your knowledge of the
language, your experience with the letter-writer and so on. If the intended message and the received
message differ a great deal, there is a communication gap and misunderstanding is likely to follow.
Receiver
The receiver can be an individual, a group, or an individual acting on behalf of a group. The sender has
generally little control over how the receiver will deal with the message. The receiver may ignore it, decide
not to try to decode, understand it or respond immediately. The communication cycle continues when the
receiver responds by the same steps back to the original sender, which is called the feedback.
Noise
In the communication process, noise takes on a meaning slightly different from its usual one. Noise refers
to any type of disturbance that reduces the clearness of the message being transmitted. Thus, it might be
something that keeps the receiver from paying close attention such as someone coughing, other people
talking dosely, a car driving by etc. It can be a disruption such as disturbance in a telephone line, weak
signal due to bad weather etc. It can also be internal to the receiver such as tiredness or hunger or minor
ailments, which may affect the message.
METHODS OF COMMUNICATION
There are mainly three primary methods of communication in an organization, which are written, oral, and
non-verbal. These methods of communication are often combined. Considerations that affect the choice
of method include the audience whether it is physically present, the nature of the message, and the lost of
transmission. The figure 13.3 given below shows various forms each method can take.

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Typically organizations produce a great deal of written communication of many kinds. A letter is a
formal means of communication with an individual, generally someone outside the organization. Probably
the most common form of written communication in organizations is the office memorandum, or a memo.
Memos usually are addressed to a person or group inside the organization. They tend to deal with a
single topic and are more impersonal, but less formal than letters. Other common forms of written
communication include reports, manuals and forms. Reports generally summarize the progress or results
of a project and often provide information to be used in decision-making. Manuals have various functions
in organizations. Instruction manuals tell employees how to operate machines; policy and procedure
manuals inform them of organizational rules; operations manual describe how to perform tasks and
respond to work-related problems. As such, they represent attempts to make communication more
efficient and information more accessible. A performance appraisal form is an example.
ORAL COMMUNICATION
Oral communication, also known as face-to-face communication is the most prevalent form of
organizational communication. It may be in the form of direct talk and conversation between the speakers
and listeners when they are physically present at one place or through telephone or intercom system
conversation. Where one-way communication is required, then oral communication may include public
address system. Informal rumour mill or grapevine is also a popular form of oral communication. It is most
effective for leaders to address the followers via public address system or audio-visual media. Oral
communication is particularly powerful because the receiver not only hears the content of the message,
but also observes the physical gestures associated with it as well as the changes in tone, pitch, speed
and volume of the spoken word. The human voice can impart the message much more forcefully and
effectively than the written words and is an effective way of changing attitudes, beliefs and feelings, since
faith, trust and sincerity can be much better judged in a face-to-face conversation rather than in written
words.
Advantages
Some of the advantages of oral communication are:

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It is direct, simple, time saving and least expensive form of communication.

It allows for feedback and spontaneous thinking, so that if the receiver js unsure of the message,
rapid feedback allows for early detection by the sender so that corrections can be immediately
made, if necessary.
Because the message is conveyed instantaneously, it helps in avoiding delays, red tape and
other formalities.
It conveys personal warmth and friendliness and it develops a sense of belonging because of
these personalized contacts.

Disadvantages
There is no formal record of communication so that any misunderstood message cannot be
referred back to what was actually said.
If the verbal message is passed on,the long hierarchical chain of command, then some distortions
can occur during the process. The more people the message is to pass through, the greater is the
potential distortion.
Lengthy and distant communication cannot be conveyed verbally in an efficient way.
The receiver may receive the message in his own perception and thus misunderstand the intent
of the message.
Spontaneous responses may not be carefully thought about.
The spirit of authority cannot be transmitted effectively in verbal transactions.
Organizational Communications
More or less or a different meaning might be conveyed by manner of speaking, tone of voice and
facial expressions.
WRITTEN COMMUNICATION
A written communication is put in writing and is generally in the form of instructions, letters, memos,
formal reports, rules and regulations, policy manuals, information bulletins and so on. These areas have
to be covered in writing for efficient functioning of the organization. It is most effective when it is required
to communicate information that requires action in the future arid also in situations where communication
is that of general informational nature. It also ensures that everyone has the same information.
Advantages
It serves as an evidence of events and proceedings.
It provides a permanency of record for future references. The message can be stored for an
indefinite period of time.
It reduces the likelihood of misunderstanding and misinterpretation. The written communications
are more likely to be well considered, logical and clear. The message can be checked for
accuracy before it is transmitted.
It can save time when many persons must be contacted at the same time.
It is more reliable for transmitting lengthy statistical data.
It appears formal and authoritative for action.
Disadvantages
It can be very time-consuming, specially for lengthy reports.
There is no immediate feedback opportunity to be sure that the receiver has understood the
message.
Confidential written material may leak out before time, causing disruption in its effectiveness.
It leads to excessive formality in personal relations.
NON-VERBAL COMMUNICATION
Some of the meaningful communication is conveyed through non-verbal ways. Even some of the verbal
messages are strengthened or diluted by non-verbal expressions. These non-verbal expressions include
facial expressions and physical movement. In addition, some of the environmental elements such as

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building and office space can convey a message about the authority of the person. According to Tipkins
and Mc-Carter, facial expressions can be categorized as:
Interest-excitement
Enjoyment-joy
Surprise-startle
Distress-anguish
Fear-terror
Shame-humiliation
Contempt-disgust
Anger-rage
Physical movements or body language is known as "kinesics". A handshake is probably the most
common form of body language and tells a lot about a person's disposition. Other examples of body
language are tilting of head, folding of arms or sitting position in a chair.
Our facial expressions can show anger, frustration, arrogance, shyness, fear and other characteristics
that can never be adequately communicated through written word or through oral communication itself.
Some of the other body language symptoms are shrugging our shoulders for indifference, wink an eye for
mischief or intimacy, tap our fingers on the table for impatience and we slap our forehead for
forgetfulness. As far as environmental elements are concerned, a large office with luxurious carpeting and
expensive furniture conveys a message of status, power and prestige such as that of a chief operating
officer. On the other hand, a small metal desk on a corner communicates the status of a low ranking
officer in the organizational setting. Accordingly non-verbal actions have considerable impact on the
quality of communication.
Communication Networks
A communication network is the pattern of information exchange used by the members of a group.
When the members of a group communicate mostly with the group leader, a wheel network develops.
When the members of a group are on different levels/of the organization's hierarchy, a chain network is
developed. Members of a task force or committee often develop a circle network of communication with
each person communicating directly to the other members of the task- force. Informal groups that lack a
formal leader often form an all-channel network that everyone uses to communicate with everyone else.
Figure 13.4 shows Wheel Communication Network. Figure 13.5 shows Chain Communication Network.

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Figure 13.6 shows Circle Communication Network. Figure 13.7 shows All Channel Communication
Network.

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The density of communication refers to the total quantity of communication among members. The
distance between members describes how far a message must travel to reach the receiver. The ease with
which members can communicate with others is measured by members' relative freedom to use different
paths to communicate. Members' commitment to the group's work is defined by the centrality of the
position of the members. All these provide insight into possible communication problems. For instance, a
group with high density and distance can expect a lot of noise distortion in its communication, as
messages travel a long distance to get to the receivers.
The following factors influence the formation of communication patterns within small groups:
Organizational Communications 123
1. Type of Task: If the task of the group is simple, a chain or wheel network is used. For hard
tasks, all channel networks arises.
2. Environment: Environment including the group's seating arrangement and meeting place also
affects communication patterns. For instance, if members always sit around a table, then circle
network arises.
3. Group Performance Factors: The group performance factors like group's size, composition,
norms and cohesiveness also affect the' formation of communication networks. For instance, it is
much easier to have an all-channel network in a group of eight than in a group of eighty.
Managers must make use of all these characteristics and tendencies to help groups communicate
and work most efficiently. A manager, who sees that a wheel network is forming around an experienced,
trusted employee might not interfere with the process. If an assertive but irresponsible employee
becomes the hub of such a wheel, the manager may need to take action. If the manager relies on a group
to help make decisions, the manager may encourage silent group members to speak in order to get the
desired decisions.

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FORMS OF ORGANIZATIONAL COMMUNICATION

Although interpersonal and group forms of communication pertain even at the broadest organizational
levels, they do not sufficiently describe the paths of all messages transmitted in organizations. Individuals
can send and receive messages across whole organizational levels and departments by means of vertical
communication or the informal communication network. Non-verbal communication is also important and
can be a part of interpersonal, group and organizational communication.

Vertical Communication
Vertical communication is the communication that flows both up and down the organizational hierarchy.
This communication typically takes place between managers and their superiors or subordinates.
Upward Communication
Upward Communication consists of messages moving up the hierarchy from subordinates to superiors.
The content of upward communication usually includes requests, suggestions or complaints and
information the sub-ordinate thinks is of importance to the superior.
Downward Communication
Downward Communication consists of messages moving down the hierarchy from superiors to subordinates. The content of downward communication often includes directives, assignments, performance
feedback and information that the superior thinks are of value to the sub-ordinate.
Transactional Communication
Wenburg and Wilmont suggest that instead of communication being "upward" or "downward" which is
inter-communication, it should be "transactional" communication, which is mutual and reciprocal because,
"all persons are engaged in sending and receiving messages simultaneously. Each person is constantly
sharing in the sending and receiving process and each person is affecting the other". In the transactional
process, the communication is not simply the flow of information, but it develops a personal linkage
between the superior and the subordinate.
Informal Communication
Another term for informal communication network is the grapevine. Informal networks are found in all
organizations. It is in the form of gossip in which a person spreads a message to as many other people as
possible who may either keep the information to themselves or pass it on to others. The content of gossip
is likely to be personal information or the information about the organization itself.
Managers should have some control over the informal network. For example, the grapevine in an
organization may be carrying harmful information, false information or politically motivated information.
When these kinds of rumors are being spread, managers may need to intervene. They can hold open
meetings and objectively discuss the issues that are being informally discussed already. They may also
issue a clearly worded memo or report stating the facts and thereby help minimize the damage that the
informal network can do.
Managers can also obtain valuable information from the grapevine and use it for decision-making.
Other Form's of Communication
One that has become especially popular is informally labelled as "management by wandering around".
The basic idea is that some managers keep in touch with what is going on by wandering around and
talking with people such as sub-ordinates, customers, dealers and any one else involved with the
company in any way. This will give managers, new ideas and a better feel for the entire company.
BARRIERS TO COMMUNICATION
The communication must be interpreted and understood in the same manner as it was-meant to be sent
by the sender, otherwise it will not achieve the desired result and a communication breakdown will occur.
There are certain external roadblocks to effective communication. In addition, there are personal factors,
which affect communication.

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Some of the organizational barriers and some of the interpersonal barriers to effective
communication are discussed below:
Noise Barriers
Noise is any external factor, which interferes with the effectiveness of communication. The term is derived
from noise or static effects in telephone conversation or radio wave transmission. It may cause
interference in the process of communication by distraction or by blocking a part of the message or by
diluting the strength of the communication. Some of the sources contributing towards noise factor are:
Poor Timing
A message sent on poor timing acts as a barrier. For instance, a last minute communication with a
deadline may put too much pressure on the receiver and may result in resentment. A message must be
sent at an appropriate time to avoid these problems. Hence the manager must know when to
communicate.
Inappropriate Channel
Poor choice of channel of communication can also be contributory to the misunderstanding of the
message. The manager must decide whether the communication would be most effective if it is in writing
or by a telephone call or a face-to-face conversation or a combination of these modes.
Improper or Inadequate Information
Information must be meaningful to the employee and should be precise or to the point. Too little or too
much information endangers effective communication. Ambiguity in use of words will lead to different
interpretations.
Physical Distractions
Any physical distractions such as telephone interruptions or walk-in visitors can interfere with the effective
face-to-face communication process.
Organizational Structure
Communication may be blocked, chaotic or distorted if the channels are not clear or if there are
bottlenecks. Hence the organization structure should be such that the chain of command and channels of
communication are clearly established and ithe responsibility and authority are clearly assigned and are
traceable.
Information Overhead
Overload occurs when individuals receive more information than they are capable of processing. The
result could be confusion or some important information may be laid aside for the purpose of
convenience.
Network Breakdown
Network breakdown may be intentional or due to information overload and time pressures under which a
communication has to be acted upon. Some factors contributing to such disruptions are:
The managers may withhold important negative information.
The secretary may forget to forward a memo.
There may be professional jealousy resulting in closed channels.
Interpersonal Barriers
There are many interpersonal barriers that disrupt the effectiveness of the communication process and
generally involve such characteristics that either the sender or the receiver can cause communication
problems. Some of these are:
Filtering
Filtering refers to intentionally withholding or deliberate manipulation of information by the sender, either
because the sender believes that the receiver does not need all the information or that the receiver is

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better off not knowing all aspects of a given situation. It could also be that the receiver is simply told what
he wants to hear.
Semantic Barriers
These barriers occur due to differences in individual interpretations of words and symbols. The words and
paragraphs must be interpreted with the same meaning as was intended. The choice of a wrong word or
a comma at a wrong place in a sentence can sometimes alter the meaning of the intended message. For
example, a nightclub advertisement sign, "clean and decent dancing every night except Sunday", could
lead to two interpretations. First, that there is no dancing on Sundays and second, that there is dancing
on Sundays, but it not clean and decent.
Perception
Perception relates to the process through which we receive and interpret information from our
environment and create a meaningful word out of it. Different people may perceive the same situation
differently. Hearing what we want to hear and ignoring information that conflicts with what we know can
totally distort the intent or the content of the message. Some of the perceptual situations that may distort
a manager's assessment of people resulting in reduced effectiveness of the communication are:
A manager may perceive people to belong to one category or another as stereotypes, rather than
unique and distinct individuals. For example, he may perceive women to be less efficient
managers.
A manager may make total assessment of a person based on a single trait. A pleasant smile may
make a positive first impression.
A manager may assume that his subordinate's perception about things and situations are similar
to his own.
This perception limits the manager's ability to effectively respond to and deal with individual
differences and differing views of work situations.
Cultural Barriers
The cultural differences can adversely affect the communication effectiveness, specially for multi-national
companies and enterprises.

Sender Credibility
When the sender of the communication has high credibility in the eyes of the receiver, the message is
taken much more seriously and accepted at face value. If the receiver has confidence, trust and respect
for the sender, then the decoding and the interpretation of the message will lead to a meaning of the
sender. Conversely, if the sender is not trusted, then the receiver will scrutinize the message heavily and
deliberately look for hidden meanings or tricks and may end up distorting the entire message. Similarly, if
the source is believed to be an expert in a particular field then the listener may pay close attention to the
message, and believe it specially if the message is related to the field of expertise.
Emotions
The interpretation of a communication also depends upon the state of the receiver at the time when
message is received. The same message received when the receiver is angry, frustrated or depressed
may be interpreted differently than when he is happy. Extreme emotions are most likely to hinder effective
communication because rational judgments are replaced by emotional judgments.
Multi-meaning Words
Many words in English language have different meanings when used in different situations. Accordingly, a
manager must not assume that a particular word means the same thing to all people who use it. Hence,
the managers must make sure that they use the word in the same manner as the receiver is expected to
understand it, otherwise it will create a barrier to proper understanding of the message.

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Feedback Barriers
The final source of communication barrier is the feedback or lack of it. Feedback is the only way to
ascertain as to how the message was interpreted.
Overcoming Communication Barriers
It is very important for the management to recognize and overcome barriers to effective communication
for operational optimization and this would involve diagnosing and analyzing situations, designing proper
messages, selecting appropriate channels for communicating these messages, assisting receivers of
messages in correct decoding and interpretation and providing an efficient and effective feedback system.
Some of the steps that can be taken in this respect are as follows:
1
Feedback: Feedback helps to reduce misunderstandings. The information is transferred more
accurately when the receiver is given the opportunity to ask for clarifications and answer to any
questions about the message. Two-way communication, even though more time-consuming,
avoids distrust and leads to trust and openness, which helps in building a healthy
relationship contributing to communication effectiveness.
2

Improve Listening Skills: Good listening habits lead to better understanding and good
relationships with each other. Some guidelines for effective listening are:
Listening requires full attention to the speaker. Do not let your mind wander or be
preoccupied with something else, otherwise you will not be able to grasp the meaning of
the message in its entirety.
The language used tone of the voice and emotions should receive proper attention.
Listen for feelings in (he message content and respond positively to these feelings.
Ask questions to clarify any points that you do not understand clearly and reflect back to
the speaker, your understanding of what has been said.
Make sure that there are no outside interruptions and interference during the course of
conversation.
Do not prejudice or value the importance of the message due to your previous dealings
and experiences with the sender or your perceptions about him, positive or negative.
Do not jump to conclusions before the message is over and is clearly understood.
Summarize and restate the message after it is over to make sure about the content and
the intent of the message.

Develop Writing Skills: Clearly written messages can help avoid semantic and perception
barriers. A well-written communication eliminates the possibility of misunderstanding and
misinterpretation. When writing message it is necessary to be precise thus making the
meaning as clear as possible so that it accomplishes the desired purpose. Some helpful hints
in written communication are suggested by Robert Degise as follows:
Keep words simple: This will reduce your thoughts to essentials and the message will
be easier to understand for the receiver. The message will be lost if the words are
complex and do not lend to a clear single meaning.
Do not be boggart down by rules of composition: While the rules of grammar and
composition must be respected, they should not take priority over the ultimate purpose
of the communication.
Write concisely: Use as few words as possible. Do not be brief at the cost of
completeness, but express your thoughts, opinions and ideas in the fewest number of
words possible.
Be specific: Vagueness destroys accuracy, which leads to misunderstanding of the
meaning or intent of the message. Accordingly, be specific and to the point.
Avoid Credibility Gaps: Communication is a continuing process and the goal of the
communication is complete understanding of the message as well as the creation of trust
among all members of. the organization. Accordingly, the management must be sincere and
should earn the trust of the subordinates. Management should not only be sensitive to the
needs and feelings of workers but also its promises should be supported by actions. According

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to the studies conducted by J. Luft, openness and an atmosphere of trust builds healthy
relationship and closes credibility gaps, thus contributing to communication effectiveness.
GUIDELINES FOR EFFECTIVE COMMUNICATION
These guidelines are designed to help management improve their skills in communicating so as not only
avoid any barriers to effective communication, but also to strengthen the basis for optimum results which
depend upon the clear understanding of the desired communication.
The Ideas and Messages should be Clear, Brief and Precise
The ideas to be communicated must be well planned and clearly identified. This will eliminate ambiguity
so that the message will not be subject to more than one interpretation. The message must be clear,
precise and to the point and free from distortions and noise. It should also be brief so that only necessary
and sufficients meanings are provided.
Sense of Timing
The message should not only be timely so that the decisions and actions can be taken in tie and when
necessary, but also the timing of the message and the environmental setting in which the message is
delivered and received is equally important.
Integrity
The communication must pass through the proper channels to reach the intended receiver. The
communication flow and its spread must avoid bypassing levels or people. When these concerned levels
are omitted or bypassed, it creates bickering, distrust, confusion and conflict. Accordingly, the established
channels must be used as required.
Consult with others who are involved in Planning the Communication
If people have participated in the planning process, they would be highly motivated to give active
support to such communication. The people who are concerned must know exactly what they need and
when they need the communication.
Consider the Receiver's Interest
Take the receivers interests into account, and then the receiver will be more responsive to the
communication. The management must clarify any part of the communication that may be necessary and
must encourage comments, questions, and feedback. The management must always be helpful in
carrying out the intended message of the communication.
Mode of Delivery
While delivering the communication, avoid negative statements like, "I am not sure it will work", but be
confident and definitive. The success of the communication also depends upon the tone of the voice if the
communication is verbal, expressions and emotions exhibited, attentiveness to the receiver and so on.
The written communication should be polite and unambiguous.
Use proper Follow-up
All communications need a follow-up to ensure that these were properly understood and carried out. The
response and feedback to the communication should determine whether the action to the communication
has been prompt, appropriate and accurate.
Communication should be Comprehensive
Communication should be complete so as not only to meet the present demands. It should also fee based
on future needs of the organization as well as individuals.
Recently, the nature of managerial and organizational communication has changed dramatically,
mainly because of break through of the electronic technology and advent of computers. Now cellular
phones, E-Mail and Internet have made the communication quick and convenient. It is now even possible
for managers from different cities to meet by teleconferencing method without leaving their offices. At the
same time, psychologists are beginning to discover some problems associates with these new advances
in communication.

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LESSON -14
LEADERSHIP IN ORGANIZATIONS
Learning Objectives
After reading this lesson, you should be able to understand:

The meaning of leadership

The various types and theories of leadership
The importance of leadership in organizations

Leadership is an integral part of management and plays a vital role in managerial operations. It provides
direction, guidance, and confidence to the employees and helps in the attainment of goals in much easier
way. In business and industrial organizations, managers play the role of leader and acquire leadership of
subordinates, their efforts towards the achievement of organizational goals and activate the individuals of
an organization to make them work. Leadership influences behavior of the individuals. It has an ability to
attract others and potential to make them follow the instructions. Individuals can be induced to contribute
their optimum towards the attainment of organizational goals through effective leadership. Leadership
acquires dominance and the followers accept the directives and control of a leader. Leadership provides
direction and vision for future to an organization.
DEFINITION
Leadership is the art of influencing and inspiring subordinates to perform their duties willingly, competently
and enthusiastically for achievement of groups objectives.
According to Wendell French, "Leadership is the process of influencing the behavior of others in
the direction of a goal or set of goals or, more broadly, toward a vision of the future,
According to Keith Davis, Leadership is the process of encouraging and helping others to work
enthusiastically towards objectives.
According to Koontz and O'Donnell, "Leadership is the art or process of influencing people so that
they will strive willingly towards the achievement of group goals".
According to Peter Drucker, "Leadership means the lifting of man's visions to higher sights, the
raising of man's performance to higher standard, the building of man's personality beyond its normal
limitations".
According to Grey and Starke, "Leadership is both a process and a property. As a process, it is
used for non-coercive influence lo shape up the goals of a group or organization, to motivate behavior
toward the achievement of those goals and to help define group or organizational culture. As a property,
leadership is the set multi characteristics attributed to those who are perceived to be leaders".
Thus, leaders are people who are able to influence the behavior of others without recourse to
threats or other forms of force towards the individuals. Leaders are the people who are accepted by the
other individuals, as a superior person to them.
FEATURES OF LEADERSHIP
The features of leadership are as follows:
Leadership is the process of influencing behavior of individuals of an organization.
Leadership
uses
non-coercive methods to direct and
coordinate the activities of the
individuals of an organization.
Leadership directs the individuals to attain the tasks assigned to them by following the
instructions of their leaders.
A leader possesses qualities to influence others.
Leadership gives the individuals, a vision for future.
Leadership is a group activity. Leader influences his followers and followers also exercise
influence over his leader.
Leadership is meant for a given situation, given group for a pre-determined period of lime.

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Leadership is continuous process of influencing behavior. It encourages liveliness in the group.

Importance of Leadership
The following points can judge the importance of leadership:
A leader should act as a friend of the people whom he is leading.
A leader must have the capacity to recognize the potentials of the individuals and transform them
into realities.
A leader should have the confidence of the individuals of the organization.
A leader must be able to unite the people as a team and build up team spirit.
A leader should be able to maintain discipline among his group and develop a sense of
responsibility.

A leader must be able to build up a high morale among the individuals of the organization.
A leader should motivate his people to achieve goals.
A leader should try to raise the morale of the individuals and should maintain ethical standards
among the individuals.
A leader should act as a link between the work groups and the forces outside the organization.
Difference between Leadership and Management
Leading and managing go together but some differences exist between the two. The following are the
differences between the leadership and the management:
Management takes rational and logical decisions while leadership takes decision on expectations
of the followers. Leadership has an emotional appeal while management acts on rationality.
The management establishes relationship through a lawful authority while leadership establishes
relationship through power.
Managers have formal authority but the leaders have no such authority.
All leaders are not managers and all managers are leaders.
Management is a process of planning, organizing, directing and controlling the activities of others
to attain the organizational objectives. Leadership on the other hand, is a process of influencing
the behavior of the people to attain their assigned tasks. A successful manager must possess
both the managerial and leadership qualities.
TYPES OF LEADERSHIP
Following are the main types of leadership:
Autocratic or Authoritarian
In this type of leadership, there is a complete centralization of authority in the leader, i.e., authority is
centered in the leader himself. He has all the powers to make decisions. He uses coercive measures and
adopts, negative method of motivation. He wants immediate obedience of his orders and instructions. Any
negligence on the part of subordinates results in punishment. There is no participation from the
subordinates in decision-making. A leader thinks that he is the only competent person in the organization.
According to Edwin B. Filippo, there are following three types of leaders in autocratic:
1.
Hard Boiled or Strict Autocrat: Leader, under such type uses negative influence and expects
that the employees should obey his orders immediately. Non-compliance of his orders results in
punishment. He makes all decisions and does not disclose anything to anyone. He is quite rigid
on performance.
2.
Benevolent Autocrat: Benevolent autocrat leader uses positive influences and develops
effective human relations. He is known as paternalistic leader. He praises his employees if they
follow his orders and invites them to get the solutions of the problems from him. He feels happy
in controlling all the actions of his subordinates.
3.
Manipulative Autocrat: Leader, under such type is manipulative in nature. He creates a
feeling in the minds of his subordinates and workers that they are participating in decisionmaking processes. But he makes all decisions by himself. Non-compliance of his orders also
results jn punishment.

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Democratic or Participative
Democratic or Participative leadership is also known as group centered or consultative leadership. In this
type of leadership, leaders consult their groups and consider their opinion in the decision-making process.
Leaders encourage discussion among the group members on the problem under consideration and arrive
at a decision depending on their consent. Participation or involvement of the employees in the decisionmaking process is also rewarded. Exchange of ideas among subordinates and with the leader is given
encouragement. Leaders give more freedom to their group members, who feel that, their opinions arc
honored and they are given importance. It develops a sense of confidence among subordinates and they
derive job satisfaction. It improves quality of decision as it is taken after due consideration of valued
opinions of the talented group members.
The demerit of this type of leadership is that it takes more time to arrive at a decision, as a lot of
time is wasted while taking the views from the employee. It is, therefore, very time consuming.
Laissez-faire or Free Rein
In this type of leadership, there is virtual absence of direct leadership. It is, therefore, known as
"no leadership at all". There is complete delegation of authority to subordinates so that they can make
decisions by themselves. Absence of leadership may have both positive and negative effects. Free rein
leadership may be effective if members of the group are highly committed to their work. The negative
aspect shows that the leader is not competent enough to lead his group effectively. Members may feel
insecure and develop frustration for lack of decision-making authority.
Bureaucratic
This type of leadership emphasizes the rules and regulations of an organization. The behavior of a leader
is determined by the rules, regulations and procedure to be followed under his leadership. The leader and
the subordinates both follow these rules and regulations. Therefore, there is no difference between the
management and the administration in this type of leadership. The employees, themselves cannot do
anything in this regard. It is the rules that determine their performance.
Manipulative
This type of leadership manipulates the employees to attain their assigned tasks. A manipulative leader is
quite selfish and exploits the aspirations of the employees for his gains. He knows very well the needs
and desires of the employees but he does very little to fulfill them. Due to such attitude, he has to face the
hatred of the employees at times.
Paternalistic
The paternalistic leadership believes in the concept that the happy employees work better and harder. It
maintains that the fatherly altitude is the right one for better relationship between the manager and the
employees. Everyone within the organization should work together like a family.
Expert Leadership
The expert leadership emerged as a result of complex structure of modern organizations. This type of
leadership is based on the ability, knowledge and competence of the leaders. He handles the situation
skillfully with his talent. The employees feel relieved as they are working under a person who is expert
and can handle the situation without any problem.
In modern organizations, human resources vary in terms of skill, knowledge and competences.
They differ in quality, determination and their attitude towards the organization. They exhibit different
behaviors as they differ in attitude and outlook also. The leader must understand their behavior and
accordingly can make use of the various types LEADERSHIPS. The manager should assess the situation
and adopt that type of leadership, which suits that situation. He should remember that leadership is
situational. If situation changes, the use of leadership among its various types also changes. A successful
leader is the one who assesses the situation, studies the psychology of the subordinates and adopts the
most useful type of leadership to lead the people at work to accomplish the organizational goals.
THEORIES OF LEADERSHIP
A number of theories and approaches to study leadership have been developed. There are broadly three
theories of leadership.

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Trait Theory
Behavior Theory
Contingency Theory

(a)
Trait Theory
This theory of studying leadership is taken into consideration to analyze the personal, psychological and
physical traits of strong leaders. The assumption made in this theory was that some basic traits or set of
traits differentiates leaders from non-leaders. For example, the leadership traits might include intelligence,
assertiveness, above average height, self-confidence, initiative and understanding of interpersonal human
relations. The existence of these traits determines the importance of leadership. Possession of these
traits helps the individuals to gain possession of leadership. Since all individuals do not have these
qualities, only those who have them would be considered potential leaders.
Some of the weakness of this theory is:
All the traits are not identical with regard to essential characteristics of a leader.
Some traits may not be inherited, but can only be acquired by training.
It does not identify the traits that are most important and that are least important for a successful
leader.
It does not explain the leadership failures, in spite of the required traits.
It has been found that many traits exhibited by leaders are also found among followers without
explaining as to why followers could not become leaders.
It is difficult to define traits in absolute terms.
Thus, the trait theory has been criticized for lack of conclusiveness and predictability.
(b)
Behavior Theory
The behavioral theory assumed that effective leaders behaved differently from ineffective leaders. It also
identified the need of consistency of behavior of good leaders. This theory can be more clearly
understood with the help of following case studies.
The Michigan Studies: Researchers at the University of. Michigan, led by Rensis Likert, began
studying leadership in the late 1940s. Depending on broad discussions with both the managers
and sub-ordinates, the Michigan studies identified two forms of leadership behavior. They are
discussed as below:
Job-centered leadership behavior : The first was called job-centered leadership
behavior, which focuses on performances and efficient completion of the assigned tasks.
A job-centered leader interacts with group members to explain task procedures and
oversee their work.
Employee centered leadership behavior: The second behavior was identified as
employee centered leader behavior, which focuses on, high performance standards to be
accomplished. This can be done by developing a cohesive work group and ensuring that
employees are satisfied with their jobs. Thus, the leader's primary concern is the welfare
of the ordinates. The Michagan researchers thought a leader could show signs of one
kind of behavior, but not both.
The Ohio State Studies: At about the same time, a group of researchers at Ohio State also
began studying leadership. The Ohio State leadership studies also identified two major kinds of
leadership behaviors or styles, which are as follows:
Initiating-structure behavior: In initiating-structure behavior, the leader clearly defines
the leader-subordinate roles so that everyone knows what is expected. The leader also
establishes formal lines of communication and determines how tasks will be performed.
Consideration behavior: In consideration behavior, the leader shows concern for
subordinates feelings' and ideas. He attempts to establish a warm, friendly and
supportive.
The most obvious difference between Michigan and Ohio State studies is that the Ohio State
researchers did not position their two forms of leader behavior at opposite ends of a single continuum.
Rather, they assumed the behaviors to be independent variables, which means that a leader could exhibit

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varying degrees of initiating structure and consideration at the same time i.e. a particular leader could
have higher ratings on both measures, low ratings on both or high ratings on one and low on the other.
The Ohio State researchers found that a leaders behavior remains consistent over a period of
time, if the situation also remains same. But the researchers could not come up with one best
combination of behavior suitable to all the situations. The researchers used to believe that the leaders in
possession of both types of behavior are most effective. However, their studies at International Harvester
found that leaders rated highly on initiating structure behavior have higher performing but dissatisfied subordinates, whereas leaders rated highly on consideration structure had lower-performing sub-ordinates
who showed signs of higher satisfaction.
Most experts now agree that no single set of traits or behaviors appears to be common to all
good leaders. The universal approaches to leadership can help managers examine their own leadership
characteristics and match them against the traits most commonly identified with good leaders. In order to
understand the full complexity of leadership, contingency theory is to be studied.
(c) Contingency Theory
The main assumption of contingency theory is that the behavior of an appropriate leader varies from one
situation to another. The motive of a contingency theory is to identify key situational factors and to specify
how they interact to determine appropriate behavior of a leader
The three most important and widely accepted contingency theories of leadership are as follows:
The LPC theory: The first contingency theory of leadership is Fred Fielder's Least Preferred Coworker (LPC) Model. Fielder identified two types of leadership: task-oriented and relationshiporiented. Fielder believes that a leader's tendency to be task-oriented or relationship oriented
remains constant. In- other words, a leader is either task-oriented or relationship-oriented while
leading his group members. Fielder used the Least Preferred Co-worker (LPC) scale to measure
the type of leadership. A leader is asked to describe characteristics of the person with whom he or
she is least comfortable while working. They can do this by marking in a set of sixteen scales at
each end, by a positive or negative adjective. For example, three of the scales Fielder uses in the
LPC are:
Helpful -------------------- Frustrating 8 7 6 5 4 3 2 1
Tense ------------------- Relaxed
12345678
Boring ------------------- Interesting 1 2 3 4 5 6 7 8
The leader's LPC score is (hen calculated by adding up the numbers below the line checked on each
scale. A high total score is assumed to reflect a relationship orientation and a low score, a task orientation
by the leader. The LPC measure is controversial because researchers disagree about its validity. This is
because some of the LPC measures show whether the score is an index of behavior, personality or some
other unknown factor.
According to Fielder, the contingency factor favours the situation from the leader's point of view.
This factor is determined by leader-member relations, task-structure and position-power, which are
discussed as below:
Leader-member relations: A Leader-member relation refers to the nature of relationship
between the leader and his work group. If the leader and the group enjoy mutual trust, respect,
confidence and they like one another, relations will remain good. If there is little trust, respect or
confidence and. if they do not like one another, relations will remain bad. Good relations are
assumed to be favourable and bad relations unfavorable.
Task-structure: Task-structure is the degree to which the group's task is clearly defined. When
the task is routine, easily understood, and unambiguous and when the group has standard
procedures, the structure is assumed to be high. When the task is non-routine, ambiguous,
complex, with no standard procedures and precedents, structure is assumed to be low. High
structure is more favourable for the leader and low structure is unfavorable. If the task structure is
low, the leader will have to play a major role in guiding and directing the group's activities. If the
task structure is high, the leader will not have to pay much attention.
Position-power: Position-power is the power vested in the position of a leader in an
organization. If the leader has the power to assign work, administer rewards and punishment,
recommend employees for promotion or demotion, position-power is assumed lo be strong. If the

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leader does not have required powers, the position-power is weak. From the leader's point of
view, strong position power is favourable and weak position power is unfavorable.
Fielder and his associates conducted various studies highlighting if a situation favors the
leadership and group effectiveness or not.
When the situation includes good relations, high structure and strong power, a risk-oriented
leader to lie most effective. However, when relations are good but task structure is low and position-power
is weak, LI relationship-oriented leader is considered to be most effective.
A final point about LPC theory is that, Fielder argues that any particular-type of leadership, which
is measured by the LPC is inflexible and cannot be changed. In other words a leader cannot
change his behavior to fit a particular situation. Fielder's contingency theory has been criticized
on the ground that LPC measure lacks validity and that the assumption about the inflexibility of
the leader's behavior is unrealistic.
(d)
The Path-Goal theory
The path-goal model of leadership was introduced by Martin Evans and Robert House. Path-goal theory
says that a leader can motivate subordinates by influencing their expectations. Leaders can motivate subordinates by making clear what they have to do to get the reward they desire. The path-goal model
assumes that leaders can change their style or behavior to meet the demands of a particular situation.
This model identifies four kinds of leader behavior: directive, supportive, participative and achievementoriented. According to this model managers can adjust their behavior to include any four kinds of
leadership behavior mentioned above. For instance, while leading a new group of sub-ordinates, the
leader may be directive in giving guidance and instructions to them. He may also adopt supportive
behavior to encourage group cohesiveness, to look after their needs and ensuring that they get the
rewards and benefits. As the group becomes more familiar with the task and as new problems are taken
into consideration, the leader may use participative behavior by which he can participate with employees
in making decisions and take their suggestions as well. Finally, the leader may use achievement-oriented
behavior to encourage continued high performance of sub-ordinates.
Environmental characteristics are factors, which are beyond the control of subordinates. It
includes task structure, the primary work group and the formal authority system. For instance, when
structure is high, directive leadership is less effective than when structure is low. Sub-ordinates do not
usually need their boss to repeatedly tell them how to do a routine job. According to the path-goal theory,
these environmental factors can create uncertainty for employees. A leader who helps employees reduce
such uncertainty can motivate them. The figure 14.1 shows the path goal model of leadership.

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Leaders do not always have control over environmental factors, but the theory emphasizes that leaders
can use the control they want, to adjust the environment and to motivate sub-ordinates.

(e)
The Vroom-Yetton-Jago Theory (VYJ)
The Vroom-Yetton-Jago model was first introduced by Vroom and Yetton in 1973 and was revised by
Vroom and Jago in 1988, This model has a much less focus than the path-goal theory. It helps a leader to
determine the extent, to which employees should participate in the decision-making processes,
The VYJ theory argues that decision-effectiveness is best judged by the quality of decision and
by the acceptance of that decision on the part of employees. Decision acceptance is the extent to which
employees accept and are loyal to their decisions.
To maximize decision effectiveness, the VYJ theory suggests that leaders adopt one of five
decision-making leaderships. The appropriate leadership depends on the situation. As summarized in the
following table, there are two autocratic types of leadership, which are AI and All, two consultative types of
leadership, which are CI and CII and the other one is group GII.
Decision-Making Styles in the VYJ model
Decision Style
Description
AI
Manager makes the decision alone.
AII
Manager asks for information from subordinates but makes (he
decision alone. Sub- ordinates may or may mil be informed
about what the situation is.
CI
Manager shares the situation with individual subordinates and
asks for information and evaluation. Subordinates do not meet
as a group and the manager alone makes the decision.
C II
Manager and subordinates meet as a group to discuss the
situation but the manager makes the decision.
G II
Manager and subordinates meet as a group to discuss the
situation and the group makes the decision.
A = Autocratic; C= Consultative; G = Group
The situation is defined by a series of questions about the characteristics or attributes of the
problem under consideration. To address the questions, the leader uses one of the four decisions. Two of
them are used when the problem affects the entire group. For example, a decision about the facilities to
be given to employees in a new office affects the entire group and the other two are appropriate when the
decision affects a single individual only. e.g. a new office for that individual only.
Moreover, one of each is to be used when the decision has to be made quickly because of some
urgency and the others arc to be used when the decision can be made more slowly and the leaders wants
to use the opportunity to develop subordinates' decision-making abilities.
The VYJ model was criticized because of its complexity. Computer software has been developed
to aid leaders in defining the situation, answering the questions about the problem attributes and
developing a strategy for decision-making participation.
Although the VYJ model is too new to have been thoroughly tested, evidence so far indicates that
this model can help leaders to choose the most effective way to include the sub-ordinates in decisionmaking.
OTHER CONTINGENCY APPROACHES
In addition to these three major theories, there are other contingency models or theories developed in
recent years. The other models are as follows:
Vertical Dyad Linkage Model: This model stresses the .fact that leaders actually have different
kinds of working relationship with different subordinates. Each manager-subordinate relationship
represents one vertical dyad. The Vertical Dyad Linkage model suggests that leaders establish
special working relationships with some subordinates based on some combination of respect,

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trust and liking. These people constitute the in-group. Other subordinates remain in the outgroups, who receive less of leader's time and attention. Those in the 'in-group' receive more of
the manager's time and attention and are better performers. Research shows that people in the
in-group are more productive and more satisfied with their work than out group members.
Life Cycle Model: The life cycle model suggests-that appropriate leader behavior depends on
the maturity of the followers. In this context, maturity includes motivation, competence and
experience. The model suggests that as followers become more mature, the leader needs to
move gradually from high to low task orientation. Simultaneously, the leader's employee-oriented
behavior should start low, increase at a moderate rate and then decline again.
Many leaders are familiar with the life cycle theory because it is both simple and logical. However,
it has received little scientific support from researchers.
EMERGING PERSPECTIVES ON LEADERSHIP IN ORGANIZATIONS
The new perspectives that have attracted attention are the concepts of substitutes for leadership and
transformational leadership.
Substitutes for Leadership
The existing leadership theories and models try to specify what kind of leaders behavior is appropriate for
different situations. They do not take into consideration, the situations where the leadership is not needed.
The substitute concept identifies the situations where the characteristics of the subordinates, the task and
the organization replace leaders' behaviors. For example, when a patient is admitted to an emergency
room in a hospital, nurses, doctors and attendants act immediately without waiting for directive or
supportive behaviors of leaders in an emergency ward.
Several characteristics of the sub-ordinate may serve to replace or change .the behavior of the
leaders. For example, employees with much ability and experience may not need to be told what to do.
Similarly, a strong need for independence by the sub-ordinate may result in ineffectiveness of leaders
behavior.
Characteristics of the task that may substitute the leadership include, the availability of feedback
and intrinsic satisfaction. For example, when the job is routine and simple, the subordinate may not need
direction. When the task is challenging, the subordinate may not need or want support.
Organizational characteristics that may substitute for leadership include formalization group
cohesion, inflexibility and a rigid reward structure. For example, when policies are formal and rigid,
leadership may not be needed.
Transformational Leadership
Another new concept of leadership goes by a number of labels: charismatic leadership, inspirational
leadership, symbolic leadership and transformational leadership. This is a leadership that transmits a
sense of mission, increases teaming experiences and inspires new ways of thinking.
Charisma is a form of interpersonal attraction. Charismatic people attract followers and this type
of leader has great power over his or her followers. Charismatic leaders are self-confident and can
influence others. The followers of a charismatic leader identify with the leader's beliefs, accept, trust and
obey the leader without questioning him and thereby contribute toward the success of the organizational
goals.
Leadership Skills
There is now recognition in both leadership theory and practice of the importance of skills, how leaders
should behave and perform effectively. Although there are many skills, such as cultural flexibility,
communication, HRD, creativity, and self-management of learning, the research-based skills identified by
Whetten and Cameron seem to be most valuable. Their personal skills model, involving developing selfawareness, managing stress and solving problems creatively; the interpersonal skills model, involving
communicating supportively, gaining power and influence, motivating others and managing conflict, are
especially comprehensive and useful. Finally, the widely recognized organizational behavior .techniques
such as, training, job design and leaders can also effectively use behavioral management.

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LESSON -15
STRESS MANAGEMENT
Learning Objectives
After reading this lesson, you should be able to understand:
The meaning of stress
Various sources of stress
Various effects or consequences of stress
Various methods of managing stress
The nature of stress has been studied by scholars in a wide range of academic disciplines. Physicians,
psychiatrists, and researchers in management have all studied its causes and its symptoms, and have
defined the term in a variety of different ways. Stress is defined as "the reactions of individuals to new or
threatening factors in their work environments.
Stress can be either positive or negative. Some new work situations can bring us positive
challenges and excitement. For example, promotions to new jobs present employees with positive stress.
Employees may feel anxious about their new work assignments; they also anticipate them eagerly and
look forward to the additional challenges, rewards, and excitement. In these cases, the new and uncertain
job situations create positive stress. The positive stress is also called the eustress. However, there are
certain other types of work that are very threatening and anxiety-arousing. For example, depression in the
economy can create negative stress for sales personnel, because they will be much more anxious about
making sales commissions and sales quotas.
For every individual there is an optimum level of stress under which he or she may perform to full
capacity. If the stress experienced is below this optimum level, then the individual gets bored, the
motivational level to work reaches a low, point, and apathy sets in. If one operates in a very low stress
environment and constantly experiences boredom, the person is likely to psychologically or physically
withdraw from work. Psychological withdrawal will result in careless mistakes being frequently made,
forgetting to do things, and thinking of things other than work during work hours. Physical withdrawal will
manifest itself in increased rates of tardiness and absenteeism, which may ultimately lead to turnover.
Though the optimum stress level is different Form different individuals, each individual can sense and
determine how much stress is functional for an individual to operate in a productive manner.
Research indicates that those who possess high tolerance of ambiguity, internal locus of control
and self-esteem seem to effectively handle a high level of stress. An individual possessing high degree of
tolerance for ambiguity allows him to experience very little anguish while operating under conditions of
insufficient information or in an uncertain environment. People with an internal locus of control also handle
stress well since they feel they are in control of the situation, rather than feeling controlled by the situation
they are facing. This makes it possible for them to manage their environmental stress without
experiencing its harmful effects. Those with high self-esteem also handle stress with ease since a high
self-esteem increases the confidence and enables them to deal with stressful situations with calmness
and clear thinking. The more successfully one handles a stressful situation without panicking or getting
overwhelmed by it, the more confidently will the individual face further stressful situations. Thus, it is
possible to raise ones capacity to handle in different situations.
SOURCES OF STRESS
Stress is a reality of our everyday life. There are both positive and negative stresses that come from our
work and non-work lives. As pointed out by Near. Rice, and Hunt (1980) and Sckaran (1986), among
others, the work and non-work domains of one's life are closely interrelated. The stresses and strains
experienced in one domain are carried over to the other. Thus, if one experiences stress at work, that
stress will be carried over to the home.
One major source of job stress is the job itself. The way the job is designed, the amount of time
pressure an individual faces and the amount of expectations others have of a person at work can all lead
to job stress. Interpersonal relationships are a second source of job stress. How much contact an
individual has with coworkers and managers, how much time he or she deals with clients or consumers,

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and how pleasant those interactions are all influences of how much stress an individual experiences at
work. Third source is problems in personal lives, which can spill over into the work environment, adding
further tension to an already stressful work situation.
SOURCES OF JOB STRESS
Job Characteristics
o
Role ambiguity
o
Role conflict
o
Role overload o Ethical dilemmas
Interpersonal Relationships
o
Amount of contact with others
o
Dealing with people in other departments
o
Organizational climate
Organizational Factors
Personal Factors
o
Career concerns
o
Geographical mobility
o
Rate of life change
Job Characteristics
A major source of job stress is a person's role in the organization. A role is simply the set of expectations
that other people in the organization have for an individual, For example, supervisors, coworkers,
customers and suppliers expect an employee to behave in certain predictable ways. The expectations
others have of an employee arc sometimes unclear, in conflict, or too high for the employee to meet within
the time allotted, and he or she experiences stress.
Role Ambiguity: When there is a lot of uncertainty surrounding job definitions or job
expectations, people experience role ambiguity. With the recent increase in mergers and
acquisitions among major organizations, more and more employees arc experiencing job stress
as a result of role ambiguity. Role ambiguity is anxiety arousing among employees that leads to
job stress.
Role Conflict: Often employees discover that different groups of people in an organization have
widely varying expectations of them, and that they cannot meet all those expectations. This
inconsistency of expectations associated with a role is called role conflict, which results in stress.
Role Overload: Role overload is a situation in which employees feel they are being asked to do
more than time or ability permits. Working under time pressure is especially stressful.
Role Underload: Role Underload is the condition in which employees have too little work to do or
too little variety -in their work. For example, salespeople in a store with no customer, standing
around all day with nothing to do, could be said to experience role underload. Ironically, role
underload leads to low self-esteem, increased frequency of nervous symptoms and increased
health problems.
Ethical Dilemmas: Ethical dilemmas such as whether or not one should report the observed
unethical behaviors of another person can cause extreme levels of stress in individuals. This will
be especially true for those who have strong moral values of right and wrong and a deep sense of
personal and corporate social responsibility. Tensions arise because one might have to contend
against one's own colleagues who might be close friends, and may fear of reprisal and other
undesirable consequences.
Interpersonal Relationships
Another major source of stress in organization is poor interpersonal relationships with supervisors,
subordinates, coworkers. or clients. When interpersonal relationships at work are unpleasant, employees
develop a generalized anxiety, a diffuse feeling of dread about upcoming meetings and interactions.
Three aspects of interpersonal relationships at work, which have a negative impact on job stress, are as
follows:
Amount of contact with others: Jobs vary in terms of how much interpersonal contact is built
into them. Too much prolonged contact with other people can cause stress.

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Amount of contact with people in other departments: Having contacts with people outside
one's own department creates a special sort of stress. People in other departments do not always
have an adequate understanding of jobs outside their own areas, which can cause stress.
Organizational climate: The overall psychological climate of the organization can create stress.
When day-to-day life in an organization is marked by unfriendly, distant, or hostile exchanges,
employees are continually tense and this causes stress.

Organizational Factors
Following are the organizational factors that cause stress in individuals:
Work environment factors such as noise, heal, poor lighting, radiation and smoke are stressinducing agents.
Insufficient resources such as time, budget, raw materials, space or manpower also induce stress
in the work environment. When one has to produce and perform with inadequate resources on a
long-term basis, this naturally imposes stresses and strains on the individuals who are
responsible for getting the job done.
Structural factors in the organizational setting such as staff rules and' regulations and reward
systems, may cause stress.
Lack of career promotion in organizations may be sometime cause stress.
Environmental factors of stress include sudden and unanticipated changes in the marketplace,
technology, the financial market and so on.
Personal Factors
Employees personal lives have a marked effect on their lives at work. If things are going well personally,
they are more likely to be upbeat and optimistic. They have more energy and patience for dealing with
problems at work. On the other hand, if employees are having some personal problems, they might be
more tense or distracted when they go to work.
Factors that influence how much stress people bring from their persona! lives to the work setting
are as follows:
Career Concerns: One major career concern that can cause stress is lack of job security. A
second career concern that can cause employees stress is status incongruity, i.e., having jobs
with less status, power and prestige than they think they deserve.
Geographical Mobility: Geographical moves create stress because they disrupt the routines of
daily life. When geographical moves arc undertaken as part of a job transfer, the moves can be
even more stressful. The transferred employees are likely to feel out of control at work, too, and
experience their new work environments as unpredictable.
EFFECTS OR CONSEQUENCES OF JOB STRESS
Negative stress has unpleasant consequences for them, their families and for the organizations they
serve.
Effects on the Individual
The impacts of distress on individuals are of following types:
The subjective or intrapersonal effects of stress are feelings of anxiety, boredom, apathy,
nervousness, depression, fatigue, and anger. Sometimes experiencing the stress may cause
aggressive behaviors on the part of the individual.
The cognitive effects include poor concentration, short attention span, mental blocks and inability to
make decisions.
The physiological effects can be seen in increased heart and pulse rate, high blood pressure, dryness
of throat, and excessive sweating.
The behavioral effects arc manifest in such things as accident proneness, drinking, excessive eating,
smoking, impulsive behaviors, depression, and withdrawal behaviors.
The manifest health effects could be stomach disorders, asthma, eczema, and other psychosomatic
disorders. In addition, the mental health, i.e. the ability lo function effectively in one's daily life, will
also decline as excessive stress is experienced.

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Consequences for the Family

Negative stress, which is handled by individuals in dysfunctional ways, such as drinking or withdrawal
behaviors, will have an adverse effect on their home life. Spouse abuse, child abuse, alienation from
family members, and even divorce could result from dysfunctional coping mechanisms.
Consequences to Organizations
The adverse consequences on an organization include low performance and productivity, high rates of
absenteeism and poor decision-making. It also leads to lost of customers because of poor worker
attitudes, increased alienation of the worker from the job, and even destructive and aggressive behaviors
resulting in strikes and sabotage. The stresses experienced by employees who take on critical roles and
are responsible for safety can sometimes be detrimental to the public. For instance, the stresses
experienced by a train driver or railway guard, or that of an airline pilot, navigator, or air traffic controller
may result in serious accidents. Needless to say that the costs of employee stress to the organization in
terms of lost profits, poor image and loss of future business are enormous.
METHODS OF MANAGING STRESS
Stress is a factor that everybody has to contend with on a daily basis both in the work and non-work
spheres of life. Since the body has only a limited capacity to respond to stress, it is important for
individuals to optimally manage their stress level to operate as fully functioning human beings.
There are several ways in which stress can be handled so that the dysfunctional consequences
of stress can be reduced. Some of them are:
Role Analysis Technique (RAT)
The Role Analysis Technique helps both the manager and the employee to analyze the requirements and
expectations from the job. Breaking-down the job into various components clarifies the role of the job for
the entire system. This also helps to eliminate reduction of work and thus lowering down the stress level.
Job Relocation
Job relocation assistance is offered to employees who are transferred, by finding alternative employment
for the spouses of the transferred employees and getting admissions in schools for their children in the
new place. These arrangements help to reduce the anxiety and stress for the moving family.

Recreational Program
Providing recreational facilities, arranging group meditation programs, help to reduce the stress levels of
the employees.
Employee Assistance Program
Another widely used strategy is the employee assistance Programs, which offer a variety of assistance to
employees. These include counseling employees who seek assistance on how to deal with alcohol and
drug abuse, handling conflicts at the work place, dealing with marital and other family problems.
Career Counseling
Career Counseling helps the employee to obtain professional advice regarding career that would help the
individual to achieve personal goals. It also makes the employees aware of what additional educational
qualifications or specialized technical training, if any, (hat they should acquire. By becoming
knowledgeable about the possible avenues for advancement, the employees who consider their careers
to be important can reduce their stress levels by becoming more realistic about their options and can start
preparing themselves for it.
Time Management
Another way of coping with stress is to manage time more effectively. People can learn to get better
organized so that they can do their work more efficiently.
Delegation

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Another way of coping with job stress is to delegate some responsibilities to others. Delegation can
directly decrease workload upon the manager and helps to reduce the stress. !
More Information and Help
Some new employees have to spend more time on a job than necessary because they are not sure what
they are doing. So it is necessary that some help should be provided before doing the work that would
lead to much efficient, effective work. It would also reduce anxiety and stress among the employees.
Health Maintenance
Probably the most frequently used organizational stress management program is health maintenance.
Many companies invest large sum of money in gym and sport facilities for maintaining the health of the
employees.
Supervisor Training
Another type of stress management Program that organizations are experimenting with is supervisor
training. The emphasis on supervisory training Program is how to prevent job stress. Managers are
trained to give better performance appraisals, to listen to employees problems more effectively, and to
communicate job assignments and instructions more clearly.
Individual Stress Reduction Workshops
Some organizations have also sponsored individual stress reduction workshops for their employees.
These programs include biofeedback, meditation to career counseling, time management and
interpersonal skills workshops. In lectures and seminars, participants are given a basic understanding of
the causes of stress and its consequences. Then, participants are given materials to help them identify
the major sources of stress in their own lives, and some strategies for dealing with that stress more
effectively.

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LESSON-16
POWER AND POLITICS
Learning Objectives
After reading this lesson, you should be able to:
Know the meaning and sources of power.
Understand how people use power
Discuss how people use political behavior in organizations
Understand the techniques of political behavior
Power is easy to feel but difficult to define. It is the potential ability of a person or group to influence
another person or group. It is the ability to get things done the way one wants them to be done. Both
formal and informal groups and individuals may have power; it does not need an official position or the
backing of an institution to have power. Influence can take many forms. One person has influenced
another if the second person's opinions, behavior or perspectives have changed as a result of their
interaction. Power is a factor at all levels of most organizations. It can be a factor in almost any
organizational decision.
POWER AND AUTHORITY
Sometimes power and authority is used synonymously because of their objective of influencing the
behavior of others. However, there is difference between the two. Power does not have any legal sanctity
while authority has such sanctity. Authority is institutional and is legitimate. Power, on the other hand, is
personal and does not have any legitimacy. But stilt, power is a crucial factor in influencing the behavior in
organizational situation.
Sources of Power
John R. P. French and Bertram Raven identified five bases or sources of power: legitimate, reward,
coercive, expert and referent power.
Legitimate Power
A person's position within organization provides him with legitimate power. The organization gives
managers the power to direct the activities of their subordinates. Legitimate power is similar to formal
authority and hence it can be created, granted, changed or withdrawn by the formal organization. The
structure of the organization also identifies the strength of the legitimate authority by position location. For
instance, higher-level positions exercise more power than lower-level positions in a classical hierarchical
organizational structure. Organizations vary in how much legitimate power they grant to individuals. In
such organizations, everyone knows who has the most power and few people challenge the power
structure.
Reward Power
This type of power is the extent to which one person has control over rewards that are valued by another.
The greater the perceived values of such rewards, the greater the power. Organizational rewards include
pay, promotions and valued office assignments. A manager who has complete control over such rewards
has a good deal of power. Manager who uses praise and recognition has also a good deal of power.
Coercive Power
People have, coercive power if they have control over some form of punishment such as threat of
dismissal, suspension, demotion or other method of embarrassment for the people. Perhaps, a manager
can cause psychological harm also lo an employee. A managers coercive power increases with the
number and severity of the sanctions over which the manager has control. Although the use of coercive
power is often successful in the short run, it tends to create resentment and hostility and therefore is
usually detrimental to the organization in the long run.
Expert Power

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It is more of personal power than organizational power. Expert power is that influence which one wields
as a result of one's experience, special skill or knowledge. This power occurs when the expert threatens
to withhold his knowledge or skill. Since any person who is not easily replaceable has more power as
compared to those who are easily replaceable. If the sub-ordinates view their superior as competent, and
knowledgeable, naturally they will obey and respect the superior. To the extent, that a low-ranking worker
has important knowledge not available to a superior, he is likely to have more power.
Referent Power
A person who is respected by certain others for whatever reason has referent power over those people. A
person with referent power may have charisma and people who respect that person are likely to get
emotionally involved with the respected person and identify with, accept and be willing to follow him or
her. People with referent power are often imitated by others with the star's actions, attitudes and dress.
This imitation reflects the rising star's power over the imitations.
HOW PEOPLE USE POWER
An individual manager may have power derived from any or all of the five bases of power and the
manager may use that power in different 1 ways. Therefore, good managers must try to analyse the
sources of their power and be careful how they use that power.
The work of Gary Yukl provides both a way to predict the consequences of certain uses of power
and guidelines for using power. The following table list^ the five sources of ;i leader's power and some of
the variables that are likely to lead to three general types of employee responses or outcomescommitment, compliance and resistance-when the leader uses the power. For instance, the table shows
that a leader's use of referent power will lead employees to be committed lo the leaders project if they
see that the project is important to the leader. However a leader who relics on coercive power is very
unlikely to have committed employees.
Using Legitimate Power
The use of legitimate power is seldom challenged in an organization; when a superior asks a sub-ordinate
to do something, the sub-ordinate usually complies without resistance. However, the way the superior
makes the request and follows it up are very important for ensuring the sub-ordinates future compliance
and the growth of the superior's referent power. Though the secretary does what the boss asks, still the
boss could be cordial and polite when making requests and should whenever possible explain why a
particular task needs to be done. The secretary who understands the importance of a task will be more
likely to work enthusiastically on it.
The boss must follow normal procedures and make sure the request is appropriate. For instance,
a vice-president whose secretary is busy should not assume that he or she can just ask a supervisor's
secretary to drop all other work and type a letter. Such by passing of the normal chain of command can
cause hard feelings among all the people involved.
Most of these suggestions imply that managers must be sensitive to employees concerns.
Managers who are insensitive to their employees may find that their legitimate power dwindles and that
they must resort to coercive power.
Using Reward Power
The manager, before giving a reward, must be sure that the employee has actually done the job and done
it well. Employees must know that they get rewarded for good work.
Using Coercive Power
For some people, using coercive power is a natural response when something goes wrong. But often
employees resist coercive power, resent it and losing respect for people using that type, of power. Hence,
coercion is now generally recognized to be the most difficult form of punishment to use successfully in an
organization.
Managers who wish to maintain their credibility should make threats only when they intend to
carry through on them and should never threaten a punishment that they cannot bring about. A good
manager will be such that the punishment fit the crime. For instance, warning an individual who uses
copying machine to make -personal copies but firing someone who steals equipment from the

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organization. Public punishment makes everyone uneasy and humiliating and hence should be done
private.
Using Expert Power
To gain power from their expertise, managers must make people aware of how much they know. Manager
can use his expert power most effectively to address employee concerns. If a particular sales person
faces any difficulty in selling a particular product and turns to manager for his help, the manager must be
able to identify the defect and must be able to help and educate him.
Using Referent Power
Leaders have traditionally strengthened their referent power by hiring employees with backgrounds
similar to their own. One of the most positive and subtle uses of referent power is the process of rote
modeling. A respected manager who wants her employees to be punctual, considerate and creative can
simply demonstrate those behaviors herself and her employees will likely imitate her actions.
POLITICAL BEHAVIOR AND ORGANIZATIONAL POLITICS
Power and politics are inextricably interwoven with the fabric of an organization's life. In any organization,
at any given moment, a number of people are seeking to gain and use power to achieve their own ends.
This pursuit of power is political behavior. Organizational politics refers to the activities carried out by
people to acquire, enhance and use power and other resources to obtain their preferred outcomes in a
situation where there is uncertainly or disagreement. One great organizational scholar, Tushman defined
politics, as the structure and process of the use of authority and power to affect definition of goals,
directions and the other major parameters of the organization. Decisions are not made in rational or
formal way but rather through compromise accommodation and bargaining.
Managing Political Behavior
The very nature of political behavior makes it difficult to manage or even approach in a rational and
systematic manner. However a manager who understands why people use political behavior and the
techniques people usually employ has the best chance to manage political behavior successfully.
People use political behavior in organizations in response to the five main factors:
Ambiguous goals
Scarce resources
Technology and the environment
Non-Programmed decisions
Organizational change
FACTORS INFLUENCING POLITICAL BEHAVIOR
Ambiguous Goals
When the goals of a department or the entire organization are ambiguous then there is more room
available for playing politics. Some people may use the ambiguity to manipulate the situation for their
benefit.
Scarce Resources
When resources are scarce, people have the tendency to use political behavior to make sure that they get
the biggest possible share of the resource.
CHANGES IN TECHNOLOGY AND ENVIRONMENT
Organizational effectiveness is largely a function of the organizations ability to appropriately respond to
external environment which is highly dynamic and generally unpredictable as well as adequately adopt to
complex technological developments. Thus, political behavior is increased when the internal technology is
complex and when external environment is highly volatile.
Non-Programmed Decisions
Sometimes, the companies have to make a lot of non-Programmed decisions on certain issues. These
decisions are not based on clear standards and precedents, because such issues involve many factors

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and variables that are complex in nature. Hence decisions are taken on intuition, bunch and guesses and
all these subjective feelings can be affected by political behavior.
Organizational Change
Whenever there are changes in the organizational structure and policies, peoples in powerful positions
have the opportunity to play politics. These changes may include restructuring of a division or creating a
division, personnel changes, introducing a new product line and all these changes influence political
behavior when various individuals and groups try to control the given situation.
It is widely accepted that managers have to be politicians in order to maintain their positions in
the organizational hierarchy as well as serve the interests of their units. Pfeiffer, who has done extensive
research on -the subject of power in organizations, states as follows:
If there is one concluding message, it is that it is probably effective and it is certainly normal that
these managers do behave as politicians. If is even better that some of them are quiet effective at it. In
situations in which technologies are uncertain, preferences are conflicting, perceptions are selective and
biased and information processing capacities are constrained, the model of an effective politician may be
an appropriate one for both the individual and for the organization in the long-run.
TECHNIQUES OF POLITICAL BEHAVIOR
The most commonly used techniques of political behavior are:
Controlling information
Controlling lines of communication
Controlling agenda Using outside experts
:
Game playing
Image building
Building coalitions
One technique of political behavior is to control the dissemination of critical information to others. The
more critical (he information and fewer the people who have it, the stronger is political power base of
those who possess these information.
Controlling lines of communication is another political technique related to the flow of information.
People who have some control over lines of communication can yield considerable political power. For
example, the secretary may have considerable power in deciding who sees the boss and who does not at
a given time. She may use this power in favoring those whom she likes and frustrating those against
whom she may have it grudge.
Controlling the agenda also gives a person power over information. The person who controls a
meeting's agenda, for instance, may consistently put a particular item last on the list and then take up
time so that meeting adjourns before considering the item.
The opinions of outside experts and consultants often curry much weight in organizations and many
consultants can be swayed by political interests. Consultants know who is paying them and even honest
consultants are likely to give opinions consistent with those of their employer. Hence, hiring an outside
consultant can be a clever political move.
Game playing can range from fairly innocent to very manipulative. It involves people doing something
insincere, but not outright illegal or unethical to gain political ends. For instance, a manager who does not
want to answer a committee's tough questions may, for instance, avoid meeting by going out of the town
on the day of meeting.
Image building is creating positive impression reflected by the personality, appearance and style.
Some of the factors that enhance a preferred image consist of being well dressed, having a pleasant
smile, being attractive, honest, sociable and loyal to the organizational interests. In addition, always
project an image of competence and self-assurance.
Building coalitions or alliance is another technique of gaining political power. It is necessary to have
the alliance with the right people. Coalition building can become simply a matter of quid pro quo: I will
support you if you will support me.
Managing Political Behavior

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Though it is virtually impossible to eliminate political behavior in organizations, it is possible to reduce it, if
a manager understands the reasons for it and the techniques of political behavior. Politics when carried to
the extreme can damage morale, create enemies, destroy loyalty, damper co-operative spirit and much
time and energy is spent planning attacks and counter attacks which are detrimental to organizational
health. Accordingly, combating politics must be undertaken by the top management and some of the
steps that can be undertaken are: open communication, reduction of uncertainty and creating awareness.
Open communication can reduce the political activity if all employees know how and why an
organization allocates resources, the employees will be likely to put their energy into meeting the stated
criteria for gelling resources rather than into political activity. If the organization is open about why it made
particular decision, then employees will he less likely to think that the decisions were political and less
likely to use political techniques to try to influence the next decision.
Uncertainty in the form of ambiguous goals and changes that affect the organization tends to
increase the use of political activity. Reducing such uncertainty can, therefore, reduce the political
behavior. Open communication is one of the ways an organization can reduce uncertainty. For instance,
laying down clear criteria and making it transparent to the employees who will be laid off, in case of lay off
the organization can reduce political behavior.
Finally, managers who develop an ability to recognize and predict political activity are in the best
position to limit its effects. Managers with this awareness will expect an increase in political activity during
times of organizational change and will learn how to handle it.

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LESSON -17
ORGANIZATIONAL DESIGN
Learning Objectives
After reading this lesson, you should be able to:
Understand the concept of organizational design
Identify the determinants of organizational design
Know the various forms of organizational design
CONCEPT OF ORGANIZATIONAL DESIGN
Organizational design is the overall configuration of structural components that defines jobs, groupings of
jobs, the hierarchy, patterns of authority, approaches to co-ordination and line-staff differentiation into a
single and unified organizational system. Consider, for example, the differences in organizational design
that might exist between a computer manufacturer and university. Since the computer manufacturer has
to respond to frequent technological breakthroughs and changes in its competitive environment, it is likely
to have a relatively flat and decentralized design whereas the university has a more stable environment
and is less affected by technology. Therefore, it has a more centralized structure with numerous rules and
regulations.
DETERMINANTS OF ORGANIZATIONAL DESIGN
The key situational determinants of organizational design are technology, organizational environment, and
organization size and life cycle.
Technology: Technology is the set of processes that an organization uses to transform various
resources such as materials and labor into products or services. Joan Woodward was the first
person to see the link between technology and organizational design. In particular. Woodward
defined three basic types of technology.
In unit or small-batch technology, products are manufactured according to customer
specifications in small quantities. Examples are printing press and studios.
In large batch or mass-production technology, products. are manufactured in assembly-line
fashion by combining component pans to create finished goods. Examples are home-appliance,"
automobile and computer manufacturers.
In continuous-process technology, products are transformed from raw materials into finished
goods through a series of machine transformations that change the composition of the materials
themselves. Examples are petroleum refiners, food processors and chemical manufacturers.
Woodward viewed unit or small-batch technology as -the least complex while the continuous
process technology as the most complex. She found that organizations within each set had
similar designs but the designs varied somewhat from set to set.
Bums and Stalker argued that managers should examine the rate of change in technology
to determine the best organizational structure. They recommended a bureaucratic or mechanistic
structure for organizations with slowly changing technology and an organic or flexible structure for
organizations with rapidly changing technology.
Charles Perrow concluded that me key question concerning an organizations technology is
whether it is routine or non-routine. In his view, a highly formalized centralized structure is
appropriate for an organization that uses the same routine technology while a more flexible
structure is necessary for an organization that often uses new technology. '
An organization that uses continuous process, non-routine or intensive technology needs to
ensure that its structure can adapt to changes in the technologies. Technology can affect all
aspects of an organization, not just production and the same technological change can have very
different effects on different organizations.

Environment: The environment also influences the type of design an organization is likely to
adopt. The environment of an organization consists of all the factors and conditions outside the

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organization that might affect it. which include customers, shareholders competitors, legislatures
and regulatory agencies, economic factors, which include interest rates, unemployment rate,
finance, objects, which include buildings, machines and events, which include as elections, war,
floods etc.
If the managers are good at analyzing and predicting changes in the environment, then,
they can help the organization to take advantage of any change. Since the environment affects
organization both directly and indirectly, therefore, the managers must keep an eye on it and be
ready to modify organization's design to respond to environmental changes.

Organizational Size and Life Cycle: Organization size refers to how large :
the organization
is, usually, in terms of the number of its full-time employees. Life cycle refers to organization's
maturity relative to that of other organizations.

Size can affect organization design in many different ways. A group of researchers in England
found that large organizations tend to have more job specialization, more standard operating procedures,
more rules and regulations, and more decentralization than small organizations. Thus, as organizations
grow in size, they should be prepared to adapt their design accordingly.
An organization's life cycle is related to its size. Organizations tend to follow a predictable pattern
of growth. After they are created, they grow for some period of time and then eventually stabilize as a
mature organization.
To summarize, an organization design needed by a small but rapidly growing business is different
from an organization design needed by an established and entrenched industry giant growing at a stable
and predictable rate. An organization's life cycle and growth rates are directly linked to the strategy that
the organization is pursuing. The following figure 17.1 shows the organization cycle.

CONTEMPORARY FORMS OF ORGANIZATIONAL DESIGN

Every organization has its own unique design depending on its technology. limits and potentials of" its
environment and the life cycle stage it follows. Following are the various forms of an organization based
on their design:
The U-Form Organization: In the U-form organization. U stands for Unity, It is also called as
"functional design as it relies exclusively on the functional approach to departmentalization.
Members of the organization who perform the same functions arc grouped together into
departments. Such organization requires perfect co-ordination to operate smoothly aiming the
various departments, since each department is highly dependent on another.
The U-Form design has several advantages. It allows an organization to staff each department
with experts; it also facilitates wide spans of management and helps the Managing Director to
maintain centralized authority.
However, the U-form design shows decision-making and employees within each department
may concentrate on their own function forgetting overall organizational goals. It tends to make it
hard for organization to monitor the performance of individual managers within each functional
area. When the organizations grow, they often find that the disadvantages of the U-form tend 10
become more significant and adopt different designs as they evolve through their life cycles.
The H-Form Organization: In the H-form organization, H stands for Hybrid and is also known as
conglomerate. The design relics on product departmentalization with the various products constituting

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different businesses. This design usually results from the corporate strategy of unrelated diversification of
the products.
This design has two advantages. First, such an organization can protect itself from cyclical fluctuations in
a single industry. The loss in one product is compensated by profit in another. Secondly, an organization
can buy and sell its individual businesses with little or no disruption to the others. The main disadvantage
of this form of organization is that it is complex and diverse thereby creating difficulty for top managers in
having knowledge about all products. The figure 17.2 shows the H-form organization.

The M-Form Organization: In the M-form organization M stands for Multi-divisional and it is
called the divisional design. It is similar to the H-form design but has one notable distinction. Most
of its businesses are in the same or related industries. For example, an organization with an Mform design might own one business that manufactures automobile batteries, other that
manufactures lyre and still another that manufactures car polish. Although each is distinct from
the other but still related, in terms of manufacturing products that is used by automobile owners.
Thus, the M-form design is used to implement a corporate strategy of related diversification.
A primary advantage of the M-form organization is that it can achieve a great deal of synergy in
its operations. For example, a consumer familiar with an organizations batteries will be inclined to
buy its tyres and car polish. Moreover, because the various units are in the same or related
businesses, it is easy for top managers to understand, co-ordinate and control them. However, if
the businesses are too closely related, 'the organization cannot escape from the effect of cyclical
fluctuations.

The Matrix Organization: A matrix organization is created by overlaying product-based

departmentalization on lo a functional structure. A matrix design is seldom used for an entire
organization and is often used for a portion of it. Figure 17.3 shows the matrix organization.

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A matrix design allows an organization to capitalize on the advantages of both functional and
product departmentalization. It has also some drawbacks such as an organization lacks a clear
chain of command thereby 'resulting into confusion about which manager lies authority over a
given employee. The organization also has to devote more resources to coordination because of
high levels of interdependence that result from a matrix.
Global Organization: An organization, which has assets in more than one country other than its
home country is called as global organization. Such companies have offices and/or factories in
different countries and usually have a centralized head office where they coordinate the global
management. These organizations have centralized head office in their home country that
controls their various office in other parts of the world.
A global organization must modify and adapt its design to allow it to function effectively. e.g.
Nestle is a big global organization and highly decentralized. Us organizational design is like an
umbrella. Nestls various organizations scattered around the world are operated by its own
general managers, who arc empowered with a great deal of autonomy and authority to make
decisions. As a result, Nestle is almost a confederation of independent operating organizations.
Its design is similar to the M-form but because the operating units are so far apart that there is
little synergy.

It is to be remembered that there is no one best form of design that all organizations should
adopt. Each organization has to carefully assess its own strategy, its strengths and weaknesses, its
history, its technology, environment, life cycle and size. It must then choose a design that fit these
elements most effectively.

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LESSON -18
ORGANIZATIONAL CULTURE AND CLIMATE
Learning Objectives
After reading this lesson, you should be able to understand:

Organizational culture and explain its importance.

Factors affecting organizational climate

CONCEPT OF ORGANIZATIONAL CULTURE

Organizational culture is the set of values that states what an organization stands for, how it operates and
what it considers important. According to Deal and Kennedy, a strong culture is. "a system of informal
rules that spells out how people have to behave most of the time". Schein defines organizational culture
as the pattern of basic assumptions that a given group has invented, discovered and developed while
learning to cope with its problems of external adaptation and internal integration.
All the above definitions stress acceptable and unacceptable behavior of its members. For
instance, one organization might value solidarity and loyalty to organization more than any other value
whereas another organization might stress on good relations with customers. Such values are part of
organizational culture in spite of not being formally written like rules and regulations of the organization.
They do not usually appear in the organizational training Program and in fact, many organizations have
difficulty in expressing their cultural values. However, an organization's values automatically enter every
employee's personal values and actions over a period of time. Organizational culture has a profound
influence on individual employees because it is generally an accepted set of values rather than a written
set of rules with which employees might not argue.
Importance of Culture
Culture plays a very significant role in any organization by communicating information about the overall
acceptable and unacceptable behavior. Culture communicates whether the organization expects its
managers to be aggressive or conservative in decisions-making, generous or moderate in supporting
social causes and ruthless or kind in competitive dealings.
Some organizations have clear, strong and well-defined culture whereas: others have ambiguous,
weak and poorly defined cultures. Most managers agree that a strong and clear culture is preferable to
weak and vague culture because it helps to provide a common frame of reference for managerial
decision-making and a wide variety of other organizational activities.
An organizational culture generally lakes shape over time and is often deeply influenced by the
values of the organizational founders. As organizational culture evolves, various symbols, stories, heroes,
slogans and ceremonies also come into being. These, then, serve to maintain and perpetuate the culture
through subsequent generations of employees.
Changing Organizational Culture
Change is most often needed when the organization has lost its effectiveness and is struggling to either"
carry out or change its strategic goals. The manager trying to change an organizational culture faces lots
of difficulties. Because organizational culture embody the organizational values, which are embedded in
organization's soul that stays stable irrespective of the changes in leadership and environment.
It is, however, possible to change organizational culture, to improve the organization
performance. For this managers must change employee's ideas about what is and what is not appropriate
behavior. They must create new role model and new stories to help employees understand the meaning
of what is happening around them. One way to brine about such changes is to manage the symbols that
are important to the organization. An organization's suggestion box is a symbol of an organization's
openness to the ideas of the employees. Some organizations try to emphasize the importance of
employees ideas by rewarding them for their suggestions. However, if the suggestion box remains just a
symbol and organization never translates the suggestions into actions, the box will have little effect on
organization morale.

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Once successfully made, changes in the organizational culture will be as stable as the old culture
was. However, any organization willing to change its culture must realize that such a change is never
easy and cannot be brought about simply by ordering employees.
Organizational Climate
Even though organizational culture and organizational climate are sometimes used interchangeably, there
are certain differences between the two. According to Bowditch and Buono. "Organizational culture is
concerned with the nature of beliefs and expectations about organizational life, while climate is an
indicator of whether those beliefs and expectations are being fulfilled." Organizational climate is a
relatively enduring quality of the internal environment that is experienced by its members, influences their
behavior, and can be described in terms of the values of a particular set of characteristics."
It is a set of characteristics and factors of the organization that are perceived by the employees and,
which serve as a major force in influencing their behavior. These factors may include job descriptions,
performance arid evaluation standards, leadership style, challenges and innovations.
FACTORS AFFECTING ORGANIZATIONAL CLIMATE
In every organization, there exist certain factors that exert deep influence on the climate. Schneider and
Barlett describe six factors that have an influence over organizational climate such as managerial support,
inter-agency conflict, agent dependence and general satisfaction. Lawrence James and Allan Jones have
identified five factors influencing climate, which include management philosophy, organizational structure
and process, which include communication, motivation and leadership, physical environment and values.
Similarly, Kahn has identified factors such as rules orientation, the nurture of subordinates, strict
supervision and promotional achievement orientation. Thus, it is very difficult to generalize exactly the
factors affecting the climate.
Organizational climate has a major influence on human performance through its impact on the
motivation, job satisfaction and attitudes of people.

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LESSON - 19
ORGANIZATIONAL EFFECTIVENESS
Learning Objectives
After reading this lesson, you should be able to understand:

The concept of organizational effectiveness

Factors contributing organizational effectiveness

CONCEPT OF ORGANIZATIONAL EFFECTIVENESS

Organizational effectiveness is defined as an extent to which an organization achieves its predetermined
objectives with the given amount of resources and means without placing undue strain on its members.
Sometimes efficiency and effectiveness are used as synonyms. However, there exists a
difference between the two concepts. Therefore, it is important to explain the difference between the
concepts of effectiveness and efficiency to understand why organizations may he effective bin not
efficient, or efficient but not effective. Effectiveness is a broad concept and takes into account a collection
of factors both inside and outside an organization. It is commonly referred to as the degree to which
predetermined goals are achieved. On the other hand, efficiency is a limited concept that pertains to the
internal working of an organization. It refers to an amount of resources used to produce a particular unit of
output. It is generally measured as the ratio of inputs to outputs.
Further, effectiveness concentrates more on human side of organizational values and activities
whereas efficiency concentrates on the technological side of an organization. However the concept of
effectiveness is not simple because there are many approaches in conceptualizing this term. Such
approaches can be grouped into following three approaches:
Goal Approach,
Functional Approach
System Resource Approach
Goal Approach
Goal attainment is the most widely used criterion of organizational effectiveness, in goal approach,
effectiveness refers to maximization of profits by providing an efficient service that leads to high
productivity and good employee morale. Campbell has suggested several variables such as, quality,
productivity, efficiency, profit, turnover, accidents, morale, motivation and satisfaction, which help in
measuring organizational effectiveness. However, none of the single variable has proved to be entirely
satisfactory.
The main limitation of this approaches the problem of identifying the real goals rather than the
ideal goals.
Functional Approach
This approach solves the problem of identification of organizational goals. Parson states that since it has
been assumed that an organization is identified in terms of its goal, focus towards attainment of these
goals should also aim at serving the society. Thus, the vital question in determining effectiveness is how
well an organization is doing for the super-ordinate system.
The limitation of this approach is that when organizations have autonomy to follow its
independent courses of action, it is difficult to accept that ultimate goal of organization will be to serve
society. As such, it cannot be applied for measuring organizational effectiveness in terms of its
contributions to social system.
Both the goal and functional approach do not give adequate consideration to the conceptual
problem of the relations between the organization and its environment.
System Resource Approach
System-resource approach of organizational effectiveness emphasizes on interdependency of processes
that relate the organization to its environment. The interdependence takes the form of input-output
transactions and includes scarce and valued resources such as physical, economic and human for which
every organization competes.
The limitation of this model is that an acquisition of resources from environment is again related
to the goal of an organization. Therefore, this model is not different from the goal model.

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Thus, discussion of organizational effectiveness leads to the conclusion that there is no single
indicator of effectiveness. Instead, the approach should focus on operative goals that would serve as a
basis for assessment of effectiveness.
Managerial effectiveness is a causal variable in organizational effectiveness. It has been defined
in terms of organizational goal-achieving behavior, i.e., the manager's own behavior contributes to
achievement of organizational goals.
FACTORS AFFECTING ORGANIZATIONAL EFFECTIVENESS
Likert has classified the factors affecting organizational effectiveness into following three variables:
Causal
Intervening
End result
Causal Variables
Causal variables are those independent variables that determine the course of developments within
an organization and the objectives achieved by an organization. These causal variables include only
those independent variables, which can be altered by organization and its management. Causal variables
include organization and management's policies, decisions, business and leadership strategies, skills and
behavior.
Intervening Variables
Intervening variables according to Likert are those variables that reflect the internal state and
health of an organization. For example, loyalties, attitudes, motivations, performance goals and
perceptions of all the members and their collective capacity for effective interaction, communication and
decision-making.
End-Result Variables
End-Result variables are the dependent variables that reflect achievements of an organization such
as its productivity, costs, loss and earnings.
Inter-Relationship of Variables
The three variables such as causal, intervening and end-result ore interrelated. The interrelationship may be visualized as psychological process where stimuli or causal variables acting upon the
organism or intervening variables and creating certain responses or end-result variables. The causal,
intervening and end-result variables comprise a complex network with many interdependent relationships.
The causal variables are the key to organizational effectiveness. Hence, to make organization effective,
attempt should be made to improve the causal variables, while other variables will be corrected or
improved automatically because of causal variables. Figure 19.1 shows the relationship among various
variables.
Casual Variables

Leadership Style

Management
Decision

Organizational
Philosophy
Objectives and
policies

Technology

Intervening Variables

Commitment to
Objective

Motivation and
Morale

Communication
Leadership Skills

Conflict Resolution

End Results Variables

Production

Cost

Sales

Earning

Turnover

Management Union
Relationship

Decision Making

Figure 19.1: Inter-relationship of Variables

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The above model is quiet simple. The effectiveness model can be presented in a more complex
way i.e. at three different levels such as the individual, group and organizational levels in order to make
the organization more effective. Figure 19.2 shows Levels of Variables.

The effective organization is built of effective individuals who work collectively in groups.
The extent to which individual and organizational goals are integrated, affects the degree of
organizational effectiveness, i.e., each individual tries to satisfy his goal by working in an organization and
simultaneously satisfying organizational minis. He may sec his goal satisfaction in satisfying
organizational goals. If there is no perfect integration of individual and organizational goals then
organizational effectiveness is affected adversely. However, organizational effectiveness is not a result of
integration between individual and organizational goals only but there are other causal variables affecting
it.
Effectiveness through Adaptive-Coping Cycle
The organization must develop a system through which it can adapt or cope with the environmental
requirements; Schein has suggested that an organization can do this through the adaptive coping cycle,
which consists of various activities that enable an organization to cope with the dynamics of environment.
Adaptive-Coping cycle is a continuous process. There are six stages in the adaptive-coping cycle as
follows:
1.
2.
3.
4.
5.
6.

Sensing of Change: The first stage is the sensing of change in internal or external
environment. Most of the organizations have adaptive sub-system such as marketing research,
research and development and other similar devices for effective coping with the environment.
Importing the Relevant Information: Organizations must be able to take the relevant
information from the environment, which constitutes the input.
Changing Conversion Process: The organization takes the inputs from environment for
further processing, normally known as conversion process.
Stabilizing Internal Changes: The fourth stage of the cycle is to stabilize an internal subsystem of an organization, which is dependent on external, sub-system. This is because change
in one may affect other and this change can be either positive or negative.
Exploring New Outputs: When the internal change is stabilised, the organization can export
new outputs, which are in accordance with environment requirements.
Obtaining Feedback: The last stage in the cycle is to obtain feedback on the outcome of the
changes for further sensing the state of the external environment and the degree of integration
of internal environment. This is similar to first stage.

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A successful coping suggests that all the stages have to be successfully-negotiated and failure at
any of these stages may result into ineffectiveness.
Following are the major organizational conditions for effective coping:
There should be an effective communication system through which reliable and valid information
can be passed.
There should be enough internal flexibility so that changes can be brought and absorbed by an
organization.
Successful coping requires integration and commitment to organizational goals, which provide
willingness for change.
There should be supportive internal climate, which can support good communication, reduction in
inflexibility and stimulation of self-protection.
Maintaining organizational effectiveness requires additional efforts, especially when the major
organizational changes take place.

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LESSON - 20
MANAGEMENT OF CHANGE

Learning Objectives
After reading this lesson, you should-be able to understand:
The concept of change in the organization
Forces affecting the change
Model and dynamics of planned change
The reasons for resistance to change
The method of overcoming resistance to change
Change simply refers to alteration in the existing conditions of an organization. Even in most stable
organizations change is necessary to maintain stability. The economic and social environment is so
dynamic that without adapting to such change even the most successful organizations cannot survive in
the changed environment. Therefore, management must continuously monitor the outside environment
and be sufficiently innovative and creative to implement these changes effectively.
Organizations encounter different forces for change. These forces come from external and
internal sources of the organization.
EXTERNAL FORCES
External forces for change originate outside an organization. There are four key external forces for
change:
Demographic Characteristics: These include age, education, skill level and gender of employees.
Organizations need to effectively manage these characteristics in order to receive maximum contribution
and commitment from their employees.
Technological Advancements: Both manufacturing and service organizations are increasingly using
technology as a means to improve productivity and market competitiveness.
Market Changes: The emergence of a global economy is forcing Indian organizations to change the way
they do business. Organizations are entering into new partnerships with their suppliers in order to deliver
higher quality products at lower prices.
Social and Political Pressures: These forces are created by social and political events. Personal values
affect employees needs, priorities and motivation. Therefore, managers need to adjust their managerial
style according to the changing employee values. Political events also create substantial change in an
organization. Although it is difficult for organizations to predict changes in political forces, many
organizations hire lobbyists and consultants to help them detect and respond to social and political
changes.
INTERNAL FORCES
Internal forces for change come from inside the organization. This may come from both human resource
problems and managerial behavior.
Human Resource Problems
These problems stem from employee perceptions about their work environment and conflict between an
employee and organization needs. Organizations might respond to these problems by using the various
approaches to job design by implementing realistic job previews and by reducing employees' role conflict,
stress, work overload and ambiguity.
Managerial Behavior
Excessive interpersonal conflict between managers and their subordinates is a sign of implementing an
immediate change. Inappropriate leader behavior such as inadequate direction and support are the cause
of conflict between managers and their subordinates.

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Nature of Change
Organizations introduce changes through people. Unless the people arc willing to accept the need and
responsibility for organizational change, intended changes can never be translated into reality. In addition,
individuals have to learn to adapt their attitudes and behavioral patterns to constantly
changing environments.
Management of change involves both individual and organizational change. Individual change is
behavioral change, which is determined by individual characteristics of members such as their
knowledge, attitudes, beliefs, needs, expectations and skills. It is possible to bring about a total change
m_ an organization by changing behaviors of individual members through participative and. educative
strategies. Although, the degree of difficulty involved in the change and the time taken to bring about the
change will depend on the target of change.
The attitudes towards change are largely dependent on the nature of the situation and the
manner in .which changes are initiated and executed.
Changing individual behavior is more time consuming and a difficult task. The linkage between
attitude and behavior is not direct and therefore changing behavior is more difficult than changing
attitudes. One's attitude does not necessarily get reflected in one's behavior. For example, we know that
honesty is the best policy and we have favourable altitudes towards people- who are honest but in certain
situations, we may still act in a less honest way.
Changing group behavior is usually a more prolonged and harder task. Every group has its own
dynamics of push and pull that attempt to neutralise the change that may have taken place in an
individual. Due to this group dynamics, individual member's changed behavior may revert to earlier
normative behavior in order to maintain the change in the existing conditions. However, due to the same
reasons of a group's over-riding influence on individual members, sometimes it may be easier to tackle
the group as a whole rather than trying to change the behavior of members one by one.
Bringing total behavioral change in all the groups and members of an organization involves
difficult long-range effort. More often than not, it is a slow painful process to usher a total cultural change
in an organization.
It is possible to change total organization without focusing at the level of individual's change of
knowledge, attitude and behavior. Modification in the organization's structures, policies, procedures and
techniques leads to total organizational change. These types of changes alter prescribed relationships
and roles assigned to members and eventually modify the individual members behavior and attitudes. As
these two kinds of changes are interdependent, the complexity of managing change increases manifold.
APPROACHES TO ORGANIZATIONAL CHANGE
As organizational change is a complex process, therefore managers must approach it systematically and
logically. Some organizational changes are planned whereas other changes are reactive. Planned change
is designed and implemented by an organization in an orderly and timely fashion in the anticipation of
future change.
Reactive change results from a reaction of an organization to unexpected events. In contrast to
planned change, it is a piece-meal response to circumstances as they develop. External forces that the
organization has failed to anticipate or interpret always bring about reactive change. Since reactive
change may have to be carried out hastily, it increases the likelihood of a poorly conceived and poorly
executed Program.
Planned change is always preferable to reactive change. Managers who sit back and respond to
change only when they can no longer avoid it are likely to waste a lot of time and money trying to patch
together a last-minute solution. The more effective approach is to anticipate the significant forces for
change working in an organization and plan ways to address them. To accomplish this, managers must
understand the steps needed for effective change.
A COMPREHENSIVE MODEL OF CHANGE

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The comprehensive model of change shown in the figure 20.1 shows seven steps that can lead to
effective change. This model is useful for both planned and reactive change.

The seven steps of comprehensive model of change are as follows:

Recognize need for change
The first step in this model is recognizing need for change. For marketing managers who anticipate
needed . change, recognition is likely to come much earlier, as a result of marketing forecasts indicating
new market potential, expert indications about impending socio-economic change or a perceived
opportunity to capitalize on a key technological breakthrough. These managers tend to initiate change
because they expect it to be necessary in the near future in any case.
Establish goals for change
The manager must then set goals for the proposed change. It is important for the manager to specify
goals that the change is supposed to accomplish. The goals can be set to maintain or increase the market
standing, to enter new markets, to restore employee morale, to reduce turnover, to settle a strike and to
identify good investment opportunities.
Diagnose relevant variables
An important next step is diagnosing organizational variables that have brought about the need for
change. Turnover, for example, may be caused by a variety of factors such as low pay, poor working
conditions, poor supervision, better alternatives in the job market or employee job dissatisfaction etc.
Thus, if turnover is the recognized stimulus for change, the manager must understand what has caused it
in a particular situation in order to make the right changes. To carry out this diagnosis, the manager may
discuss the situation with employees and other managers.
Select change intervention

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After the manager has developed an understanding of the problem and its causes then he must select a
change intervention that will accomplish the intended goal. An intervention is a specific change induced in
an organization with the intention of solving a particular problem or accomplishing a specific objective. For
example, if turnover is caused by low pay, then a new reward system is required and if the cause is poor
supervision then interpersonal skills and training for supervisors is required.
Plan implementation of change
The manager must then carefully plan the implementation of change. Planning the implementation of
change involves consideration of the cost of the change, how the change will affect other areas of the
organization and the degree to
which employees should participate in bringing about the change. Hastily implemented change can result
in more harm than benefit. For example, if the change involves the use of new equipment, the manager
should not make any changes that rely on the use of new equipment until it has arrived and been installed
and workers know how to use it. Moreover, if change is thrust upon them too quickly, their resistance may
stiffen.
Implement change
A systematically implemented change is more likely to proceed smoothly and to encounter fewer
obstacles than is a change that is implemented too quickly and without adequate preparation.
Evaluate implementation
Finally, after the change has been implemented, the manager should verify that it has accomplished its
intended goals. A change may fail to bring about the intended results. This may be due to inappropriate
goals or inaccurate diagnosis of the situation or wrong selection of intervention.
MODELS AND DYNAMICS OF PLANNED CHANGE
Managers are criticized for emphasizing short-term, quick fix solutions to organizational problems. Quickfix solutions do not really solve underlying problems and they have little staying power. Researchers and
managers have thus tried to identify effective ways to manage the change process. The following models
have been developed to effectively manage change:
Lewin's Change Model
Most theories of organizational change originated from the landmark work of social psychologist Kurt
Lewin. Lewin developed a three-stage model of planned change, which explained how to initiate, manage
and stabilize the change process. The three stages are unfreezing, changing and refreezing. Before
reviewing each stage, it is important to highlight the assumptions on which, this model is based:
1. The change process involves learning something new, as well discontinuing current attitudes,
behaviors and organizational practices.
2. Change will not occur unless there is motivation to change. This is often the most difficult part of
the change process.
3. People are the hub of all organizational changes. Any change, whether in terms of structure,
group process, reward systems or job design requires individuals to change.
4. Resistance to change is found even when the goals of change are highly desirable.
5. Effective change requires reinforcing new behaviors, attitudes and organizational practices.
The following are the three stages of change:
Unfreezing
The focus of this stage is to make organization open to change. In doing so individuals are encouraged to
replace old behaviors and attitudes with those desired by management. Managers also need to devise
ways to reduce the barriers to change during this stage.
Changing
The focus of this stage is in providing employees with new information, new behavioral models, or new
ways of looking at things. The purpose is to help employees learn new concepts to implement change.

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Role models, mentors, experts, benchmarking organization against world-class organizations and training
are useful mechanisms to facilitate change.
Re freezing
The focus of this stage is stabilizing the change during refreezing by helping employees integrate the
changed behavior or attitude into their normal way of doing things. This is accomplished by first giving
employees the chance to exhibit the new behaviors or attitudes. Once exhibited, positive reinforcement is
used to reinforce the desired change. Additional coaching and modelling are also used at this point to
reinforce the stability of the change.
Expanded Process Model
Lewin's model is very simple and straightforward and virtually all models of organizational change use his
approach. However, it does not deal with several important issues. Expanded process model is illustrated
in the figure 20.2. This model looks at planned change from the perspective of top management. The
model incorporates Lewin's concept as part of the implementation phase.

Figure 20.2
Top management according to this model perceives certain forces or trends that call for change
and issues that are subjected to the organization's usual problem solving and decision-making processes.
Usually, the top management defines its goals in terms of what the organization or certain processes, or
outputs will be like after the change. Alternatives for change are generated and evaluated and then an
acceptable one is selected.
RESISTANCE TO CHANGE
Although organizations initiate changes in order to adjust to the changes in their environments but people
sometimes resist them. Therefore, managers need to recognize the manifestations of resistance both in
themselves and in others, if they want to be more effective in supporting change. For example, managers
can use the list given in following table.

Acceptance

Enthusiasm
Cooperation
Cooperation under pressure from

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management
Acceptance
Passive resignation
Indifference

Indifference

Apathy: loss of interest in the job

Doing only what is ordered
Regressive behavior

Passive
Resistance

Non-learning
Protests
Working to rule
Doing as little as possible

Active
Resistance

Slowing down
Persona! withdrawal (increased time off
the job)
Committing "errors"
Spoilage
Deliberate sabotage

The sources of resistance to change within organizations are classified into organizational
sources of resistance and individual sources of resistance.
ORGANIZATIONAL SOURCES OF RESISTANCE
According to Daniel Kantz and Robert L Khan, organizational sources of resistance can be divided into
following six general groups.

Over determination or structural inertia refers to the tendency of an organization's rules, policies
and structure to maintain the existing conditions and therefore resist change even when change
would benefit the organization more than stability.
When an organization tries to change one of its division or part of the division without recognizing
the interdependence of the division with other divisions of the organization, then it is said to have
a narrow focus of change. Often a part of division cannot be changed without changing the whole
division.
Group inertia may weaken an individuals attempt to bring about change.
Resistance may also take the form of threatened expertise if the change lends to weaken special
expertise built after years of experience. Organizational restructuring that involves reducing the
number of job categories often meets this kind of resistance.
Any change that may alter the power relationships within an organization may meet the form of
resistance known as threatened power.
Resistance may occur when a change threatens quantum of resource allocation from one part of
the organization to another.

Individual Sources of Resistance

According to researchers, individuals have the following reasons for resisting change:
Simple habits create a lot of resistance. Most people prefer to do their work the way they did it
last week rather than learn a new approach.

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Perhaps the biggest cause of employee resistance to change is uncertainty. In the face of
impending change, employees are likely to become anxious and nervous. They worry about their
ability to meet new job demands therefore, leading to feeling of job insecurity.
Some people resist change to avoid feeling of loss. For example, many organizations change
interventions and alter work arrangements, thus disrupting existing social networks. Social
relationships are important to most people, so they resist any change that might adversely affect
those relationships. Change may also threaten people's feelings of familiarity and self-confidence.
People may resist change because their perceptions of underlying circumstances differ from the
perceptions of those who are promoting the change.

Valerie Stewart (1983), a British Psychologist and business consultant, has listed the following
characteristics of people who are good at managing changes.
1.
They know clearly what they want to achieve.
2.
They can translate desires into practical action.
3.
They can propose changes not only from their own view point but also from that of
others.
4.
They show reverence for tradition and respect for experience.
5.
They are not discouraged by setbacks.
6.
They harness circumstances to implement change.
7.
They clearly explain change to people affected by change.
8.
They involve their staff in the management of change and protect their security.
9.
They do not pile one change on another but wait for assimilation.
10.
They present changes as a relational decision.
11.
They make change by personally rewarding people, wherever possible.
12.
They share maximum information about possible outcomes.
13.
They show that change is related to business or job.
14.
They have a history of successful change.
OVERCOMING RESISTANCE TO CHANGE
Managers need not abandon planned change in the face of resistance. Before recommending specific
approaches to overcome resistance, there are three key conclusions that should be kept in mind. First, an
organization must be ready for change. Second, the top management should inform the employees about
the process of change. Third, the employees perceptions or interpretations of a change should be
considered.
The following methods of overcoming-resistance to change are as follows:
Participation: Participation is generally considered the most effective technique for overcoming
resistance to change. Employees who take part in planning and implementing change are better
able to understand the reasons for the change than those who are not involved. They become
committed to the change and make it work. Employees who have the opportunity to express their
own ideas and to understand the perspectives of others are likely to accept change gracefully. It
is a time consuming process.
Education and Communication: Educating employees about the need for and the expected
results of an impending change help reduce their resistance. Managers should maintain an open
channel of communication while planning and implementing change. However, it is also a time
consuming process.
Facilitation of Change: Knowing ahead of lime that employees are likely to resist change then
the manager should do as much as possible to help them cope with uncertainly and feeling of
loss. Introducing change gradually, making only necessary changes, announcing changes in
advance and allowing time for people to adjust to new ways of doing things can help reduce
resistance.
Force-Field Analysis: In almost any situation where a change is being planned, there are forces
acting for and against the change. In force-field analysis, the manager list each set of forces and
then try to remove or minimize some of the forces acting against the change.

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Negotiation: Where someone or some group will clearly lose out in a change and where that
group has considerable power to resist, there negotiation is required. Sometimes it is a relatively
easy way to avoid major resistance.
Manipulation and Cooperation: This is followed when other tactics will not work or are too
expensive. It can be quick and inexpensive, However, it can lead to further problems if people feel
manipulated.
Explicit and Implicit Coercion: This is adopted where speed is essential and where the change
initiators possess considerable power. It is speedy and can overcome resistance.

Each of the above methods has its advantages and disadvantages. There is no universal strategy
for overcoming resistance to change. Hence, an organization that plans to introduce certain changes
must be prepared to face resistance from its employees. An organization should also have a planned
approach to overcome such resistances.
ORGANIZATIONAL DEVELOPMENT
The term Organizational Development (OD) refers to a broad range of behavioral science based
strategies used to diagnose the need for change in organizations and to implement changes when
necessary. OD can be defined as a technique for bringing change in the entire organization, rather man
focusing attention on individuals to bring change easily in the entire organization.
Nature of OD
OD is a general strategy or approach to organizational change mat is employed to analyze and diagnose
the sources of organizational problems and to develop and implement action plans for their solution.
According to Bennis, OD has the following characteristics;
It is an educational strategy for bringing planned change.
It relates to real problems of an organization.
Laboratory training methods based on experienced behavior are primarily used to bring change.
Change agent applying OD technique for change is external to the forms of consultants.
There is a close working relationship between change agents and the people who are being
changed. The relationships involve mutual trust, joint goals, means, and mutual influence.
The change agents share social philosophy about human value. They are humanists seeking to
get a humanistic philosophy in organization.
OD Interventions
OD interventions refer to various activities which consultant and client organization perform for improving
organizational functioning by enabling organization members to better manage their team and
organization cultures. French and Well have defined OD interventions as "sets of structured activities in
which selected organizational units (target groups or individuals) engage with a task or a sequence of
tasks where the task goals are related directly or indirectly to organizational improvement. Interventions
constitute the action thrust of organization development; they make things happen and are what is
happening.
Intervention Techniques
Sensitivity Training
Process Consultation
Team Development
Grid Organization Development
Sensitivity Training: Sensitivity training is a small-group interaction under stress in an unstructured
encounter group, which requires people to become sensitive to one another's feelings in order to develop
reasonable group activity. In sensitivity training, the actual technique employed is T-group. T-group has
several characteristic features:
The T-group is generally small, from ten to twenty members
The group begins its activity with no formal agenda

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The primary role of trainer is to call attention of members from time to time lo the ongoing process
within the group
The procedure lends to develop introspection and self-examination, with emotional levels of
involvement and behavior.

The objectives of such training are increased openness with others, more concern for others,
increased tolerance for individual differences, less ethnic prejudice, understanding of a group process,
enhanced listening skills and increased trust and support.
Process Consultation: Process Consultation (P-C) represents a method of intervening in an ongoing
system. The basic content of P-C is that the consultant works with individuals and groups to help them
learn about human and social processes and learn to solve problems that stem from process events. P-C
consists of many interventions and activities which affect the various organizational processes such as.
communication, roles and functions of group members, group problem-solving and decision-making,
group norms, authority and leadership and inter-group cooperation and conflicts.
Team Development: The underlying aim of team development is to increase trust among team members
because people work better together when there is open and honest sharing about the problems and
difficulties that they have with one another. As such, at the initial level, the attempt should be to develop
such an environment where such trust can be developed among the team members
Grid Organization Development: Grid organization development, developed by Blake and Mounton, is a
comprehensive and systematic OD Program. The Program aims at individuals, groups and the
organization as a whole. It utilizes a considerable number of instruments, enabling individuals and groups
to assess their own strength and weaknesses. It also focuses on skills, knowledge and processes
necessary for effectiveness at the individual, group and inter-group and total organization levels.
In addition to these people focused interventions, there may be other types of interventions too.
e.g. structural and job interventions such as job enlargement, job enrichment, management by objectives,
rules, procedures and authority structure.
OD offers some very attractive methodologies and philosophies to practicing managers and
academicians. William Halal is right when he says "OD in future includes any method for modifying the
behavior in the organization, hereby, encompassing the entire spectrum of applied behavioral science".
There also have been experiences of failure in OD but these are being recorded and collected to be
reviewed. In general, OD shows a promising future, since there are no rigid sets of procedures in OD
work and different strategies have to be evolved for different types of organizations.

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MODEL QUESTION PAPER

ORGANIZATIONAL BEHAVIOR
Time: 3 Hours

Max. Marks: 100

SECTION-A
(5x8 = 40)
Answer any Five questions

Note: All questions carry equal murks

1. What do you understand by organizational behavior? Bring out its nature and importance.
2. Discuss the personality attributes in organization.
3. What is the organizational design? What are its forms?
4. What is group cohesiveness? What are its determinants?
5. What are the forms of organizational communications?
6. What are the sources of power?
7. What are the causes of stress?
8. What is organizational culture? How it affects the behavior of the people?
SECTIONB
Answer any four questions
1.
2.
3.
4.
5.
6.

(4x15 = 60)

Compare the Maslow's Theory with ERG Theory of Motivation.

What are the barriers to effective communication? How to overcome those barriers?
What are the techniques of managing political behavior?
State the consequences of stress and method of managing the stress.
Suggest strategies to resolve inter-group conflicts.
Why do people resist change? As a manager how would you overcome such resistance?

MODEL QUESTION PAPER

ORGANIZATIONAL BEHAVIOR
Time: 3 Hours

Max. Marks: 100

SECTION-A
(5x8 = 40)
Answer any Five questions

Note: All questions carry equal murks

9. What do you understand by organizational behavior? Bring out its nature and importance.
10. Discuss the personality attributes in organization.
11. What is the organizational design? What are its forms?
12. What is group cohesiveness? What are its determinants?
13. What are the forms of organizational communications?
14. What are the sources of power?
15. What are the causes of stress?
16. What is organizational culture? How it affects the behavior of the people?
SECTIONB
Answer any four questions
7.
8.
9.
10.
11.

(4x15 = 60)

Compare the Maslow's Theory with ERG Theory of Motivation.

What are the barriers to effective communication? How to overcome those barriers?
What are the techniques of managing political behavior?
State the consequences of stress and method of managing the stress.
Suggest strategies to resolve inter-group conflicts.

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12. Why do people resist change? As a manager how would you overcome such resistance?

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