UNIT 3

MOTIVATION

Learning Objectives: After studying this unit, the students should be able to understand
the concept and impact of motivation in organizations. Students shall also learn the
various theories of motivation. They will gain knowledge on how to apply motivation
concepts.

Unit Outline

Chapter-1 Introduction to Motivation

1.1

Motivation as a concept

1.2

Definitions of Motivation

1.3

Classification of theories of motivation

1.3.1

Content Theories

1.3.2

Process Theories

Chapter-2 Content Theories of Motivation

2.1

Maslows hierarchy of needs

2.2

Herzbergs theory

2.3

Alderfers ERG needs

2.4

McClleand learned needs

Chapter-3 Process Theories of Motivation

3.1

Cognitive Evaluation theory

3.2

Expectancy theory

3.3

Equity theory

3.4

Goal setting theory

3.5

Reinforcement theory (Behaviour Modification)

Chapter-4 Application of Motivational Concepts

Chapter 1
INTRODUCTION TO MOTIVATION
1.1 MOTIVATION AS A CONCEPT
The term motivation is derived from the Latin word movere which means to move.
It is an inner state that causes people to behave in certain ways. The common frame of
reference includes one or the following words in the definition of motivation: drives,
goals, incentives, desires, wants, need as almost every body has their own definition of
motivation. Motivation is the process that accounts for an individuals intensity, direction,
and persistence of effort toward the attainment of a goal.

According to Ken Shah & Prof. Param J. Shah it is a general tendency to believe
that motivation is a personal trait. Some people have it and the others dont. In practice,
some are labeled to be lazy because they do not display an outward sign of motivation.
However, individuals differ in their basic motivational drives. It also depends upon their
areas of interest. The concept of motivation is situational and its level varies between
different individuals and at different times. If you understand what motivates people, you
have at your command the most powerful tool for dealing with them.
Motivation is to inspire people to work, individually or in groups in the ways such
as to produce best results. It is the will to act. It is the willingness to exert high levels of
effort towards organizational goals, conditioned by the efforts and ability to satisfy some
individual need.

Motivation is getting somebody to do something because they want to do it. It

was once assumed that motivation had to be injected from outside, but it is now
understood that everyone is motivated by several differing forces.
Motivation is a general term applied to the entire class of drives, desires, needs,
wishes and similar forces. To say that managers motivate their subordinates is to say that
they do those things which they hope will satisfy these drives and desires and induce the
subordinates to act in a desired manner.
To motivate others is the most important of management tasks. It comprises the
abilities to communicate, to set an example, to challenge, to encourage, to obtain
feedback, to involve, to delegate, to develop and train, to inform, to brief and to provide a
just reward.
Motivation can be referred as a catalyst as it determines the intensity of
willingness and the level of efforts a person put for the achievement of organizational
objectives.

The Role of Motivation

Why do we need motivated employees? The answer is survival (Smith, 1994).
Motivated employees are needed in our rapidly changing workplaces. Motivated
employees help organizations survive. Motivated employees are more productive. To be
effective, managers need to understand what motivates employees within the context of
the roles they perform. Of all the functions a manager performs, motivating employees is
arguably the most complex. This is due, in part, to the fact that what motivates employees
changes constantly (Bowen & Radhakrishna, 1991). For example, research suggests that
as employees' income increases, money becomes less of a motivator (Kovach,

1987). Also, as employees get older, interesting work becomes more of a

motivator.

1.2 DEFINITIONS OF MOTIVATION

Some of the definitions of motivation given by eminent scholars are:

According to Robert Dubin (1970),

Motivation is the complex set of forces starting and keeping a person at work in an
organization. Motivation is something that moves the person to action, and continues him
in the course of action already initiated.

Dalton E. McFarland (1974) stated that:

Motivation refers to the way in which urges, drives, desires, aspirations, and strivings or
needs direct, control or explain the behaviour of human beings.

In the words of C.B Mamoria (1995),

Motivation is a willingness to expend energy to achieve a goal or reward. It is a force that activates
dormant energies and sets in motion the action of the people. It is the function that kindles a burning
passion for action among the human beings of an organization.

According to Kreitner (1995), motivation has been defined as:

The psychological process that gives behavior purpose and direction.

Buford, Bedeian, and Lindner (1995) states that:

Motivation is a predisposition to behave in a purposive manner to achieve specific,

unmet needs.
1.3 THEORIES OF MOTIVATION
Despite the fact that motivation is a basic psychological process, much relevant
motivation theories have been identified so far. Over time, these major theoretical streams
of research in motivation were classified into two major schools:
The content theories of motivation and,
The process theories of motivation.
A classification of these theories can be depicted from the figure 1.1 as given below.

Theories of Motivation

Content
Theories

Process
Approaches

Maslow

Herzberg

Alderfer

McClelland

Hierarchy

Motivators and

ERG needs

Learned Needs

of needs

Hygiene factors

Cognitive Evaluation

Expectancy

Equity

Goal Setting

Reinforcement

Theory

Theory

Theory

Theory

Theory

.
Fig 1.1: Classification of Major Motivation Theories

1.3.1 CONTENT THEORIES

Content (or need) theories of motivation focus on factors internal to the individual that
energize and direct behavior. These theories suggest that people have certain needs and/or
desires which have been internalised. These theories look

at what it is about certain people that make them want the things that they do and what
things in their environment will make them do or not do certain things. In general, such
theories regard motivation as the product of internal drives that compel an individual to
act or move (hence, "motivate") toward the satisfaction of individual needs. The content
theories of motivation are based in large part on early theories of motivation that traced
the paths of action backward to their perceived origin in internal drives. Major content
theories of motivation are:

Maslow's hierarchy of needs

Herzberg's motivator-hygiene theory

Alderfer's ERG theory

McClelland's learned needs or three-need theory

1.3.2 PROCESS THEORIES

Process (or cognitive) theories of motivation focus on conscious human decision
processes as an explanation of motivation. The process theories are concerned with
determining how individual behavior is energized, directed, and maintained in the
specifically willed and self-directed human cognitive processes. Process theories of
motivation are based on early cognitive theories which posit that behavior is the result of
conscious decision-making processes. Process theories of motivation look at what people
are thinking about when they decide whether or not to put effort into a particular activity.
The major process theories of motivation are:

Cognitive Evaluation theory

Expectancy theory

Equity theory

Goal setting theory

Reinforcement theory

Chapter 2

CONTENT THEORIES OF MOTIVATION

2.1 MASLOWS NEED THEORY

One of the earliest and best-known content theories is needs hierarchy theory.
Psychologist Abraham Maslow (1954) focused on motivating forces in individuals and
established a "hierarchy of needs." According to Maslow, individuals would move to
satisfy their needs in a hierarchical manner. Once a need is satisfied, it no longer has have
the ability to motivate. At the bottom of the hierarchy are physiological needs such as
food, shelter, and sexual gratification. These were followed by safety needs (protection
from environmental dangers), social needs (love and belonging), and esteem (self-respect
and the approval of others). The highest need is the need for self-fulfillment, which
involves deriving a sense of value and satisfaction from one's work. While people
generally fill these needs in order, Maslow recognized that the hierarchy was flexible
within individuals, and that priorities could vary. Maslow did not include money in his
schema because of the ambiguity in the meaning of money. For some people, money is a
way to achieve the basic requirements of food and shelter. Others view money as a
measure to satisfy their need for self-fulfillment.

If motivation is driven by the existence of unsatisfied needs, then it is

worthwhile for a manager to understand which needs are the more important for

individual employees. In this regard, Abraham Maslow developed a model in which

basic, low-level needs such as physiological requirements and safety must be satisfied
before higher-level needs such as self-fulfillment are pursued. In this hierarchical model,
when a need is mostly satisfied it no longer motivates and the next higher need takes its
place. Maslow's hierarchy of needs is shown in the figure 2.1:

Self-Actualization personal
growth and fulfillment

Esteem Needs achievement,

status, reputation

Social Needs
Family, affection, relationships, work group, etc

Safety Needs
Protection, security, order, law, limits, stability, etc

Physiological Needs
Air, food, drink, shelter, warmth, , sleep, etc.

Fig 2.1 Maslows Hierarchy of Needs

Physiological Needs: Physiological needs are those required to sustain life, such as air,
water, nourishment and sleep. According to Maslow's theory, if such needs are not
satisfied then one's motivation will arise from the quest to satisfy them. Higher needs
such as social needs and esteem are not felt until one has met the needs basic to one's
bodily functioning.

Safety Needs: Once physiological needs are met, one's attention turns to safety and
security in order to be free from the threat of physical and emotional harm. Such needs
might be fulfilled by living in a safe area, medical insurance, job security and financial
reserves. According to Maslow's hierarchy, if a person feels that he or she is in harm's
way, higher needs will not receive much attention.

Social Needs: Once a person has met the lower level physiological and safety needs,
higher level needs become important, the first of which are social needs. Social needs are
those related to interaction with other people and may include need for friends, need for
belonging, need to give and receive love.
Esteem Needs: Once a person feels a sense of "belonging", the need to feel important
arises. Esteem needs may be classified as internal or external. Internal esteem needs are
those related to self-esteem such as self respect and achievement. External esteem needs
are those such as social status and recognition. Some esteem needs are self-respect,
achievement, attention, recognition, reputation. Maslow later refined his model to include
a level between esteem needs and self-actualization: the need for knowledge and
aesthetics.

Self-Actualization: Self-actualization is the summit of Maslow's hierarchy of needs. It is

the quest of reaching one's full potential as a person. Unlike lower level needs, this need
is never fully satisfied; as one grows psychologically there are always new opportunities
to continue to grow. Self-actualized people tend to have needs such as truth, justice,
wisdom, and meaning. Self-actualized persons have frequent occurrences of peak
experiences, which are energized moments of profound happiness and harmony.
According to Maslow, only a small percentage of the population reaches the level of selfactualization.

IMPLICATIONS FOR MANAGEMENT

If Maslow's theory holds, there are some important implications for management. There
are opportunities to motivate employees through management style, job design, company
events, and compensation packages, some examples of which follow:
Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to
purchase the essentials of life.
Safety Needs: Provide a safe working environment, retirement benefits, and job
security.
Social Needs: Create a sense of community via team-based projects and social
events.
Esteem Needs: Recognize achievements to make employees feel appreciated and valued.
Offer job titles that convey the importance of the position.

Self-Actualization: Provide employees a challenge and the opportunity to reach their full
career potential.
However, not all people are driven by the same needs - at any time different
people may be motivated by entirely different factors. It is important to understand the
needs being pursued by each employee. To motivate an employee, the manager must be
able to recognize the needs level at which the employee is operating, and use those needs
as levers of motivation.

LIMITATIONS OF MASLOW'S HIERARCHY

While Maslow's hierarchy makes sense from an intuitive standpoint, there is little
evidence to support its hierarchical aspect. In fact, there is evidence that contradicts the
order of needs specified by the model. For example, some cultures appear to place social
needs before any others. Maslow's hierarchy also has difficulty explaining cases such as
the "starving artist" in which a person neglects lower needs in pursuit of higher ones.
Finally, there is little evidence to suggest that people are motivated to satisfy only one
need level at a time, except in situations where there is a conflict between needs. Even
though Maslow's hierarchy lacks scientific support, it is quite well-known and is the first
theory of motivation to which many people they are exposed.

2.2 HERZBERGS THEORY

The

motivation-hygiene theory was proposed by psychologist Frederick

Herzberg. In the belief that an individual's relation to his or her work is a basic

one and that his or her attitude toward this work can very well determine the individual's
success or failure, Herzberg investigated the question "What do people want from their
jobs?" he asked people to describe, in detail, situations when they felt exceptionally good
or bad about their jobs. Herzberg, Mausner, and Snyderman (1959) interviewed 200
engineers and accountants to explore what factors were motivating. They concluded that
many factors that were thought to be motivating, such as pay and managerial style, were
not motivating at all. Herzberg (1966) proposed that job satisfaction and dissatisfaction
are not opposite ends of a continuum, but rather represent two distinct variables. Intrinsic
motivational factors (called "satisfiers") included achievement, recognition, and
responsibility. Extrinsic factors (called "hygiene factors") consisted of things like pay,
status, job security, and management style. Herzberg theorized that lack of satisfiers
would not cause dissatisfaction. The presence of hygiene factors would not cause
satisfaction, but their absence would cause dissatisfaction.
Herzberg developed a list of factors that are based on Maslow's hierarchy of needs,
except that his version is more closely related to the working environment.

HERZBERG'S HYGIENE AND MOTIVATIONAL FACTORS

Hygiene or Dissatisfiers:

Working conditions

Policies and administrative practices

Salary and Benefits

Supervision

Status

Job security

Co-workers

Personal life

Motivators or Satisfiers:

Recognition

Achievement

Advancement

Growth

Responsibility

Job challenge

Hygiene factors must be present in the job before motivators can be used to stimulate that
person. That is, one cannot use motivators until all the hygiene factors are met.
Herzberg's needs are specifically job related and reflect some of the distinct things that
people want from their work as opposed to Maslow's Hierarchy of Needs which reflect
all the needs in a persons life.

While Hertzberg's two-factor theory generated considerable research, "repeated

factor analytic studies of job attitudes have failed to demonstrate the

existence of two independent factors corresponding to motivators and hygienes"

(Campbell, 1970).

IMPLICATIONS FOR MANAGEMENT

If the motivation-hygiene theory holds, management not only must provide hygiene
factors to avoid employee dissatisfaction, but also must provide factors intrinsic to the
work itself in order for employees to be satisfied with their jobs. Herzberg argued that job
enrichment is required for intrinsic motivation, and that it is a continuous management
process. According to Herzberg:
The job should have sufficient challenge to utilize the full ability of the employee.
Employees who demonstrate increasing levels of ability should be given
increasing levels of responsibility.
If a job cannot be designed to use an employee's full abilities, then the firm should
consider automating the task or replacing the employee with one who has a lower
level of skill. If a person cannot be fully utilized, then there will be a motivation
problem.

LIMITATIONS OF HERZBERGS THEORY

Critics of Herzberg's theory argue that the two-factor result is observed because it is
natural for people to take credit for satisfaction and to blame dissatisfaction

on external factors. Furthermore, job satisfaction does not necessarily imply a high level
of motivation or productivity. Herzberg's theory has been broadly read and despite its
weaknesses its enduring value is that it recognizes that true motivation comes from
within a person and not from hygiene factors.

2.3 ALDERFER'S ERG THEORY

The ERG theory is an extension of Maslow's hierarchy of needs. Alderfer identified three
categories of needs. Alderfer suggested that needs could be classified into three
categories, rather than five. These three types of needs are existence, relatedness, and
growth.

Existence needs are the desires for material and physical well being. These needs are
satisfied with food, water, air, shelter, working conditions, pay, and fringe benefits.

Relatedness needs are the desires to establish and maintain interpersonal relationships.
These needs are satisfied with relationships with family, friends, supervisors,
subordinates, and co-workers.

Growth needs are the desires to be creative, to make useful and productive contributions,
and to have opportunities for personal development.

Similarities to Maslow's Hierarchy: Studies had shown that the middle levels of
Maslow's hierarchy have some overlap; Alderfer addressed this issue by

reducing the number of levels to three. The ERG needs can be mapped to those of
Maslow's theory as follows:
Existence

: Physiological and safety needs

Relatedness : Social and external esteem needs

Growth

: Self-actualization and internal esteem needs

Like Maslow's model, the ERG theory is hierarchical - existence needs have priority over
relatedness needs, which have priority over growth.

Differences from Maslow's Hierarchy: In addition to the reduction in the number of

levels, the ERG theory differs from Maslow's in the following three ways:
Unlike Maslow's hierarchy, the ERG theory allows for different levels of needs to
be pursued simultaneously.
The ERG theory allows the order of the needs be different for different people.
The ERG theory acknowledges that if a higher level need remains unfulfilled, the
person may regress to lower level needs that appear easier to satisfy. This is
known as the frustration-regression principle.

Thus, while the ERG theory presents a model of progressive needs, the hierarchical
aspect is not rigid. This flexibility allows the ERG theory to account for a wider range of
observed behaviors. For example, it can explain the "starving artist" who may place
growth needs above existence ones. ERG theory

demonstrates that (1) more than one need may be operative at the same time, and (2) if
the gratification of a higher-level need is stifled, the desire to satisfy a lower-need
increases.

IMPLICATIONS FOR MANAGEMENT

If the ERG theory holds, then unlike with Maslow's theory, managers must recognize that
an employee has multiple needs to satisfy simultaneously. Furthermore, if growth
opportunities are not provided to employees, they may regress to relatedness needs. If the
manager is able to recognize this situation, then steps can be taken to concentrate on
relatedness needs until the subordinate is able to pursue growth again.

2.4 MCCLELLAND'S LEARNED NEEDS THEORY

In his acquired-needs theory, David McClelland proposed that an individual's specific
needs are acquired over time and are shaped by one's life experiences. Most of these
needs can be classed as achievement, affiliation, or power. A person's motivation and
effectiveness in certain job functions are influenced by these three needs. McClelland's
theory sometimes is referred to as the three need theory or as the learned needs theory.
McClelland's theory suggests that individuals learn needs from their culture. Three of the
primary needs in this theory are the need for affiliation (n Aff), the need for power (n
Pow), and the need for achievement (n Ach).

Achievement motivated people thrive on pursuing and attaining goals. They like to be
able to control the situations in which they are involved. They take moderate risks. They
like to get immediate feedback on how they have done. They tend to be preoccupied with
a task-orientation towards the job to be done.
Some people who have a compelling drive to succeed are striving for
personal achievement rather than the rewards of success. From research into the
achievement need, McClelland found that high achievers differentiate from others by:
o

Their desire to attain personal responsibility for finding solutions;

Their need in immediate feedback about their performance;

Setting moderately challenging goals; 50% probability of success - optimum

opportunity to experience feelings of accomplishment and satisfaction from their
efforts.

Power motivated individuals see almost every situation as an opportunity to seize control
or dominate others. They love to influence others. They like to change situations whether
or not it is needed. They are willing to assert themselves when a decision needs to be
made.

Affiliation motivated people are usually friendly and like to socialize with others. This
may distract them from their performance requirements. They will usually respond to an
appeal for cooperation.

The main point of the learned needs theory is that when one of these needs is
strong in a person, it has the potential to motivate behavior that leads to its satisfaction.

IMPLICATIONS FOR MANAGEMENT

People with different needs are motivated differently.
High need for achievement - High achievers should be given challenging projects with
reachable goals. They should be provided frequent feedback. While money is not an
important motivator, it is an effective form of feedback.
High need for affiliation - Employees with a high affiliation need perform best in
a cooperative environment.
High need for power - Management should provide power seekers the
opportunity to manage others.

Chapter 3

PROCESS THEORIES OF MOTIVATION

3.1 COGNITIVE EVALUATION THEORY

This theory suggests that there are actually two motivation systems: intrinsic and
extrinsic that corresponds to two kinds of motivators:

Intrinsic motivators are those motivators which come from the actual performance
of the task or job -- the intrinsic interest of the work like achievement,
responsibility and competence.

Extrinsic motivators like pay, promotion, feedback, working conditions -- things

that come from a person's environment, controlled by others.

One or the other of these may be a more powerful motivator for a given individual.
Intrinsically motivated individuals perform for their own achievement and satisfaction. If
they come to believe that they are doing some job because of the pay or the working
conditions or some other extrinsic reason, they begin to lose motivation. The belief is that
the presence of powerful extrinsic motivators can actually reduce a person's intrinsic
motivation, particularly if the extrinsic motivators are perceived by the person to be
controlled by people. In other words, a boss who is always dangling this reward or that
stick will turn off the intrinsically motivated people.

As per this theory a shift from external rewards to internal rewards results into
motivation. It believes that even after the stoppage of external stimulus, internal stimulus
survives. It relates to the pay structure in the organization. Instead of treating external
factors like pay, incentives, promotion etc and internal factors like interests, drives,
responsibility etc, separately, they should be treated as contemporary to each other. The
cognition is to be such that even when external motivators are not there the internal
motivation continues. However, practically extrinsic rewards are given much more
weightage.

3.2 EXPECTANCY THEORY

V. H. Vroom (1964) suggested that people consciously choose particular courses of

action, based upon perceptions, attitudes, and beliefs, as a consequence of their desires to
enhance pleasure and avoid pain. This model is generally known as expectancy theory
but is sometimes referred to as VIE theory, where the letters stand for valence,
instrumentality, and expectancy, respectively (Mitchell and Mickel, 1999). Expectancy
theory is classified as a process theory of motivation (Fudge and Schlacter, 1999) because
it emphasizes individual perceptions of the environment and subsequent interactions
arising as a consequence of personal expectations. Expectancy theory mainly relies upon
extrinsic motivators to explain causes for behaviours exhibited in the workplace (Leonard
et al., 1999).

Vroom's Expectancy theory states that an individual will act in a certain

way based on the expectation that the act will be followed by a given outcome and on the
attractiveness of that outcome to the individual. This motivational model (Vroom, 1964)
has been modified by several people, to include Porter and Lawler (Porter et. al., 1968).
Vroom's Expectancy Theory is written as a formula:

Valence x Expectancy x Instrumentality = Motivation

Valence (Reward) = the amount of desire for a goal (What is the reward?)

Expectancy (Performance) = the strength of belief that work related effort will
result in the completion of the task (How hard will I have to work to reach the
goal?)

Instrumentality (Belief) = the belief that the reward will be received once the
task is completed (Will they notice the effort I put forth?)

The product of valence, expectancy, and instrumentality is motivation. It can be thought

of as the strength of the drive towards a goal. For example, if an employee wants to move
up through the ranks, then promotion has a high valence for that employee. If the
employee believes that high performance will result in good reviews, then the employee
has a high expectancy. However, if the employee believes the company will not promote
from within, then the employee has low instrumentality, and the employee will not be
motivated to perform better.

3.3 EQUITY THEORY

As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about
the reward structure as being fair or unfair, relative to the inputs. People have a tendency
to use subjective judgment to balance the outcomes and inputs in the relationship for
comparisons between different individuals. If people feel that they are not equally
rewarded they either reduce the quantity or quality of work or migrate to some other
organization. However, if people perceive that they are rewarded higher, they may be
motivated to work harder.

Equity theory says that it is not the actual reward that motivates, but the perception, and
the perception is based not on the reward in isolation, but in comparison with the efforts
that went into getting it and the rewards and efforts of others. If everyone got a 5% raise,
B is likely to feel quite pleased with her raise, even if she worked harder than everyone
else. But if A got an even higher raise, B perceives that she worked just as hard as A, she
will be unhappy.

In other words, people's motivation results from a ratio of ratios: a person

compares the ratio of reward to effort with the comparable ratio of reward to effort that
they think others are getting.

Of course, in terms of actually predicting how a person will react to a given motivator,
this will get pretty complicated:

1. People do not have complete information about how others are rewarded. So they
are going on perceptions, rumors, and inferences.
2. Some people are more sensitive to equity issues than others.
3. Some people are willing to ignore short-term inequities as long as they expect
things to work out in the long-term.

3.4 GOAL-SETTING THEORY

This motivation theory was developed primarily by Edwin Locke and Gary Latham
(1990). The goal-setting theory posits that goals are the most important factors affecting
the motivation and behavior of employees.
Goal-setting theory emphasizes the importance of specific and challenging goals in
achieving motivated behavior. Specific goals often involve quantitative targets for
improvement in a behavior of interest. Research indicates that specific performance goals
are much more effective than those in which a person is told to "do your best."
Challenging goals are difficult but not impossible to attain. Empirical research supports
the proposition that goals that are both specific and challenging are more motivational
than vague goals or goals that are relatively easy to achieve.
Instead of giving vague tasks to people, specific and pronounced objectives, help in
achieving them faster. As the clearity is high, a goal orientation also avoids any
misunderstandings in the work of the employees. The goal setting theory states that when
the goals to be achieved are set at a higher standard than in that case employees are
motivated to perform better and put in maximum effort. It revolves

around the concept of Self-efficacy i.e. individuals belief that he or she is capable of
performing a hard task.

Several factors may moderate the relationship between specific and challenging
goals and high levels of motivation. The first of these factors is goal commitment, which
simply means that the more dedicated the individual is to achieving the goal, the more
they will be motivated to exert effort toward goal accomplishment. Some researches
suggest that having employees participate in goal setting will increase their level of goal
commitment. A second factor relevant to goal-setting theory is self-efficacy, which is the
individual's belief that he or she can successfully complete a particular task. If individuals
have a high degree of self-efficacy, they are likely to respond more positively to specific
and challenging goals than if they have a low degree of self-efficacy.

According to Locke and Latham, goals affect individual performance through four
mechanisms. First, goals direct action and effort toward goal-related activities and away
from unrelated activities. Second, goals energize employees. Challenging goals lead to
higher employee effort than easy goals. Third, goals affect persistence. Employees exert
more effort to achieve high goals. Fourth, goals motivate employees to use their existing
knowledge to attain a goal or to acquire the knowledge needed to do so.
The elements of goal-setting theory are shown in Figure below:

The goal-setting model indicates that individuals have needs and values that influence
what they desire. A need is defined as a lack of something desirable or useful. According
to Maslow's hierarchy of needs, all individuals possess the same basic needs. Individuals
do, however, differ in their values. Values are defined as a group of attitudes about a
concept that contains a moral quality of like or dislike and acceptable or unacceptable.
Values determine whether a particular outcome is rewarding. Employees compare current
conditions to desired conditions in order to determine if they are satisfied and fulfilled. If
an employee finds that he or she is not satisfied with the current situation, goal setting
becomes a way of achieving what he or she wants.

3.5 REINFORCEMENT THEORY

The reinforcement theory of motivation (also called contingency theory) is an outgrowth
of the behaviorist school of psychology.

B.F. Skinner (1974), who propounded the reinforcement theory, holds that
by designing the environment properly, individuals can be motivated. Instead of
considering internal factors like impressions, feelings, attitudes and other cognitive
behavior, individuals are directed by what happens in the environment external to them.
Skinner argued that the internal needs and drives of individuals can be ignored because
people learn to exhibit certain behaviors based on what happens to them as a result of
their behavior. Skinner states that work environment should be made suitable to the
individuals and that punishments actually leads to frustration and de-motivation. Hence,
the only way to motivate is to keep on making positive changes in the external
environment of the organization.
The basic principles of the theory are:

reinforced behavior tends to be repeated,

reward is more effective than punishment,
feedback is necessary for improvement
rewards should be given without delay, and
rewards should be given for successive approximations of the desired
behavior (Schneier, 1974).

The most important principle of reinforcement theory is, of course, reinforcement.

Generally speaking, there are two types of reinforcement: positive and negative.

Positive reinforcement results when the occurrence of a valued behavioral consequence

has the effect of strengthening the probability of the behavior being repeated. The
specific behavioral consequence is called a reinforcer. An example of positive
reinforcement might be a salesperson that exerts extra effort to meet a sales quota
(behavior) and is then rewarded with a bonus (positive reinforcer). The administration of
the positive reinforcer should make it more likely that the salesperson will continue to
exert the necessary effort in the future.

Negative reinforcement results when an undesirable behavioral consequence is

withheld, with the effect of strengthening the probability of the behavior being repeated.
Negative reinforcement is often confused with punishment, but they are not the same.
Punishment attempts to decrease the probability of specific behaviors; negative
reinforcement attempts to increase desired behavior. Thus, both positive and negative
reinforcement have the effect of increasing the probability that a particular behavior will
be learned and repeated. An example of negative reinforcement might be a salesperson
that exerts effort to increase sales in his or her sales territory (behavior), which is
followed by a decision not to reassign the salesperson to an undesirable sales route
(negative reinforcer). The administration of the negative reinforcer should make it more
likely that the salesperson will continue to exert the necessary effort in the future.

As mentioned above, punishment attempts to decrease the probability of specific

behaviors being exhibited. Punishment is the administration of an undesirable behavioral
consequence in order to reduce the occurrence of the unwanted

behavior. Punishment is one of the more commonly used reinforcement-theory strategies,

but many learning experts suggest that it should be used only if positive and negative
reinforcement cannot be used or have previously failed, because of the potentially
negative side effects of punishment. An example of punishment might be demoting an
employee who does not meet performance goals or suspending an employee without pay
for violating work rules.

Extinction is similar to punishment in that its purpose is to reduce unwanted behavior.

The process of extinction begins when a valued behavioral consequence is withheld in
order to decrease the probability that a learned behavior will continue. Over time, this is
likely to result in the ceasing of that behavior. Extinction may alternately serve to reduce
a wanted behavior, such as when a positive reinforcer is no longer offered when a
desirable behavior occurs. For example, if an employee is continually praised for the
promptness in which he completes his work for several months, but receives no praise in
subsequent months for such behavior, his desirable behaviors may diminish. Thus, to
avoid unwanted extinction, managers may have to continue to offer positive behavioral
consequences.
SCHEDULES OF REINFORCEMENT

The timing of the behavioral consequences that follow a given behavior is called the
reinforcement schedule. Basically, there are two broad types of reinforcement schedules:
continuous and intermittent. If a behavior is reinforced each time it occurs, it is called
continuous reinforcement. Research suggests that continuous

reinforcement is the fastest way to establish new behaviors or to eliminate undesired

behaviors. However, this type of reinforcement is generally not practical in an
organizational setting. Therefore, intermittent schedules are usually employed.
Intermittent reinforcement means that each instance of a desired behavior is not
reinforced. There are at least four types of intermittent reinforcement schedules: fixed
interval, fixed ratio, variable interval, and variable ratio.

Fixed interval schedules of reinforcement occur when desired behaviors are reinforced
after set periods of time. The simplest example of a fixed interval schedule is a weekly
paycheck. A fixed interval schedule of reinforcement does not appear to be a particularly
strong way to elicit desired behavior, and behavior learned in this way may be subject to
rapid extinction. The fixed ratio schedule of reinforcement applies the reinforcer after a
set number of occurrences of the desired behaviors. One organizational example of this
schedule is a sales commission based on number of units sold. Like the fixed interval
schedule, the fixed ratio schedule may not produce consistent, long-lasting, behavioral
change.

Variable interval reinforcement schedules are employed when desired behaviors are
reinforced after varying periods of time. Examples of variable interval schedules would
be special recognition for successful performance and promotions to higher-level
positions. This reinforcement schedule appears to elicit desired behavioral change that is
resistant to extinction.

Finally, the variable ratio reinforcement schedule applies the reinforcer after a number of
desired behaviors have occurred, with the number changing from situation to situation.
The most common example of this reinforcement schedule is the slot machine in a
casino, in which a different and unknown number of desired behaviors (i.e., feeding a
quarter into the machine) is required before the reward (i.e., a jackpot) is realized.
Organizational examples of variable ratio schedules are bonuses or special awards that
are applied after varying numbers of desired behaviors occur. Variable ratio schedules
appear to produce desired behavioral change that is consistent and very resistant to
extinction.
REINFORCEMENT THEORY APPLIED TO ORGANIZATIONAL SETTINGS

Probably the best-known application of the principles of reinforcement theory to

organizational settings is called behavioral modification, or behavioral contingency
management. Typically, a behavioral modification program consists of four steps:
1. Specifying the desired behavior as objectively as possible.
2. Measuring the current incidence of desired behavior.
3. Providing behavioral consequences that reinforce desired behavior.
4. Determining the effectiveness of the program by systematically assessing
behavioral change.
Reinforcement theory is an important explanation of how people learn behavior.
It is often applied to organizational settings in the context of a behavioral

modification program. Although the assumptions of reinforcement theory are often

criticized, its principles continue to offer important insights into individual learning and
motivation.

Behaviour modification focuses on the external environment by stating that a number of

employee behaviours can be affected by manipulating their consequences. The alternative
consequences include positive and negative reinforcement, punishment, and extinction.
Reinforcement can be applied according to either continuous or partial schedules.
The major benefit of behaviour modification is that it makes managers become conscious
motivators. It encourages managers to analyze employee behaviour, explore why it
occurs and how often, and identify specific consequences that will help change it when
those consequences are applied systematically.

Chapter 4

APPLICATION OF MOTIVATIONAL CONCEPTS

It is very important to apply the various motivational concepts to the organizations so that
organizational effectiveness can be achieved. Various motivation techniques and
programs have gained varying degrees of acceptance in organizations. Some of
applications of motivation and their linking with motivational theories as depicted by
Robbins have been discussed below.
Management by Objectives
Employee Recognition Programs
Employee Involvement Programs
Variable Pay Programs
Skill-Based Pay Plans
Special Issues in Motivation

MANAGEMENT BY OBJECTIVES

Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his
book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the
significance of this organization management method, when he said: "It's just another
tool. It is not the great cure for management inefficiency...

Management by Objectives works if you know the objectives, 90% of the time you
don't."
Management by objectives (MBO) is a systematic and organized approach that allows
management to focus on achievable goals and to attain the best possible results from
available resources. It aims to increase organizational performance by aligning goals and
subordinate objectives throughout the organization. Ideally, employees get strong input to
identify their objectives, time lines for completion, etc. MBO includes ongoing tracking
and feedback in the process to reach objectives. The principle behind Management by
Objectives (MBO) is to make sure that everybody within the organization has a clear
understanding of the aims, or objectives, of that organization, as well as awareness of
their own roles and responsibilities in achieving those aims.

MBO Principles
Principles of MBO include the following:
Cascading of organizational goals and objectives
Specific objectives for each member
Participative decision making
Explicit time period
Performance evaluation and feedback

Linking MBO and Goal-Setting Theory

Goal Setting Theory exhibits that:

o

hard goals result in a higher level of individual performance,

specific hard goals result in higher levels of performance than do no goals

or generalized goals, and

feedback on ones performance leads to higher performance

MBO directly believes in

o

specific goals and feedback

MBO would be most effective when the goals are difficult enough to
require the person to do some stretching.

EMPLOYEE RECOGNITION PROGRAMS

Employee Recognition Programs are the programs that use multiple sources and
recognize both individual and group accomplishments. A recognition program does not
have to be expensive. The structure of a recognition program is limited only by your
imagination. An effective program has the following components:
o

Fairness

High visibility and consistency

Linking Employee Recognition Programs and Reinforcement Theory

In accordance with the reinforcement theory, rewarding a behavior with

recognition immediately following that behavior is likely to encourage its
repetition.

EMPLOYEE INVOLVEMENT PROGRAMS

Employee involvement is creating an environment in which people have an impact on

decisions and actions that affect their jobs. Employee involvement is not the goal nor is it
a tool, as practiced in many organizations. Rather, employee involvement is a
management and leadership philosophy about how people are most enabled to contribute.
It is a participative process that uses the entire capacity of employees and is designed to
encourage increased commitment to the organizations success.
Ways of Employee Involvement

Participative Management - A process where subordinates share a significant degree

of decision-making power with their immediate superiors.

Representative Participation - Workers participate in organizational decision

making through a small group of representative employees.

Work Councils - Groups of elected or nominated employees who must be consulted

when management makes decisions involving personnel.

Board Representatives - A form of representative participation; employees sit on a

companys board of directors and represent the interests of the firms employees.

Quality Circles - A work group of employees, who meet regularly to discuss their
quality problems, investigate causes, recommend solutions, and take corrective actions.

Employee Stock Ownership Plans - Company established benefit plans in which

employees acquire stock as part of their benefits.

Linking Employee Involvement Programs and Motivation Theories

Many motivational theories can be linked with employee involvement programs. Theory
Y of motivation shows consistency with participative management while in case of
hygiene theory; employee involvement programs could provide employees with intrinsic
motivation by increasing opportunities for growth, responsibility, and involvement in the
work itself. Employee involvement is attuned with ERG theory and efforts to stimulate
the achievement need.

VARIABLE-PAY PROGRAMS

Variable pay programs are an increasingly popular mode of compensation in today's

business world. These programs, which are also sometimes referred to as "pay-forperformance" or "at-risk" pay plans, provide some or all of a work force's compensation
based on employee performance or on the performance of a team. Variable pay
proponents contend that providing tangible rewards for

superior performancea true merit systemencourages hard work and efficiency and
serves as an effective deterrent to mediocre or otherwise uninspired work performance. In
Variable Pay Programs a portion of an employees pay is based on some individual and/or
organizational measure of performance. Some of the more widely used variable pay
programs are:

Piece-rate pay plans - Workers are paid a fixed sum for each unit of production
completed.

Profit-sharing plans - Programs that distribute compensation based on some established

formula designed around a companys profitability.

Gain sharing plans - An incentive plan where improvements in group productivity

determine the total amount of money that is allocated.

Linking Variable-Pay Plans and Expectancy Theory

Evidence supports the importance of this linkage, especially for operative

employees working under piece-rate systems.

Group and organization wide incentives reinforce and encourage employees to

sublimate personal goals for the best interests of their department or organization.

SKILL-BASED PAY PLANS

Skill-based pay refers to a pay system in which pay increases are linked to the number or
depth of skills an employee acquires and applies and it is a means of

developing broader and deeper skills among the workforce. Such increases are in addition
to, and not in lieu of, general pay increases employees may receive. The pay increases are
usually tied to three types of skills:

horizontal skills, which involve a broadening of skills in terms of the range of

tasks

vertical skills, which involve acquiring skills of a higher level

depth skills, which involve a high level of skills in specialized areas relating to the
same job.

Robbins has identified some of the following reasons which make skill based pay system
an appeal for management. He also identified the downside of skill based pay system.
Appeal of skill-based pay

Flexibility - Filling staff needs is easier when employee skills are interchangeable.

Facilitates communication - It facilitates communication in the organization because

people gain a better understanding of others jobs.

Lessens protective territory behavior - As management is less likely to hear the

phrase Its not my job.

Downside

People can top out

Employee frustration can increase

Skills become obsolete

Paying people for acquired skills not used

Linking Skill Based Pay Plans and Motivational Theories

There is a link between equity theory and skill based pay. Employees whose lower order
needs are substantially satisfied, the opportunity to experience growth can be a motivator.
Paying people to expand their skill levels is also consistent with research on the
achievement need. High achievers have a compelling drive to do things better or more
efficiently.

SPECIAL ISSUES IN MOTIVATION

MOTIVATING PROFESSIONALS

How are Professionals different?

o

Receive a great deal of intrinsic satisfaction from their work.

Strong and long-term commitment to their field of expertise

Well paid/ Chief reward is work itself.

Value support

More focused on work as central life interest.

How do we motivate professionals?

o

Provide challenging projects

Give them autonomy in follow interests and structure work.

Reward with educational opportunities.

Recognize their contributions.

MOTIVATING CONTINGENT WORKERS

No simple solutions to motivating contingent workers.

Contingent or temporary workers have little or no job security/stability, therefore

they dont identify with the organization or display the commitment of permanent
employees.

Contingent or temporary workers are typically provided with little or no health

care, pensions, or similar benefits.

Greatest motivating factor is the opportunity to gain permanent employment.

Motivation is also increased if the employee sees that the job he or she is doing
for the firm can develop salable skills.

MOTIVATING THE DIVERSIFIED WORK FORCE

Not all employees are motivated by money.

Flexibility is the key to maximizing your employees motivation by understanding

and responding to the diversity of needs.
o

specially designed work schedules

flexible compensation plans

flexible benefits plans

physical work settings

child care

elderly care

flexible work hours

job sharing

flexible leave

work teams

MOTIVATING THE LOW-SKILLED SERVICE WORKER

One of the most challenging problems in industry today.

o

Many plans have been tried, almost all unsuccessfully

flexible work schedules

broader responsibility for inventory, scheduling, and hiring

creation of a family atmosphere among employees

Unless pay and benefits rise significantly, continued high turnover can be
expected.

MOTIVATING PEOPLE DOING HIGHLY REPETITIVE TASKS

Motivating individuals in these jobs can be made through careful selection:

o

People vary in their tolerance for ambiguity.

Many individuals prefer jobs that have a minimal amount of discretion and
variety.

High pay and careful selection can reduce:

o

Recruitment problems and high turnover, however, this

Doesnt necessarily lead to highly motivated workers.

Creative personnel programs have exhibited some success by providing:

Clean and attractive work surroundings, ample work breaks and opportunity to
socialize during breaks, and empathetic supervisors.

UNIT 4

LEADERSHIP

Learning Objectives: After studying this unit, the students should be able to understand
the concept of leadership. Students shall also learn the various theories of leadership.
They will gain knowledge on various contemporary issues in leadership in organizations.
The concept of power and conflict will also be learned out of this unit.

Unit Outline
Chapter-1 Leadership
1.1

Leadership as a concept

1.2

Definitions of Leadership

1.3

Classification of theories of leadership

1.4

Theories of Leadership
1.4.1

Trait Approach

1.4.2

Behavioural Approach
Ohio State Studies
University of Michigan Studies
Managerial Grid
1.4.3 Contingency Theories
Fiedler's Contingency Model
Hersey-Blanchard Situational Theory
Path-Goal Theory
Leader-Member Exchange Theory
1.4.4 Contemporary Approaches
Transactional leadership
Transformational leadership
Charismatic leadership
Leadership in Decision Group
Chapter-2 Contemporary Issues in Leadership
2.1 Gender: do males and females lead differently?
2. 2 Leading through Empowerment
2.3 What about followership?
2.4 National Culture As An Added Contingency Variable
2.5 Providing Team Leadership
2.6 Moral Dimension to Leadership
Chapter-3 Power and Conflict
3.1 Power as a concept

3.2 Bases of Power

3.3 Power Tactics
3.4 Conflict as a Concept
3.5 Process of Conflict
3.6 Levels of Conflict
3.7 Conflict Resolution Strategies

Chapter 1
LEADERSHIP
1.1 LEADERSHIP AS A CONCEPT
Leadership is a process by which a person influences others to accomplish an objective
and directs the organization in a way that makes it more cohesive and coherent. Leaders
carry out this process by applying their leadership attributes, such as beliefs, values,
ethics, character, knowledge, and skills. Although your position as a manager, supervisor,
lead, etc. gives you the authority to accomplish certain tasks and objectives in the
organization, this power does not make you a leader...it simply makes you the boss.
Leadership differs in that it makes the followers want to achieve high goals, rather than
simply bossing people around.

Leadership should be distinguished from management. Management involves planning,

organizing, staffing, directing, and controlling, and a manager is someone who performs
these functions. A manager has formal authority by virtue of his or her position or office.
Leadership, by contrast, primarily deals with influence. A manager may or may not be an
effective leader. A leader's ability to influence others may be based on a variety of factors
other than his or her formal authority or position.
Leadership is a subject that has gained increasing interest among scholars. The term
connotes images of powerful, dynamic individuals who command victorious armies,
direct corporate empires from atop or shape the course of nations.

Questions about leadership have long been a subject of speculation, but specific
research on leadership did not begin until the twentieth century. The focus of much of the
research has been on determinants of leadership effectiveness. Behavioural scientists
have attempted to discover what traits, abilities, behaviours, sources of power, or aspects
of the situation determine how well a leader is able to influence followers and accomplish
group objectives. The reason why some people emerge as leaders and the determinants of
the way a leader acts are other important questions that have been investigated but the
predominated concern has been leadership effectiveness.

1.2 DEFINITIONS OF LEADERSHIP

Leadership has been studied in different ways depending on the researchers
methodological preferences and conception of leadership.
Some of the definitions of Leadership given by eminent researchers are:
Stogdill (1974) says that:
"Leadership is the initiation and maintenance of structure in expectation and interaction.

James MacGregor Burns (1978) concedes that:

Leadership is leaders inducing followers to act for certain goals that represent the values and
the motivations the wants and needs, the aspirations and expectations - of both leaders and
followers. And the genius of leadership lies in the manner in which leaders see and act on
their own and their followers values and motivations.

According to Katz and Kahn (1978):

"Leadership is the influential increment over and above mechanical compliance with the
routine directives of the organization.
According to John Gardner (1990):

"Leadership is the process of persuasion and example by which an individual (or

leadership team) induces a group to take action that is in accord with the leaders purpose
or the shared purposes of all."
Buchannan and Huczynski (1997) explain leadership as:

A social process in which one individual influences the behaviour of others without the
use of threat or violence.
1.3 THEORIES OF LEADERSHIP
Most researchers deal with only one narrow aspect of leadership and most of the
studies fall into distinct lines of research. As shown in Figure 1.1, most leadership
research can be classified into one of the following approaches:
1. Trait Approach
2. Behavioural Approach
3. Contingency Theories
4. Contemporary Approaches

Leadership Theories

Trait Approach

Behavioural Approach

Ohio State
Studies

University of Michigan
Studies

Fiedler Model

Contingency Approach

Contemporary Approach

Managerial

Hersey & Blanchards

Situational Theory

Transactional
Leadership

Leader-member
Exchange Theory

Charismatic
Leadership

Transformational
Leadership

Fig 1.1: Classification of Major Leadership Theories

1.3.1 TRAIT APPROACH

Trait theory assumes that people inherit certain qualities and traits that make them better
suited to leadership. Trait theories often identify particular personality or behavioral
characteristics shared by leaders. But if particular traits are key features of leadership,
how do we explain people who possess those qualities

Path-Goal
Theory

Leadership
Decision Grou

but are not leaders? This question is one of the difficulties in using trait theories to
explain leadership.

One of the earliest approaches for studying leadership was the trait approach. These
theories sought personality, social, physical, or intellectual traits that differentiated
leaders from non leaders. Underlying this approach was the assumption that some people
are natural leaders who are endowed with certain traits not possessed by other people.
Early leadership theories attributed managerial success to possession of extraordinary
abilities such as tireless energy, penetrating intuition, uncanny foresight, and irresistible
persuasive powers. Hundreds of trait studies were conducted during the 1930s and 1940s
to discover these elusive qualities, but this massive research effort failed to find any traits
that would guarantee leadership success. Some of the traits identified were as following:

Personality traits: self-confident, adaptable, assertive, emotionally stable etc.

Task-related characteristics: driven to excel, accepting of responsibility, having
initiative, results-oriented etc.
Physical traits: young to middle-aged, energetic, tall, handsome etc.
Social characteristics: charismatic, charming, tactful, popular, cooperative, diplomatic
etc.
But the trait approach failed to predict universal set of traits that predict leadership in all
situations. Rather, traits appear to predict leadership in selective situations.

1.3.2 BEHAVIOURAL APPROACH

In the 1950s when researchers became discouraged with the trait approach, they began to
pay closer attention to what managers actually do on the job. Researchers started to look
at the behaviors that specific leaders exhibited. They developed training programs to
change managers' leadership behaviors and assumed that the best styles of leadership
could be learned. Behavioral theories of leadership are based upon the belief that great
leaders are made, not born. Rooted in behaviorism, this leadership theory focuses on the
actions of leaders, not on mental qualities or internal states. According to this theory,
people can learn to become leaders through teaching and observation. Some of these
theories are:

Ohio State Studies

University of Michigan Studies
Managerial Grid

Ohio State Studies

The most comprehensive and replicated behavioral theories result from research that
began at Ohio State University in the late 1940s. These researchers sought to identify
independent dimensions of leader behavior.

The Ohio State studies utilized the Leader Behavior Description Questionnaire (LBDQ),
administering it to samples of individuals in the military, manufacturing companies,
college administrators, and student leaders. Answers to the

questionnaire were factor-analyzed to determine if common leader behaviors emerged

across samples.

Two factors, termed consideration and initiating structure, consistently appeared.

Initiating structure, sometimes called task-oriented behavior, involves planning,
organizing, and coordinating the work of subordinates. Consideration involves showing
concern for subordinates, being supportive, recognizing subordinates' accomplishments,
and providing for subordinates' welfare.
The conclusion was that there were two distinct aspects of leadership that describe how
leaders carry out their role. The Ohio State study identified two leadership styles:
initiating and considerate structure.

Initiating structure refers to the extent to which a leader is likely to define and structure
his or her role and those of employees in the search for goal attainment.

Consideration is described as the extent to which a person is likely to have job

relationships that are characterized by mutual trust, respect for employees ideas, and
regard for their feelings. He or she shows concern for followers comfort, well being,
status, and satisfaction. It was found that leaders high in initiating structure and
consideration (a high-high leader) tended to achieve high employee performance and
satisfaction more frequently than those who rated low on consideration, initiating
structure, or both. However, the high-high style did not always result in positive
consequences.

University of Michigan Studies

The Michigan leadership studies took place at about the same time as those at Ohio State.
Under the general direction of Rensis Likert, the focus of the

Michigan studies was to determine the principles and methods of leadership that led to
productivity and job satisfaction.

The University of Michigan study classified leaders' behaviors as being production

oriented and employee-centered. The primary concern of leaders with employeecentered style is the employee's welfare. The primary concern of leaders with productioncentered style is achieving goals. However, employee oriented leaders appear to be
associated with high group productivity and job satisfaction. Production oriented leaders
tended to be associated with low group productivity and lower job satisfaction.

Managerial Grid
The Managerial Grid is a behavioral leadership model developed by Robert Blake and
Jane Mouton in 1964. This model identifies five different leadership style based on the
concern for people and the concern for production.
As shown in the Figure 2.1, the model is represented as a grid with concern for
production on the X-axis and concern for people on the Y-axis; each axis ranging from 1
(Low) to 9 (High). The five resulting leadership styles are as follows:

High

9
8

1,9

9,9

7
6
Concern
for
People

5,5

5
4
3
2

Low

1,1

9,1

Low

Concern for production

High

Figure: 1.2 Managerial Grid

The impoverished style (1, 1)

In this style, managers have low concern for both people and production. Managers use
this style to avoid getting into trouble. The main concern for the manager is not to be held
responsible for any mistakes, which results in less innovative decisions.

Leader uses a "delegate and disappear" management style. Since they are not committed
to either task accomplishment or maintenance; they essentially allow their team to do
whatever it wishes and prefer to detach themselves from the team process by allowing the
team to suffer from a series of power struggles.

The country club style (1, 9)

This style has a high concern for people and a low concern for production. Managers
using this style pay much attention to the security and comfort of the employees, in the
hope that this would increase performance. The resulting atmosphere is usually friendly,
but not necessarily productive.

The produce or perish style (9, 1)

With a high concern for production and a low concern for people, this style find
employee needs unimportant. The managers provide their employees with money and
expect performance back. Managers using this style also pressurize their employees
through rules and punishments to achieve the company goals. This dictatorial style is
based on Theory X and is commonly applied by companies on the edge of real or
perceived failure.

The middle-of-the-road style (5, 5)

Managers using this style try to balance between company goals and workers' needs. By
giving some concern to both people and production, managers who use this style hope to
achieve acceptable performance.

The team style (9, 9)

In this style, high concern is paid both to people and production. As suggested by the
propositions of Theory Y, managers choosing this style encourage teamwork and
commitment among employees. This method relies heavily on making employees feel as
a constructive part of the company.
This type of person leads by positive example and endeavors to foster a team
environment in which all team members can reach their highest potential, both as team
members and as people. They encourage the team to reach team goals as effectively as
possible, while also working tirelessly to strengthen the bonds among the various
members. They normally form and lead some of the most productive teams.

1.3.3 CONTINGENCY THEORIES

Contingency or situational theories of leadership propose that the organizational or work

group context affects the extent to which given leader traits and behaviors will be
effective. Contingency theories gained prominence in the late
1960s and 1970s. In this theory, the success of the leader is a function of various factors
in the form of subordinate, task, and/or group variables. The effectiveness of a given
pattern of leader behaviour is contingent upon the demands imposed by the situation.
These theories stress using different styles of leadership appropriate to the needs created
by different organizational situations.
In this theory, the success of the leader is a function of various factors in the form of
subordinate, task, and/or group variables. The effectiveness of a given pattern of leader
behaviour is contingent upon the demands imposed by the situation.

These theories stress using different styles of leadership appropriate to the needs created
by different organizational situations. Contingency theories of leadership focus on
particular variables related to the environment that might determine which particular style
of leadership is best suited for the situation. According to this theory, no leadership style
is best in all situations. Success depends upon a number of variables, including the
leadership style, qualities of the followers, and aspects of the situation. Some of these
theories are:

Fiedler's Contingency Model

Hersey-Blanchard Situational Theory
Path-Goal Theory
Leader-Member Exchange Theory

Fiedler's Contingency Model

Introduced in 1967, Fiedler's contingency theory was the first to specify how situational
factors interact with leader traits and behavior to influence leadership effectiveness. The
theory suggests that the "favorability" of the situation determines the effectiveness of
task- and person-oriented leader behavior.
Fiedlers approach departs from trait and behavioural models by asserting that group
performance is contingent on the leaders psychological orientation and on three
contextual variables: group atmosphere, task structure, and leaders power position.

Fiedler's model assumes that group performance depends on

Leadership style
Situational favourableness, determined by three factors viz.,
Leader-member relations i.e. the degree to which a leader is accepted and
supported by the group members.
Task structure i.e. the extent to which the task is structured and defined,
with clear goals and procedures.
Position power i.e. the ability of a leader to control subordinates through
reward and punishment.

While the high levels of these three factors give the most favourable situation, low levels
generate the least favourable situation. Relationship-motivated leaders are most effective
in moderately favourable situations. Task-motivated leaders are most effective at either
end of the scale.

Fiedler suggests that it may be easier for leaders to change their situation to achieve
effectiveness rather than change their leadership style.
The theory did not necessarily propose that leaders could adapt their leadership styles to
different situations, but that leaders with different leadership styles would be more
effective when placed in situations that matched their preferred style.

Hersey-Blanchard Situational Theory

This situational leadership theory was initially introduced in 1969 and revised in 1977 by
Hersey and Blanchard. The theory suggests that the key contingency factor affecting
leaders' choice of leadership style is the task-related maturity of

the subordinates. Subordinate maturity is defined in terms of the ability of subordinates to

accept responsibility for their own task-related behavior. The theory classifies leader
behaviors into the two broad classes of task-oriented and relationship-oriented behaviors.
The major proposition of situational leadership theory is that the effectiveness of task and
relationship-oriented leadership depends upon the maturity of a leader's subordinates.
The theory suggests that leadership style should be matched to the maturity of the
subordinates. Maturity is assessed in relation to a specific task and has two parts:

Psychological maturity, which reflects their self-confidence, ability and readiness

to accept responsibility.
Job maturity, which reflects their relevant skills and technical knowledge.

As the subordinate maturity increases, leadership should be more relationship-motivated

than task-motivated. For four degrees of subordinate maturity, from highly mature to
highly immature, leadership can consist of:

Delegating to subordinates.
Participating with subordinates.
Selling ideas to subordinates.
Telling subordinates what to do

Path-Goal Theory

Path-goal theory was first presented in a 1971Administrative Science Quarterly article by

Robert House. Path-goal theory proposes that subordinates' characteristics and
characteristics of the work environment determine which leader behaviors will be more
effective. Key characteristics of subordinates identified by the theory are locus of control,
work experience, ability, and the need for affiliation. Important environmental
characteristics named by the theory are the nature of the task, the formal authority
system, and the nature of the work group.
Evans and House suggest that the performance, satisfaction and motivation of a group
can be affected by the leader in a number of ways:
Offering rewards for the achievement of performance goals.
Clarifying paths towards these goals.
Removing performance obstacles.

A person may do these by adopting a certain leadership style according to the situation:

Directive leadership - Specific advice is given to the group and ground rules are
established.
Supportive leadership - Good relations exist with the group and sensitivity to
subordinates' needs is shown.
Participative leadership - Decision making is based on group consultation and
information is shared with the group.

Achievement-oriented leadership - Challenging goals are set and high

performance is encouraged while showing confidence in the groups' ability.

Supportive behaviour increases group satisfaction, particularly in stressful situations,

while directive behaviour is suited to ambiguous situations. It is also suggested that
leaders who have influence upon their superiors can increase group satisfaction and
performance.
According to the theory, leader behavior should reduce barriers to subordinates' goal
attainment, strengthen subordinates' expectancies that improved performance will lead to
valued rewards, and provide coaching to make the path to payoffs easier for subordinates.
Path-goal theory suggests that the leader behavior that will accomplish these tasks
depends upon the subordinate and environmental contingency factors.
In contrast to the Fiedler contingency model, the path-goal model states that the four
leadership styles are fluid, and that leaders can adopt any of the four depending on what
the situation demands.
Leader-Member Exchange Theory

The Leader-member exchange (LMX) theory argues that because of time pressures,
leaders establish a special relationship with a small group of their followers. These
individuals make up the in-group. They are trusted, get a disproportionate amount of the
leaders attention, and are more likely to receive special privileges. Other followers fall
into the out-group. They get less of the

leaders time, fewer of the preferred rewards that the leader controls, and have leaderfollower relations based on formal authority interactions.

Leader-member exchange (LMX) theory was initially called the vertical dyad linkage
theory. The theory was introduced by George Graen and various colleagues in the 1970s
and has been revised and refined in the years since. LMX theory emphasizes the dyadic
(i.e., one-on-one) relationships between leaders and individual subordinates, instead of
the traits or behaviors of leaders or situational characteristics.
The theory's focus is determining the type of leader-subordinate relationships that
promote effective outcomes and the factors that determine whether leaders and
subordinates will be able to develop high-quality relationships.

According to LMX theory, leaders do not treat all subordinates in the same manner, but
establish close relationships with some (the in-group) while remaining aloof from others
(the out-group). Those in the in-group enjoy relationships with the leader that is marked
by trust and mutual respect. They tend to be involved in important activities and
decisions. Conversely, those in the out-group are excluded from important activities and
decisions.

LMX theory suggests that high-quality relationships between a leader-subordinate dyad

will lead to positive outcomes such as better performance, lower turnover, job
satisfaction, and organizational commitment. Empirical research supports many of the
proposed relationships (Steers et al., 1996).

1.3.4 CONTEMPORARY APPROACHES

Another line of influence research attempts to explain why the followers of some leaders
are willing to exert exceptional effort and make personal sacrifices to accomplish the
group objective and mission. The effectiveness of a leader is explained in terms of his/her
influence on the way followers view themselves and interprets events. Effective leaders
influence followers to have more optimism, self-confidence and commitment to the
objectives or mission of the organization. Most theories of charismatic and
transformations leadership identify the types of behaviour used by the leader and traits
that facilitate the leaders effectiveness. In contrast to other approaches in leadership
research, follower perceptions and attributions are also considered to be important for
understanding leadership effectiveness. The same behaviour by a leader may have a
different effect on followers depending on the current situation, the prior history of
interaction between the leaders and the followers and the way the behaviour is interpreted
by followers.
Contemporary approaches focus upon the connections formed between leaders and
followers. These leaders motivate and inspire people by helping group members see the
importance and higher good of the task. Some of contemporary theories of leadership are:
Transactional leadership
Transformational leadership
Charismatic leadership
Leadership in Decision Group

Transactional Leadership
Transactional leadership is based on an exchange between leaders and followers. It is
effective because it is in the best interest of followers to do what the leader wants.18
There are four types of behaviours that are associated with transactional leadership:
contingent reward, active management by exception, passive management by exception,
and laissez-faire leadership.

Contingent reward behaviour includes the clarification of what is expected of followers in

order to receive rewards.19 Rewards, such as money and time-off, are used as incentives
to motivate followers to perform. Management by exception refers to leadership that
utilizes corrective criticism, negative feedback, and negative reinforcement.20 It can
either be active or passive. A leader employing the active form of management by
exception is always on the lookout for problems and takes corrective actions immediately
following a minor mistake or rule violation by a follower. Such a leader is always acutely
aware of what his/her followers are doing. A leader using the passive form does not
monitor followers as closely, and only reacts to problems once they have occurred.21
Mistakes are only noticed and addressed once they become obvious obstacles to goal
attainment. Laissez-faire leadership is descriptive of a leader who acts indifferently to
followers and who is not concerned with the mission. This type of leader abdicates all
leadership roles and responsibilities. Laissez-faire is often considered a non-leadership
factor.22
Although transactional leadership is effective in certain situations, there is increasing
evidence that it is not an effective leadership model for achieving long-term objectives.
Followers are motivated to perform certain tasks, contingent on

rewards, but transactional leadership fails to motivate followers to perform beyond their
basic job requirements. It is essential to understand that human behaviour is often based
on a series of exchanges, yet the transactional leadership model is too simplistic and
offers no explanation for intrinsic motivation. Furthermore, although transactional
leadership focuses on the exchange between leaders and followers, it is the leader who
has the power and who controls the terms of the relationship.

Transformational leadership
According to Bernard Bass,
Transformational leadership occurs when a leader transforms, or changes, his or her
followers in three important ways that together result in followers trusting the leader,
performing behaviors that contribute to the achievement of organizational goals and
being motivated to perform at a high level. Transformational leaders:
Increase subordinates awareness of the importance of their tasks and the
importance of performing well.
Make subordinates aware of their needs for personal growth, development, and
accomplishment.
Motivate their subordinates to work for the good of the organization rather than
exclusively for their own personal gain or benefit.
Transformational leaders provide individualized consideration, intellectual
stimulation, and possess charisma.
Transformational leadership builds on top of transactional leadership.

Building on Basss contributions, Tichy and Devanna identified the characteristics of

transformational leaders as follows:
They identify themselves as change agents.
They are courageous individuals.
They believe in people.
They are value-driven.
They are lifelong learners.
They have the ability to deal with complexity.
They are visionaries.

Transformational leadership is a process that changes and transforms individuals. It is

often associated with ethics and involves long term goals. It is not thought to involve an
exchange between leader and follower such as exists for transactional leadership. Instead,
transformational leadership focuses on the process by which the leader engages with
followers, and together create a connection that raises each of them to higher levels of
motivation and morality. A transformational leader must be attentive to follower needs
and motivation, and tries to help followers reach their full potential.
According to B.M. Bass, the leader transforms and motivates followers by making them
more aware of the importance of task outcomes, inducing them to transcend their own
self-interest for the sake of the organization or team, and activating their higher order
needs. It is hypothesized that follower motivation and performance are enhanced more by
transformational leadership than by transactional leadership.

Transformational leadership is concerned both with the performance of followers as well

as developing them to their full potential. There are four main factors that have been
associated with transformational leaders: idealized influence, inspirational motivation,
intellectual stimulation, and individualized consideration.

Charismatic Leadership
It is widely believed that charismatic leaders are the product of follower perceptions and
attributions that are influenced by actual leader traits and behaviour, the context of the
situation, and the individual and collective needs of the followers. There are many
different theories of charismatic leadership. Although they differ in their reasons for why
charisma has been attributed to the leader they all share the basic assumption of what a
charismatic leader is.

Charisma is a Greek word that means divinely inspired gift. The term has since been
used to describe a leader whose followers think that he/she is endowed with exceptional
qualities. Such a leader is thought to yield influence over his/her followers because of
these special powers instead of needing to use traditional or formal forms of authority.
Charisma is believed to be attributed to leaders who advocate a unique vision, yet one
that lies within the range of acceptability by followers. It is thought more likely to be
attributed to leaders who act in unconventional ways to achieve their vision. Furthermore,
leaders who make self-sacrifice, take personal risk, and incur high costs to achieve their
vision are more likely to be viewed as charismatic.

Often the followers of a charismatic leader think that the leaders beliefs are correct.
They, therefore, obey the leader willingly and without question, feel affection towards the
leader, and are emotionally involved in the mission. As well, followers of a charismatic
leader often believe that they can contribute to the success of the mission and
consequently set high performance goals for themselves.

On their own part, charismatic leaders usually have high self-confidence and a strong
need for power. They often hold a strong conviction in their own beliefs and ideals, and
use these to articulate ideological goals relating the mission, with the hope that followers
will imitate their behaviour. Charismatic leaders are likely to engage in behaviours
designed to impress their competence upon their followers and they hold high
expectations about followers performance while simultaneously expressing confidence
them.
Charismatic leadership is similar to the trait approach yet important differences
distinguish the two. Whereas the trait approach focuses exclusively on the leader,
charismatic leadership theories appreciate the connection between leaders, followers, and
the situation. Indeed, a charismatic leader is thought to be the product of his/her
followers. Charismatic leaders are also thought of as having strong beliefs and their
emergence is very dependent upon the situation. Trait theories, however, neglect to
address these issues. It is important to note, however, that there has been a dark side
associated with charismatic leadership. The personal power awarded to a charismatic
leader can make them insensitive, manipulative, domineering, impulsive and/or
defensive, creating a negative impact on the organization as a whole.

Leadership in Decision Group

Much of a managers time is spent in formal and informal meetings with subordinates,
peers, superiors and outsiders. Meetings are held to solve problems, make decisions and
coordinate related activities. Many management meetings run too long and fail to result
in an agreement because essential leadership functions are not carried out by anyone.
What leaders should do to make meetings more effective has been the subject of research
by behavioural scientists over the last three decades. Consultants and practitioners have
also contributed to our knowledge about leadership in decision groups.

Chapter 2
CONTEMPORARY ISSUES IN LEADERSHIP

In this chapter following contemporary issues in leadership will be discussed:

Gender: do males and females lead differently?
Leading through Empowerment
What about followership?
National Culture As An Added Contingency Variable
Providing Team Leadership
Moral Dimension To Leadership

2.1 GENDER: DO MALES AND FEMALES LEAD DIFFERENTLY?

Does the fact that the leader is a woman rather than a man matter? Does it make a
difference in the workplace? Do women lead differently than men? Are styles of
leadership, leadership characteristics, types of interactions with followers and peers
different than for men in similar positions? Does gender change the face of leadership?
Recognizing the large number of women currently in leadership positions, questions of
gender difference assume greater importance than in previous years. What do we need to
know about women and leadership to advance our work successfully?

Though females' early socialization and other obstacles may impede them from becoming
leaders, those who do ascend do not behave significantly differently from men in the
same kinds of positions. Some studies have been able to discern differences in leadership
style and managerial behavior, but most have not.
Studies have examined male/female differences in three main types of managerial
behavior. The first is task accomplishment style, which is how much the leader initiates,
organizes, and defines work activities and processes. The second is interpersonal style,
which is how much the leader builds morale, relationships, satisfaction, and commitment
in the organization. The third is decision-making style, which is how much the leader
encourages a participative, democratic approach as opposed to an autocratic approach.
Some studies find differences between males' and females' task accomplishment styles
and interpersonal styles. Males tended to be more task-oriented; females tended to be
more relationship-oriented. These differences, however, have been observed only in men
and women subjects of laboratory experiments, that is, people asked to speculate how
they would behave if they were leaders. Differences disappear in studies where actual
managers are compared: most conclude that women do not behave differently from men
in the same or similar kind of leadership position. Moreover, experienced women
managers show no differences in leadership abilities from experienced male managers.
These women, in fact, are likely to more closely resemble their male counterparts in
drive, skills, temperament, and competitiveness, than the average woman in the
population.

Some difference has been found in males' and females' decision making styles. According
to Gary N. Powell's comprehensive study, Women and Men in Management, women tend
to employ a more democratic, participative style while men tend to take a more
autocratic, directive approach. This difference has appeared in both laboratory studies and
observations of real leaders. Some scholars thus argue that women's tendency to
negotiate, mediate, facilitate, and communicate is the more effective leadership style than
men's emphasis on power and control; and because this "feminine" style reduces
hierarchy, satisfies subordinates, and achieves results, it should be the norm to which men
are compared. There is some evidence that this is occurring: most mainstream writers
now urge managers to adopt a caring, cooperative, collaborative, nurturing, connective,
servant leadership style.
During the late 1990s medical science found a physical basis for some of these basic
differences in leadership qualities. As asserted by Dorion Sagan in "Gender Specifics:
Why Women Aren't Men," the structure of the female brain affords women several
biological and cognitive advantages. This was thought to be in large part due to the
connector between the two sides of the brain being larger in women than in men,
resulting in a better ability on the female's part to integrate left brain/right brain activities.
Women were thought better able to follow several trains of thought at the same time,
while men appeared better able to focus on single topics.

2.2 LEADING THROUGH EMPOWERMENT

According to Chip R. Bell and Bilijack R. Bell Empowerment is insuring employees
closest to a problem or need have the authority to make judgments on how the problem is
solved or the need met. Empowerment does not mean unlimited license...just do
whatever you need to do. They further explain that it means responsible freedom. It
means employees who balance the freedom to go the extra mile for the customer with the
responsibility of taking care of the organization. It means thinking and acting more like
an owner, and not like a brainless slave who simply does what he or she is told.
Organizations can no longer afford front-line people reluctant to use their full capacity at
work. Cop out behind, I just did what I was told, or Just tell me what to do, and
everyone loses.
Empowerment is not a gift bestowed by a benevolent leader. Leaders dont GIVE power.
Power already exists in the employee. The job of the leader is to release power...that is, to
remove the barriers that keep employees from acting with power. Empowerment is a
partnership in focused energy and go the extra mile enthusiasm.

Empowerment works when leaders examine the work environment and to identify
barriers getting in the way of responsible freedom. Below are four barriers as explained
by Chip R. Bell and Bilijack R. Bell that are frequent culprits in organizations, along with
a few tips on how leaders can eliminate each barrier.

1. No Purpose. We all work smarter when we feel a part of an important mission. We

also make more responsible decisions on behalf of the organization and the customer.
When asked, What are your doing, the apathetic bricklayer stated the
obvious...laying bricks. But, the committed bricklayer answered, Im building a
great cathedral. Purpose or mission provide a focus on the cathedral-building
mission, not just the brick-laying task.
FedEx chairman Fred Smith reminds FedEx employees of their purpose or mission:
You arent just taking stuff by 10:30 am. You transport the most precious cargo in
the world--an organ for a vital transplant, a gift for a special ceremony, a factory part
that may have halted a company.

2. No Protection. Empowerment begins with error! Employees quickly learn if they are
empowered when they make a mistake. If the error is met with rebuke, it sends a very
different message than if the leader sees error as an opportunity for learning and
problem solving.
Without risk, theres no learning or creativity. With risk, there are occasional honest
mistakes. Empowering is trusting, says one senior manager. The greater the trust,
the greater the freedom; but, freedom comes with responsibility. The leaders job is
to coach employees to feel more and more comfortable with more and more
responsibility.

3. No Permission. Empowerment involves guidelines, not unlimited license. The leader

who says, Just go do whatever you think is best, is probably demonstrating
abdication, not empowerment. And, the employee who assumes, I can do whatever I
like, is demonstrating rebelliousness, not empowerment. Flexibility is important
since customers want to be treated unique. But, flexibility has limits.

4. No Proficiency. Knowledge is power, said philosopher Francis Bacon. Learning,

not once but constantly, provides wisdom, not just competence. And whereas
competence promotes confidence, wisdom fosters power. Building competence can
involve gaining information about the organization-- long-range goals, strategies,
competitor information.
Empowerment is earned through knowledge. Early on theres frustration as
employees want to start running things and dont know what they dont know. The
leader has to take the time to grow employees. This takes openness so both parties
can ask questions, discuss issues and share thoughts. Unless its a crisis, the employee
needs the chance to work through issues and learn from experience.

2.3 WHAT ABOUT FOLLOWERSHIP?

According to Adrian Walsh & Associates Pty Ltd ABN 94 077 516 879 (2000-2004)
in sharp contrast to leadership there is a dearth of writing on the art of

following. The superhighway is replaced by the dirt track. While some authors make
passing reference to it in their writings on leadership relatively few have focused on
the follower as a key player in successful leadership. Even a cursory review of the
field leaves one with the impression that following is behaviour not considered by
leadership experts as worthy of special attention or serious examination. After all
the follower is the person who simply does what they are told because they are
unwilling or unable to play a more meaningful and decisive role in the team.

Developing an adequate definition of a follower is made difficult because the

concept is seen to be trivial, obvious and lacking substance. This difficulty is
compounded by the fact that following cannot be understood without reference to
leadership. The following definition draws on the thoughts of Kelley, a major
contributor to the literature on the role of the follower:

A follower is one who pursues a course of action in common with a leader to achieve
an organisational goal. Effective followers make an active decision to contribute
towards the achievement of the goal and demonstrate enthusiasm, intelligence, selfreliance and the ability to work with others in pursuit of the goal. Effective followers
recognise the authority of the leader and limitations this imposes on their own actions,
consider all issues on their merits, make their own decisions, hold their own values,
speak their minds and hold themselves accountable for the consequences for their
actions.

In other words, effective followers, given the necessary information and room to
move, can be trusted to take independent action to achieve a specific objective,
subject to their receiving ongoing assistance and support to resolve issues beyond
their spheres of competence and influence and to their receiving recognition for the
work they are doing. It is important to note that while the behaviour of effective
followers may be seen to be simply doing as they are told, their actions are the result
of independent thought and decision making and would have been the same in the
absence of direction from the leader.
Balancing the Ledger

Emphasising the importance of follower to the leadership process is not intended to deny
or downplay the significance of the leader to the achievement of team goals. Rather the
intention is to (Adrian Walsh & Associates):

Raise the profile of the follower and his/her interaction with the leader to the point
where the contributions of both the follower and the leader are seen as integral to
team success.
Assist followers to fully understood and accept their role in the leadership process
and to encourage them act in accordance with the demands of that role.
Assist leaders to identify and implement management practices that encourage and
permit followers to act in ways that realise the full potential of the role.

Emphasis the importance of both leaders and followers to the achievement of shared
objectives.
Strategies for Promoting Effective Following
Organisations can foster a culture of effective following by adopting the following
strategies (Adrian Walsh & Associates):

Adopt a management style based on the philosophy that successful leadership is

dependent on actions of the leader, followers and the quality of their interaction.
Communicate this philosophy of leadership throughout the organisation.
Conduct training programs for all employees (including senior management) to
inform them of the concept and practice of effective following.
Conduct training programs for managers, supervisors, team leaders to educate them
on how to encourage and manage effective followers.
Build effective following into performance reviews for all employees.
Reward and celebrate outstanding examples of effective following and follower
oriented leadership.

2.4 NATIONAL CULTURE AS AN ADDED CONTINGENCY VARIABLE

As the worlds economies are becoming increasingly integrated into global

trading relations, the need to understand cultural influences on leadership has

never been greater (House et al., 1999). The globalization of the workforce, the expansion
of multinationals, and exposure of local companies to increased world competition have
forced practitioners to deal with the cultural limitations of particular organizational and
leadership practices. Similarly, the increasing globalization of the research community
has increased the salience of culture as a potential boundary condition to our leadership
theories (Hanges, Lord, & Dickson, 2000).

The central issue in the study of leadership across different nations is the question of
universality versus cultural contingency of leadership. It seems that leadership scholars
diverge sharply on this issue, with most of them assuming absolute positions in the
opposite ends of the culture-contingency vs. universality spectrum solutions (Carl &
Javidan, 2001; Dorfman & Howell, 1997). A culture-specific perspective reflects the view
that the occurrence and the effectiveness of certain leadership behaviors (as well as
constructs) is likely to be unique to a given culture. The culture-universal position, in
contrast argues that certain leadership constructs are comparable across cultures and that
many universal leadership behaviors do exist. Only recently, following the review by
Bass (1990) and with the emergence of the GLOBE project (House, 1998), has the
leadership research community begun to realize that universal and culture-specific
leadership behaviors and constructs are not mutually exclusive categories, but can rather
coexist in a single culture at the same time.

National Culture affects leadership style by way of the subordinates. Leaders can not
choose their styles at their will. They are constrained by the cultural conditions that their
subordinates have come to expect.

2.5 PROVIDING TEAM LEADERSHIP

Janice Klein and Pamela Posey,(Harvard Business Review, November/December 1986)

has explained following twelve leadership principles to keep in mind when playing the
role of team leader:

1. Understand the Phases of Group Evolution: Teamwork does not happen overnight.
Just like kids and families, groups lurch through different developmental stages. One
of the more widely known approaches is Tuckman's forming, storming, norming and
performing model. A fifth stage called mourning is sometimes added when teams
break up. A key challenge for those in leadership roles is to use methods that bypass
the destructive conflict characterizing the storming phase.
2. Grow Leaders if You Want to Build Teams: Most of what is called a "team" in
corporate America, really are mislabeled groups. For example, in the early days of
Total Quality Management, one person related to me that upon coming back from
vacation, he no longer had a department, but now had a teamhe was no longer a
supervisor, but was a team leader. While he was given the label of team leader, he was
never given the leadership training on how to lead. At the c-level, we see a similar
phenomenon, CEO's calling their

group a team. In fact, some leadership experts believe that getting executives to work
together as a team is even more difficult than seeing teamwork in the ranks.
3. Provide Human Relations Training To Group Members: The above story
illustrates a common leadership issue: management typically does not provide
training "soft skill" traning. Having real teams, not the make believe variety, requires
new knowledge and new behaviors. Companies must invest in developing people
skills for teamwork to flourish.
4. Teams Need Continuous Support From Executives: Team building classes are
ultimately an exercise in futility for the trainers and the participants if executives fail
to support their teams. Many teams die, killed by the very executives who say they
want them to flourish. The "flower principle" applies. Teams are not weeds that grow
unchecked in the corporate structure. These are more like a rare flower that will
quickly die when neglected or sabotaged.
5. Team Leadership Rule 5: Establish a Team Identity: Teams have an identify,
groups do not. It's next to impossible to establish the sense of cohesion that
characterizes teams without this fundamental leadership step.
6. Increase Cohesion: Many words have described the shift in relationship that occurs
when leaders get teams to "gel." The military services often use the term espirit de
corps to describe this bonding and sense of camaraderie. This sense of caring for
others starts when individuals begin using more we than

me, more us than you. However it is described, there is no standard step-bystep approach to bringing it about.
7. Change Norms: Norms are behavior patterns that apply to all members in a group.
Norms develop for small groups or the huge aggregates called nations. Explicit norms
are written down, forming the basis for regulations, policies and laws. The best way
to discover implicit norms is through observation since they are rarely discussed or
written down. In newly formed groups, it helps to agree on certain norms or Ground
Rules. Properly setting ground rules prevent problems later on.
8. Define Roles and Responsibilities: In all groups, individuals play a set of behaviors
called roles. These roles establish boundaries and set expectations governing
relationships. In groups, roles can serve as source of confusion and conflict. Members
of teams, though, have a shared understanding regarding how to perform their role.
Crucial leadership roles for project teams typically include: the leader, a facilitator, a
timekeeper and a recorder.
9. Establish Group Processes: Groups don't require extensive procedure manuals, but
they do need to follow certain processes none-the-less. Three key processes impact
performance. The first is the widely known, but rarely followed procedures, for
running meetings. Another process relates to communication roles. Finally, there are
the processes and mental tools useful in solving problems.
10. Facilitate Meetings: Groups have a tendency to get bogged down in a quicksand of
trivial issues. Ask yourself, "How much time gets wasted in the

meetings you attend?" To minimize wasted time, smart organizations have

leaders who can act as facilitators for team projects and critical meetings.
11. Leaders Use Communication Microroles: In teams, few self-oriented roles are
expressed while the task and maintenance roles are performed as needed. Ten task
roles are played to get the job done and solve problems. The six maintenance roles are
tougher to perform since they involve maintaining sound interpersonal relationships.
Leadership is necessary to deal with the twelve self-oriented roles since they are
typically dysfunctional, often wrecking both relationships and task progress.
12. Develop A Problem Solving Process: Groups typically don't have a well defined
process for fixing problems. And so problems thought fixed keep occurring again and
again and again. Strange as it may seem, while managers are charged with solving
problems in organizations, somehow the colleges and business schools never got
around to teaching them how to go about it. Part of the problem is that b-schools tell
students that managers are decision makers. The truth is, executives are decision
makers, but managers must excel at being problem solvers. It's a subtle, but important
distinction. It's analogous to public and private schools that somehow neglect to teach
children how to learn. We expect our children to excel at learning, but neglect to teach
them the techniques to do it

2.6 MORAL DIMENSION TO LEADERSHIP

The ethics of leadership rests upon three pillars:
(1) The moral character of the leader,
(2) The ethical values embedded in the leaders vision, articulation, and program which
followers either embrace or reject, and
(3) The morality of the processes of social ethical choice and action that leaders and
followers engage in and collectively pursue.

Such ethical dimensions of leadership have been widely acknowledged (Wren,

1996; Kouzes & Posner,1993; Greenleaf, 1977). Transformational leaders set examples to
be emulated by their followers. And as suggested by Burns (1978) and demonstrated by
Dukerich, Nichols, et al (1990) when leaders are more morally mature, those they lead
display higher moral reasoning.

According to Adel Safty (2003), Leadership is always tied to morality. Measured by its
results, leadership in whatever field should be the vision-driven achievements of those
people who are able to transform their environment, morally elevate their followers, and
chart new paths of progress and human development. As a concept, leadership should
mean a set of values dedicated to promoting human development for the common good of
people in a democratic environment, both at the national and international levels.

The smaller but growing literature on public policy leadership is less oblivious to moral
dimension than the literature on management leadership. Indeed, cognitive studies stress
that good leaders are people who have excellent communication skills, interest in
expanding their views, and concern for moral issues. Studies like those done by scholar
Warren Bennis distinguish between managers and leaders by arguing that "leaders are
people who do the right thing; managers are people who do things right." Leadership has
also been associated with the higher values in the human needs hierarchya type of
leadership that has been described as "transformational leadership," which satisfies the
higher needs of self-actualization in followers, and, in the process, transforms them.
Leadership has also been described as requiring a sense of responsibility for social
progress. Ronald Heifetz has argued that the modern leader is said to be one who is
willing to take responsibility without waiting for a request or bureaucratic permission.

Leadership is more than management or governance, power or authority, rule or

stewardship; it is instead about high moral purpose. The examples of true leadership are
many: Lincolns commitment to democracy for all the people, Wilsons selfdetermination for former colonies, Ataturks nation-building, Ghandis moral authority,
and Nelson Mandelas struggle for freedom and equality. Whether in the form of
individual leaders or people-driven leadership in the democratic revolutions and global
movements for justice, leadership, like democracy, has ultimately been about and for the
people. Like democracy, it is

also hard work, requiring constantly renewed commitment, a visionary determination to

advance human development, and a common quest for life with dignity for all (Adel
Safty, 2003).
Leadership Styles and Ethics by Bernard M. Bass and Paul Steidlmeier

Both styles of leadership, transformational and transactional, have strong philosophical

underpinnings and ethical components. In individualist philosophies, where leaders and
followers each rationally pursue their own self-interests, it is generally thought that
leaders should be transactional. A free contract is often assumed as a model of transacting
between leaders and followers. A contract has to have moral legitimacy (Donaldson &
Dunfee, 1994). The legitimacy of transactional leadership depends on granting the same
liberty and opportunity to others that one claims for oneself, on telling the truth, keeping
promises, distributing to each what is due, and employing valid incentives or sanctions. It
recognizes pluralism of values and diversity of motivations (Rawls, 1971).
But the exclusive pursuit of self-interest is found wanting by most ethicists (Gini,
1995, 1996; Rosenthal & Buchholz, 1995). Authentic transformational leadership
provides a more reasonable and realistic concept of self -- a self that is connected to
friends, family, and community whose welfare may be more important to oneself than
ones own Ones moral obligations to them are grounded in a broader conception of
individuals within community and related social norms and cultural beliefs. Although
there is plenty of transactional

leadership in punishments for transgressions, authentic transformational leadership is

more consistent than transactional leadership with Judaic-Christian philosophical
traditions and discourses on the leadership of the moral sage that presuppose a trusting
community as the central life context Nonetheless, it is a matter of modern Western moral
concern that ideals not be imposed, that behavior not be coerced, that the search for truth
not be stifled. Ethical norms and behavioral ideals should not be imposed but freely
embraced; motivation should not be reduced to coercion but grow out of authentic inner
commitment, the search for truth should not be stifled but rather questioning and
creativity should be encouraged. Followers should not be mere means to self-satisfying
ends for the leader but should be treated as ends in themselves. We label as "pseudo", that
kind of transformational leadership that tramples upon those concerns.
While transactional leadership manages outcomes and aims for behavioral
compliance independent of the ideals a follower may happen to have, transformational
leadership is predicated upon the inner dynamics of a freely embraced change of heart in
the realm of core values and motivation, upon open-ended intellectual stimulation and a
commitment to treating people as ends not mere means. To bring about change, authentic
transformational leadership fosters the modal values of honesty, loyalty and fairness and
the end values of justice, equality, and human rights. But pseudotransformational
leadership endorses perverse modal values such as favoritism, victimization, and special
interests and end values such as racial superiority, submission, and Social

Darwinism (Carey, 1992; Solomon, 1996). It can invent fictitious obstacles,

imaginary enemies and visions that are chimeras. Likewise, transactional
leadership is moral when the truth is told, promises are kept, negotiations are fair
and choices are free (Hollander,1995). It is immoral when information harmful to
them is deliberately concealed from associates, when bribes are proffered, when
nepotism is practiced, and when authority is abused.

Chapter 3
POWER AND CONFLICT
3.1 POWER AS A CONCEPT
Power is one of the most important determinants of managerial effectiveness. Bennis and
Nanus (1985) regarded it, as the basic energy needed to initiate and sustain actions. It is a
factor without which, leaders cannot lead. It provides the capacity to translate intentions
into reality. Power is at the essence of managerial actions and leadership. It can be
defined as the potential ability to influence behaviour, to change the course of events, to
overcome resistance and to get people do things that they would not otherwise do
(Pfeffer, 1981). Politics and influence are the processes, the actions, the behaviours
through which this potential power is utilized and realized.
Power refers to a capacity that A has to influence the behavior of B, so that B acts in
accordance with As wishes. The definition implies a potential that need not be actualized
to be effective and a dependency relationship. Power may exist but not be used. It is,
therefore, a capacity or potential.

3.2 BASES OF POWER

Five bases of power were identified by French and Raven in 1960, which laid the
groundwork for most discussions of power and authority in the latter half of the twentieth
century. These five types of power are coercive, legitimate, reward,

referent, and expert. Power can be manifested through one or more of these bases.
According to Frank Petrock, Power is the capacity to influence the thought and behavior
of other people. Just as there are many forms of energy used in our daily lives, there are
several forms, sources or bases of power one can draw upon to influence the motivation,
behavior and thoughts of others. He explains these bases are as follows:

1. Reward Power: Reward Power is based on your capacity to provide things that
others desire. You make positive outcomes such as pay increases, recognition,
interesting job assignments and promotions, among other things, contingent on
desired behavior. To be effective, this power base requires that others value the
incentives offered and that they believe that you can and will provide them.

2. Coercive power: Coercive Power could be considered the flip side of Reward Power.
This power is based on your capacity and willingness to produce conditions that the
others want to avoid, or find unpleasant. Coercive Power relies on the contingent use
of punishments such as criticism, poor performance appraisals, reprimands,
undesirable work assignments, or dismissal. Coercive Power is most effective when
its application is both immediate, certain and consistent.

3. Legitimate Power: Legitimate Power is the formal legal authority that is embodied
in your position and/or title. You have the right to manage and to expect compliance
because of your place in the organization. With Legitimate Power there is little need
for a personal relationship between you and others. Others respect the authority
carried in the position regardless of who occupies the position. The higher your rank,
the more Legitimate Power you have.

4. Expert Power: Expert Power is based on your skill, knowledge, accomplishments or

reputation. Others are willing to do what you want because they trust that your
superior expertise will produce the desired results. Your Expert Power also instills
confidence in others even when the solution and/or way forward may not be clearly
understood. This base of power requires that the subordinates trust your expertise and
believe it applies to the issue at hand.

5. Referent Power: Referent Power is based on personal feelings of attraction, or

admiration, that others have for you. Referent Power is truly in the eye of the
beholder where others see something special in you allowing you to take the lead, to
be in the lead or be given the lead. This something special is called charisma where
others are willing to do what the leader wants because they want to please the leader,
have the leader like them and/or want to

become like the leader themselves. This attraction gives the leader power to influence
the behaviour of others.
POWER: A FUNCTION OF DEPENDENCY
Generally power is considered to be a function of dependency. The level of dependency
decides the height of power. It can be understood in terms of following statements:
The General Dependency hypothesize
The greater Bs dependency on A, the greater the power A has over B.
Possession/control of scarce organizational resources that others need makes a
manager powerful.
Access to optional resources (e.g., multiple suppliers) reduces the resource
holders power.

WHAT CREATES DEPENDENCY

Importance of the resource to the organization

Scarcity of the resource
Non substitutability of the resource

3.3 POWER TACTICS

Power tactics people use to translate power bases into specific action. Michener and Burt
(1975) examined factors responsible for leadership success in eliciting compliance. They
reported that compliance was greater when leaders explained that their demands as good
for the group, had power to punish persons who did

not comply to the leaders' commands, and had a legitimate right to make demands on
subordinates. Another study (Gamson, 1968) suggested that leaders would shift toward
coercion of subordinates if they perceived that they lacked subordinates' approval but did
have the legitimate authority for asking for compliance. Other studies examined how
employees attempted to influence their bosses, colleagues, subordinates, lovers and
students (Ansari, Kapoor, and Rehana, 1984; Falbo, 1982; Kipnis et al, 1980). A review
of these studies revealed that a number of overlapping strategies are available. Most
widely cited strategies are as following:

1. REASON: Use of facts, data, making persuasive presentation to support one's stand.
2. FRIENDLINESS: Use of flattery, creation of goodwill, being friendly, showing a
need, asking politely and acting humble for getting things done.

3. COALITION: Getting support of others peers, subordinates in the organization to

backup their view point.

4. BARGAINING: Offering an exchange of benefits or favours.

5. ASSERTIVENESS: Use of direct and forceful approach such as demanding
compliance with requests, repeating reminders, pointing out rules, ordering what's to
be done, becoming a nuisance.

6. HIGHER AUTHORITIES: Getting the support of higher ups in the organization to

back up the request.

7. SANCTIONS: Use of organizationally derived rewards or punishment such as

promising or preventing salary increase, promotion or withholding promotion,
writing unsatisfactory appraisal report.

USE OF POWER TACTICS: FROM MOST POPULAR TO LEAST POPULAR

POPULARITY
Most

INFLUENCING
SUPERIORS

INFLUENCING
SUBORDINATES

Reason

Reason

Coalition

Assertiveness

Friendliness

Friendliness

Bargaining

Coalition

Assertiveness

Bargaining

Higher authority

Higher authority

Least

Sanctions

Source: Kipnis, D. (1984) Patterns of Managerial Influence: Shotgun Managers, Tacticians, and
Bystanders. Organizational Dynamics. (Winter): 62.

FACTORS INFLUENCING THE CHOICE AND EFFECTIVENESS OF POWER

TACTICS
According to Iba Almajzoub there are many factors which influence the choice and
effectiveness of Power tactics. He explained these factors as following:
1. Sequencing of Tactics

Softer to harder tactics works best.

2. Skillful Use of a Tactic

Experienced users are more successful.

3. Relative Power of the Tactic User

Some tactics work better when applied downward.

4. The Type of Request Attaching To the Tactic

Is the request legitimate?

5. How the request is perceived

Is the request accepted as ethical?

6. The culture of the organization

Culture affects users choice of tactic

7. Country-specific cultural factors

Local values favor certain tactics over others.

POWER IN GROUPS: COALITIONS

COALITIONS are clusters of individuals who temporarily come together to achieve a specific

purpose. According to Pfeffer, certain predictions can be made about coalition. These
predictions say that;

Organizations seek to maximize their size to attain influence.

Organizations seek a broad and diverse constituency for support of their

objectives.

Coalitions occur more frequently in organizations with high task and resource
interdependencies.

Coalitions occur more frequently if tasks are standardized and routine.

3.4 CONFLICT AS A CONCEPT

According to K.W Thomas (1992), conflict can be defined as;
As a process that begins when one party perceives that another party has
negatively affected, or is about to negatively affect, something that the first party
cares about.

Fisher (1990) defined conflict as,

An incompatibility of goals or values between two or more parties in a relationship,
combined with attempts to control each other and antagonistic feelings toward each
other.

When we think of the word conflict, we usually think of more than simple disagreement.
We think of individuals or groups in sharp disagreement over issues, ideas, or interests.
This results in an emotional disturbance between the involved parties, with stress
developing and undesirable behaviors being exhibited.
The stress that develops from conflict is important to recognize because of the intensity
of the demand for action, readjustment, or adaptation (Selye, H.). When conflict is
present, it is often suppressed. It is regarded as being negative and undesirable. Most
times, we consciously attempt to avoid anger, arguing, and other hostile emotions.
The automatic development of a negative attitude toward conflict is inappropriate. When
conflict is approached as being negative, the result is predictable and

adverse. It is seen as being confrontational - a situation that places "me against you" or
"us against them (Raspberry, R., and Lemoine, L.)." This is a destructive process. If
pushed to the extreme, dysfunctional conflict results. The primary issue or problem then
becomes subverted. Personal and emotional issues become primary. Time, energy,
emotion, and money are wasted.

Conflict is inevitable between individuals and groups if they work regularly with one
another. But conflict should be regarded as a positive force that can cause indepth
evaluation of problems, issues, and ideas. The evaluation process that conflict can initiate
can result in a full identification of problems; understanding of other points of view;
exploration of alternatives; stimulation of interest, involvement, commitment, and
energy; and project success. Conflict can provide the opportunity for personal and
organizational growth, if managed properly.

Dubrin has listed some functional consequences of conflict:

Positive consequences
- New or modified goals may evolve.
- Closer interpersonal relationships may develop.
- New involvement, commitment, and energy may result.
- The positions of others may be more clearly understood.
- Individual and group awareness may improve.

Negative consequences
- Organizational goals may be sidelined, distorted, or not accomplished.
- Resources may be wasted or misapplied.
- The emotional impact on individual mental health may be adverse.
Dubrin explains further that traditional methods of resolving the conflict episode
are by:
Compromise - agreeing to accept less than you initially wanted.

Postponement (procrastination) - action on determining the cause and solution of the

problem is delayed.
Avoidance - the cause and solution of the conflict episode are simply avoided.

There are virtually infinite sources of conflict in organizations. Huseman describes five
frequent ones:
Organizational structure.
Performance measures.
Ambiguity.
Disagreement about goals and how to achieve them.

Conflicting perceptions of reality.

Organizational structure alone can be responsible for negative conflict between

individuals or departments. Ill-defined or overlapping responsibility, unclear roles and
goals, and unclear expectations can lead to adverse competition, and eventual
dysfunctional conflict. If conflict is to be managed in organizations, the nature of conflict
must be understood.
3.5 PROCESS OF CONFLICT
Pondy describes the typical conflict episode as occurring in five stages:

1. Latent conflict: There must be some underlying cause or condition (latent conflict) in
order for the first stage to develop. When the "stages of conflict" are listed by conflict
scholars, the first phase is often listed as "latent conflict" or "unstable peace," It exists
whenever individuals, groups, organizations, or nations have differences that bother one
or the other, but those differences are not great enough to cause one side to act to alter the
situation. Differential power, resources, differing interests or values all have the potential
to spark conflict if a triggering event occurs. Citing Collins, Paul Wehr observed that,
"social life is above all a struggle for power and status regardless of the type of structure.
An inevitable power differential between groups, and between individuals, produces
latent conflict in all social relations."

2. Perceived conflict: Conflict may sometimes be perceived when no conditions of

latent conflict exist and latent conditions may present in a relationship without

any of the participants perceiving the conflict. Perceived conflict occurs due to the
parties misunderstanding of each others true position. Such a conflict can be resolved by
improving communication between the parties.

3. Felt conflict: The involved parties respond to the condition with feelings of tension,
irritation, and/or anger.

4. Manifest Conflict: The fourth stage reflects the actions or counter-measures taken by
the parties involved as a result of the conflict episode. By manifest conflict is meant any
of several varieties of conflictful behaviour such as open aggression, apathy, sabotage,
withdrawal and perfect obedience to rules.

5. Conflict Aftermath: This stage defines the result of the conflict episode. Were the
issues in conflict or the underlying conditions resolved? Was the resolution partial or
complete, satisfactory or unsatisfactory in the views of the parties involved? When
solutions are unsatisfactory and underlying conditions remain unchanged, the conflict
episode is sure to recur.

3.6 LEVELS OF CONFLICT

According to Ron Fisher, Conflict can occur at a number of levels of human functioning.
Conflict in your head between opposing motives or ideas is shown by your internal
dialogue and is at the intrapersonal level. Beyond that, the primary concern here is with
social conflict, i.e., conflict between people whether they are acting as individuals, as
members of groups, or as representatives of

organizations or nations. Ron Fisher further explains the levels of conflict as following:

Interpersonal conflict occurs when two people have incompatible needs, goals, or
approaches in their relationship. Communication breakdown is often an important source
of interpersonal conflict and learning communication skills is valuable in preventing and
resolving such difficulties. At the same time, very real differences occur between people
that cannot be resolved by any amount of improved communication. Personality
conflict refers to very strong differences in motives, values or styles in dealing with
people that are not resolvable. For example, if both parties in a relationship have a high
need for power and both want to be dominant in the relationship, there is no way for both
to be satisfied, and a power struggle ensues. Common tactics used in interpersonal power
struggles include the exaggerated use of rewards and punishments, deception and
evasion, threats and emotional blackmail, and flattery or ingratiation. Unresolved power
conflict usually recycles and escalates to the point of relationship breakdown and
termination.

Role conflict involves very real differences in role definitions, expectations or

responsibilities between individuals who are interdependent in a social system. If there
are ambiguities in role definitions in an organization or unclear boundaries of
responsibilities, then the stage is set for interpersonal friction between the persons
involved. Unfortunately, the conflict is often misdiagnosed as interpersonal conflict rather
than role conflict, and resolution is then complicated

and misdirected. The emotional intensity is often quite high in role conflict since people
are directly involved as individuals and there is a strong tendency to personalize the
conflict.

Intergroup conflict occurs between collections of people such as ethnic or racial groups,
departments or levels of decision making in the same organization, and union and
management. Competition for scarce resources is a common source of intergroup
conflict, and societies have developed numerous regulatory mechanisms, such as
collective bargaining and mediation, for dealing with intergroup conflict in less disruptive
ways. Social-psychological processes are very important in intergroup conflict (Fisher,
1990). Group members tend to develop stereotypes (oversimplified negative beliefs) of
the opposing group, tend to blame them for their own problems (scapegoating), and
practice discrimination against them. These classic symptoms of intergroup conflict can
be just as evident in organizations as in race relations in community settings. Intergroup
conflict is especially tense and prone to escalation and intractability when group identities
are threatened. The costs of destructive intergroup conflict can be extremely high for a
society in both economic and social terms.

Multi-Party Conflict occurs in societies when different interest groups and organizations
have varying priorities over resource management and policy development. These
complex conflicts typically involve a combination of economic, value and power sources.
This complexity is often beyond the reach

of traditional authoritative or adversarial procedures, and more collaborative approaches

to building consensus are required for resolution (Cormick et al, 1996; Gray, 1989).

International conflict occurs between states at the global level. Competition for
resources certainly plays a part, but value and power conflict are often intertwined and
sometimes predominate. The differences are articulated through the channels of
diplomacy in a constant game of give and take, or threat and counterthreat, sometimes for
the highest of stakes. Mechanisms of propaganda can lead to many of the same socialpsychological distortions that characterize interpersonal and intergroup conflict.

3.7 CONFLICT RESOLUTION STRATEGIES

Regardless of the level of conflict, there are differing approaches to deal with the
incompatibilities that exist. Conflict can result in destructive outcomes or creative ones
depending on the approach that is taken. If we can manage conflict creatively, we can
often find new solutions that are mutually satisfactory to both parties. Sometimes this will
involve a distribution of resources or power that is more equitable than before, or in
creating a larger pool of resources or forms of influence than before. Creative outcomes
are more probable when the parties are interdependent, i.e., each having some degree of
independence and autonomy from which to influence the other, rather than one party
being primarily dependent on the other.

Given interdependence, three general strategies have been identified that the parties may
take toward dealing with their conflict; win-lose, lose-lose, and win-win (Blake, Shepard
& Mouton, 1964).

Win-lose approach is all too common. People learn the behaviors of destructive conflict
early in life competition, dominance, aggression and defense permeate many of our
social relationships from the family to the school playground. The fixed pie assumption
is made, often incorrectly, that what one party gains, the other loses. The strategy is thus
to force the other side to capitulate. Sometimes, this is done through socially acceptable
mechanisms such as majority vote, the authority of the leader, or the determination of a
judge. Sometimes, it involves secret strategies, threat, innuendo whatever works is
acceptable, i.e., the ends justify the means. There is often a strong we-they distinction
accompanied by the classic symptoms of intergroup conflict. The valued outcome is to
have a victor who is superior, and a vanquished who withdraws in shame, but who
prepares very carefully for the next round. In the long run, everyone loses.

Lose-lose strategy is exemplified by smoothing over conflict or by reaching the simplest

of compromises. In neither case is the creative potential of productive conflict resolution
realized or explored. Disagreement is seen as inevitable, so therefore why not split the
difference or smooth over difficulties in as painless a way as possible? Sometimes, this is
indeed the reality of the situation, and the costs are less than in the win-lose approach, at
least for the loser. Each party

gets some of what it wants, and resigns itself to partial satisfaction. Neither side is aware
that by confronting the conflict fully and cooperatively they might have created a more
satisfying solution. Or the parties may realistically use this approach to divide limited
resources or to forestall a win-lose escalation and outcome.

Win-win approach is a conscious and systematic attempt to maximize the goals of both
parties through collaborative problem solving. The conflict is seen as a problem to be
solved rather than a war to be won. The important distinction is we (both parties) versus
the problem, rather than we (one party) versus they (the other party). This method focuses
on the needs and constraints of both parties rather than emphasizing strategies designed
to conquer. Full problem definition and analysis and development of alternatives precedes
consensus decisions on mutually agreeable solutions. The parties work toward common
and superordinate goals, i.e., ones that can only be attained by both parties pulling
together. There is an emphasis on the quality of the long term relationships between the
parties, rather than short term accommodations. Communication is open and direct rather
than secretive and calculating. Threat and coercion are proscribed. The assumption is
made that integrative agreements are possible given the full range of resources existing in
the relationship. Attitudes and behaviors are directed toward an increase of trust and
acceptance rather than an escalation of suspicion and hostility. The win-win approach
requires a very high degree of patience and skill in human relations and problem solving.

Based on S.P. Robbins, Managing Organizational Conflict: A non traditional

approach, conflict resolution techniques can be stated as:

Problem Solving: It is face to face meeting of the conflicting parties for the
purpose of identifying the problem and resolving it through open discussion.
Superordinate Goals: It is creating shared goals that cannot be attained without
the cooperation of each of the conflicting parties.
Expansion of Resources: When a conflict is caused by the scarcity of a resource
- say money, promotion opportunities, office space expansion of the resource
can create a win-win solution.
Avoidance: Withdrawal from, or suppression of the conflict.
Smoothing: Playing down differences while emphasizing common interests
between the conflicting parties.
Compromise: Each party to the conflict gives up something of value.
Authoritative Command: Management uses its formal authority to resolve the
conflict and then communicates its desire to the parties involved.
Altering the Human Variable: Using behavioural change techniques such as
human relations training to alter attitudes and behaviours that cause conflict.

Altering the Structural Variables: Changing the formal organization structure

and the interaction patterns of conflicting parties through job redesign, transfers,
creation of coordinating positions, and the like.

UNIT 4 ORGANIZATIONAL CULTURE,

ORGANIZATIONAL DEVELOPMENT,
AND STRESS MANAGEMENT
Learning Objectives: After studying this unit, the students should be able to understand
the concept of organizational culture, its determinants, organizational development and
various intervention techniques of OD. Students shall also learn the basic concepts of
stress at work and various other issues related to stress.

Unit Outline
Chapter-1 Organizational Culture
1.1

Organizational Culture as a concept

1.2

Definitions of Organizational Culture

1.3

Determinants of Organizational Culture

Chapter-2 Organizational Development

2.1

Organizational Development as a concept

2.2

Intervention Techniques

Chapter-3 Stress
3.1

Stress as a Concept

3.2

Factors to Stress

3.3

Consequences of Stress

3.4

Management of Stress

Chapter 1

ORGANIZATIONAL CULTURE

1.1 ORGANIZATION CULTURE AS A CONCEPT

In a fundamental sense, a culture exists when people come to share a common frame
of reference for interpreting and reacting towards one another and towards the world in
which they live. This common frame of reference includes language, values, beliefs and
interpretation of experiences. It is reflected in customs, folkways, communication and
observable features of the community including rituals, rites, celebrations, legends, myths
and heroic saga.

The first step towards understanding the essence of organizations culture is to

appreciate that it is a concept rather than a thing. This distinction is crucial. A thing can
be discovered and truth established about it, for example, through empirical research.
However, a concept is created in peoples mind that is, it must be conjured up, defined
and refined. There is no final authoritative source or experiment to settle disagreements
about what it is or what comprises it. In organizational studies, theorists have come up
with different ways of defining organization culture. Smircich (1983) pointed out, that
both fundamentalist and interpretivist scholars have written about and produced studies
on organization culture, but she argues that these two groups understand organizational
culture

in entirely different ways. To a functionalist, a culture is something that an organization

has a set of characteristics that an organization possesses. The interpretivist sees
culture as the essence of organizational life. It is described according to the meanings
and the ways in which the culture itself is enacted or performed through communication.

People get affected by the culture in which they live. Values, beliefs, expected
behavior of a family are taught to its members through the process of socialization within
the family. The same is true for the organizations. When people join an organization they
have certain values and beliefs but they may not be sufficient for achieving organizational
goals. Hence, they are required to adapt to the culture of the organization. Every
organization has missions and goals and to attain these, it adapts unique modes and
methods of operations. In the process of achieving the corporate mission, participants
internalize organizational values and norms to give meaningful expressions to the same in
their day-to-day activities. Thus all the members of an organization come to adapt shared
values, beliefs, norms, attitudes, ways of doing things and practices which are unique to
the organization. This is called the culture of the organization. As Hagberg & Heifetz
(1998) concede that:

Culture drives the organization and its actions. It is somewhat like the operating

system of the organization. It guides how employees think, act and feel.

1.2 DEFINITIONS OF ORGANIZATIONAL CULTURE

Organization culture has been defined, by scholars in varied ways and numerous
definition of culture have been proposed. A few of these insights are:

Porter, Lawler & Hackman (1975) identify organization culture as:

A set of customs and typical patterns of ways of doing things. The force, pervasiveness and
nature of such model, beliefs and values vary considerably from organization to organization.
Yet it is assumed that an organization that has any history at all has developed some sort of
culture and that this will have a vital impact on the degree of success of any effort to improve
or alter the organization.

Edgar H. Schein (1984) defines organization culture as:

A set of basic assumptions that a given group has invented, discovered or developed in learning
to cope with its problems of external adaptations and internal integration that have worked well
enough to be considered valid, and therefore, to be taught to new members as a correct way to
percieve, think and feel in relation to these problems.

According to Daniel R. Denison (1990):

Organization culture refers to the underlying values, beliefs and principles that serve as a
foundation for organizations management systems, as well as the set of management practices
and behaviors that both exemplify and reinforce those basic principles.

Thus, though organization culture is defined by different people in different ways,

most of the definitions stress on the importance of shared norms and values in the study
of culture. The core of the culture is formed by values which are not visible but shared by
people even when membership in the group changes. Organization culture has many
characteristics. Based on the varied definitions of culture, Amarchand (1992) identified
the following seven distinct characteristics of organization culture. Culture is -

Learned
Rooted in the traditions of the organization
Shared by the people of the organization
Transgenerational
Cumulative
Symbolic in nature
Multifaceted (i.e. it is composed of several elements put together)

A critical examination of the deliberations presented above seems to suggest that

culture determines the important issues within the organization. It identifies the principal
goals, work methods and behaviours, work rules, individual interaction patters in which
they address each other and the ways in which personal relationships are conducted.
Sinha (1980) identified that in complex organizations there may be subcultures, which
may be different from each other. Different units of a corporate body may develop
different cultures. In

the same organization, finance, production, marketing, personnel and maintenance groups
may hold different values and world-views and hence, while sharing parts of the
organization culture, these may have different specific patterns.

J. Chatman & Caldwell has suggested the following seven primary characteristics that
capture the essence of an organizations culture:
1. Innovation and Risk Taking - The degree to which employees are encouraged to be
innovative and take risks.

2. Attention to detail - The degree to which employees are expected to exhibit precision,
analysis, and attention to detail.

3. Outcome Orientation - The degree to which management focuses on results or

outcomes rather than on the techniques and processes used to achieve these outcomes.

4. People Orientation - The degree to which management decisions take into consideration
the effect of outcomes on people within the organization.

5. Team Orientation - The degree to which work activities are organized around teams
rather than individuals.

6. Aggressiveness - The degree to which people are aggressive and competitive rather
than easygoing.

7. Stability - The degree to which organizational activities emphasize maintaining the status
quo in contrast to growth.

Model to describe Organisational Culture in organisations

Several models have been developed to describe the relationships between phenomena
and variables of organisational culture. The model of organisational culture as part of
organisation reality developed by Sathe (1985), focuses on the influence of leadership,
organisation systems and personnel on the actual and expected behaviour patterns, the
effectiveness thereof for the organisation and the level of personnel satisfaction brought
about by these behaviour patterns. The criticism of this model is that it does not examine
the influence of external factors on the organisational culture. Schein's (1985) model
depicts the levels of organisational culture, viz., artifacts, values and basic assumptions
and their interaction. Schein's model is criticised for not addressing the active role of
assumptions and beliefs in forming and changing organisational culture (Hatch, 1993).
Some researchers see organisational culture in organisations against the background of
the systems theory developed by Ludwig von Bertalanffy (1950) and adapted by several
authors such as Katz and Kahn who initially applied the systems theory to organisations
in 1966 (French and Bell, 1995), Kast and Rosenzweig (1985) and Kreitner and Kinicki
(1992) for application in the organisational development field. The systems approach
offers a holistic approach, but also emphasises the interdependence between the different
sub-systems and elements in an organisation, which is regarded as an open system
(French and Bell, 1995). The organisation system model explains the interaction between
the organisational subsystems (goals, structure, management, technology and psychosociology). This complex interaction, which takes place

on different levels, between individuals and groups within the organisation, and with
other organisations and the external environment, can be seen as the primary determinant
of behaviour in the workplace. The patterns of interaction between people, roles,
technology and the external environment represent a complex environment which
influences behaviour in organisations.

Against this background and the work of Schein (1985), Martins (1987)
developed a model to describe organisational culture based on the typical ideal
organisation and the importance of leadership in creating an ideal organisational culture.
Martins' model is based on the interaction between the organisational sub-systems (goals
and values, structural, managerial, technological and psychosociological sub-systems),
the two survival functions, namely the external environment (social, industrial and
corporate culture) and the internal systems (artifacts, values and basic assumptions), and
the dimensions of culture. The dimensions of culture encompass the following (Martins,
1987, 1997):

Mission and vision (determines personnel's understanding of the vision, mission and
values of the organisation and how these can be transformed into measurable
individual and team goals and objectives). External environment (determines the
degree of focus on external and internal customers and also employees' perception of
the effectiveness of community involvement).

Means to achieve objectives (determines the way in which organisational structure

and support mechanisms contribute to the effectiveness of the organisation).

Image of the organisation (focuses on the image of the organisation to the outside
world and whether it is a sought-after employer).

Management processes (focuses on the way in which management processes take

place in the organisation. It includes aspects such as decision making, formulating
goals, innovation processes, control processes and communication).

Employee needs and objectives (focuses on the integration of employees' needs and
objectives with those of the organisation as perceived by employees/personnel).
Interpersonal relationships (focuses on the relationship between managers and
personnel and on the management of conflict).

Leadership (focuses on specific areas that strengthen leadership, as perceived by

personnel).

This model is a comprehensive model which encompasses all aspects of an organisation

upon which organisational culture can have an influence, and vice versa. This model can
therefore be used to describe organisational culture in an organisation and thus be used as
background to determine which determinants of organisational culture influence the
degree of creativity and innovation in organisations.

Increasing Importance of Organizational Culture

Schein (1992) suggests that organizational culture is even more important today than it
was in the past. Increased competition, globalization, mergers, acquisitions, alliances, and
various workforce developments have created a greater need for:
Coordination and integration across organizational units in order to improve
efficiency, quality, and speed of designing, manufacturing, and delivering
products and services
Product innovation
Strategy innovation
Process innovation and the ability to successfully introduce new technologies,
such as Information Technology
Effective management of dispersed work units and increasing workforce diversity
Cross-cultural management of global enterprises and/or multi-national
partnerships
Construction of meta- or hybrid- cultures that merge aspects of cultures from what
were distinct organizations prior to an acquisition or merger
Management of workforce diversity
Facilitation and support of teamwork.

1.3 DETERMINANTS OF ORGANIZATIONAL CULTURE

The forces which play a particularly important part in sustaining a culture identified and
explained by Robbins are as given below:
Selection practices of the Management
Actions of Top Management
Socialization Methods

Selection practices of the Management - The explicit goal of the selection process is to
identify and hire individuals who have the knowledge, skills, and abilities to perform the
jobs within the organization successfully. Generally, more than one candidate is identified
who meets any given jobs requirement. When that point is reached, it would be nave to
ignore that the final decision as to who is hired will be significantly influenced by the
decision makers judgment of how well the candidates will fit into the organization. This
attempt to ensure a proper match, whether purposely or inadvertently, results in the hiring
of people who have values essentially consistent with those of the organization, or at least
a good portion of those values (Schneider). Selection process also provides information
to applicants about the organization so that candidates can decide whether to be
associated with the organization or not. Therefore, selection process sustains an
organizations culture by selecting out those individuals who might attack or undermine
its core values.

Actions of Top Management - A major impact of actions of top management can also be
seen on organizational culture (Hambrick and Mason). Through what they say and how
they behave, senior executives establish norms that filter down through the organization
as to whether risk taking is desirable; how much freedom managers should give their
subordinates; what is appropriate dress; what actions will pay off in terms of pay raises,
promotions, and other rewards; and the like.

Socialization - It is observed that new employees are not fully in coordination with the
organizations culture. As they are unfamiliar with the organizations culture, they are
likely to disturb the beliefs and customs that are in place. Therefore, the organizations
want to help their employees adapt to its culture and the process that adapts employees to
the organizations culture is known as socialization (Allen and Meyer). Organizational
socialization is a process of work adjustment that affects how long an individual remains
employed with the organization. It describes how people learn to fit into a new
organization or job. It is a process by which an individual learns appropriate attitudes,
behaviors and knowledge associated with a particular role in an organization (Chao,
OLeary-Kelly, Wolf, Klein, and Gardner). The general theory asserts that people who are
well socialized into an organization are more likely to stay and develop their careers with
that organization.
Building a competent workforce, one where people believe they fit in well with their
organizations, is often viewed as a competitive edge in todays business.

For organizations, a competent and committed workforce minimizes costly turnover and
selection expenses. Moreover, individual employee attributes associated with successful
organizational socialization can accumulate across the organization to positively effect
organizational performance and effectiveness. Organizational socialization is a primary
process to facilitate work adjustment for new employees or for employees taking on new
roles.

For individuals, a good fit within the organization can lead to several positive benefits.
People who are well socialized are more committed to their organizations, more satisfied
with their jobs, and earn more than people who dont learn to fit in with their
organizations. Furthermore, people who are well socialized are less likely to quit their
jobs and more likely to build successful careers within the organization. The extent to
which both organizational and individual socialization processes support a good personorganization fit will define the extent to which that individual has been successfully
socialized.
According to Mannen and Schien the process of socialization can be conceptualized as a
process made up of three stages:
Prearrival Stage - The period of learning in the socialization process that occurs
before a new employee joins the organization.
Encounter Stage - The stage in the socialization process in which a new
employee sees what the organization is really like and confronts the possibility
that expectations and reality may diverge.

Metamorphosis Stage - The stage in the socialization process in which a new

employee adjusts to his or her work groups values and norms.

What is learned in organizational socialization?

There are several models of socialization content describing what a newcomer learns
during the adjustment process. Chao, OLeary-Kelly, Wolf, Klein, and Gardner developed
six content areas for organizational socialization and developed scales to research
learning in these areas:
Performance proficiency,
Language,
People,
Politics,
Organizational goals and values, and
History.
Performance proficiency involves learning to perform a job successfully. Language
involves learning special acronyms and terminology used by the organization. The people
dimension includes learning to get along with other organizational members. Politics
involves learning formal and informal power structures. Organizational goals and values
involve understanding the organizations culture. Finally, history involves learning about
the organizations past as well as the specific history associated with the newcomers
business unit. Organizational newcomers generally scored lower on these dimensions
than

organizational insiders. Furthermore, people who were better socialized, tend to be more
satisfied with their jobs, more involved in their careers, and earned more income than
people who were less well socialized. Perhaps most interesting is the finding that people
who dont perceive themselves to fit with the organizations goals and values are most
likely to quit their jobs and change organizations. Regardless of how people learn in these
content areas, mastery was associated with greater socialization and greater socialization
was associated with positive job and career outcomes.

Chapter 2
ORGANIZATIONAL DEVELOPMENT
2.1 ORGANIZATIONAL DEVELOPMENT AS A CONCEPT
Organizational Development (OD) is a management discipline designed to improve
an organization's effectiveness and productivity. Rooted in behavioral science foundations,
OD focuses on complex interpersonal skills as they affect the problem solving activities
critical to the organization/s. Following an in-depth assessment of organization's select
needs, activities such as coaching, visionary planning, and group change processes are
utilized to address pivotal areas necessary for success.
Organizational Development is a systematic approach to organizational improvement
that applies behavioral science theory and research in order to increase individual and
organizational well-being and effectiveness. It is a term used to include a collection of
planned change interventions that seek to improve organizational effectiveness and
employee well being.
Organization development (OD) applies behavioral-science knowledge and
practices to help organizations change to achieve greater effectiveness. It seeks to improve
how organizations relate to their external environments and function internally to attain
high performance and high quality of work life.
OD emphasizes change in organizations that is planned and implemented
deliberately. It is both an applied field of social practice and a domain of scientific inquiry.
Practitioners, such as managers, staff experts, and consultants, apply

relevant knowledge and methods to organization change processes, while researchers study
those processes to derive new knowledge that can subsequently be applied elsewhere. In
practice, this distinction between application and knowledge generation is not straightforward as OD practitioners and researchers often work closely together to jointly apply
knowledge and learn from those experiences (Lawler et al., 1985). Thus, OD is an action
science where knowledge is developed in the context of applying it and learning from the
consequences (Argyris et al.1985).
OD encompasses a diversity of concepts and methods for changing organizations.
Although several definitions of OD have been presented (Beckhard, 1969; Bennis, 1969;
French, 1969; Beer, 1980;Burke, 1982), the enormous growth of new approaches and
techniques has blurred the boundaries of the field and made it increasingly difficult to
describe. The following definition seeks to clarify emerging aspects of OD while drawing
on previous definitions of the field:
Organization development is a system-wide process of applying behavioral-science
knowledge to the planned change and development of the strategies, design components,
and processes that enable organizations to be effective.
OD addresses an entire system, such as a team, department, or total organization. It
also deals with relationships between a system and its environment as well as among the
different features that comprise a systems design. This system-wide application follows
from an open-systems approach to organizations (Thompson, 1967; Katz & Kahn, 1978;
Cummings, 1980).

OD focuses on changing and improving three key aspects of organizations:

Strategies: Strategies have to do with how organizations use their resources to gain
competitive advantage. This includes choices about the functions an organization will
perform, the products or services it will provide, and the markets and customers it will
serve.

Design Components: Design components include decisions about organization structure,

work design, measurement systems, and human resources practices.

Processes: Processes have to do with how organizations go about doing things and include
how members relate to each other and their tasks and how different functions, such as
communication and decision-making, are performed.

OD seeks to bring congruence or fit among strategies, design components, and

processes so they mutually guide and reinforce organizational behavior in a strategic
direction.
Finally, OD focuses on improving organization effectiveness. This includes helping
organizations achieve high performance, good quality of work life, and capacity for
continued problem-solving and improvement. Effective organizations perform at high
levels while meeting the needs of various stakeholders, including owners, customers,
employees, suppliers, and government regulators.
They have a high quality of work life that enables them to attract and retain talented
members. Effective organizations are able to solve their own problems while continually
improving and renewing themselves.

The OD paradigm values human and organizational growth, collaborative and

participative processes, and a spirit of inquiry. The change agent may be directive in OD,
however, there is a strong emphasis on collaboration. Concepts such as power, authority,
control, conflict, and coercion are held in relatively low esteem among OD change agents.
According to Robbins the following briefly identifies the underlying values in most OD
efforts:

1. Respect for people: Individuals are perceived as being responsible, conscientious,

and caring. They should be treated with dignity and respect.
2. Trust and Support: The effective and healthy organization is characterized by
trust, authenticity, openness, and a supportive climate.
3. Power Equalization: Effective organizations deemphasize hierarchical authority
and control.
4. Confrontation: Problems shouldnt be swept under the rug. They should be openly
confronted.
5. Participation: The more that people who will be affected by a change are involved
in the decisions surrounding that change, the more they will be committed to
implementing those decisions.
Some recent definitions of Organization Development
According to Burke(1994),
Organization Development is a planned process of change in an organizations culture

through the utilization of behavioural science technologies, research, and theory.

Cummings and Worley (1993) defined OD as,

A system wide application behavioural science knowledge to the planned development

and reinforcement of organizational strategies, structures, and processes for improving an
organizations effectiveness.
According to Porras and Robertson (1992) OD is,

A set of behavioural science based theories, values, strategies, and techniques aimed at the
planned change of the organizational work setting for the purpose of enhancing individual
development and improving organizational performance, through the alteration of
organizational members on the ob behaviours.

WHY IS ORGANIZATION DEVELOPMENT IMPORTANT?

Profitability, productivity, morale and quality of work life are of concern to most
organizations because they impact achievement of organization goals. There is an
increasing trend to maximize an organization's investment in its employees. Jobs that
previously required physical dexterity now require more mental effort. Organizations need
to "work smarter" and apply creative ideas.
The work force has also changed. Employees expect more from a day's work than
simply a day's pay. They want challenge, recognition, a sense of accomplishment,
worthwhile tasks and meaningful relationships with their managers and co-workers. When
these needs are not met, performance declines.

Today's customers demand continually improving quality, rapid product or service

delivery; fast turn-around time on changes, competitive pricing and other features that are
best achieved in complex environments by innovative organizational practices.
The effective organization must be able to meet today's and tomorrow's challenges.
Adaptability and responsiveness are essential to survive and thrive.

IMPLEMENTING OD PROGRAMS

OD efforts basically entail two groups of activities; "action research" and

"interventions." Action research was originated in the 1940s by Lewin and another U.S.
researcher, John Collier. It is a process of systematically collecting data on a specific
organization, feeding it back for action planning, and evaluating results by collecting and
reflecting on more data. Data gathering techniques include everything from surveys and
questionnaires to interviews, collages, drawings, and tests. The data is often evaluated and
interpreted using advanced statistical analysis techniques.
Action research can be thought of as the diagnostic component of the OD process. But
it also encompasses the intervention component, whereby the change agent uses actions
plans to intervene in the organization and make changes, as discussed below. In a
continuous process, the results of actions are measured and evaluated and new action plans
are devised to effect new changes. Thus, the intervention process can be considered a facet
of action research.

A standard action research model was posited by W.L. French in his essay
"Organization Development: Objectives, Assumptions, and Strategies" in Sloan
Management Review, (1969, Vol. XII, No. 2.). The first step in the OD process is
recognition of a problem by key executives. Those managers then consult with a change
agent (a group or individual), which gathers data, provides feedback to the executives, and
then helps them determine change objectives. Next, the agent does new research within the
context of the stated OD goals, gives more feedback, devises a plan of action, and then
intervenes in the company to effect change. After (or during) the intervention(s), data is
gathered, feedback is supplied, actions are planned and implemented, and the process is
repeated.

2.2 OD INTERVENTIONS
Organization Development (OD) is a unique organizational improvement strategy. The sets
of structured/planned activities adopted by groups or individuals in an organization as a
part of the organization development program are known as OD techniques or OD
interventions. While change programs may involve either external or internal consultants,
OD interventions mostly involve external consultants.

OD interventions are sets of structured activities in which selected organizational units

(target groups or individuals) engage in a task or sequence of tasks with the goals of
organizational improvement and individual development.

OD interventions are plans or programs comprised of specific activities designed to effect

change in some facet of an organization. Numerous interventions have been developed over
the years to address different problems or create various results. However, they all are
geared toward the goal of improving the entire organization through change.
In general, organizations that wish to achieve a high degree of organizational change will
employ a full range of interventions, including those designed to transform individual and
group behavior and attitudes. Entities attempting smaller changes will stop short of those
goals, applying interventions targeted primarily toward operating policies, management
structures, worker skills, and personnel policies.
OD interventions can be categorized in a number of ways, including function, the type of
group for which they are intended, or the industry to which they apply. In fact, W.L. French
identified 13 major "families" of interventions based on the type of activities that they
includedactivity groups included teambuilding, survey feedback, structural change, and
career-planning.
One convenient method of classifying OD interventions is by group size and
interrelationship, including: interpersonal relationships, group processes, intergroup
systems, and the entire organization. Typically, an OD program will simultaneously
integrate more than one of these interventions. A few of the more popular interventions are
briefly described below.

INTERVENTION TECHNIQUES

1. Sensitivity Training
2. Survey Feedback
3. Process Consultation
4. Team Building
5. Intergroup Development

2.2.1 SENSITIVITY TRAINING

Sensitivity training is a psychological technique in which intensive group discussion and

interaction are used to increase individual awareness of self and others; it is practiced in a
variety of forms under such names as T-group, encounter group, human relations, and
group-dynamics training. The group is usually small and unstructured and chooses its own
goals.

Sensitivity training is often offered by organizations and agencies as a way for

members of a given community to learn how to better understand and appreciate the
differences in other people. It asks training participants to put themselves into another
person's place in hopes that they will be able to better relate to others who are different than
they are.

Sensitivity training often specifically addresses concerns such as gender sensitivity,

multicultural sensitivity, and sensitivity toward those who are disabled in some way. The
goal in this type of training is more oriented toward growth on an individual level.
Sensitivity training can also be used to study and enhance group relations, i.e., how groups
are formed and how members interact within those groups.

The origins of sensitivity training can be traced as far back as 1914, when J.L.
Moreno created "psychodrama," a forerunner of the group encounter (and sensitivitytraining) movement. This concept was expanded on later by Kurt Lewin, a gestalt
psychologist from central Europe, who is credited with organizing and leading the first Tgroup (training group) in 1946. Lewin offered a summer workshop in human relations in
New Britain, Connecticut. The T-group itself was formed quite by accident, when
workshop participants were invited to attend a staff-planning meeting and offer feedback.
The results were fruitful in helping to understand individual and group behavior.

Sensitive Training in Practice An integral part of sensitivity training is the sharing, by

each member of the group, of his or her own unique perceptions of everyone else present.
This, in turn, reveals information about his or her own personal qualities, concerns,
emotional issues, and things that he or she has in common with other members of the
group. A group's trainer refrains from acting as a group leader or lecturer, attempting
instead to clarify the group processes using

incidents as examples to clarify general points or provide feedback. The group action,
overall, is the goal as well as the process.

Sensitivity training resembles group psychotherapy (and a technique called psychodrama)

in many respects, including the exploration of emotions, personality, and relationships at an
intense level. Sensitivity training, however, usually restricts its focus to issues that can be
reasonably handled within the time period available. Also, sensitivity training does not
include among its objectives therapy of any kind, nor does it pass off trainers/facilitators as
healers of any sort. Groups usually focus on here-and-now issues; those that arise within
the group setting, as opposed to issues from participants' pasts. Training does not explore
the roots of behavior or delve into deeper concepts such as subconscious motives, beliefs,
etc.

Sensitivity training seeks to educate its participants and lead to more constructive and
beneficial behavior. It regards insight and corrective emotional or behavioral experiences as
more important goals than those of genuine therapy. The feedback element of the training
helps facilitate this because the participants in a group can identify individuals' purposes,
motives, and behavior in certain situations that arise within the group. Group members can
help people to learn whether displayed behavior is meaningful and/or effective, and the
feedback loop operates continuously, extending the opportunity to learn more appropriate
conduct.

Another primary principle of sensitivity training is that of feedback; the breakdown of

inhibitions against socially repressed assertion such as frankness and self-expression are
expected in place of diplomacy. Encounters that take place during

sensitivity training serve to help people practice interpersonal relations to which they are
likely not accustomed. The purpose is to help people develop a genuine closeness to each
other in a relatively short period of time. Training encounters are not expected to take place
without difficulty. Many trainers view the encounter as a confrontation, in which two
people meet to see things through each other's eyes and to relate to each other through
mutual understanding.

2.2.2 SURVEY FEEDBACK

Survey feedback is one of the means which is used for assessing the attitudes held by the
members of the organizations, identifying discrepancies among member perceptions, and
solving these differences.

Everyone in an organization can participate in survey feedback, but of key importance is

the organizational family the manager of any given unit and those employees who report
directly to him or her. A questionnaire is usually completed by all members in the
organization. Organization members may be asked to suggest or may be interviewed to
determine what issues are relevant. The questionnaire typically asks members for their
perceptions and attitudes on a broad range of topics, including decision making practices,
communication effectiveness, coordination between units, and satisfaction with the
organization, job, peers, and their immediate supervisor.

The data from this questionnaire are tabulated with data pertaining to an individuals
specific family and to the entire organization and distributed to employees. These data
then become the springboard for identifying problems and clarifying issues that may be
creating difficulties for people. In some cases, the manager may be counseled by an
external change agent about the meaning of the responses to the questionnaire and may
even be given suggested guidelines for leading the organizational family in group
discussion of the results. Particular attention is given to the importance of encouraging
discussion and ensuring that discussions focus on issues and ideas and not on attacking
individuals.

Finally group discussion in the survey feedback approach should result in member
identifying possible implications of the questionnaires findings. Are people listening? Are
new ideas being generated? Can decision making, interpersonal relations, or job
assignments be improved? Answers to questions like these, it is hoped, will result in the
group agreeing upon commitments to various actions that will remedy the problems that are
identified.

2.2.3 PROCESS CONSULTATION

Process Consultation has been descried as the central discipline for helping professionals
to build strong client-consultant relationships that result in sustained change and
improvement. This model has enormous practical significance, not

just for OD consultants, but for counselors, managers, therapists, social workers, and others
involved in building and maintaining helping relationships.
Edgar Schein defined the technique of process consultation as the set of activities
on the part of the consultant which help the client to perceive, understand, and act upon the

process events which occur in the clients environment. Process consultation concentrates
on certain specified areas such as communication, functional roles of members, group
problem solving and decision making, group norms and growth, leadership and authority
and intergroup cooperation and competition.
Scheins process consultation model has following underlying assumptions:

Managers require special diagnostic help in knowing what is wrong with the
organization.
Most managers have constant desire to increase organizational effectiveness, but
they need help in deciding how to achieve it.
Managers can be effective if they learn to diagnose their own strengths and
weaknesses without exhaustive and time consuming study of the organization.
The outside consultant cannot learn enough about the culture of the organization, to
suggest reliable new course of action. He should, therefore, work jointly with the
members of the organization.
The client must learn to see the problem for himself, understand the problem and
find a remedy. The consultant should provide new and challenging alternatives for
the client to consider. However, the decision

making authority on these alternatives about organizational changes

remains with the client.
It is essential that the process consultant is an expert in diagnosing and establishing
effective helping relationships with the client. Effective process consultation
involves passing those skills on to the client.
Steps in Process Consultation
According to Schien, process consultation normally proceeds as given below:

1. Initial Contact - Here the client comes into contact with the consultant and specifies the
problem that cannot be solved by normal organizational procedures or resources.

2. Define the relationship - After identifying the specific problem areas, the consultation and
the client enter into a formal contract. The formal contract spells out the services, time and
the fees of the consultant. Actually there is also a psychological contract because both
parties are involved in the satisfaction of certain expectations.

3. Select the method of work - It involves the clear-cut understanding of where and how the
consultant would perform the job. Each individual employee in the organization is made
aware of who the consultant is so that he can help the consultant by furnishing the required
information.

4. Collection of Data and Diagnosis - The consultant invests a great deal of time in
collecting the relevant information. Normally, he gathers data through questionnaires,
observation and personal interviews etc. and then makes an indepth diagnosis of the
problems.

5. Intervention - Various interventions by the consultant such as agenda setting, feedback,

coaching, and structural suggestions are made in the process consultation approach. During
this phase, the solutions designed by the consultant will be translated into action in the
organization.

6. Reducing Involvement and Termination - When the goals of OD intervention have been
successfully achieved, the consultant leaves the organization by closing the formal contract
with the client.

2.2.4 TEAM BUILDING

"Teamwork doesn't happen automatically, and it doesn't result just from the exhortations of
a single leader. It results from members paying attention to how they are working together,
issues that block teamwork and working them through, and consciously developing
patterns of working together that all members find challenging and satisfying."(Peter Vail,
Managing as a Performing Art, 1989).

Periodically a team's ability to rally around goals is blocked by simple group dynamics, and
the team gets stuck, lowering morale, productivity and job satisfaction. Group process
facilitation is powerful tool introduced to break this cycle. During ongoing meeting with a
team, group change activities, including insight-oriented techniques and experiential
exercises, are used by an OD specialist to promote awareness among group members of
their own unique personal styles in communication, collaboration, group roles and conflict
resolution. Members develop increased sensitivity and enhanced perspective-taking skills
as well as an understanding of different communication styles among group members. All
of these skills promote greater group cohesiveness and an ability to

work productively toward a common goal. As individuals develop greater interpersonal

awareness, qualitative changes occur in the group as a whole.

Team building directly focuses on identification of problems relating to task performance

and lays down concrete plans of their elimination. A team building programme deals with
new problems on an going basis. It is an effective technique by which members of an
organizational group diagnose how they work together and plan changes that will improve
their effectiveness (Michael Beer).

Team building attempts to improve effectiveness of work groups by allowing the group
members to concentrate on:
Setting goals or priorities for organizational groups.
Analyzing or allocating the way the work is performed.
Examining the way the group is working.
Examining the relationships among the people doing the work. (R. Bechard).

Thus, the fundamental aim of team building is to help the group members in examining
their own behaviours and developing action plans that foster task accomplishment.
Necessary Conditions for the Success of Team Building Programme

There are certain prerequisites to be fulfilled before making an attempt to undertake the
team building exercises. These prerequisites have been identified by

Hellriegel, Slocum &Woodman. They recommend that management has to ensure

the following:
The group members understand the stated goals clearly.
The group members unanimously agree with the objectives.
Basic interdependence among the members of the group exists.
The group is capable of taking corrective action on the problems identified or at
least will be able to tackle some reasonable percentage of them.
2.2.5 INTERGROUP DEVELOPMENT

Intergroup interventions are integrated into OD programs to facilitate cooperation and

efficiency between different groups within an organization. For instance, departmental
interaction often deteriorates in larger organizations as different divisions battle for limited
resources or become detached from the needs of other departments.

Conflict resolution meetings are one common intergroup intervention. First, different group
leaders are brought together to get their commitment to the intervention. Next, the teams
meet separately to make a list of their feelings about the other group(s). Then the groups
meet and share their lists. Finally, the teams meet to discuss the problems and to try to
develop solutions that will help both parties. This type of intervention helps to gradually
diffuse tension between groups caused by lack of communication and misunderstanding.

Rotating membership interventions are used by OD change agents to minimize the negative
effects of intergroup rivalry that result from employee allegiances to groups or divisions.
The intervention basically entails temporarily putting group members into their rival
groups. As more people interact in the different groups, greater understanding results.

OD joint activity interventions serve the same basic function as the rotating membership
approach, but it involves getting members of different groups to work together toward a
common goal. Similarly, common enemy interventions achieve the same results by finding
an adversary common to two or more groups and then getting members of the groups to
work together to overcome the threat. Examples of common enemies include competitors,
government regulation, and economic conditions.

Chapter 3

STRESS

3.1 STRESS AS A CONCEPT

Stress is found in all aspects of life. Hans Selye, a pioneer in stress research, has defined
stress as "the nonspecific response of the body to any demands made upon it" (Kreitner &
Kinicki, 1992). It is considered to be an internal state or reaction to anything we
consciously or unconsciously perceive as a threat, either real or imagined (Clarke, 1988).
Stress can evoke feelings of frustration, fear, conflict, pressure, hurt, anger, sadness,
inadequacy, guilt, loneliness, or confusion (Cavanagh, 1988). Individuals feel stressed
when they are fired or lose a loved one (negative stress) as well as when they are
promoted or go on a vacation (positive stress). While many individuals believe they must
avoid stress to live longer, Freese (1976) argues that it is the salt and spice of life and that
to have no stress we would have to be dead.

The transactional model of Lazarus (Lazarus, R.S. & Folkman, S. 1984) defines stress as
an imbalance between the demands of the environment and the individuals resources.
According to this model, the individual makes a primary appraisal of the situation or the
demand with which he is confronted. The demand may be perceived as a challenge or
even a threat if the individual thinks that it may give rise to negative consequences. The
individual then makes a

secondary appraisal where he attempts to determine what resources are available to meet
the demand. Thus, workplace stress implies that work-related demands exceed the
employees ability to adapt to these demands (Murphy, L. 1988). The effects of stress
may therefore be positive and provide the motivation, energy and creativity needed to
accomplish a task if the individual thinks that he has the abilities and resources needed to
succeed at it. The effects of stress will be negative when there is a discrepancy between
the individuals resources and the demand.

Stress is a dynamic condition in which an individual is confronted with an opportunity,

constraint, or demand related to what he or she desires and for which the outcome is
perceived to be both uncertain and important.
Stress is associated with constraints and demands. Constraints prevent the person from
doing what s/he desires. Demand refers to the loss of something desired.
There are two conditions which are necessary for possible stress to become actual stress,
i)

there must be uncertainty over the outcome and

ii)

the outcome must be important.

Regardless of the conditions, it is only when there is doubt or uncertainty regarding

whether the opportunity will be seized, the constraint removed, or the loss avoided that
there is stress. That is, stress is highest for those individuals who perceive that they are
uncertain as to whether they will win or loose and lowest for those individuals who think
that winning or losing is a certainty. But

importance is also critical. If winning or losing is an unimportant outcome, there is no

stress.

The annual World Labor Report of the UN International Labor Office says that work
stress is especially prevalent where mental pressure is unrelenting and the sense of
personal control is low. While you can't always control what happens to you, both on and
off the job, you can control how you look at and respond to what happens to you.

Stress can result in physical, psychological, and behavioral responses. Stress has been
implicated as contributing to a variety of physical disorders that include heart disease,
high blood pressure, strokes, migraine headaches, cancer, gastrointestinal disorders. (e.g.,
heartburn, ulcers) (Murray & Schoenborn, 1987) along with asthma, diabetes, and
multiple sclerosis (Fleming & Baum, 1986). One study reported that a company spent
$3,400 annually for one employee with anxiety headaches, which included the loss of
productivity, doctor visits, and negative effects on coworkers (Manning & Curtis, 1988).
Psychological disorders are not always readily identifiable, but symptoms include
anxiety, depression, job dissatisfaction, maladaptive behavioral patterns, chemical
dependencies, and alcohol abuse (Sauter, Murphy, & Hurrell, 1990). Psychological
disorders have been recognized as one of the 10 leading work-related diseases in the
country today by The National Institute for Occupational Safety and Health (NIOSH)
(Millar, 1990). Finally, behavioral responses include the coping behaviors exhibited in
dealing with stressful events (Newton, 1989).

Employers cannot ignore the stress of their employees, and it is in management's own
self-interest to find ways to reduce it. However, stress is subjective, and people react to it
in different ways (Szilagyi & Wallace, 1990). Some adapt while others tolerate it or try
always to avoid it. Some go to pieces at the first sign of stress while others seem to thrive
on it. Much of a person's reaction depends on the situation and their skills in prevention
and reduction (Cavanagh, 1988; Smeltzer, 1987).

3.2 FACTORS TO STRESS

According to the Chartered Management Institute, stress is closely related to the
degree of control an individual has over their work - while self-controlled pressure can
generally be tolerated at a very high level, the threshold for imposed pressure is low.
Pressures come from different directions, and affect us in different ways at different
times. The Chartered Management Institute points to a number of workplace factors that
could become sources of stress if not properly managed. These are:
Factors intrinsic to the job - workplace environment and conditions; hours of work;
workload; repetitiveness; risks and hazards.
The role of the individual in the organisation - far from being restricted to high flyers,
stress can affect anybody who feels unable to meet expectations or understand what is
expected of their role.

Interpersonal relationships - workplace disagreements or personality clashes can be a

major cause of stress.
Career development - with career structure no longer a part of many organisations, staff
can face uncertainty about their future prospects and may move from job to job to try and
progress their career
Organisation structure and climate - features such as internal politics, lack of
consultation, excessive bureaucracy, and power relationships can all be sources of stress.

3.2.1 INDIVIDUAL FACTORS

Robbins has identified the following individual factors that cause stress.

Family problems: Family and personal problems like marital difficulties, the
breaking off of a relationship, and discipline troubles with children are examples
of relationship problems that create stress for employees that arent left at the
front door when they arrive at work.

Economic Problems: Economic Problems created by individuals overextending

their financial resources is another set of personal troubles that can create stress
for employees and distract their attention from their work.

Personality: A significant individual factor influencing stress is a persons basic

dispositional nature. That is stress symptoms expressed on the job may actually
originate in the persons personality.

3.2.2 ORGANIZATIONAL FACTORS

Robbins say that within the organization a list of endless factors can be prepared that can
cause stress. Pressures to avoid errors or complete tasks in a limited time period, work
overload, a demanding and insensitive boss, and unpleasant co-workers are a few
examples. However according to Robbins these factors can be categorized and explained
as:

Task demands
Role demands
Interpersonal demands
Organizational structure
Organizational leadership
Organizations life stage

Task Demands: These are factors which are related to a persons job. These factors
include the design of the individuals job (autonomy, task, variety, degree of automation),
working conditions, and the physical work layout. Assembly lines can put pressure on
people when their speed is perceived as excessive. The more dependence between a
persons tasks and the tasks of others, the more potential stress there is. Autonomy, on the
other hand, tends to lesson stress.

Jobs where temperatures, noise, or other working conditions are dangerous or undesirable
can increase anxiety. So, too, can working in an overcrowded room or in a visible
location where interruptions are constant.

Demands related to tasks and roles in the organization are the sources most often reported
as being responsible for work-related mental health problems (Collings, C.H. 1984).
Several studies have shown a significant link between work overload and mental health
problems as well as certain physical disorders such as heart disease and high cholesterol
(House, J. 1974).

Individuals are in a quantitative work overload situation when they have the impression
that they are working under pressure and have too much work to do in too short a time.
This form of overload has been much more common for the last few years as many
organizations have slashed jobs (Zijlstra, F. R. H., Roe, R.A., Leonora, A.B. et Krediet, I.,
1999).

In addition to carrying out a greater quantity of work, employees must often put in extra
effort to accomplish their tasks. This is because more and more individuals are frequently
interrupted by the telephone, co-workers, email, and so on. In such circumstances, they
must invest considerable mental effort to return to their tasks. It has been demonstrated
that work interruptions have a negative impact on the well-being of individuals, requiring
that they make extra effort to avoid a deterioration in their performance (Jackson, S. et
Schuler, R. S. , 1985).

Individuals are in a qualitative work overload situation when they feel that they are
unable to perform their tasks because they lack the knowledge or skills needed. However,
as research by Karasek et al. has shown, work overload may be less harmful to workers
health if they have a degree of control over the demands made on them (Karasek, R. &
Theorell, T. 1990). Consequently, a high level of demand, when combined with increased
control or latitude for employees in their work, is less likely to undermine employees
mental health

An unhealthy physical environment and difficult working conditions have also often been
associated with work-related mental health problems. The level of psychological tension
of individuals may increase if they have the impression that they are working in
conditions that are dangerous for their health or safety. Whether this involves easily
detectable factors such as high levels of noise or heat, or more insidious factors such as
pollution, humidity, poor lighting, an inadequately configured workstation or continuous
work in front of a computer screen, these factors can have negative effects on the level of
performance, satisfaction and motivation at work (Kahn, R. 1981).

Role Demands: Role demands relate to pressures placed on a person as a function of the
particular role he or she plays in the organization. Role conflicts create expectations that
may be hard to reconcile or satisfy. Role overload is experienced when the employee is
expected to do more than the time permits. Role ambiguity is created when role
expectations are not clearly understood and the employee is not sure what he or she is to
do.

Role conflicts and ambiguity can also have harmful effects on workers mental health.
Moreover, various studies have shown that there is a relationship between role conflicts
and ambiguity, on the one hand, and absenteeism, low levels of work performance (Holt,
R.R. 1982). And job dissatisfaction ( Burke, R.J., 1993). On the other, in addition, they
are closely linked to anxiety and the intention to leave the organization.
Role conflict occurs when individuals are faced with incompatible or contradictory
expectations by their superiors or co-workers, or even when these expectations contradict
the employees values, beliefs or goals. For example, this is the case with hospital
managers who may find it difficult to reconcile their mandate to cut jobs with the duty to
provide quality care to patients. Finally, role conflict may arise when the materials and
resources needed to properly perform the work are not available (Role conflict and
ambiguity in complex organizations. Administrative Science Quarterly, 15 (2), 150-163.)
Role ambiguity occurs when individuals do not know what is expected of them, what
tasks to perform, or what their responsibilities are in the context of their work. For
example, they may not have any information about the goals to be accomplished, or they
may be unaware of how to meet clear expectations, or they may even be unaware of the
consequences associated with performing their work.

Interpersonal demands: These are the pressures created by other employees. Lack of
social support from colleagues and poor interpersonal relationship can cause considerable
stress, especially among employees with high social needs.

The quality of the relations between individuals in the context of their work can have an
impact on their mental health. It has been recognized that a climate of trust in which
individuals feel supported can decrease tensions and foster job satisfaction and
motivation. Conversely, an atmosphere of mistrust and hostility is associated with role
ambiguity as well as a low level of communication, satisfaction and psychological wellbeing (French, J. R., & Caplan, R.D., 1973).

Organizational Structure: defines the level of differentiation in the organization, the

degree of rules and regulations, and where decisions are made. Excessive rules and lack
of participation in decisions that affect an employee are examples of structural variables
that might be potential sources of stress.
The degree to which individuals participate in the organizations decision-making process
is an important element in their psychological well-being and the effectiveness of the
organization. Some researchers maintain that a lack of participation in decision making
could be linked to higher levels of stress, alcohol abuse, depression, and physical ill
health as well as low levels of self-esteem and job satisfaction (Karasek, R. & Theorell,
T., 1990). Greater involvement of workers in the decision-making process gives them the
opportunity to have access to more information concerning the organization, which
consequently allows them to exercise greater control over their work and environment,
and thus to decrease their level of insecurity and tension (Ross, R. R., & Altmaier, E.M. ,
1994). In addition, encouraging discussion and interaction between the organizations
members improves communication and fosters social support within the organization.

Organizational Leadership: represents the managerial style of the organizations senior

executives. Some chief executive officers create a culture characterized by tension, fear,
and anxiety. They establish unrealistic pressures to perform in the short run, impose
excessively tight controls, and routinely fire employees who dont measure up.
Recognition at work is gaining more and more attention as a risk factor linked to workrelated mental health problems. Employees increasingly expect that their efforts will be
recognized, both through daily signs of appreciation and encouragement as well as wages
and career opportunities. Recognition can also be shown by creating a forum for
discussion in which individuals can express their points of view about their work.
Individuals who do not feel appreciated and recognized in their work, either by their
superiors or co-workers, may well develop work-related mental health problems.
Moreover, several studies have shown that recognition is linked to motivation and
satisfaction at work, levels of psychological distress and risks of cardio-vascular disease
(Siegrist, J. 1996).

Organization life stage: Organizations go through a cycle. They are established, they
grow, become mature, and eventually decline. An organizations life stage i.e., where it is
in this four - stage cycle creates different problems and pressures for employees. The
establishment and decline stages are particularly stressful. The former is characterized by
a great deal of excitement and uncertainty, while the latter typically requires cutbacks,
layoffs, and a different set of uncertainties. Stress tends to be least in maturity where
uncertainties are at their lowest ebb.

The restructuring of many organizations has greatly changed employees working

conditions. For example, the decrease in the number of jobs in many industries has
created feelings of job insecurity among employees who fear that they will lose their
skills or the privileges associated with their employment. The fear of losing ones job
increases psychological stress among employees and can create a competitive climate
that undermines the quality of interpersonal relations among workers. These conditions
are associated with the appearance of physical and mental health problems in addition to
decreasing motivation, productivity and job satisfaction (Ivancevich, J.M. & Matteson,
M.T., 1980).

Top Causes of Stress at Work

According to a survey by Worklife Report (Publication: Nonprofit World January 1 2005),
the causes of work-related stress, from most to least stressful, are:
1. Deadlines
2. Budget restraints
3. Financial stress/earnings
4. Constant change
5. E-mail overload
6. Poor organizational communication
7. Layoffs/reduced staff
8. Performance expectations
9. Urgent tasks

10. Co-worker conflicts

11. Family pressure
12. Meetings
13. Dealing with the problems of others
14. Political stresses
15. Personnel-related grievances
16. Job security
17. Personal financial concerns
18. Personal health concerns/lack of sleep
19. Pressure from subordinates

3.3 CONSEQUENCES OF STRESS

A considerable amount of research has been devoted to the manner in which individuals
cope with stressful situations in daily organizational life. Coping includes behavioral,
cognitive, and emotional efforts to manage external and/or internal demands and
primarily aims to manage stress and restore equilibrium (Lazarus and Folkman, 1984).
Symptoms of stress are not always easy to spot, but may include absenteeism, poor
productivity, and frequent headaches, nausea and/or aches and pains.
It is an employer's duty by law to make sure staff are not made ill by their work, and
employers who do not take stress seriously may leave themselves open to law suits from
staff who have suffered illness as a result of work-related stress.

Stress can also lead to extra cost for the company through high staff turnover, an increase
in sickness absence, impaired work performance, poor timekeeping and an increase in
customer complaints. Add to this the fact that stress in one member of staff can lead to
stress in others who have to cover for their colleague, and it becomes clear that it is in
everybody's best interests to make the workplace as stress-free as possible.

Symptoms Associated With Workplace Stress to Individuals

Physical symptoms

Psychological

Behavioural symptoms

symptoms
Cardio-vascular disorders

Depression

Aggressivity

Allergies

Anxiety

Alcohol or drug abuse

Dermatological disorders

Boredom

Eating disorders

Migraines

Frustration/Irritability

Conflicts

Respiratory disorders

Isolation

Absenteeism

Sleep disorders

Difficulties concentrating or

Decreased productivity

making decisions
Gastrointestinal disorders

Memory lapses

Decision to leave job

Accident proneness

Some studies showing the consequences of stress for the organizations

Work-related mental health problems constitute one of the main challenges

currently faced by organizations, particularly because of their

serious consequences for these organizations and for individuals. Indeed, it has
been found that there is a direct link between stress and heart disease,
dissatisfaction at work, accidents and certain forms of cancer (McClean, A.A.,
1980, Frese, M. 1985, Cooper, C.L., & Watson, M. 1991). In addition to having
impacts on the individuals concerned, work-related mental health problems are
the main causes of the increase in absenteeism rates (Stansfeld, S., et al. 1995).

In a corporate opinion poll, conducted in early 2000, 62% of 1506 randomly

chosen people from across Canada participating in group insurance plans said that
they were very stressed at work while 64% said that they were irritable or anxious
(Watson Wyatt Worldwide , 2001).

The results of a survey of 281 Canadian organizations (700 000 employees) show
that the direct costs of absenteeism have increased since 1997 and currently
represent 7.1% of the wage bill. If the indirect costs (overtime, replacements,
decreased productivity, etc.) are added to the direct costs, the total cost of mental
health problems comes to 17% of the wage bill. (Watson Wyatt Worldwide ,
2001).

Between 1990 and 2001, the number of claims accepted by the Commission de la
sant et de la scurit du travail (CSST, workers compensation board) as
employment injuries related to stress, burn-out or

other psychological factors more than doubled, from 530 to 1082, and
payments increased from $1.5 to $6.9 million per year (CSST ,2003).

Surveys on the health and well-being of Qubeckers conducted by Sant Qubec

between 1987 and 1998 show that incapacity for work due to mental health
problems nearly doubled, from 7% to 13% .(Webster, T. et Bergman, B.1999).

Surveys on the health and well-being of Qubeckers conducted by Sant Qubec

reveal that the average number of workdays lost per person due to mental health
problems more than tripled between 1992 and 1998, increasing from 7.4 to 24.6
days per 100 persons, a 200% increase. (Webster, T. et Bergman, B.1999).

In the United States, the average duration of leave due to stress is four times
greater than the amount of leave resulting from occupational injuries and
industrial disease. (Cox, T., Griffiths, A.J. et Rial-Gonzalez, E. 2000a)

In Canada, nearly 500 000 workers are absent from work each week due to
work-related mental health problems. (CPQ, 1998).

In Canada, the social costs attributable to work-related mental health problems

have increased to more than $20 billion annually and in Quebec only, these costs
have reached nearly $4 billion annually. (Le Quotidien, 1999).

This increase in incidental absences as well as short-term and long-term disabilities

unquestionably leads to a decline in the morale of the troops and thus in productivity
and the quality of work. Moreover, organizations incur additional costs for temporary
staff and overtime. As regards the impact of work-related mental health problems on
group insurance plans, it should be recalled that in addition to wage loss insurance,
insurers defray the costs of drugs and treatments. In 1995, between 5% and 10% of all
drug costs covered by an insurer were related to mental health, that is, approximately
$50 million annually. The amounts paid to cover psychologists fees were estimated to
be approximately $25 million annually. (L'esprance, J.1995). As regards the impact of
work-related mental health problems on group insurance plans, it should be recalled that
in addition to wage loss insurance, insurers defray the costs of drugs and treatments. In
1995, between 5% and 10% of all drug costs covered by an insurer were related to
mental health, that is, approximately $50 million annually. The amounts paid to cover
psychologists fees were estimated to be approximately $25 million annually
(L'esprance, J.1995).

3.4 MANAGING STRESS

INDIVIDUAL APPROACHES - Often, the solution to combating stress is personal - in other

words, individuals learn to manage their own stress (Clarke, 1988). Individual techniques
include establishing goals and priorities, managing time efficiently, delegating, learning to
communicate with others, changing behaviors, exercising, relaxing, and developing a social
support network of friends, family, and colleagues (Braham, 1988; O'Donnell, 1988;
Robbins, 1993).

(Weiss, W.H. 1994) has explained the following solutions to fight with stress.
BEING AWARE OF STRESS - Throughout your workday, numerous events occur, many of

which relate to your job as a supervisor. What makes an event stressful is simply the fact that
it requires you to react in some way. Based on this analysis, psychologists offer the following
suggestions on what you should do to minimize a stress effect.

Take a few moments to ask yourself, "What is there about this that bothers me and
how might I see it differently?" Find something in a situation you can control and
do so.
Make a commitment toward Realize that stress occurs when you sense that
something is threatening you, and that you have the power to change how you see
it.
Accept that you don't have to be perfect and never make a mistake to be a success.
Too many people worry needlessly, especially when they

become concerned about something they can't control. Try to do the best
you can under the circumstances.
Don't get stressed about being stressed. Recognize that your job and the
workplace inevitably bring with them all kinds of pressures and tensions, large
and small.
Be aware that perfectionists are among the most highly stressed of all people
because they expect so much from themselves.

TAKING YOUR NEEDS MORE SERIOUSLY - In looking for ways to cope with work

stress, consider your need to prevent stress from using up your energy and affecting your
ambition. You can more easily turn the tables on stress if you maintain the proper attitude.

For example, you may feel that sometimes your boss takes advantage of you by using his
or her authority to get you to change your priorities. While this causes you stress, it is a
perfectly normal response on your part. Everyone wants and needs to feel in control of
their lives, and even minor disruptions can make them feel stressed. The answer to the
problem is to understand the type and source of the stress, and to see that most of the
time, the situation is just not worth getting stressed about. Your boss is probably not
trying to show authority, but trust in your ability to adjust to the situation and get the job
done. Yet it wouldn't be smart for you to continually accept disruptions or work-overload
from your boss. If such actions become a habit, you should sit down with him or her to
discuss the problem.

PERSONAL NEEDS - There are several other ways to avoid work stress that

involve your personal needs.

Refuse to become negative and pessimistic. In addition, avoid people who thrive
on conflict and enjoy taking the opposite viewpoint. Don't let their attitudes
dampen your enthusiasm and cause you to feel depressed.
Identify conditions or situations which could be stressful. The way you label
things dictates how you react to them. Think of a problem as a challenge or an
opportunity. Treat a failure as a learning experience.
Call up the willpower to overcome feelings of stress by respecting yourself more
and rating yourself higher in leadership potential. A lot of stress can result from
giving people power over you that you don't need to bestow.
Don't permit any unjustified criticism of others to upset you, endangering your
health and your mental well-being. If you must react to the ill-behavior of an
individual, feel pity or contempt but keep your feelings to yourself.
Recognize that on some days you may reach a time when pushing yourself may
hinder your productivity. When you sense this occurring, take a break of at least
15 minutes for a change of pace and to refresh yourself.
Avoid pushing your own needs to the back burner by putting everyone else's
needs before yours. Learn to treat yourself with kindness and respect as you
would anyone you care about. This will enable you to free up time for yourself.

Ask your boss for something that will facilitate your work or relieve pressure on
you. If your request is reasonable and you're a responsible individual, you should
be able to get what you want or agree on a compromise.

USING RELAXATION - It's no secret that certain types of stress can be harmful, both

physically and mentally. Psychologists say that you should learn and practice responses that
are not only healthy, but help you to get ahead. One of their recommendations is to get
involved with realization exercises.

Relaxation techniques have proved to be helpful also in setting and achieving goals. As
you go through this exercise, mentally feel good about each step and action you take.

WATCHING YOUR LIFESTYLE AND ENVIRONMENT - People who feel energetic on

weekends or holidays but exhausted on weekdays may be reacting to stress at work,

according to Goodyear Tire & Rubber Company's medical director, Dr. John Wellman.
"Many people can energize by changing their lifestyle, environment or diet, and even simple
changes will help alleviate fatigue," Wellman says.

Overdoing it, by working constantly and taking too little time out for leisure, friends and
family life, is a sure way to bring on feelings of stress. While there's many ways of
thinking and behaving that characterize the overdoer, most

importantly, the person constantly is influenced by an inner voice that tells him or her,
"You are not efficient and effective if you can't do it all."
If your work is pushing you to the breaking point, it's time to decide what's most
important and change your style and environment accordingly. Psychologists and
physicians offer the following suggestions.
Set priorities and accept that some jobs won't get done as quickly as you'd like. Do your
job as well as you can to fill your company's major needs. Be careful about agreeing to
deadlines you can't meet. If you promise the impossible, you set yourself up for failure.

Increase your knowledge and pick up additional job skills. As you gain know-how
and experience, you'll be more at ease in group discussions. The more competent
you feel, the more convinced you'll be that you are in control of your job.

Be prepared to deal with even minor stress situations. Take a book or magazine
with you when you expect to wait somewhere. Don't get so immersed in an
activity that you can't anticipate an on-coming headache or upset stomach.

Keep up your physical health by getting enough sleep and exercise and avoiding
caffeine. If you're desk-bound on the job, take regular stress-relieving breaks to
stretch your muscles. Periodically walk to the water fountain and climb steps
rather than use the elevator.

Be aware of correct eating habits both at work and home. While sugar and sweets
may provide an energy boost, the effects are short-lived; after a while, a tired
feeling will be exaggerated.

Work at slimming down if you're carrying extra weight around. A regular exercise
routine will help you build stamina. You'll feel stronger and more energetic during
the entire workday.

Recognize that medical and emotional problems, including undiagnosed

infections, heart or lung problems and reactions to medications, can cause stress
and fatigue.

KNOWING YOURSELF - If you know the situations or encounters that cause you stress,

insofar as it's possible, avoid them. For situations that are unavoidable, do everything you can
to prepare yourself in advance. For instance, if you feel pressure to meet a deadline, work
extra hours immediately for a few days before the project is due to minimize worry and
anxiety.

While an excellent way to cope with work stress is to get away from it from time to time,
this may be hard to do if you feel you must handle a situation such as disciplining a
subordinate or settling a dispute between two employees before you can relax.
Unfortunately, that single-mindedness in dealing with stress can make it difficult to
resolve it.
Even when you are not experiencing a period of stress, participate in activities that give
you pleasure. Although there's no one perfect activity for each person,

whatever revives you, refreshes you, and makes you feel good about yourself is usually
"right" for you.

ORGANIZATIONAL APPROACHES - Studies have shown that office-based stress

management programs can have a profound effect on increasing worker productivity, as
well as reducing illness and absenteeism. The following are some solutions which can
decrease stress and anxiety in employees:

Address workers individual needs. Each employees needs are different. For those
susceptible to stress, a little extra handholding may be required. To alleviate some of
their anxiety, make sure employees have a long and short-term plan for getting jobs
done on schedule. Check in with them regularly to ensure they're on track. Your staff
will feel less overwhelmed, and be grateful for your attention.

Keep the communication flowing. Scheduling regular evaluations can alleviate any
anxiety a staff member may feel about the quality of their work and/or the security of
their position. Encouraging them to offer feedback will cause to appear more
approachable; thus, when they do have a problem, they can feel comfortable in
addressing it with you early on.

Institute an eight-hour workday. A majority of the workforce believes that staying late
guarantees a leg up in the company. Yet staying in the office later does not guarantee that
a worker is being more productive. If you establish a set

end of the day (say, no later than 6 p.m.), your team will work hard to get the job done
with more efficiency, while allowing them time to devote to other important things in
their lives, such as quality time with friends or family, or simply personal time.

Encourage a healthful lifestyle. Proper nutrition and regular exercise have been proven
to increase workers performance and boost their immune systems (meaning fewer sick
days). Instead of chips and donuts, stock the kitchen with fresh fruit and granola bars.
Always provide plenty of water. Consider offering employees subsidized gym
memberships and/or yoga classes. Encouraging better eating and exercise habits will
have them feeling better both physically and emotionally, thus reducing their stress levels
and improving the quality of their work.

Get to know one another. Chances are that, aside from the occasional happy hour, your
employees have little time to get to know one another. Off-site activities such as softball
games, Friday afternoon matinees, and bowling outings encourage team building, and
can provide relief from tension buildup in the office.

Be flexible and understanding. Make it clear to your staff that they can come to you
anytime with questions, concerns, or feedback. When an issue involves another
employee, address the matter immediately, as it is probably already disrupting
communication and cooperation around the office. Problems at home deserve special
consideration; for example, if a parent needs to pick up his or her child from school
everyday, try to be as accommodating as possible (within

reason). He or she will greatly appreciate your flexibility, and will be that much
more committed to the company.