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Organisational Behaviour
Unit 1 : Introduction

Organisational Behaviour
“Organisational behaviour is the study and application of
knowledge about how people act within organizations.”

It is the study of the behaviour of individuals in isolation, in

groups, and as members of an organization. It is influenced by
personality, perception, learning, attitude, family history,
education, motivation, job satisfaction, performance evaluation,
leadership effectiveness, norms, values, and ethics.

The academic study of how individuals interact in groups and

its guiding principles is called Organisational Behaviour.

“OB is the study of human behaviour in organizational setting,

of the interface between human behaviour and organization
and of the organization itself.”

Scope of Organisational Behaviour

 Organisational behaviour is studied by collecting data and
interpreting findings to guide behaviour in the desired
direction.
 The success of an organization is measured by how well
employees perform their jobs and are satisfied with their
work.
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 Firms need to focus on productivity to ensure quality and

quantity of goods produced while maintaining quality with
zero errors, not absenteeism or turnover.
 Employees who are content in their jobs are more likely to
be productive and contribute to the development of an
organization’s work culture.
 Individuals can contribute to the success of an
organization by working on their own or joining forces to
form a team, but departments must work together in a
coordinated manner to achieve the corporate goal.
 Managers must establish an appropriate culture in the
workplace and use authority, transfer of powers, division of
work, and effective communication to ensure effective
leadership.

Levels in Organisational Behaviour :

1. Individual Level: The most important idea is that individual
notions are unique to the individual level, with perception,
personality, learning, motivation, and attitude being the
foundation of an individual’s beliefs.
2. Group Level: The group-level concepts at the group level
focus on how to create effective teams, enhance group
activities, and motivate employees. These concepts
include team, conflict, leadership, power, and politics.
3. Organisational level: At the organizational level, change
management and organizational culture are two important
topics to discuss, as they explore the concepts of
organization, its effects and execution, and the working
circumstances and stress management.
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Models of Organisational Behaviour :

 Authoritarianism: Authoritarianism is based on the
concept of power and a managerial view of authority,
while employees are focused on submission and
dependence on the supervisor, resulting in a poor
performance.
 Supervisory: It is a model that focuses on the management
of monetary resources, prioritising employee safety and
benefits. It ensures that staff members are satisfied and
the performance of the organisation is rewarded with
cooperative passivity.
 Supportive: The most important details of this model of
leadership are that it emphasizes managerial support and
performance, and that employees are focused on their
performance and participation in the job. This leads to
improved performance, providing employees with status
and recognition, while also resulting in increased drives.
 Cooperative: Teamwork is the key to a cooperative model,
where employees are taught to be responsible and
exercise self-discipline. The self-actualization of the
worker is the need that is satisfied, and the end result
shows only a few enthusiasms.

Elements of Organisational Behaviour :

 People: People are essential for any organization’s
interactive and behavioural platform, and their roles and
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behaviours help identify, acknowledge, and cultivate

behavioural attitudes.
 Process Design: Organisations are determined by formal
relationships between members, with managerial and
organisational levels being differentiated by job and
responsibilities.
 Technology refers to the resources used and how they
affect performance, with direct correlation with degree of
improvement.
 Relationship: Organisational behaviour is shaped by
interactions between individuals and groups, formal and
informal ways of relating, and the identification, existence
and interactive role of people in any organisation.
 Surroundings: Organisations are all affected by internal
and external environmental factors, including structural
design, work performance, mutual relations, and
behavioural patterns.

Contributing Disciplines to OB :
1. Psychology: Because psychology is a science of behaviour,
it may have had the greatest influence on the field of
organizational behaviour. Psychology focuses on
researching human behaviour with the goal of explaining
and occasionally altering the behaviour of people and
other animals.

2. Sociology: Sociologists spend most of their time

researching the social structures in which people function.
Group dynamics is considered to be the main focus under
sociology. Every organization is a group of people coming
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from different social backgrounds, therefore this discipline

of utmost importance under OB.

3. Anthropology: Understanding the interaction between

people and their environment is anthropology’s major goal.
Anthropologists use the world as their a classroom, and
people need to be studied in their natural settings. One
can appreciate the scope of anthropology by realizing the
significance of looking at how man has changed over time
in natural environments.

4. Political science: Political scientists research how people

and groups behave in a political environment. They aid in
understanding power dynamics, conflict structure and
resolution strategies, power distribution, and how people
use power for their own personal gain.

5. Economics: When creating the organizational structure,

economics has a significant role on organizational
behaviour. The organization’s structure is influenced by
various transactions of money, cost economics, etc.

Relationship Between Management and OB

Both in the management of a company and in the setting up of a
new business, organizational behaviour plays a crucial role.
Organisational behaviour is the study of how different
behaviours in organizations affect and are influenced by
groups, individuals, and organizational structure.

1. Need of Management
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Management is necessary for businesses and other types

of organizations since it entails to planning, organizing,
taking the initiative, and selecting the best options. Also, it
is vital for the lives of each one of us individually.
Management is essential for all types of organizations,
including businesses, because it entails planning,
organizing, taking the lead, and making decisions about
what options are best.
It is also necessary for each of our individual lives to have
multiple levels of management, split the responsibilities
among them, and expand the number of people working
for us.

This contributes to the development of streamlined

approval procedures and helps to ensure that different
levels of management review each other’s work prior to
the release of a product.

2. Functions of Management
The basic functions of management are given as follows:
 Planning: Planning is a systematic approach to making
decisions that shape the future of an organization,
considering external and internal factors.
 Organizing: Organizing is the process of defining,
arranging, and coordinating work sub-divisions to achieve
company goals.
 Staffing: Recruiting, training, developing, compensating,
and evaluating employees is essential for motivating and
motivating them.
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 Directing: The directing function is responsible for leading,

communication, motivation, and supervision to ensure
employees perform their tasks efficiently and receive
desired goals.
 Controlling: Setting standards, measuring performance,
comparing performance, identifying deviations, and taking
corrective action to ensure enterprise objectives are met.

Reasons why Organisational Behaviour is an integral

part of Management :
1. Understanding the relationship between an organization
and its employees: The study of organizational behaviour
contributes to a deeper comprehension of this
relationship, which aids in the development of better
human resource strategies for improving workplace
morale, fostering employee loyalty, and raising the value
of the organization’s human capital overall.
2. Motivating Employees: Using various motivational tactics
according to individual needs, managers can better
understand their staff members and motivate them by
studying organizational behaviour.
3. Improving industrial relations: In order to identify a
problem’s root cause, predict its future direction, and
manage its effects, organizational behaviour can be used
to improve industrial/labour relations.
4. Effective use of human resources: Managers who have a
solid understanding of organizational behaviour are better
able to inspire and motivate their staff members to work
harder and more productively by better understanding and
analysing human behaviour.
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5. Predicting human behaviour: The most essential reason for

researching organizational behaviour in management is
arguably its ability to predict human behaviour. By
studying human behaviour from a management
perspective, individuals who have knowledge of
organizational behaviour are better prepared to become
managers who can increase productivity and profitability
within their organizations.

Hawthorne Study
The Hawthorne studies were a series of experiments conducted
at the Western Electric Company (USA) between 1927 and 1932
that provided new insights into individuals’ and groups’
behaviour (Griffin R W, 2006).

The studies focused on behaviour at workplace.

The Hawthorne studies were among the earliest attempts to

use scientific techniques to examine human behaviour at work.

The Hawthorne experiments may be classified into four stages

namely, Illumination experiments, Relay assembly test room
experiments, Mass interviewing program, Bank wiring
observation room study.

Stage 1: Illumination Experiment:

 This was conducted to establish relationship between
output and illumination. The output tended to increase
every time as the intensity of light was improved.
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 But the output again showed an upward trend when the

illumination was brought down gradually from the normal
level.
 Thus, it was found that there is no consistent relationship
between output of workers and illumination in the factory.
There were some other factors which influenced the
productivity of workers when the intensity of light was
increased or decreased.

Stage 2: Relay assembly Room Experiment:

 Here, a small homogeneous work group of girls was
constituted. Several new elements were introduced in the
work atmosphere of this group.
 These included: job simplification, shorter work hours, rest
breaks, friendly supervision, improved physical conditions,
free social interactions among the group and changed
incentive pay.
 The researchers concluded that sociopsychological
factors such as feeling of being important, recognition,
attention, participation, cohesive work-group, and non-
directive supervision held the key for higher productivity

Stage 3: Mass Interview Program:

 Another significant phase of the experiments was the
interviewing program.
 In an attempt to find out more about the workers’ feelings
towards their supervisors and their general conditions of
work, a large interviewing program was introduced.
 Using this approach, the interviewers found out far more
about the workers’ true feelings and attitudes. They
gained information not just about supervision and working
conditions but also about the company itself,
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management, work group relations and matters outside of

work such as family life and views on society in general.
 The interviewing program was significant in giving an
impetus to present-day human resource management and
the use of counselling interviews and highlighting the
need for management to listen to workers’ feelings and
problems.

Stage 4: Bank Wiring Observation Room Experiment:

 This experiment was conducted on a group of workers
under conditions which were as close as possible to
normal. This group comprised of 14 workers. After the
experiment, the production records of this group were
compared with their earlier production records.
 The Hawthorne experiments clearly showed that a man at
work is motivated by more than the satisfaction of
economic needs. Management should recognise that
people are essentially social beings and not merely
economic beings. As a social being, they are members of a
group and the management should try to understand
group attitudes and group psychology.
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Unit 2: Individual Behaviour

Foundation of Individual Behaviour

The foundation for Individual Behaviour was given by Kurt
Lewin who established the Field theory, which is a
psychological theory that investigates the patterns of
interaction between an individual and their environment.

It is based on the idea that an individual’s behaviour is a

composite of responses to various kinds of stimuli, both internal
and external and is the manner in which they respond to various
circumstances and express various emotions.

The theory is formulated using the formula given as follows:

B = F (P, E),

Personality
Personality is the sum total of an individual’s psycho-physical
systems that determine his/her behaviour in a given
environment/situation.

Personality may be understood as the characteristic patterns of

behaviour and modes of thinking that determine a person’s
adjustment to the environment.

An individual’s personality is influenced by the personal life and

where he/she is working.
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Factors Influencing Personality

(A) Personality Traits: All people have certain traits that come
from their genes and are passed down from generation to
generation. These are the things that every person is born
with. They are the things that cannot be changed; or more,
they can be made a little bit better.

 Physical Traits: The scientific community is unsure of the

relationship between physical characteristics such as
height, skin colour, eye shape and size, nose size and
shape, weight, and personality, and which is the
independent variable
 Age: It is a hereditary trait that influences work efficiency,
with youth individuals being more active, creative, and
aggressive, while elderly people are more cautious and
less flexible.
 Gender: It is an inherited trait and women perform as well
as males. Women have long been considered less
significant occupations, but males have begun to consider
them in other professions as time has passed.
 Religion: Religion and religion-based societies have a
major influence on individual behaviour, particularly in
regards to morality, ethics and a code of conduct.
 Marital status: It is an important factor in determining the
quality of work; research suggests that having a regular
career becomes more desirable when marriage imposes
additional duties, leading to fewer absences, lower
turnover, and more job satisfaction.
 Experience: Age is a key factor in determining work
performance, and both work performance and seniority
are positively correlated.
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 Intelligence: It is an innate trait that is innate and can be

improved through efforts, perseverance, a supportive
atmosphere and drive.

(B) Learned Traits: Executives focus on researching,

understanding, and forecasting personal traits to understand
and identify the most important ideas.

 Personality: It is a dynamic concept that focuses on how

an individual’s mental civilization develops. It evaluates
an overall whole of more than just the sum of its parts and
tasks are based on one’s attitude and are best equipped
for based on their attitude.
 Perception: It is the process of understanding a situation
and processing it to find a reasonable meaning.
 Attitude: These are a tendency to act in a certain manner
towards things, people or events. They are expressed
through prejudice and can be evaluated by evaluating and
interpreting someone’s emotions, thoughts and
behaviours.
 Values: These are underlying convictions that one course
of conduct is preferable than another for the person or
group. There is indeed a hierarchy of values that are firmly
embedded in people and are susceptible to pressure from
other sources including friends, family and other external
influences.

(C) Environmental Forces: It is well acknowledged that the

outside setting has an important influence on an individual’s
attitude.
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 Economic Forces: Individual behaviour is substantially

influenced by the economic forces such as Employment
Status, Salary/Wages, Economic Trends, Technology etc
 Socio-cultural Forces: Social environment is an
individual’s connections to their family, friends, co-
workers, superiors and co-workers, as well as the
behaviour of those not involved.
 Political Forces: Individual behaviour is affected by the
political atmosphere of a nation, including the amount of
employment and financial investments. In a politically
stable nation, cash is allocated to businesses, while in a
politically unstable nation, corporations are hesitant to
spend large amounts of cash.
 Legal Forces: Regulations and laws are the set of norms of
conduct that govern how people live in a community.
Voluntary compliance with the law ensures the reliability
of personal actions.

(D) Organisational Forces: A broad range of corporate

processes and resources impact individual ’s behaviour.

 Workplace Arrangements: Workplaces at work must

arrange individuals and possessions in a way that has a
positive impact on people. This includes loudness,
warmth, lighting, air, hygiene, kind of employment, office
decor and the number of people employed at a certain
location.
 Organisational Hierarchy: Organisational structure is the
overall organisation structure of a company, with
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communication methods used to identify levels of the

organisation connected to each other.
 Leadership Framework: Management should develop a
framework of leadership to provide people directions,
support, counsel, and mentoring, all done via the network.
 Reward and Recognition: Organisations must promote
employee motivation and behaviour to compensate
workers and encourage good behaviour.

Types of Personality
1. Type A Personality: Type A people are characterised by
hard-working, highly achievement-oriented, impatient,
have sense of time urgency, aggressive, with competitive
drive, etc. Such people tend to be very productive and
work very hard. In fact, they are challenging. Being
impatient and aggressive, such people are more prone to
heart attack.

2. Type B Personalities: Easy-going, sociable, free from

urgency of time, laid-back and non-competitive are the
characteristics of Type B personalities. Such people do
better on tasks involving judgments, accuracy rather than
speed and team work.

Big Five Personality Types

In recent years, John has propounded a personality model
called the Big 5 Model. In this model, he advocates that the
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following five basic personality variables dimensions underly

all other variables:

1. Extraversion: Who is sociable, talkative, and assertive.

2. Agreeableness: One who is good natured, co-operative and

trusting.

3. Conscientiousness: A person who is responsible, dependable,

persistent and achievement oriented.

4. Emotional Stability: Someone characterised by calm, nervous,

enthusiastic, depressed and insecure.

5. Openness to Experience: A person who is imaginative,

artistically sensitive, and intellectual.

Attitude
Attitude is the most important factor that determines a person’s
or organization’s behaviour. It affects how individuals see things
and other people, how much information they take in and how
well they understand it, who they choose to associate with
socially and professionally, and so on.

Attitudes are internal expressions or sentiments that show

whether a person is favourably or unfavourably inclined to a
product, brand, or organisation.

Components of Attitude
 Cognitive Component: The cognitive component of an
attitude is the individual’s true or presumed knowledge,
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beliefs and facts about the topic of their attitude. It also

refers to the deliberative procedures that a person goes
through before engaging in a certain set of behaviours.
 Affective Component: The affective component of an
attitude is the portion of an attitude that deals with
feelings or emotions. It is made up of the individual’s
“feelings” or emotional reaction to the thing in question,
which may be good, negative or neutral.
 Behavioural Component: The behavioural component is an
individual’s intention to act in a certain way towards
another person or entity. It is made up of their inclinations
or predispositions to act in a certain manner, which is
controlled by their cognitive and emotional set.

Job Related attitudes

 Job Satisfaction: It is the overall attitude that a person has
towards their employment. It is a general disposition that
an employee has because of multiple dispositions in the
following three areas such as specific job variables,
individual adjustment, and group interactions outside the
workplace.
 Job Involvement: It is the degree to which a person
identifies with their job, actively engages in it, and
believes their performance is essential for their sense of
self-worth. High levels of job involvement are more likely
to be highly happy, more productive, and less likely to
consider quitting their job.
 Organisational Commitment: It is an individual’s attitude
towards an organisation in terms of loyalty, identity, and
engagement. It is also known as organisational allegiance.
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Learning
Learning is the process of acquiring new habits. It is widely
accepted that change in behaviour, repetition of new actions,
and the establishment of a permanent change in behaviour are
all necessary components of learning.

Learning has a significant impact on an individual’s behaviour,

which is why it also has a significant impact on the behaviour of
an organisation.
Acquiring information and abilities, which tend to stick around
for a good portion of a person’s life, helps achieve this goal.

“Learning is any change in behaviour, resulting from behaviour”

Theories of Learning :
 Classical Conditioning Theory: The theory of classical
conditioning states that when a conditioned stimulus is
combined with an unconditioned stimulus, a kind of
conditioning known as classical conditioning takes place.
Classical conditioning is the process of associating one
event with another desired occurrence to produce a
behaviour.
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 Operant Conditioning Theory: The term “operant” refers

to any behaviour that results in an effect. B.F. Skinner’s
theory of operant conditioning states that a person’s
actions are mostly determined by the results of those
actions.
The core of operant conditioning is the link that exists
between behaviours and the results of those behaviours.
Management can investigate and recognise this link, as
well as attempt to alter and control behaviour, based on
the direct relationship between the consequences and the
behaviour.

 Social Learning Theory: The theory of social learning

states that learning is not strictly a behavioural activity,
but rather a cognitive process that takes place within the
framework of a social setting.
Learning is accomplished by observation, the gleaning of
information from those observations, and the formulation
of judgments about the execution of the behaviour in
question.

 Cognitive Learning Theory: The Theory of Cognitive

Learning states that learning is the result of focused, fact-
based reflection on a problem or circumstance, followed
by an effort to react objectively and more directed on the
issue or situation.
It has the perception that a person may acquire the
meaning of a variety of things and experiences, as well as
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learn how to respond in accordance with the meaning that

they have ascribed to the varied stimuli.

Perception
In simple sense, perception means perceiving i.e., giving
meaning to the environment around us.

“Perception can be defined as the process of receiving,

selecting, organising, interpreting, checking and reacting to
sensory stimuli or data”.

“a process by which individuals Organise and interpret their

sensory impressions in order to give meaning to their
environment”

Factors affecting Perception

(A) Internal factors : These factors reside in person concern.
These include one’s needs, desires personality and
experience:

 Needs and Desires: An individual’s perception about

stimuli is influenced by, inter alia, his needs and desires at
that time. Perception varies depending upon variations in
his/her needs and desires from time to time.
 Personality: Closely related to needs and desires is the
personality of the perceiver, which affects what is
attended or perceived in the given situation.
 Experience: Experience and knowledge serve as basis for
perception. While one’s successful experience enhances
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his/her perceptive ability, failure erodes his/her self-

confidence.

(B) External Factors : The external factors relate to what is to

be perceived and situation. These are size, intensity,
frequency, status, etc.:

 Size: The principle of size says that the larger the object,
the more is the probability that it is perceived. Size
attracts the attention of the individual.
 Intensity: Intensity is closely related to size. The intensity
principle of attention states that the more intense the
stimuli, the more likely it is to be perceived.
 Frequency/Repetition: The repetition principle states that
a repeated external stimulus is more attention-getting
than a single one. It is for this reason that advertisers go
for repetitions advertising to gain the customers’ attention
to their product.
 Contrast: As per contrast principle, the external stimuli
which stands out against the background will receive
more attention.
 Status: Status held by an individual also influences
his/her perception about things or events.
 Movement: The movement principle says that people pay
more attention to a moving object than the stationary
ones. People will be attracted more by a running train
than one standing on the platform.

Perceptual Process
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We have already defined perception as a process of receiving,

selecting organising, interpreting, checking and reacting to
stimuli.

1. Receiving Stimuli: The perception process starts with the

reception of stimuli. The stimuli are received from the
various sources. Through the five organs, we see
things/objects, hear sounds, smell, taste and touch things.
2. Selection of Stimuli: People, in their everyday life, are
bombarded by myriads of stimuli. They cannot assimilate
all what they observe or receive from the environment at a
time. Hence, they select some stimuli for further
processing to attach meanings to them while the rest are
screened out.
3. Organisation of Stimuli: Having selected stimuli or data,
these need to organised in some form so as to assign some
meanings to them. Thus, organising the bits of information
into a meaningful whole is called “organisation”. There are
the ways by which the selected data i.e., inputs are
organised.
4. Interpretation: The data collected and organised remain
meaningless for the perceiver till these are assigned
meanings. Assigning meanings to data is called
‘interpretation’. Thus, interpretation of data forms one of
the most important element in the entire perceptual
process.
5. Remind: Recognize once a period of time has passed,
asking individuals to recall what they have observed and
bring to mind knowledge that is in accordance with
standards. If this is not done, it violates a person’s
paradigm and compels them to reconsider their
knowledge.
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Emotions
“Emotions are intense feelings that are directed at someone or
something.” In practice, we show our emotions when we are
happy about something, angry at some person, and afraid of
something.

Sources of Emotions
1. Gender: Like in many other matters, researchers have also
tried to study and identify emotions and moods between
men and women. There has been a general belief or
assumption that women are more emotional than men.
2. Age: That age affects emotions is generally accepted, but
the exact effect of age on emotions is so far not agreed
upon. The general belief is that younger people experience
more extreme and generally positive emotion as compared
to older people do.
3. Personality: In simple words, personality is the unique and
relatively stable pattern of behaviour, thoughts, and
emotions shown by an individual. Research confirms that
personality predisposes people to experience certain
emotions and moods.
4. Time: Here, time means the day of the week and/or time of
the day people experience emotions/moods.
5. Other factors: Factors such as social activities, stress,
weather, sleep etc. are also some of the sources because
of which an individual experiences emotion. Such factors
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too can enhance a positive mood or one can also

experience bad mood due to these factors.

Value
“a specific mood of conduct or end-state of existence is
personally or socially preferable to an opposite or converse
mode of conductor end-state of existence”.

“Value is a concept of the desirable, an internalised criterion or

standard of evaluation a person possesses. Such concepts and
standards are relatively few and determine or guide an
individual’s evaluations of many objects encountered in
everyday life.”

values form the basis for ethical behaviour. Like attitudes, an

individual may have numerous values. A hierarchy based on a
ranking of an individual’s values in terms of their intensity forms
his/her value system.

Types of Values
1. Terminal Values: Terminal values represent the desirable
end-states of existence; the goals an individual would like
to achieve during his/her life time.
2. Instrumental Values: Instrumental values reflect the way
to achieving goals. In other words, these represent
preferable modes of behaviour or means of achieving
one’s terminal values.
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Unit 3: Communication and Motivation

Concept of Motivation
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 every one is
motivated by several differing forces and can come from within
too.

“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.”

Theories of Motivation
1. Need theories
(A) Maslow’s Need Hierarchy : It is a psychological theory
that explains why people have strong motivation to meet
their needs and is based on a system of hierarchical order.
The theory of motivation was initially presented by
Abraham Maslow The major objective of this need
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hierarchy theory is to fulfil the last and highest need, which

is the need for self-actualization.

 Physiological Needs: The most fundamental requirements

that humans have are their physiological demands. These
are necessities that are absolutely necessary to our
survival.
 Safety needs: The needs for safety are the next step. The
individual’s main worry in this situation is security and
safety. The terms “safety” and “security” can refer to a
wide range of things
 Social Needs: According to the need hierarchy theory, this
is level three. After having satisfied his physiological and
safety needs, a person reaches the stage where he or she
seeks approval from others in the form of love and
belongingness.
 Esteem Needs: According to the principle of the hierarchy
of needs, this is the fourth level. It has to do with a
person’s desire to be acknowledged in society. It
addresses gaining acceptance and esteem in society.
 Self-Actualization Needs: According to Maslow’s theory of
the hierarchy of needs, this is the last level. The term
“self-actualization needs” refers to the greatest level of
needs. It has to do with the need for an individual to reach
or realise their maximum talent or potential.

(B) ERG Theory

Clayton Alderfer redefined Maslow’s need hierarchy theory
of motivation in order to align it with actual research. The
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ERG theory of motivation is the name of his revision.

Maslow’s hierarchy of requirements was reclassified by
him into three bigger and easier categories:

 Existence Need: The existence needs comprise all those

needs that relate to the physiological and safety aspects
of human beings and are a prerequisite for survival. Thus,
Maslow’s physiological and safety needs are grouped into
one category because of their same nature and similar
impact on an individual’s behaviour.
 Relatedness Needs: The relatedness needs refer to the
social needs, that an individual seeks to establish
relationships with those he cares for. The relatedness
needs refer to our desire to maintain essential
relationships interpersonally.
 Growth needs: Growth needs refers to the intrinsic desire
for personal development and the characteristics
included under self-actualization. Managers must
understand that an employee has various needs that must
be satisfied at the same time.

(C) Two Factor Theory

Frederick Herzberg proposed the two-factor theory of
motivation. An empirical study was conducted using a
sample of 200 engineers and accountants, and based on
the study’s findings, the various needs were categorized
into two factors, namely, hygiene factors and motivators.

 Hygiene Factors: Job characteristics that are crucial for

maintaining motivation at work include those that pertain
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to hygiene. Long-term positive satisfaction is not

produced by these.
 Motivators: The presence of these factors increases
efficiency in employees and makes them satisfied. They
feel highly motivated to complete a task on time and give
their best to the organisation. Recognition, promotion,
responsibility, etc. are regarded as motivators.

(D) Theory X and Theory Y

Douglas McGregor formulated the theory X and theory Y.
This theory shares the two different views of employees.

Assumptions of theory X:
1. The typical employee dislikes work and looks for ways to
avoid it whenever possible.
2. In order to accomplish organisational goals, the
employee must be persuaded, compelled, or warned with
penalty because he does not want to work. Managers must
closely supervise their employees. The managers take on a
more autocratic attitude.
3. Employees do not prefer to take responsibility of the
work.
4. They are rigid towards change and innovation in the
organisation.

Assumptions of Theory Y:
1. Employees like their organisation and job.
2. . Managers do not need any punishments or threats to
make employees work on a particular task.
3. 3. Employees are skilled and capable.
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4. 4. Employees are ready to take responsibility, and they

possess capabilities to solve problems and complete the
task on their own.

(E) McClelland’s Theory of Needs

Three need model is formulated by ‘David McClelland’.
David McClelland proposed that an individual’s specific
needs are acquired over time, shaping one’s life
experiences. The needs can be classified under three
categories: Achievement, Affiliation, and Power:

1. Achievement: This refers to a need to achieve something

in your career field or interest area. This need motivates
and drives people to work, and even helps them in
enduring struggles.
2. Power: Power is the capacity to direct or shape other
people’s actions. High power individuals look for senior
positions in organisations so they can exert influence
and control over others. They tend to be direct,
aggressive, demanding, realistic and practical.
3. Affiliation: This is a reference to the desire to establish
interpersonal or social connections with other people.
People prefer teamwork, seek approval from others, and
develop ties. They tend to stay away from unclear,
dangerous situations and favour teamwork over rivalry.

Contemporary theories of Motivation ;

(A) Goal Setting theory
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The goal-setting theory was created by Edwin Locke and

Gary Latham. According to the theory, goals have an
impact on employees’ motivation. According to the goal-
setting theory, setting clear, challenging goals is essential
for inspiring motivated actions.

Goal-setting theory suggests that people have wants and

values that shape their desires. The values of different
people do vary, though. As a result, defining goals
becomes a means of getting what an employee wants if
they discover that their existing condition is unsatisfactory.

(B) Reinforcement Theory

The theory of reinforcement was developed by B.F.
Skinner. According to this theory, actions are determined
by their results. In contrast to cognitive theories of
motivation, motivation can be improved by variables
outside of one’s own mind.
There are two types of reinforcement, namely, positive and
negative. Positive reinforcement refers to the occurrence
of a valued behavioural consequence that strengthens the
probability of the behaviour being repeated.

Negative reinforcement refers to an undesirable

behavioural consequence that is with held, with the effect
of strengthening the probability of the behaviour being
repeated. Negative reinforcement is often confused with
punishment, but they are not the same.

Reinforcement theory is an important explanation of how

people learn behaviour. Behaviour modification focuses on
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the external environment by stating that manipulating

consequences can affect behaviours.

(C) Self Efficacy Theory

Self-efficacy is having faith that you can complete a task
or achieve a particular goal. Author of the Self-Efficacy
Theory of Motivation is Albert Bandura.
Our self-efficacy and subsequent performance on a task
are based on four criteria, namely: Experience, Vicarious
Experience, Social Persuasion and Psychological feedback.

1. Experience: Experience is the sum total of your prior

accomplishments of comparable jobs. It is the most
crucial component of self-efficacy theory. If a person
has performed a task in the past, he/she is more likely
to have a good experience of it rather than a newbie
performing this task.
2. 2. Vicarious Experience: Your self-efficacy will rise if you
see someone who is similar to you undertake the task
and complete it successfully.
3. Social Persuasion: If people believe you can do a task,
you can feel more confident in yourself. Likewise, if you
hear negative or insulting comments about your
capacity to complete a task, your self-efficacy will drop.
4. Physiological Feedback: When faced with a task, your
body gives off a physical sensation. Your level of self-
efficacy will depend on how you interpret these signals
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Introduction to Communication
The communication can be loosely defined as transmission and
receiving of messages, such that it gives a unity of purpose
among the people concerned or within an organization.
“Communication is a process of transmitting and receiving
verbal and non-verbal messages. It is considered effective
when it achieves the desired response or reaction from the
receiver.”

The Communication Cycle

 Sender: S/he begins the process as s/he feels the need
or is professionally required to communicate ideas,
thoughts or messages.

 Encoding: The sender selects the codes or structure

which will be the ‘content’ or ‘form’ of the message. This
selection depends on the language or communication
skills of the sender and the comprehension level of the
receiver.

 Message/Medium: Just as ‘water’ is the ‘message’ which

is carried through the ‘pipes’ which become the medium,
the message decides the medium.

 Decoding: Decoding means interpretation of the message

by the receiver. It depends on the clarity of the encoding,
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comprehension skills and noise free environment for oral

messages.

 Receiver: The receiver should be attentive and ready to

‘receive’ the complete message, i.e., its verbal and non-
verbal components.

 Feedback: Receiver’s response to the message is the final

step in the communication cycle as it indicates if the
message received is the one intended by the sender.

Persuasive Communication
“The act of presenting arguments to move, motivate, or change
your audience is called persuasion.”

The art of persuasive communication involves persuading

others to accept your viewpoint, accept your idea, or act on
your behalf. It is an important ability for both personal and
professional development, because it may help in performing
deal negotiations, relationship building and achievement of
business goals.

Pillars of Persuasive Communication

1. Ethos: It indicates ‘Appeal to ethics’, refers to the efforts to
convince your audience of your credibility and character.
2. 2. Pathos: It indicates ‘Appeal to emotions’, refers to efforts
to persuade your audience by making an appeal to their
feelings.
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3. 3. Logos: It indicates ‘Appeal to logic’, refers to the effort to

convince your audience by using logic and reason.

Communication Styles
1. Passive Communication Style: The majority of passive
communicators are reserved and are not interested in
getting attention. During discussions, they might seem
uninterested and hardly ever take a stand or speak up for
themselves. It could be challenging for the co-ordinator to
know if these speakers are facing any discomfort while
doing debates or even speaking.

2. Aggressive Style: The views and sentiments of aggressive

communicators are constantly expressed, and they
frequently dominate talks. They might also behave without
first thinking, which might damage relationships and
reduce productivity at work. This style might be a needful
act in some jobs, but people tend to get disturbed by this
style if they are more calm and sorted in nature.

3. Passive-Aggressive: On the surface, passive-aggressive

communicators seem quiet, yet their activities frequently
originate from more aggressive motivations. They have the
ability to change a situation to their advantage. The most
common ways that passive-aggressive communicators
express themselves to others is through body language.

4. Assertive Style: The most courteous and effective kind of

communication at work is often the assertive style. While
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showing respect and courtesy they fearlessly keep their

thoughts in front of others. They gladly accept challenges
but are also capable of saying “no” when necessary. These
people are aware of their own boundaries and respect
others in the same way.

Transactional Analysis
“Transactional analysis is a technique used to help people
better understand their own and other’s behaviour, especially in
interpersonal relationship.”

The primary concepts in transactional analysis are ego states,

transactions, strokes and ways people spend their time.

Types of Transactions
Transaction is a basic unit of social interaction. It consists of
exchange of words and behaviour between two people.

1. Complementary transactions: It goes or flows through

parallel transactions i.e. the flow of communication
through is sender is in the same way as from the receiver.
2. Crossed transactions: As the name suggests the
communication responses cross each other. These
transactions exhibit a more social behaviour, free
exchange of ideas and creativity
3. Ulterior Transactions: These transactions have more then
one meaning. At surface level they might sound different
from the actual meaning of them, at the psychological
level of an individual. These type of transactions are used
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in order to show a socially acceptable behaviour in the

society.

Johari window
Johari window concept was developed by Joseph Luft and
Harry Ingham in the year 1955, the term ‘Johari’ was coined by
combining the first few letters of their names.

It is a popular framework that was developed to understand the

dynamics of interpersonal relationships. This framework helps
in understanding the behaviour of oneself and the others. There
are four quadrants in this model namely: Open self, Blind self,
Hidden self and unknown self. The more we recognise
ourselves the more we can improve on our behaviour.

1. The Open or Public Self: This quadrant shows what the

person knows about herself/himself and also known by
others. Individuals are named ‘public’ as they are known by
the society and themselves. They have nothing hidden with
them and they are fully open to work with anyone.
2. Blind Self: This is a situation where the information about
an individual is known to others but not known to him/her.
This area is also known as ‘blind area or blind spot’. Blind
spot tends to create conflicts and a disturbance in work
life balance of the employees. An unpleasant atmosphere
can be created if this area is not corrected by the
management.
3. Hidden self: The third quadrant relates to a personality
that is hidden to the entire world and only known to
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oneself. The person enjoys hiding facts from others and

has a very private nature. This nature can create a
hindrance in the work, when certain information is not
communicated with the desired people and kept to
oneself only.
4. Unknown Self: Here information, attitude, experience and
abilities are unknown to a person and also to others.
Counselling can help employees in discovering their
unexplored self’s and help them to explore their hidden
talents. Managers and leaders can create an environment
that encourages self-discovery and feedback among the
workforces.
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Unit 4: Group Behaviour and Leadership

Introduction
A group means a number of people or things that are together
in the same place or that are connected in some way. Managing
a group will require the managers to manage these differences
between the employees, conflicts and giving resolutions on
time.

Characteristics of Group
1. At Least Two People: It involves the participation of at
least two people who communicate with one another.
2. Impact: Individuals in the group have an impact on one
another that is reciprocal. Every member of the group both
impacts and is impacted by the other members.
3. People have the ability to understand and empathies with
one another. They see one another as fellow members of
the group and are aware of this fact.
4. Group Leader: Every organization has a formal leader who
is chosen by the members of the group and an informal
leader “who engages in leadership activities but whose
right to do so has not formally been recognized by the
organization or group.”
5. Responsibility: Each person in the group is responsible for
a certain function, and the performance of that job affects
the expectations that group members have of one another.
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6. Togetherness: It does this by fostering togetherness

among the group.
7. Collaboration: Members collaborate in order to advance
shared objectives and interests.

Types of Groups
(a) Formal Groups: Such type of groups is purposely
formed in order to execute up predetermined
responsibilities. Such group has authorityresponsibility
relationship, means of communication, and guidelines that
are well stated, and all of these things regulate the
conduct of participants.

 Standing Task Group or Command Group: These are the

kinds of groups that exist permanently and are officially
composed of superiors and subordinates that get together
on a regular basis to talk about the operation of the
organisation and make choices that will assist in making
the operation of the organisation run more smoothly.
 Task Group: A short-term group of personnel from various
departments collaborate to address an issue or goal, but
do not report to the same superior. Once the task is
completed, the group will be disbanded
 Committees: The committees formed by taking into
consideration the specific tasks, goals or objectives to be
achieved. Permanent committees are created to fulfil
goals or objectives, such as the planning, budget, and
employee rights protection committees.
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(b) Informal Groups: Such type of groups has been

formed through interactions between members of formal
groups, non-management groups to achieve collective
goals and oppose or support official goals.

 ‹ Interest Group: People who share interests in certain

things in life may band together to form a group. If any of
the staff are interested in playing chess or table tennis,
they can form a group.
 Reference Group: A group like this might be created with
the intention of generating opinions. Their existence can
extend outside the organization’s boundaries and is
formed based on factors such as eating habits, culture,
rituals, race, gender, political affiliation, caste, and
religion, among others.
 Friendship Group: These groups are created based on a
common bond or common viewpoints. Being a part of such
a group often satisfies the members’ demands for
affiliation.

(c) Primary groups: Such groups support shared

objectives. Affiliates hold identical belief and conduct.
Such groups are smaller and have a significant impact on
individual conduct. They are based on bonding and
societal demands.

(d) Secondary groups: These types of groups lack shared

objectives and exhibit relaxed relationships with one
another. The people who make up them are not involved in
substantive conversations with one another.
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(e) Small groups: These type of groups comprised of a

smaller number of people who maintain strong
relationships with one another.

(f) Large groups: These include a large number of individuals,

yet the individuals rarely engage with one another. People
are not involved in any kind of conversation with one
another.

Group Cohesiveness
Cohesion is the degree to which individuals in a group stay
committed to one another and work together to achieve a
common goal.

It is an indication of the level of seriousness and passion that

those involved have in remaining a part of the organisation.

When people in the group are unable to get along well with one
another, the cohesion of the group suffers.

“Group Cohesiveness can be defined as the degree and

strength of attachment (togetherness) between the members of
the group”

Features of Cohesiveness :
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 Performance: It helps to attract and retain employees,

while also boosting efficiency and creativity.
 Shared Goals: It is important for members of a group to
share values and preferences that are at least somewhat
congruent with one another.
 Open Communication: The most important idea is to
ensure open and consistent interaction between the
organisation and its individual members. To avoid
misunderstandings, it is important to accurately convey
the member’s message
 Sharing Ideas and Experiences: Being open to a diverse set
of perspectives is essential for a successful group, as it can
lead to increased unity and productivity, as well as the
introduction of fresh ideas and perspectives from a variety
of sources.
 Trust: Trust is essential for the cohesion of a group, as it
allows people to have faith in each other and reach
consensus on decisions. This is necessary for a shift to
occur.
 Future Growth: Organisations work towards achieving a
shared objective through programmes and services,
earning goodwill in the market and contributing to their
future growth.

Group Decision Making

Group decision-making is a procedure where a selection is
made by a group of people. The choice is typically made after
discussion and agreement. This method of decision-making is
frequently utilised in commercial settings since it enables the
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consideration of several different types of points before a

decision is reached.

Group decision-making also presents some difficulties, such as

the possibility of conflict and the forced requirement for
partnership.

Types of Group Decision Making :

1. Nominal Group technique: The nominal group technique is
a methodical approach that gathers thoughts from a group
of people. It is frequently used, when a group wants to
come up with fresh concepts or when it needs to come to a
conclusion.
The nominal group technique involves a process.
Participants come up with ideas and write them down
before discussing, and then they tend to have a vote.

2. Delphi Technique: The Delphi method uses questionnaires

to gather data from a group of experts. Usually,
professionals are requested to anonymously share their
thoughts on a range of issues or a broad subject. The whole
group is then presented with a compilation of these
responses.

3. Brainstorming: The practise of brainstorming is frequently

employed to quickly generate a large number of fresh
ideas. It can be applied when a group has to generate a
lengthy list of suggestions or when a unique solution is
required.
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Process of Decision making :

1. Identification of business problem: The first step of the
decisionmaking process involves identifying the major
problem. The difference or absence between “what is” and
“what ought to be” can give rise to a problem.
2. Analysis of the problem: The identified problem is than
analysed on a number of parameters. At this stage data,
facts, evidences, etc. are collected for analysis. The
decision maker than analyses these to determine the main
causes and impacts of the problem.
3. Development of Alternatives: There may be several
potential solutions to an issue. The decision maker is
responsible for finding and evaluating these options.
4. Evaluation of Alternatives: Every alternative should be
investigated and appraised in light of the decision-making
process. While evaluating alternatives, one should take
into account the time commitment and the anticipated
outcomes, both.
5. Selection of the best alternative: At this point, the
decision-making process is over after evaluating numerous
available options. The best option is picked at this point.
6. Implementation of the Alternative: After selecting the best
alternative time comes to implement it. The decision-
maker must communicate instructions to the operational
authority on a regular basis who will implement the
decision taken.
7. Review your decision and its consequences: As a
continuous process, decision-making requires regular
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evaluation of its effectiveness. Reviewing and following up

on actual results is essential and the key to success.

Organisational Conflict
Organisational conflict, sometimes called workplace conflict, is
defined as the state of disagreement or miscommunication
brought on by real or perceived differences in needs, beliefs,
resources, and interpersonal relationships among the
organization’s members.

A difference in opinions can give rise to a conflict.

Causes of Conflict
(a) Unclear division of responsibility: Conflict results
from unclear responsibility since it is unclear who is in
charge of what portion of a work or project.
(b) Interpersonal relationship: Every member of an
organisation has a unique personality, which is important
for settling conflict inside the organisation. Interpersonal
differences among the organization’s employees
frequently result in conflicts at work.
(c) Scarcity of resources: Inadequate resources, such as
time, money, or materials, cause members of the
organisation to compete with one another, which can
result in conflict.
(d) Conflict of interest: Conflict of interest emerges
when there is a misalignment between an individual’s
personal ambitions and the organisational goals because
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the individual may fight for his own interests, which affects
the project’s success as a whole.
(e) Ambiguous expectations: Conflict in the workplace
can result from managers’ ambiguous expectations from
their workforce. Every employee is expected to satisfy the
goals set by their superior, and disputes can emerge when
these goals are not understood or are not met within the
allotted time.

Resolution of Organisational Conflicts

(a) Win-lose approach: 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.
(b) Lose-lose strategy: Is exemplified by smoothing over
conflict or by reaching the simplest of compromises. 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.
(c) Win-win approach: Is a conscious and systematic
attempt to maximize the goals of both parties through
collaborative problem solving. This method focuses on the
needs and constraints of both parties rather than
emphasizing strategies designed to conquer. The win-win
approach requires a very high degree of patience and skill
in human relations and problem solving.
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Introduction to Leadership
“Leadership is the process of influencing and supporting others
to work enthusiastically towards achieving objectives”.
Leadership is essentially a continuous process of influencing
behaviour. It may be considered in context of mutual relations
between a leader and his followers. The leader tries to
influence the behaviour of individuals or group of individuals
around him to achieve desired goals.

Leadership Styles
1. Autocratic Leadership
This style of leadership is often referred to as the
authoritarian style of leadership. They often make choices
by themselves or with a small, trusted group, and they
want their subordinates to carry out their decisions to the
letter.
This kind of leadership might be beneficial in organisations
with rigorous norms or in sectors that place a large
emphasis on compliance.

Advantages: Autocratic leaders can minimise employee

stress by making choices fast on their own, increase
productivity via the use of clear and direct communication
and delegate work to subordinates.
Disadvantages: Because the leader takes on all the
responsibility for decision making, this type of leadership
may be stressful for the leader.
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2. Laissez-faire or Hands-off Leadership

This style of leadership is the reverse of the autocratic
leadership type, with the primary emphasis being placed
on delegating many duties to members of the team while
providing little to no oversight.
When all members of a team have a high level of expertise,
are well-trained and need minimal monitoring, managers
may choose to embrace this style of leadership.

Advantages: Accountability, inventiveness and a laid-back

attitude towards work are all fostered by this management
style. Because of this, it has the potential to increase the
number of employees that stay with the company.
Disadvantages: New workers, who in their early days of
employment need instruction and hands-on help, do not
respond well to this type of management.

3. Democratic or Participative Leadership

Combining elements of authoritarian and laissez-faire
leadership styles results in the democratic leadership
style, which is also referred to as the participatory
leadership style.
A democratic style of leadership is generally attributed
with promoting better levels of employee engagement
and happiness in the workplace.
This style of leadership encourages involvement and
conversation, making it a good choice for organisations
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that place a premium on creativity and invention, such as

the technology sector.

Advantages: Employees might have a sense of being

cherished and empowered while working under this type
of leadership. It can increase employee retention as well
as morale.
Disadvantages: This type of leadership has the potential to
be inefficient and expensive since it takes a long time to
organise large group conversations, get ideas and
comments, explore various outcomes and convey a
conclusion.

Theories of Leadership
1. Trait Theory of Leadership
The trait model of leadership is based on the
characteristics of many leaders - both successful and
unsuccessful - and is used to predict leadership
effectiveness.
Successful leaders have interests, abilities and personality
traits that are different from those of the less effective
leaders.

Among the core traits identified are:

(i) Achievement Drive: High level of effort, high levels of
ambition energy and initiative.
(ii) Leadership Motivation: An intense desire to lead
others to reach shared goals.
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(iii) Honesty and Integrity: Trustworthy, reliable and open.

(iv) Self-confidence: Belief in one’s self, ideas and ability.
(v) Cognitive Ability: Capable of exercising good
judgment, strong analytical abilities and conceptually
skilled.
(vi) Knowledge of Business: Knowledge of industry and
other technical matters.
(vii) Emotional Maturity: Well, adjusted, does not suffer
from severe psychological disorders.
(viii) Others: Charisma, creativity and flexibility.

 Advantages of Trait Theory ‹

 It is naturally pleasing theory. ‹
 It is valid as lot of research has validated the foundation
and basis of the theory. ‹
 It serves as a yardstick against which the leadership traits
of an individual can be assessed. ‹
 It gives a detailed knowledge and understanding of the
leader element in the leadership process.

2. Transactional Leadership Theory

This style is most often used by the managers. It focuses on
the basic management process of controlling, organizing
and short-term planning.
Transactional leadership involves motivating and directing
followers primarily through appealing to their own self-
interest. The power of transactional leaders comes from
their formal authority and responsibility in the
organization.
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The leader believes in motivating through a system of

rewards and punishment. If a subordinate does what is
desired, a reward will follow, and if he does not go as per
the wishes of the leader, a punishment will follow

3. Transformational Leadership Theory

Transformational leadership may be found at all levels of
the organization: teams, departments, divisions and
organization. Such leaders are visionary, inspiring, daring,
risk-takers and thoughtful thinkers.
They have a charismatic appeal. But charisma alone is
insufficient for changing the way an organization operates.
For bringing major changes, transformational leaders must
exhibit the following four factors:
 Inspirational Motivation
 Intellectual Stimulation
 Idealized Influence
 Individualized Consideration
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Unit 5: Dynamics of
Organisational Behaviour

Definition of Organisational Culture

“A pattern of basic assumptions invented, discovered, or
developed by a given group as it learns to cope with its
problems of external adoption and internal integration that has
worked well enough to be considered valuable and, therefore,
to be taught to new members as the correct way to perceive,
think, and feel, in relation to those problems.”

Culture is something which is created and resides in the minds

of the people.

Organisational culture is marked by a number of characteristics.

1. Observed Behavioural Regularities: When people in the

organizations interact with one another, they generally use
common language, terminology, and other rituals that
relate to deference and demeanor.
2. Norms: Standards of behaviour are set to guide the
organisational members how much work to do.
3. Dominant Values: Organizations advocate some major
values and expect the same to be imbibed by its
organisational participants.
4. Philosophy: Organizations set forth certain beliefs about
how employees and/or customers are to be treated.
5. Rules: There are guidelines prescribed how the new
participants of the organizations have to adopt so as to be
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accepted the full-fledged members of their group in the

organisation.
6. Organisational Climate: This is an overall “feeling” that is
conveyed by the physical layout, the way organisational
participants interact with one another, and the mode
organisational members conduct themselves with outside
persons.

Types of Cultures
1. Dominant Culture and Sub-culture: A dominant culture is
marked by a set of core values that are shared by a
majority of the organisational members. In fact, when we
talk about an organization’s culture, we refer to its
dominant culture. The dominant culture gives a macro
view of organization’s personality.
2. Strong and Weak Cultures: Based on intensity of
sharedness, organisational cultures are of two types:
strong and weak. A strong culture is characterized by the
organization’s core values being intensely held and widely
shared. Weak culture is usually characterized by high
turnover of employees.

Functions of Culture
1. Culture provides shared patterns of cognitive perceptions
or understanding about the values or beliefs held by the
organisation. This enables the organisational members
how to think and behave as expected of them.
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2. It also provides shared patterns of feelings to the

organisational members to make them know what they are
expected to value and feel.
3. It provides a boundary that creates distinctions between
one organisation and other. Such boundary-defining helps
identify members and nonmembers of the organization
4. Culture facilitates the generation of commitment to
something larger than one’s individual self-interest
5. It enhances social stability by holding the organisational
members together by providing them appropriate
standards for which the member should stand for.
6. It serves as a control mechanism that guides and shapes
the attitudes and behaviour of organisational members.
7. Culture finally, ensures that everyone is pointed in the
same direction

What is Stress?
In general sense, stress is the pressures people feel in life due
to their reaction to situation.

“an adoptive response to the external situation that results in

physical, psychological, and/or behavioural deviation for
organisational participants”.

stress is a condition arising from the interaction of people and

their jobs and characterized by changed within people that
force them to deviate from their normal functioning.

Causes or Sources of Stress

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1. Environmental Causes: Environmental factors do also have

impact on employee stress. The environmental factors to
which an employee responds mainly include things such as
fast technological change, family demands and
obligations, economic and financial conditions, race, caste,
class, ethnic identity and relocation and transfers.
2. Organisational Causes/Stressors : Stressors occur not only
outside the organisation, but within it also. Organisational
stressors may come in many forms, such as organisational
policies, procedures, and structure. As we shall learn, most
forms of organisational change are stressful.
3. Group Causes/Stressors : People are usually member of
various formal and informal groups. The department,
division or section to which one belongs,
4. Individual Causes/Stressors Apart from the stressors
discussed so far (environmental, organisational and group
stressors), there are individual factors also that cause
stress

How to Manage or Cope with Stress?

1. At Individual Level

 Physical Exercise: Exercise in any form, be it walking,

jogging, swimming, riding, bicycling or playing games
helps people combat stress. This is excellent stress
modifier.
 Behavioural Self-Control: A conscious analysis of the
causes and consequences of their own behaviour help
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managers controlling the situation instead of letting the

situation control them.
 Social Support: social support moderates the effects of
stress on personal wellbeing. It is one of the important
aspects of the quality of social milieu.
 Yoga and Meditation: Yoga and meditation which are of
the Indian origin, also affect the psychological well-being
of people. Researchers have reported that mediators were
less anxious than non-meditators.
 Changing Gears: Changing gears involves shifting one’s
attention from main work to something else, such as a
hobby. Yet, while changing gears, the changed work
needs to capture the worker’s attention.

2. At Organisational Level

 Setting Clear Objectives: Organisations should set clear

objectives for its members. This helps minimize role
ambiguity which usually filters down the organisation in
the form of neurosis
 Stress Audit: Peptone has suggested stress audit as one of
the effective proactive interventions to combat stress.
According to him, when an organization decides to have a
scientific peep into mental and physical health status of
its backbone group (executives), the exercise is called a
stress audit.
 Counselling: Counselling is yet another proactive strategy
to be used by organizations to deal with stress.
Counselling to employees in the matters like career
planning to provide them clarity in their job roles, helping
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them in identifying their strengths and weaknesses help

them better cope with stress.
 Spread the Message: Spreading the message about the
importance of regular habits of work, leisure, proper diet,
exercise, and mental peace among the organisational
members helps them better cope with stress.
 Fit between Person and Work: Research evidence shows
that striking a fit between worker and his/her work
environment serves as one of the best strategies to
manage stress.
 Clarity in Roles: There is enough evidence to show that
defining individual roles through role efficacy helps them
reduce their role shared stresses.