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NEW HORIZON COLLEGE

MARATHALLI, BANGALORE
(Affiliated to Bangalore University)
A Recipient of Prestigious Rajyotsava State Award 2012 conferred by the Government of Karnataka

II SEM BBM STUDY MATERIAL

ORGANISATIONAL BEHAVIOUR

Prepared By

Ms LINCY JOYKUTTY

Ms VIJAYALAXMI MEDAR

Ring Road, Bellandur Post, Near Marathalli, Bangalore - 560 103

Tel : +91-80-6629 7777 Fax : +91-80-2844 0770
E-mail : principalnhc.edu@gmail.com
Web : www.newhorizonindia.edu

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INDEX

Sl No Title Page No

1 ORGANISATION BEHAVIOUR 4 -16

2 PERCEPTION & ATTITUDES 17 -32

3 PERSONALITY 33 – 42

4 GROUP DYNAMICS & LEADERSHIP 43 -79

5 LEARNING & BEHAVIOUR 80 – 89

MODIFICATION

6 ORGANISATIONAL CHANGE 90 – 101

7 QUESTION PAPERS 102 -104

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UNIT 1

ORGANIZATIONAL BEHAVIOR
Organization

• An organization is a consciously coordinated social unit composed of two or more people

that functions on a relatively continuous basis to achieve a common goal or set of goals.

• An organization is a structure having relationship that is inter winded between people

who work with collective sense of purpose

Structure of an organization

• Organization structure is the basic frame work with in which the decision making
behavior of an executive take place

• It is an established pattern of relationship among the components of organization.

• These relationship are stable and change only slowly

Types of organization

• Organizations are formed with a specific purpose.

• Some organizations are profit driven and some serve the society like universities ,
hospitals and welfare organizations

• There are three general type of organization , they are :

1. Functional organization

2. Line and staff

3. Matrix form

• These organizations will have formal structures

• In recent time there are informal structures which have invisible relationship
between the members, such as network organization and boundary less
organization. These are called as virtual organization

Functional organization

• In this type the specialists person will be heading their respective departments to
discharge specific functions assigned to them

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• Workers under functional type receives instructions from their head or specialists

Line and staff organization

• This is combined structure of line (Actual execution of work) and staff(Advisory

body)

• This structure covers planning and execution

• Planning is done by staff officials and execution is done by line officials

Matrix organization

• This is the multiple command system in which workers will have two bosses

• In this structure vertical and horizontal pattern of reporting system operates

simultaneously.

• Global organizations prefers this structure

Types of organization structure

• There are two types of structures

1. Tall structure

2. Flat structure

• Tall structure implies

1. Centralization of authority

2. Many middle level management and narrow span of control

3. Extended communication lines

4. Impersonality

• Flat organization structure implies

1. Less intervention from top management

2. De – Centralized authority

3. Wide span of management

4. Less extended communication lines

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• Organizational structures is determined by varies factor,

1. Size of the business

2. Job designing

3. Grouping of activity

4. Span of control

5. Delegation of authority

• Today’s organizations are becoming oriented towards flat structure and technology
is the driving force therefore virtual organizations are increasing reducing the
human force at work

MEANING AND DEFINITION OF ORGANISATIONAL BEHAVIOUR

• Organisational behaviour is concerned with people's thoughts, feelings, emotions and

actions in setting up a work. Understanding an individual behaviour is in itself a
challenge, but understanding group behaviour in an organisational environment is a
monumental managerial task.

• As Nadler and Tushman put it, "Understanding one individual's behaviour is challenging
in and of itself; understanding a group that is made up of different individuals and
comprehending the many relationships among those individuals is even more complex.
Ultimately, the organisation's work gets done through people, individually or collectively,
on their, own or in collaboration with technology. Therefore, the management of
organisational behaviour is central to the management task—a task that involves the
capacity to "understand" the behaviour patterns of individuals, groups and organisations,
to ''predict'" what behavioural responses will be elicited by various managerial actions
and finally to use this understanding and these predictions to achieve "control".

• Organisational behaviour can then be defined as: "The study of human behaviour in
organisational settings, the interface between human behaviour and the organisational
context, and the organisation itself."

• The above definition has three parts—the individual behaviour, the organisation and the
(interface between the two. Each individual brings to an organisation a unique set of
beliefs, values, attitudes and other personal characteristics and these characteristics of all
individuals must interact with each other in order to create organisational settings. The
organisational behaviour is specifically concerned with work-related behaviour, which
takes place in organisations.

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• In addition to understanding; the on-going behavioural processes involved, in 'their own

jobs, managers must understand the basic human element of their work. Organisational
behaviour offers three major ways of understanding this context; people as organisations,
people as resources and people as people.

• Above all, organisations are people; and without people there would be no organisations.
Thus, if managers are to understand the organisations in which they work, they must first
understand the people who make up the organisations.

• As resources, people are one of the organisation's most valuable assets. People create the
organisation, guide and direct its course, and vitalise and revitalise it. People make the
decisions, solve the problems, and answer the questions. As managers increasingly
recognise the value of potential contributions by their employees, it will become more
and more important for managers and employees to grasp the complexities of
organisational behaviour.

• Finally, there is people as people - an argument derived from the simple notion of
humanistic management. People spend a large part of their lives in; organisational
settings, mostly as employees. They have a right to expect something in return beyond
wages and benefits. They have a right to expect satisfaction and to learn new skills. An
understanding of organisational behaviour can help the manager better appreciate the
variety of individual needs and' expectations.

• Organisational behaviour is concerned with the characteristics and behaviours of

employees in isolation; the characteristics and processes that are part of the organisation
itself; 'and the characteristics and behaviours directly resulting from people with their
individual needs and motivations working within the structure of the organisation. One
cannot understand an individual‘s behaviour completely without learning something
about that individual's organisation. Similarly, he cannot understand how the organisation
operates without; studying the people who-make it up. Thus, the organisation influences
and is influenced by individuals.

OB:

• “A field of study that investigates the impact that individuals, groups and structure
have on behavior within organization, for the purpose of applying such knowledge
toward improving an organization’s effectiveness.”

• “Organization behaviour is the study and application of knowledge of how people

act or behave within organization.”

• “It is the study of what people think, feel and do in and around organization.”

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Basic concepts/variables of OB

• Individual behaviour

• Perception

• Values and attitudes

• Motivation

FOUNDATIONS OF OB

• The basic assumptions distinct to the discipline are:

1. Individual differences

2. A whole person

3. Caused behaviour

4. Human dignity

5. Social system

6. Mutuality of interest

7. Holistic concept

1. INDIVIDUAL DIFFERENCES

• Each person in the world is individually different.

• Whether in terms of intelligence, physique, personality, speech or any other trait.

• This basically takes place because of psychological difference.

• This difference is usually causing great motivation to the management by treating

people differently.

• OB begins with the individual.

• A group is powerless until individuals act.

2. A whole person

• An individual is not only measured in terms of the skills he is processing but also his
likes and dislikes, pride and prejudice etc.

• A person’s family life can not be ignored/separated from his work life.

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3. Caused behaviour

• The employee behavior is caused but not random.

• And his behavior is directed towards what is wright or wrong, his interest etc.

• Thus a human behavior is caused because of some reason behind it.

• And management should realize it and correct his behavior if wrong.

4. Human dignity

• People should be treated differently from other factors as they are in the highest
order in the universe.

• Every person wanted to be treated with dignity and respect.

• Every job entitles a person to treated with respect and recognition of their
ABILITIES.

5. Social systems

• Organizations are social system and all activities are governed by social and
psychological laws.

• People have social roles and status. Their bahaviour is influenced by group and individual
drives.

• Two types of system exists side by side: formal and informal systems.

• An organization is a social system and changes dynamically.

• All the parts are interdependent are influenced by each other.

6. Mutuality of interest

• ―Organizations need people and people need organizations.‖

• Organization have human purpose. They are formed and maintained because of the
mutual interest among the people.

• People see organization as a means to help them reach their goals.

• This mutuality in interest helps in achieving the organization goals effectively.

7. Holistic concept

• All the above concepts makes OB an holistic system.

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• This concept interprets organization relationship as a whole person, whole group, whole
organization and a whole social system.

IMPORTANCE /BENEFITS OF OB

1. OB provides a road map to our lives in organization: every person is made up

differently as per their personality showing different emotions, feelings and behavior.
This makes an organization perplexed. Thus OB helps us in tackling and overcoming
such differences which are functional, less stressed and career advancing.

2. The field of OB uses scientific research to help us understand and predict organizational
life: OB is not a pure science but it helps us in understanding the cause and effect
relationship among the people in an organization.

3. OB helps us influence organizational events: a person needs to know how to

communicate their ideas effectively to others, manage conflicts, take decisions, work
with teams etc. thus OB helps in influencing organizational events.

4. OB helps an individual understand himself and others better: this helps in improving the
interpersonal relationships considerably.

5. A manager in a business establishment is concerned with getting things done through

delegation: the person will be successful in delegating the authority, motivate
subordinates for better results.

6. The field of OB is useful in maintaining cordial industrial relations: In an organization it

is an indifferent attitude of the boss which makes the workers lazy. The relation between
management and employee are often strained by different reason which are personal
reason , human problem should be tackled humanely.

7. The subject of OB is also useful in the field of marketing: organization behavior helps in
understanding the consumer choice and studying their behavior, there fore OB helps us in
innovating new products with creativity and learning of responses

8. Interest in pursuing carrier in marketing: OB creates a person to take up carrier in

management on how to predict human behavior to the effectiveness of organization. It
talks about people skill and ability to understand one‘s employees

9. Effective management of all the sectors: Effective management means efficient

management of human resources and this is possible only through study of OB. OB
enables the manager to motivate his subordinate towards higher productivity and better
results.

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TOWARD AN OB DISCIPLINE (OB AN INTERPLINARY DISCIPLINE)

Contributing Disciplines to the OB Field

Psychology

The science that seeks to measure, explain, and sometimes change the behavior of humans
and other animals.

• Unit of Analysis:

• Individual

• Contributions to OB:

• Learning, motivation, personality, emotions, perception

• Training, leadership effectiveness, job satisfaction

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• Individual decision making, performance appraisal attitude measurement

• Employee selection, work design, and work stress

A Separate Field of Study

Organizational behaviour can be treated as a distinct field of study. It is yet to become a science.
Now efforts are being made to synthesize principles, concepts and processes in this field of
study.

Interdisciplinary Approach

Organizational behaviour is basically an interdisciplinary approach. It draws heavily from other

disciplines like psychology, sociology and anthropology. Besides, it also takes relevant things
from economics, political science, law and history. Organizational behaviour integrates the
relevant contents of these disciplines to make them applicable for organizational analysis. e.g. it
addresses issues, which may be relevant to the case, such as the following:

 What facilitates accurate perception and attribution?

 What influences individual, group and organizational learning and the development of
individual attitudes toward .work?
 How do individual differences in personality, personal development, and career
development affect individual's behaviours and attitudes?
 What motivates people to work, and how. does the organizational reward system
influence worker's behaviour and attitudes?
 How do managers build effective teams?
 What contributes to effective decision-making?
 What are the constituents of effective communication?
 What are the characteristics of effective communication?
 How can power be secured and used productively?
 What factors contribute to effective negotiations?
 How can conflict (between groups or between a manager and subordinates) be resolved
or managed?
 How can jobs and organizations be effectively designed?
 How can managers help workers deal effectively with change?
An Applied Science

The basic objective of organizational behaviour is to make application of various researches to

solve the organizational problems, particularly related to the human behavioral aspect.

Normative and Value Centered

Organizational behaviour is a normative science. A normative science prescribes how the various
findings of researches can be applied to get organizational results, which are acceptable to the

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society. Thus, what is acceptable by the society or individuals engaged in an organization is a

matter of values of the society and people concerned.

Humanistic and Optimistic

Organizational behaviour focuses the attention on people from humanistic point of view. It is
based on the belief that needs and motivation of people are of high' concern. Further, there is
optimism about the innate potential of man to be independent, creative, predictive and capable of
contributing positively to the objectives of the organization.

Oriented towards Organizational Objectives

Organizational behaviour is oriented towards organizational objectives. In fact, organizational

behaviour tries to integrate both individual and organizational objectives so that both are
achieved simultaneously.

A Total System Approach

An individual's behaviour can be analyzed keeping in view his psychological framework,

interpersonal-orientation, group influence and social and cultural factors; Thus, individual's
nature is quite complex and organizational behaviour by applying systems approach tries to find
solutions for this complexity.

APPROACHES TO ORGANIZATIONAL BEHAVIOUR

There are mainly four approaches to organizational behaviour. They are:
• Human resources approach '
• Contingency approach
• Productivity approach
• Systems approach

Human Resources Approach

The human resources approach is concerned with the growth and development of people towards
higher levels of competency, creativity and fulfillment, because people are the central resource in
any organization. This approach help employees become better in terms of work and
responsibility and then it tries to create a climate in which they can contribute to the best of their
improved abilities. This approach is also known as 'supportive approach' because the manager's
primary role changes from control of employees to providing an active support for their growth
and performance.

A Contingency Approach
A contingency approach to organizational behaviour implies that different situations require
different behavioral practices for effectiveness instead of following a traditional approach for all
situations. Each situation must be analyzed carefully to determine the significant variables that
exist in order to establish the more effective practices. The strength of this approach is that it
encourages analysis of each situation prior to action. Thus, it helps to use all the current
knowledge about people in the organization in the most appropriate manner.

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Productivity Approach
Productivity is a ratio that compares units of output with units of input. It is often measured in
terms of economic inputs and outputs. Productivity is considered to be improved, if more outputs
can be produced from the same amount of inputs. But besides economic inputs and outputs,
human and social inputs and outputs also arc important.

Systems Approach
A system is an interrelated part of an organization or a society that interacts with everyone
related to that organization or society and functions as a whole. Within the organization 'people'
employ 'technology' in performing the 'task' that they are responsible for, while the 'structure' of
the organization serves as a basis for co-ordinating all their different activities. The systems view
emphasizes the interdependence of each of these elements within the organization, if the
organization as a whole is to function effectively. The other key aspect of the systems view of
organization is its emphasis on the interaction between the organization and its broader
environment,, which consists of social, economic, cultural and political environment within
which they operate.
Organizations arc dependent upon their surrounding environment in two main ways:
First, the organization requires 'inputs' from the environment in the form of raw material, people,
money, ideas and so on. The organization itself can be thought of as performing certain
'transformation' processes, on its inputs in order to create outputs in the form of products or
services. Secondly, the organization depends on environment such as, public to accept its output.
The systems view of organization thus emphasizes on the key interdependencies that
organizations must manage. Within themselves the organizations must trade off the
interdependencies among people, tasks, technology and structure in order to perform their
transformation processes effectively and efficiently. Organizations must also recognize their
interdependence with the broader environments within which they exist.

LIMITATIONS OF ORGANIZATIONAL BEHAVIOUR


Organizational behaviour cannot abolish conflict and frustration but can only reduce
them. It is a way to improve but not an absolute answer to problems.
 It is only one of the many systems operating within a large social system.
 People who lack system understanding may develop a 'behavioral basis', which gives
them a narrow view point, i.e., a tunnel vision that emphasizes on satisfying employee
experiences while overlooking the broader system of an organization in relation to all its
public.
 The law of diminishing returns also operates in the case of organizational behaviour. It
states, that at some point increase of a desirable practice produce declining returns and
sometimes, negative returns. The concept implies that for any situation there is an
optimum amount of a desirable practice. When that point is exceeded, there is a decline
in returns. For example, too much security may lead to less employee initiative and
growth. This relationship shows that organizational effectiveness is achieved not by
maximizing one human variable but by working all system variables together in a
balanced way.

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 A significant concern about organizational behaviour is that its knowledge and

techniques could be used to manipulate people without regard for human welfare. People
who lack ethical values could use people in unethical ways.

FUTURE OF ORGANIZATIONAL BEHAVIOUR

The growing interest in organizational behaviour stems from both a philosophical desire by
many people to create more humanistic work places and a practical need to design more
productive work environments. As a result of these forces, organizational behaviour is now a part
of the curriculum of almost all courses including engineering and medical.

The field of organizational behaviour has grown in depth and breadth. The keys to its past
and future success revolve around the related processes of theory development, research and
managerial practice.

Although organizational behaviour has certain limitations, it has a tremendous potential

to contribute to the advancement of civilisation. It has provided and will provide much
improvement in the human environment. By building a better climate for people, organizational
behaviour will release their creative potential to solve major social problems. In this way
organizational behaviour will contribute to social improvements. Improved organizational
behaviour is not easy to apply but opportunities are there. It should produce a higher quality of
life in which there is improved harmony within each individual, among people and among the
organizations of future.

Ob model

• Individual behaviour comprises such aspects as personality, perception, attitudes,

learning and motivation.

• Group behavior covers group dynamics, leaderships, power and politics, communication
and conflicts.

• At organizational level, organizational culture change and development etc are covered.

• The total and cumulative behaviour impacts the organization‘s effectiveness.

Two Marks

1. Define organisation.

2. Define Organisation behaviour.

3. Mention types of organisation structure.

4. What is holistic concept?

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5. What is tall structure?

Eight Marks

1. Explain the importance of OB.

2. Explain the limitations of OB.

3. Explain the significance of organisation.

4. Explain the nature of OB.

5. Explain the approaches of OB.

6. Discuss the foundation of OB.

Fifteen Marks

1. Analyse the OB as inter disciplinary subject.

2. Explain the principles of organisation.

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UNIT 2

PERCEPTION & ATTITUDES

Meaning of Perception:

― Perception is the process of receiving information about and making sense of the world around
us. It involves deciding which information to notice, how to categorize this information and how
to interpret it within the framework of existing knowledge.‖

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PERCEPTUAL PROCESS:

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 Receiving Stimuli: Stimuli are received by us through sensory organs such as vision,
hearing, smell, touch & taste. There are two types of stimuli. They are:

* Internal stimuli: Energy generated by muscles, food passing through the

digestive system, etc.

* External Stimuli: Light waves, sound waves, mechanical energy or pressure, etc
from objects that one can smell & taste.

 Selecting stimuli: The process of filtering information received by our senses is called
selecting stimuli or selective attention.

External Factors:

* Nature: Whether the object is visual or organs of hearing.

* Location: The best location of a visual stimulus for attracting attention is

directly in the front of the eyes & in the centre of a stage in a conference hall..

* Colour: it can be used to attract attention of a product or to create a suitable

atmosphere.

Example: Red distance effect-close

Black Psychological effect-Death or mourning

* Size: Generally, objects of larger size attract more attention than do smaller
ones.

* Contrast: It states that external stimuli which stands out against the background
or which are not what people are expecting, will receive their attention.

* Movement: The principle of motion states that a moving object receives more
attention than an object that is stationary. Ex: A workman will be focused more on a
conveyor belt of a machine than a idle flower vase.

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* Repetition: It state that a repeated stimuli would draw more attention that a non
repetitive one. Ex: The same advertisement of an airtel flashed daily on television is
based on the principle of repetition.

* Novelty & Familiarity: New objects in familiar settings or familiar objects in

new settings or familiar objects in new settings will draw the attention of the perceiver.

Internal Factors:

* Learning: Learning is a cognitive factor. People tend to perceive what they want
to perceive.

Bird in the
the hand

* Psychological needs: needs play significant role in perceptual selectivity.

Example: A thirsty person in a desert, for instance, gets the illusion of water when seeing
sand from a distance.

* Age Difference: Senior executives complain about the inability of the young
ones to take tough decisions concerning terminating people or paying attention to details
& paper work.

*Interest: Perception is unconsciously influenced by the interests of the perceiver.

Ex: A painter will notice the colour or paint of building whereas a common may notice it.

*Ambivalence: It is mixed feeling about a situation. It means opposing emotional

attitude towards the same object. Ex: A son may be anxious, curious to purchase a laptop.
Once he purchases Samsung laptop with Windows Xp features. After few years a laptop
would be launched with additional features such as Windows7.His attitude towards the
same object would be opposing because the laptop purchased may not meet his current
needs.

*Paranoid Perception: An emotionally disturbed person, his perceptual field

differs from that of reality & personalised interpretation. Ex: Mr X, a paranoid person
may perceive a football as a basket ball.

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 Perceptual Organisation: It is the process by which people group stimuli into recognisable
patterns. Example: Most people have a mental picture of an object made of plastic &
having four legs, a seat, aback- an image of chair.

People organise the incoming information into a meaningful whole & recognise the
object to be a chair.

Factors affecting in perceptual organisation are as follows:

* Ambiguous figures: Perceptual organisation becomes a difficult task when there

are confusing & disorganised stimuli in the external environment.

 * Figure Background: It states that the relationship of a target to its background

influences perception.

 Perceptual Grouping: This principle was 1st defined by Gestalt psychologists include the
following:

* Principle of similarity: When objects of similar shape, size or colour tend to be grouped
together. Ex: All employees who wear Black Gown may be perceived as a Lawyer, when,
in reality, each worker is a civil lawyer or criminal lawyer or a unique individual.

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* Principle of proximity: It states the tendency to perceive stimuli which are near one
another as belonging together. Ex: Several employees in an organisation may be
identified as a single group because of physical proximity.

* Principle of Closure: A person has a tendency to perceive a whole when none exist. It
supplies missing stimuli. Ex: When, a manger has to take a decision even when there is
no sufficient data. He takes the decision based on experience; imagination the data can be
filled.

* Principle of Continuity: It is the tendency to perceive objects as continuing patterns. In

business forecasting, a common continuing error is to assume that the future will simply
reflect current events & trends.

* Area: Where one part of an area showing an ambiguous figure is smaller in size than
the remainder, it is more likely that the smaller area will be seen as a figure & the rest of
the total area as background.

 Perceptual Constancy: A more subtle or thin part of perceptual organisation is constancy.

* Shape Constancy: Whenever an object appears to maintain its shape despite marked
changes in the retinal image. Ex: Whether we view ‗Bangle‘ from the side or front, its
shape is ‗Round‘.

* Size Constancy: It refers to the fact that as an object is moved farther away we tend to
see it as more or less invariant in size. Ex: The players in the opposite side of the field do
not look smaller than those closer to you even though their images on the retina of the
eye are much smaller.

* Colour Constancy: It implies that familiar objects are perceived to be of the same
colour in varied conditions.

 Process of Interpreting: Once the data have been received & organised, the perceiver
interprets or assigns meaning to the information.

Factors affecting the interpretation of data are as follows:

* Perceptual Set: Previously held beliefs about objects influence an individual‘s

perception of similar objects.

* Attribution: It refers to the process by which the individual assigns causes to the
behaviour he or she conceives.

* Stereotyping: It means judging someone on the basis of one‘s perception of the group
to which that person belongs.

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* Halo effect: The halo effect refers to the tendency of judging people on the basis of a
single trait which may be good or bad, favourable or unfavourable.

* Perceptual Context: The context in which an object is placed influences perception.

* Perceptual Defense: It is the inability to perceive that is threatening to the perceiver.

* Projection: We tend to believe that other posses the same characteristics of what we
have.

 The process of checking: The perceiver tends to check whether his interpretations are
right or wrong.

 The process of reacting: The perceiver would finalise with some action in relation to his
or her perception which may be a favourable or unfavourable.

When perception fails or errors in perception:

 Fundamental attribution error: It refers to a tendency to underestimate the importance of

external factors & overestimate the importance of internal factors when making
attributions about the behaviour of others.

 Self-fulfilling Prophecy or Pygmallion effect: People‘s expectations or beliefs determine

their behaviour & performance, thus serving to make their expectations come true.

 Primacy effect: First impression is the best impression.

 Recency effect: Individual‘s tend to remember the recent happenings& based on that,
come to a conclusion on a particular event.

 Projection: We tend to believe that other posses the same characteristics of what we
have.

 Stereotyping: It means judging someone on the basis of one‘s perception of the group to
which that person belongs.

 Halo effect: The halo effect refers to the tendency of judging people on the basis of a
single trait which may be good or bad, favourable or unfavourable.

 Perceptual Defense: It is the inability to perceive that is threatening to the perceiver.

Factors influencing perception

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Interpersonal Perception: It is understanding & interpretation process of two individuals

in a work setting. It focuses on only people. It is otherwise called Social perception.

Application of perception in Organisation & Measures to improve Perception:

Perception, in many cases has important effects on organisation. They are discussed as
follows:

 Employment Interview: When a candidate appears for interview, some of the

interviewers look at their physical appearance, analytical thinking, critical thinking, etc.
One may give appositive feedback & other a negative on the same candidates. It is clear
that where interview is an important input for selection, the perceptual factors influence
the decision to select a candidate.

 Performance Appraisal: Assessment of an employee‘s performance depends on the

perception of the evaluator.

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 Conflict Management: The perceptions of an employee have of others even overflow into
the workplace & cause conflict with other co-workers.

 Employee Loyalty: To retain an employee in an organisation is not that easy as employee

becomes closer to the organisation, he would understand the pro‘s & cons of the
organisations. Sometimes he would perceive that the competitor‘s organisation pays
better than his current organisation.

Measures:

 Have a high level of self awareness; Individual needs, experience & expectations can all
affect perceptions.

 Avoid inappropriate attributions: Each and every employee would describe the cause of
behaviour in a wrong situation which has to be avoided.

 Be Empathetic: Employee should be able to perceive the situation same as it is. Do not
arise the personal impressions at your work place.

 Diversity management programmes: Organisation need to introduce diversity

management programmes because employees came from various culture where they need
to understand the value of diversity & personal biases can be avoided.

Need for perception:

 It helps to understand, predict & control the behaviour of the individuals.

 It helps to categorise the information & to interpret it effectively.

 It helps to set performance goals.

 It helps in decision making.

 To organise the things or situations effectively.

 It helps to analyse the needs of various departments.

 It helps to identify the career path of employee in an organisation.

ATTITUDES

Attitude represents the cluster of beliefs, assessed feelings & behavioural intentions towards an
object. They reflect how one feels about something or somebody. Based on the believes &
perceptions an individual frames his attitude.

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Attitudes are learned pre-dispositions towards aspects of our environment. They may be
positively or negatively directed towards certain people, service or institutions.

Nature of Attitudes:

 Attitudes refers to feelings and beliefs of an individual.

 The feelings & beliefs are directed towards other people.

 Attitudes affect the behaviour or action of people.

 Attitudes are gradually acquired over a period of time.

 They are evaluative statements.

 All people have attitudes.

 Attitude may be unconsciously held.

Components of Attitude:

Attitudes can be broken down into 3 basic components:

 Informational or Cognitive Component: It consists of beliefs, values, ideas and other

information a person has about the object. This information can be the key to his attitude.

 Emotional or Affective Component: The sentiments, emotion feelings, etc towards an

object has an influence on the attitude of an individual.

 Behavioural Component: The behavioural component is the tendency of peers on to

behave in a particular manner towards an object. This component can be directly
observed.

ABC Model:

The three components of attitude is called the ABC model, the three letters respectively
standing for affect, behavioural & cognition.This model helps us in a thorough
understanding of the attitude of people.

Ex: If an employer wants to introduce flexitime in his office he would want to know:

a) How they feel about it (affect)

b) Whether they‘ll use it (behaviour)

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c) What they think about the policy (Cognition)

Stimuli work related factors

Managerial Style

Technology

Noise

Peers

Rewards

Cognition Superior is unfair

Beliefs & Values

Affect ―I don‘t like superior‖

Feelings & Emotions

Behaviour ―I want a transfer‖

Intended Behaviour

Formation of Attitudes:

A person acquires his attitude from several sources. The important sources of acquiring attitudes
are:

 Direct Personal Experience: A person direct experience with the attitude object
determines his attitude towards it. The personal experience of an individual will affect his
attitude deeply.

 Association: Sometimes acquaintance or association with people & events also influence
the attitude.

 Family & Peer groups: Attitudes can be acquired from parents, teachers & peer group
members. We observe the way our family & friends behave & we shape our attitudes
accordingly. Ex: Family support political party, you will start doing it.

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 Neighbourhood: The neighbourhood in which we live has certain cultural facilities,

religious groupings & ethnic differences. Further more, it has people who are neighbours
who may belong to different cultures. All these will have a bearing on our attitudes.

 Economic status & occupations: The economic status & occupational position of an
individual also affects his attitude formation. Our socio economic background influences our
present & future attitudes.

 Mass Communications: All varieties of mass communications like televisions,

newspaper, etc feed the audiences with large amounts of information. These information to a
large extent affects the attitude of people.

 Vicarious learning: This refers to the formation of attitudes by observing the behaviour of
others & the consequences of their behaviour.

Benefits of Positive Attitude

 Increases productivity: Employee possessing positive attitude towards the work will help
to contribute effectively & increases the productivity of an organisation.

 Solves problems: The problems crop up in the organisation can be solved quickly when
employee‘s belief is positive towards the work environment.

 Improves quality: An employee having a positive attitude would try to increase the
quality output for the organisation which would help him to grow in the organisation.

 Encourages team work: Organisation has to encourage team work in order to increase
productivity & growth of the organisation which is possible to attain through positive
attitude of employee towards the work.

 Reduce stress: When the work is enjoyed by the employee who shows there is a positive
approach towards the work & it reduces the stress of employee in an organisation.

 Job Satisfaction: In order to satisfy the employee with a job, the organisation has to
provide a positive work environment which would help to increase the satisfaction level
in an organisation.

 Better organisational relations & fewer conflicts: An employee is able to establish a good
rapport with the superiors peers, subordinates, etc which would provide the scope for
minimal conflict.

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 Reduces absenteeism: An employee approaching positively towards the organisation will

show a reduced absenteeism which would help them to contribute effectively towards an
organisation.

 Increases one‘s ability to motivate & inspire others & oneself: A person has belief &
positive attitude towards the work would motivate other employees to work effectively
for the betterment of the organisation.

 Helps in achieving goals & attaining success: Goals of the organisation are achieved with
a positive attitude of employee towards an organisation.

Functions of Attitudes:

 Adjustment function: Attitudes often help people adjust to their work environment. The
attitudes help employees adjust to their environment & are a basis for future behaviour.

 Ego defense function: People often form & maintain attitudes to protect their own self
images. Such attitude is generally found among people in the management level where
they do not accept or welcome any ideas given by their subordinates to protect their self
ego.

 Value expressive function: Attitudes provide people with a basis for expressing their
values. Our value expressive attitudes are closely related to our self concept. Ex: One
who values freedom will have the attitude towards decentralisation.

 Knowledge function: An attitude of a person provides the standards of reference by

which an individual judges objectives or events. If the existing attitudes are inadequate in
solving an issue, then new knowledge will be acquired to change the attitude & thereby
solve the issue.

 Badge value: Attitudes helps to define us & make up statements about who we are &
what we believe.

Is it possible to change the attitude? If Yes -How?

Changing Attitudes or Ways of overcoming barriers to change:

Attitudes need to be changed from aspects:

 Changing ones own attitude.

 Changing the employees attitude.

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 Changing attitudes of self: The following hints can help an individual change his or her
attitude:

* Be aware of ones attitudes.

* Keep an open mind.

* Stay away from negative influences.

* Build a positive self esteem.

* Realise that negative attitude will not help in gaining anything.

 Changing attitudes of employees:

* Giving feedback about their negative attitude.

* Providing new & useful information to change the attitude.

* Change of attitude can come through persuasion of friends or peers.

* Use of moderate fear & punishments to change the attitude.

* Providing positive work environment.

* Co-opting approach: This is another way of changing attitude where people who are
dissatisfied with a situation are given the responsibility of improving things.

Types of Change:

 Congruent change: It means that the change is a movement in the same direction but the
intensity of the feeling is reduced.

 Incongruent change: This refers to a change of direction in the attitude from positive to
negative & vice versa.

Barriers to changing attitudes:

 Prior commitments: On barrier to change of attitude are prior commitments. This occurs
when people feel a commitment to a particular action or person & are unwilling to
change.

 Insufficient Information: Sometimes people see no reason why they should change their
attitudes.

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 Cognitive dissonance: This refers to a state of inconsistency between an individual‘s

attitude & behaviour. This can be overcome either by changing the attitude or behaviour
or both to an extent.

Attitude Measurement/ Job Satisfaction Measurement:

There are a number of ways of measuring attitudes:

 Rating Scales: It allows an individual to rate their liking or disliking towards a job or an
individual. One of the most popular rating scale is the JDI (Job Descriptive Index)

 Critical Incidents: Here employees were asked to describe incidents on the job when they
were particularly satisfied or dissatisfied. The incidents were then analysed in
determining which aspects of these incidents of results in positive & negative attitudes in
the employee.

 Interviews: Personal interviews are yet another measurement of job satisfaction.

Employees are interviewed & their responses reveal the extent of satisfaction or
dissatisfaction.

 Action Tendencies: They represent the inclinations people have to avoid or approach
certain things. By gathering information on such inclinations, their job satisfaction can be
measured.

 Likert Scale: This was developed by Likert & is widely used even today. Here an
individual is asked to indicate agreements or disagreement with job factors .The
individual is also required to state how strongly he or she agrees or disagrees. This is
normally done on a 5 point scale which includes:

*Strongly Approve

* Approve

* Undecided

*Disapprove

* Strongly disapprove

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Two Marks:

1. Define Perception.

2. What is stereotyping?

3. What is Halo effect?

4. Define attitude.

5. Distinguish between attitude & Belief.

Eight Marks

1. When does the perception fail?

2. Explain the components of attitude.

3. Discuss the functions of attitude.

4. Explain the factors influencing Perception?

5. Examine the sources of formation of attitude.

6. Examine the measurement of attitudes.

7. Explain the needs of perception in an organisation.

Fifteen Marks

1. Explain the perceptual process in an organisation.

2. Describe the ABC model.

3. Examine the application of perception in an organisation & its measures.

4. Is it possible to change the attitude? If Yes-How?

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UNIT 3

PERSONALITY

• Acording to stephens robbin

• ―Personality is the sum total of ways in which an individual reacts to and interacts
with others‘

• Personality refers to how people affect others and how they understand and view
them selfs as well as their pattern of inner and outer measurable trades, and the
person – situation interventions

Personality traits (Attributes)

• A trait is a characteristic or distinguishing feature , which makes an individual different

from others, Ex. Reserved / out spoken,relaxed/tensed etc.

Characteristic of personality traits

• Each individuals personality is unique and varies

• A person personality is affected by internal and external factors

• It changes because of situation , experience,etc.

• It causes to act in a certain way,

Determinants of personality

1. Heredity

• Heredity means characters determined at conception

• It is the process by which features and traits are passed on from parent to their
children before they are born. Ex. Physical stature,facial attractiveness,
gender,energy level etc.

• How ever personality traits are not completely decided by heridity Ex. Physical
apperance can be changed by external materials. Muscales mass can be improved
by different product in the markets.

2. To Environment

• Environmental factors are those factors which includes events,people and

situation around an induvidual, which has influence in his/her life. Ex. Place of
residence, school, family , work place, friends, teachers,culture and the society

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3. Family

• Parents sibllings and other family members and family it‘s self as a whole influence
personality

• Parents are the role model for their childern, and children try to copy and immitate the
parents behaviour.

• Family size, religion,rituals,education of the family etc. Impact an induvidual Ex. Nuclear
family v/s joint family

4. Social and cultural factors

• Socialisation is the process by which people (children) are made to interact and behave
with others in an acceptable way.

• It helps in maintaining interpersonal relationship with others and also with in the group.

• Culture is a system of perception, beliefs, values , norms,code of conduct etc. That

influence individuals.

• It passes from generation to generation

5. Situational factors

• Situation demands different aspect of one‘s personality . Ex. Temple, class room,
office,interview,canteen, court,house,others house,Etc. Shapes the person personality

• Ex. Indivudual designation and position in organisation also affects his personality,
professor in a class room etc.

• Ex. In company superior v/s subordinates (Dual personality)

THE BIG FIVE MODEL

• This model supports 5 basic personality dimensions or domains which determines overall
human personality and account for individual differences.

• The big 5 traits are OCEAN:

• Openness

• Consciousness

• Extroversion

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• Agreeableness

• Neuroticism

OPENNESS

• This dimension reflect one‘s range of interests and fascinations with novelty.

• People who like to learn new thing and enjoy new experiences usually score high in
openness.

• Such traits are: Imaginative, innovative, creative, flexible and curious.

• On the other hand those who score low are less receptive to new ideas, more rigid,
comfort seekers.

CONSCIOUSNESS
(CAREFULLNESS)

• This dimensions measures reliability and promptness of a person.

• It reflects the traits like:

1. Dependability

2. Responsible

3. Organized systematic

4. Persistent

• Those who score low on this dimension are easily distracted, disorganized and unreliable.

EXTROVERSION

• This dimension reflects a persons comfort level in relationships.

• These are sociable and are lively, assertive, talkative and outgoing.

• They get energy from interacting with others.

• The opposite of extroverts are introverts which reflects those traits like timid, reserved,
quiet, and the person gets his energy from within.

AGREEABLENESS

• It refers to a person‘s ability t get along with others. These are friendly, co-operative,
kind, compassionate, warm and trusting.

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• People who score low on agreeableness are cold, more distant and unkind to others,
disagreeable and antagonistic(aggressive and hostile).

NEUROTICISM
(EMOTIONAL STABILITY)

• This dimension reflects a person's ability to withstand stress and degree of negative
emotions. People with positive emotional stability tend to be calm, self confident and self
confident and secured.

• A person with low emotional stability tends to be nervous, depressed, anxious and in
secured

OTHER PERSONALITY TRAITS

PERSONALITY FACTORS IN ORGANISATIQN5

Some of the important personality factors that determine what kind of behaviors are exhibited at
work include the following:

Locus of Control
Locus of control is the degree to which an individual believes that his or her behavior has direct
impact on the consequences of that behavior. Some people, for example, believe that if they
work hard they will certainly succeed. They, strongly believe that each individual is in control of
his or her life. They are said to have an internal locus of control. By contrast, some people think
that what happens to them is a result of fate, chance, luck or the behavior of other people, rather
than the lack of skills or poor performance on their part. Because- these individuals think that
forces beyond their control dictate the happenings around them, they are said to have an external
locus of control.

As a personality attribute, locus of control has clear implications for organizations. For
example, certain individuals have an internal locus of control, which means they have a
relatively strong desire to participate in the management of their organizations and have a'
freedom to do their jobs. Thus, they may prefer a decentralized organization where they have a
right of decision-making and work with a leader who provides them freedom and autonomy.
They may like a reward system that recognizes individual performance and contributions.

Conversely, people with an external locus of control, are likely to prefer a more
centralized organization where they need not take any decisions. They may incline to structured
jobs where standard procedures are defined for them. They may prefer a leader who makes most
of the decisions and a reward system that considers seniority rather than merit.

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Introversion and Extroversion

Introversion is the tendency of individuals, which directs them to be inward and process feelings,
thoughts and ideas within themselves. Extroversion, on the contrary, refers to the tendency in
individuals to look outside themselves, searching for external stimuli with which they can
interact. While there is some element of introversion as well as extroversion in all of us, people
tend to be dominant as either extroverts or introverts. Extroverts are sociable, lively and
gregarious and seek outward stimuli or external exchanges. Such individuals are likely to be
most successful while working in the sales department, publicity office, personal relations unit,
and so on, where they can interact face to face with others. Introverts, on the other Hand, are
quiet, reflective, introspective, and intellectual people, preferring to interact with a small intimate
circle of friends. Introverts are more likely to be successful when they can work on highly
abstract ideas such as R&D work, in a relatively quiet atmosphere. Since managers have to
constantly interact with individuals both in and out of the organization and influence people to
achieve the organization's goals, it is believed that extroverts are likely to be more successful as
managers.

Tolerance for Ambiguity

This personality characteristic indicates the level of uncertainty that people can tolerate to work
efficiently without experiencing undue stress. Managers have to work well under conditions of
extreme uncertainty and insufficient information, especially when things are rapidly changing in
the organization's external environment. Managers who have a high tolerance for ambiguity can
cope up well under these conditions. Managers, who have a low tolerance for ambiguity may be
effective in structured work settings but find it almost impossible to operate effectively when
things are rapidly changing and much information about the future events is not available. Thus,
tolerance for ambiguity is a personality dimension necessary for managerial success.

Self-Esteem and Self-Concept

Self-esteem denotes the extent to which individuals consistently regard themselves as capable,
successful, important and worthy individuals. Self-esteem is an important personality factor that
determines how managers perceive themselves and their role in the organization. Self-esteem is
important to self-concept, i.e., the way individuals, define themselves as to who they are and
derive their sense of identity. High self-esteem provides a high sense of self-concept, which, in
turn, reinforces high self-esteem. Thus, the two are mutually reinforcing. Individuals with a high
self-esteem will try to take on more challenging assignments and be successful. Thus, they will
be enhancing their self-concept i.e., they would tend to define themselves as highly valued

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individuals in the organizational system. The higher the self-concept and self-esteem, the greater
will be their contributions to the goals of the organization, especially when the system rewards
them for their contributions.

Authoritarianism and Dogmatism

Authoritarianism is the extent to which an individual believes that power and status differences
are important within' hierarchical social systems like organizations. For example, an employee
who is highly authoritarian may accept directives or orders from his superior without much
questioning. A person who is not highly authoritarian might agree to carry out appropriate and
reasonable directives from his boss. But he may also raise questions, express disagreement and
even refuse to carry out requests if they arc for some reason objectionable.

Dogmatism is the rigidity of a person's beliefs and his or her openness to other
viewpoints. The popular terms 'close-minded' and 'open-minded' describe people who are more
and less .dogmatic in their beliefs respectively. For example, a manager may be unwilling to
listen to a new idea related to doing something more efficiently. He is said to be a person who is
close-minded or highly dogmatic. A manager who is very receptive to hearing about and trying
out new ideas in the same circumstances might be seen as more open-minded or less dogmatic.
Dogmatism can be either beneficial or detrimental to organizations, but given the degree of
change in the nature of organizations and their environments, individuals who are, not dogmatic
are most likely to be useful and productive organizational members.

Risk Propensity

Risk-propensity is the decree to which an individual is willing to take chances and make risky
decisions. A manager with a high-risk propensity might be expected to experiment with new
ideas and to lead the organization in new directions. In contrast, a manager with low risk
propensity might lead to a stagnant and overly conservative organization.

Machiavellianism

Machiavellianism is manipulating or influencing other people as a primary way of achieving

one's goal. An individual tends to be Machiavellian, if he tends to be logical in assessing the
system around, willing to twist and turn facts to influence others, and try to gain control of
people, events and situations by manipulating the system to his advantage.

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Type A and B Personalities

Type A persons feel a chronic sense of time urgency, are highly achievement-oriented, exhibit a
competitive drive, and are impatient when their work is slowed down for any reason. Type B
persons are easy-going individuals who do not feel the time urgency, and who do not experience
the competitive drive. Type A individuals are significantly more prone to heart attacks than Type
B individuals. While Type A persons help the organization to move ahead in a relatively short
period of time they may also suffer health problems, which might be detrimental to both
themselves and the organization in the long run.

Work-Ethic Orientation

Some individuals are highly work-oriented while others try to do the minimum Work that is
necessary to get by without being fired on-the-job. The extremely work oriented person gets
greatly involved in the job. Extreme work ethic values could lead to traits of "workahollism"
where work is considered as the only primary motive for living with very little outside interests.
For a workaholic turning to work can sometimes become a viable alternative to facing non-work
related problems. A high level of work ethic orientation of members is good for the organization
to achieve its goals. Too much "workahollism", however, might lead to premature physical and
mental exhaustion and health problems, which is dysfunctional for both organization and the
workaholic members.

The above ten different personality predispositions are important for individual,
managerial and organizational effectiveness.

PERSONALITY AND WORK

• YOUR Success at work depends upon what kind of person you are.

• Researchers have made a camparasion between successful and unsuccessfull people.

• In one study, the emperical evidence reveals that some define success in terms of money
whereas others in terms of intrinsic happiness.

• More successful men were found to be more persistent. They were exhibiting self
confidence and had agreeableness.

• They were open minded and extroverts which increases their performance.

• Generally, the essential traits are expected traits of management professionals are
persistent and confoidence.

• A congenial job brings self fulfillment and self confidence in people.

• Personality is the sum total of our habits, physical, mental and emotional.

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INTERACTIVE BEHAVIOUR

• An interactive person is also called as Extrovert personality.

• The quality of an interactive person is simply speaking.

• They are just opposite to introverts.

• The people who are interactive are basically friendly, sociable, lively, gregarious,
aggressive and express their feeling and ideas openly.

• Hence they are more suitable and successful in the areas which require continuous and
frequent interactions with others.

• Ex- sales person, publicity departments, person relation unit.

• So those people who exhibit the above characters and behaviour come under interactive
behaviour as there is continuous negotiations between many people.

• They tend to work faster, dislike complicated procedure. They usually communicate
freely and are often impatient with long slow jobs.

• They like to have people around them most of the time.

Conflicts:

Conflict arises from difference of opinion between the group members while attaining the
organizational goals. An organization is an interlocking network of groups, departments, sections
or work teams. In organizations everywhere, conflict among groups of different interests is
unavoidable. According to one survey, managers spend an estimated 20 percent of their time
dealing with group conflicts. The success of an organization depends upon the harmonious
relations among all independent groups. Managers may either directly resolve the conflicts or
they may act as mediators between two or more employees. In either case, knowledge and
understanding of conflict and the methods of resolving it are important.

Inter-group conflicts result from the ways in which organizations co-ordinate the work of
different groups and distribute rewards among those groups.

Interpersonal conflict

• Stress may be caused because of conflicting personality and behavior. When two or more
people work together having different personality ,attitudes and behavior it may result in
conflict.

• Conflict is triggered when a person behavior will mutually exclusive from others.

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• The outcome of conflict is frustration , inner tension and stress. Ex. A person having an
internal locus of control ( Who believes in himself)may get frustrated working with an
other person, who believes in destiny, fate, god etc.

Types of conflicts

• There are two types of conflicts

1 functional

2 Dysfunctional

• A conflict between individuals and groups which has a positive impact and that would
facilitates the company growth is called as functional conflict.

• On the other hand conflict which results in destruction or stagnation of company growth.
This is called an functional conflict.

Other types of conflicts:

The levels of group conflict are as follows:

 Personal conflict: Are the conflicts that arise among employees, individuals
because of their competitive roles.
 Group conflict: Are the conflicts arising within two or more groups due to difference in
their attitudes and behavior.
 Infra-organizational conflict: Are the conflict arising between levels of an organization,
which are of two types. Vertical conflict arises between higher and lower level of
management. Horizontal conflict arises among the employees at same level.

Following is the sequence in which a conflict can arise:

• Latent conflict: Is a situation when the conditions for conflict arise. For example, two
groups competing for scarce resources.

• Perceived conflict: Is a situation when both the groups realize that there exists conflict
between them.

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• Felt conflict: Is a situation when members involved in the conflict feel tense or anxious.

• Manifest conflict: Is a situation when both the group try to frustrate each other.

• Conflict outcome: Is a situation or consequence arising after the conflict is eliminated.

Two Marks

1. Define personality

2. What is machievallineism?

3. Who is extrovert?

4. Distinguish between type A & type B personality.

5. What is interpersonal conflict?

Eight Marks

1. Explain the nature of personality

2. Distinguish between type A & type B personality.

3. Explain the determinants of personality.

4. Explain the significance of culture towards personality.

Fifteen Marks

1. Explain Big five personality traits.

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UNIT 4

GROUP DYNAMICS& LEADERSHIP

Definition:

Group is a composition of two or more freely interacting individuals who share a common
identity & purpose.

Group Dynamics: The social process by which people interact with each other in small groups is
called group dynamics.

Formation of Group or Group Life Cycle:

The process of group formation can be categorized by five stages:

 Forming: In this stage, the members of the group do not have any clear idea & they try
to get acquainted with other members of the group.
 Storming: Each member of a group have begun to feel comfortable enough with their
new environment to take some risks in revealing more of their personalities. It involves
conflict of the member‘s ideas. It is also called as the phase of struggling forward.
 Norming: This phase is otherwise called as Becoming Personal. In this stage where the
group is formed & structured completely. Members will begin to take responsibility for
resolving conflicts or problems & strengthening friendships.
 Performing: This phase is otherwise called as working together. In this stage, the group
is mature enough to attend to its own needs both in terms of task & relationship matters.
Decision making & problem solving will be shared within the group.
 Note: If the groups are formed temporarily, then another stage follows.
 Adjourning/Transference: The group spread widely after the group activity is
completed. Members of the group must be able to transfer the things which they have
learned about themselves & being in a group back to their regular lives.
Need/Reasons for Formation of Group:
* Similar Likings
* Interpersonal & work related behaviours are exhibited.
* Increased Intellectualy
* Motivation
* Reduced Conflict & better communication
* Safety Needs
Types of Groups:
Group differ based on the size, the flow of authority & communication.They are
discussed as follows:
 Work Group: A group of people working together. Ex: Mechanics i a Sears Auto Center.

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 Formal & Informal Groups: A number of people assigned to specific task form a formal
group.
o Standing task Group/ Command Group: The foreman or chief executive & his
group of subordinates constitutea command group who exercises formal authority
over subordinates.
o Task Group: Itis a temporary formal group that is created to solve specific
problems.
Informal Group: Members of this group belong to various divisions or sections
irrespective of their jobs. By joining the group, individual can reduce insecurity increase
his/ her status or enjoy regular company of others.
 An Interest Group: It is made up of individuals who adopts to achieve an objective of
mutual interest.
 A Friendship Group: is formed to satisfy the needs of belongingness & security.
 A Reference Group: The group is formed foe the purpose of forming opinions or making
decisions.They are based on factrs such as race,gender, politics, religion, social class,
educational level, professional & the like.
 Open & Closed Group: In open group, members keep changing new members joining &
existing ones leaving the group.
A closed group maintains a relatively stable or constant membership & enable them to
use long term planning.
Equilbrium: It refers to the process to bring back the state of balance & stability from
imbalance & instability.
 In – Groups & Out –groups: The groups to which we belong are in- groups & groups to
which we do not belong are out- groups.
Ethnocentrism: It means that one‘s own group is the best & the other is to be judged on
its terms. One can be ethnocentric about one‘s community, state, social class or even
race.

Meaning of Group Cohesiveness: Group Cohesiveness means the extent to which the
members are attatched towards each other.

Types of Groups:
Groups differ based on the size, the flow of authority & communication.They are
discussed as follows:
a) Work Group: Agroup of people working together.Ex: Mechanics in a sear auto centre
b) Formal & Informal groups: A number of people assigned to a specific task form a
formal group.
a. Standing Task Group/ Command group: The foreman or chief executive & his
group of subordinates constitute a command group who exercises formal
authority over subordinates.

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b. Task Group: It is a temporary formal group that is created to solve specific

problems.
Informal Group: Members of this group belong to various divisions or
sections irrespective of their jobs. By joining the group, individual can reduce
insecurity increase his / her status or enjoy regular company of others.
c) An Interest group: It is made up of individuals who adopt to aceive an objective of
mutual interest.
d) A Friendship Group: is formed to satisfy the needs of belongingness & security.
e) A Reference Group: The group is formed for the purpose of forming opinions or
making decisions. They are based on factors such as race, gender, politics, religion,
social class, educational level, professional & the like.
f) Open & Closed group: In open group, members keep changing new members joining
& existing one‘s leaving the group.
A closed group maintains a relatively stable or constant membership & enable them
to use long term planning.
Equilbrium: It refers to the process to bring back the state of balance & stability from
imbalance & instability
g) In –groups & Out groups: The groups to which we belong are in- groups & groups to
which we do not belong are out-groups.
Ethnocentrism: It means that one‘s own group is the best & the other is to be judged on
its terms. One can be ethnocentric about one‘s community, state, social class or even
race.

SMALLGROUP
In a small group, the numbers of group members are restricted up to 5.Small groups are
constantly in contact with each other & share common ideas to accomplish the given
tasks.

Functions of Small Group:

 Short term decision making.
 It develops goal clearly.
 It helps to furnish suggestions to its members for the accomplishment of goals.
 Face to face relationship.
 Co-ordinate group efforts.
 Effective communication.
 Quick results.

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Reasons/ Motives for Joining Group

A) Proximity, Interaction & Influence: Informal groups seem to form among those who
are in close proximity. Behaviour of individual influences that of others, they are
likely to form a group.
B) Security: To reduce insecurity of employees wwhich explains about Trade unions.
C) Esteem: Individual may gain esteem through group membership.So that employee or
an individual can develop close relationship provides opportunities for recognition &
praise.
D) Affiliation: Individuals may look for other members who share common hobbies or
common backgrounds.
E) Power: Leadership of an informal group helps an individual to exercise power over
group members.
F) Identity: Grouphelps to understand ourselves throughthe behaviour of others towards
us.
G) Huddling: It helps the executives to deal with emerging matters & reduce the amount
of surprises or confusions.
Group Development:
 Mutual Acceptance
 Communication & decision making
 Motivation & Productivity
 Control & Organisation.
Reasons for formation of Informal Group:
 Identity
 Information
 Releases Frustrations.
 Generation of New Ideas
 Reduces Insecurity
Determinants of Group Behaviour
It can be broadly categorized into three. They are:
 External Conditions
 Group Members‘ resources
 Group Structure
I) External Conditions:
Group is a sub system of formal organisations. Elements of orgaanisation will have their
influence on a group. They are discussed as follows:
a) Organisation Strategy: Strategy outlines the organisations‘ goals & the means for
attaining these goals.It is set by top management in collaboration with low level
managers.
b) Authority Structure: It describes about who reports to whom, who makes
decisions & formal relations between groups.
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c) Formal Regulations: Organisations createrules, procedures, policies & other forms

of regulations to shape the behaviour of employees.
d) Organisational Resources: It includes such as tools, equipments, facilities & work
methods & procedures are short in supply were group members are likely to
compete with another to access them.
e) Procurement of personnel: The organisation would hire employees who will
determine the type of people who constitute the group.
f) Performance appraisal & reward system: Reward system helps the employee to
contribute towards group effectively. Employees could be rewarded based on the
evaluation or assessment of a performance.
g) Organisational Culture: Every organisation has a culture that defines standards of
acceptable & unacceptable behaviour for employees.
II) Group Members‘ Resources:
a) Abilities: Performance of group could be assessed by the relevant task &
reasoning abilities of its individual members.
b) Personality characteristics: There is a positive relationship between
personality traits & group attitudes & its behaviour.
III) Group Structure: Group structure has significant impact on group behaviour & its
performance.

a) Leadership: The leader is responsible for the direction & goal accomplishment
of the group. Leadership is the ability of a manager to influence subordinates
to work with confidence.
b) Role:
a. Task Oriented Role: An individual who helps the group to reach its
goal is task oriented role.
b. Relations Oriented role: Employees who are supportive in nature play
relations oriented role.
c. Self Oriented Role: At the expense of group, employees do things for
themselves play self oriented role.
c) Group Size: The ideal group size is between five &seven members. Less than
5 members result in fewer people to share responsibilities & more personal
discussion with respect to problem solving group. Satisfaction increases as
group size approaches 5 & decreases thereafter.
More than 7 members in a problem solving group result in fewer opportunities
to participate & there would be tendency to split into sub groups. Turnover &
absenteeism also increase with group size.
d) Group Norms: They are a set of beliefs, feelings, & attitudes commonly
shared by group members.It are also referred as rules or standards of
behaviour that apply to group members. The sources for formation of norms

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are past experiences, primacy or first behaviour pattern that emerges in a

group, a critical incident in an organisation, etc.
e) Group Tasks:Group performance depends on the types of tasks such as:
a. Time Frame: It refers to the time required by the group for task
completion.
b. Task Requirements:
i. Routine
ii. Complex
c. Task Objectives:
i. Production Task
ii. Problem Solving Task
f) Status Congruence: Status may be defined as a social ranking within a
group.When there is a agreement between group members on the level of
status of individual members is known as status congruence
g) Group Cohesiveness: It is the degree to which members are attatched to &
motivated to remain part of a group.
Sources of Cohesiveness are interaction, co-operation, shared goals, attitudes & values,
group size,etc.
Consequences of Group Cohesiveness:
 Increased Morale
 Increased Productivity
 Improves communication.
 Conformity & Influences.
Group Think: It refers to a condition in which all members of a group tend to think alike.
Factors Determining Group Success:
 Organisation Structure: Work groups form a part of the larger organisation. It is affected
by organisation‘s design, culture & systems.
 Organisation Culture: It effects on organisational behaviour, effects of value, system,
norms, etc which would help the groups to operate in that culture.
 Task Design & Technology: The methods & machines used to perform the group‘s task
will affect the structure of group & its functions.
 Autonomy given to work Groups: The independent power given to the groups helps to
design their own work & also to increase the productivity.
 Rewards & Recognition: It helps the group to identify & strengthen its members.
 Training & Consultation: Group members need to learn both technical job requirements
& how to work with others.

SELF DIRECTED TEAM:

A group of people working together in their own way towards a common goal which the
team defines.

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Two Marks:
1. Define group.
2. What is self directed team?
3. What is task group?
4. What is group dynamics?
5. What is small group?
6. What is group cohesiveness?
Eight Marks:
1. Explain the functions of Small group?
2. Describe the formation of group.
3. Examine the factors determining group successes.
4. Discuss the reasons for joining a group.
Fifteen Marks:
1. Examine the determinants of Group Behaviour.
2. Explain the group life cycle.

Leadership:

Leadership is an integral part of management and plays a vital role in managerial operations. It
provides direction, guidance, and confidence to the employees and helps in the attainment of
goals in much easier way. In business and industrial organizations, managers play the role of
leader and acquire leadership of subordinates, their efforts towards the achievement of
organizational goals and activate the individuals of an organization to make them work.
Leadership influences behavior of the individuals. It has an ability to attract others and potential
to make them follow the instructions. Individuals can be induced to contribute their optimum
towards the attainment of organizational goals through effective leadership. Leadership acquires
dominance and the followers accept the directives and control of a leader. Leadership provides
direction and vision for future to an organization.

DEFINITION

Leadership is the art of influencing and inspiring subordinates to perform their duties willingly,
competently and enthusiastically for achievement of groups objectives.

According to Wendell French, "Leadership is the process of influencing the behavior of

others in the direction of a goal or set of goals or, more broadly, toward a vision of the future‖,

According to Keith Davis, ―Leadership is the process of encouraging and helping others
to work enthusiastically towards objectives‖.

According to Koontz and O'Donnell, "Leadership is the art or process of influencing

people so that they will strive willingly towards the achievement of group goals".

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According to Peter Drucker, "Leadership means the lifting of man's visions to higher
sights, the raising of man's performance to higher standard, the building of man's personality
beyond its normal limitations".

According to Grey and Starke, "Leadership is both a process and a property. As a

process, it is used for non-coercive influence lo shape up the goals of a group or organization, to
motivate behavior toward the achievement of those goals and to help define group or
organizational culture. As a property, leadership is the set multi characteristics attributed to those
who are perceived to be leaders".

Thus, leaders are people who are able to influence the behavior of others without
recourse to threats or other forms of force towards the individuals. Leaders are the people who
are accepted by the other individuals, as a superior person to them.

FEATURES OF LEADERSHIP

The features of leadership are as follows:

 Leadership is the process of influencing behavior of individuals of an organization.

 Leadership uses non-coercive methods to direct and coordinate the activities of the
individuals of an organization.
 Leadership directs the individuals to attain the tasks assigned to them by following the
instructions of their leaders.
 A leader possesses qualities to influence others.
 Leadership gives the individuals, a vision for future.
 Leadership is a group activity. Leader influences his followers and followers also
exercise influence over his leader.
 Leadership is meant for a given situation, given group for a pre-determined period of
lime.
 Leadership is continuous process of influencing behavior. It encourages liveliness in the
group.

Importance of Leadership
The following points can judge the importance of leadership:

 A leader should act as a friend of the people whom he is leading.

 A leader must have the capacity to recognize the potentials of the individuals and
transform them into realities.
 A leader should have the confidence of the individuals of the organization.
 A leader must be able to unite the people as a team and build up team spirit.
 A leader should be able to maintain discipline among his group and develop a sense of
responsibility.


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 A leader must be able to build up a high morale among the individuals of the
organization.
 A leader should motivate his people to achieve goals.
 A leader should try to raise the morale of the individuals and should maintain ethical
standards among the individuals.
 A leader should act as a link between the work groups and the forces outside the
organization.

Difference between Leadership and Management

Leading and managing go together but some differences exist between the two. The following
are the differences between the leadership and the management:

 Management takes rational and logical decisions while leadership takes decision on
expectations of the followers. Leadership has an emotional appeal while management
acts on rationality.
 The management establishes relationship through a lawful authority while leadership
establishes relationship through power.
 Managers have formal authority but the leaders have no such authority.
 All leaders are not managers and all managers are leaders.
 Management is a process of planning, organizing, directing and controlling the activities
of others to attain the organizational objectives. Leadership on the other hand, is a
process of influencing the behavior of the people to attain their assigned tasks. A
successful manager must possess both the managerial and leadership qualities.

TYPES OF LEADERSHIP

Following are the main types of leadership:

Autocratic or Authoritarian
In this type of leadership, there is a complete centralization of authority in the leader, i.e.,
authority is centered in the leader himself. He has all the powers to make decisions. He uses
coercive measures and adopts, negative method of motivation. He wants immediate obedience of
his orders and instructions. Any negligence on the part of subordinates results in punishment.
There is no participation from the subordinates in decision-making. A leader thinks that he is the
only competent person in the organization. According to Edwin B. Filippo, there are following
three types of leaders in autocratic:

1. Hard Boiled or Strict Autocrat: Leader, under such type uses negative influence and
expects that the employees should obey his orders immediately. Non-compliance of his
orders results in punishment. He makes all decisions and does not disclose anything to
anyone. He is quite rigid on performance.

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2. Benevolent Autocrat: Benevolent autocrat leader uses positive influences and develops
effective human relations. He is known as paternalistic leader. He praises his
employees if they follow his orders and invites them to get the solutions of the
problems from him. He feels happy in controlling all the actions of his subordinates.
3. Manipulative Autocrat: Leader, under such type is manipulative in nature. He creates a
feeling in the minds of his subordinates and workers that they are participating in
decision-making processes. But he makes all decisions by himself. Non-compliance of
his orders also results jn punishment.

Democratic or Participative
Democratic or Participative leadership is also known as group centered or consultative
leadership. In this type of leadership, leaders consult their groups and consider their opinion in
the decision-making process. Leaders encourage discussion among the group members on the
problem under consideration and arrive at a decision depending on their consent. Participation or
involvement of the employees in the decision-making process is also rewarded. Exchange of
ideas among subordinates and with the leader is given encouragement. Leaders give more
freedom to their group members, who feel that, their opinions arc honored and they are given
importance. It develops a sense of confidence among subordinates and they derive job
satisfaction. It improves quality of decision as it is taken after due consideration of valued
opinions of the talented group members.

The demerit of this type of leadership is that it takes more time to arrive at a decision, as
a lot of time is wasted while taking the views from the employee. It is, therefore, very time
consuming.

Laissez-faire or Free Rein

In this type of leadership, there is virtual absence of direct leadership. It is, therefore,
known as "no leadership at all". There is complete delegation of authority to subordinates so that
they can make decisions by themselves. Absence of leadership may have both positive and
negative effects. Free rein leadership may be effective if members of the group are highly
committed to their work. The negative aspect shows that the leader is not competent enough to
lead his group effectively. Members may feel insecure and develop frustration for lack of
decision-making authority.

Bureaucratic
This type of leadership emphasizes the rules and regulations of an organization. The behavior of
a leader is determined by the rules, regulations and procedure to be followed under his
leadership. The leader and the subordinates both follow these rules and regulations. Therefore,
there is no difference between the management and the administration in this type of leadership.

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The employees, themselves cannot do anything in this regard. It is the rules that determine their
performance.

Manipulative
This type of leadership manipulates the employees to attain their assigned tasks. A manipulative
leader is quite selfish and exploits the aspirations of the employees for his gains. He knows very
well the needs and desires of the employees but he does very little to fulfill them. Due to such
attitude, he has to face the hatred of the employees at times.

Paternalistic
The paternalistic leadership believes in the concept that the happy employees work better and
harder. It maintains that the fatherly altitude is the right one for better relationship between the
manager and the employees. Everyone within the organization should work together like a
family.

Expert Leadership
The expert leadership emerged as a result of complex structure of modern organizations. This
type of leadership is based on the ability, knowledge and competence of the leaders. He handles
the situation skillfully with his talent. The employees feel relieved as they are working under a
person who is expert and can handle the situation without any problem.

In modern organizations, human resources vary in terms of skill, knowledge and

competences. They differ in quality, determination and their attitude towards the organization.
They exhibit different behaviors as they differ in attitude and outlook also. The leader must
understand their behavior and accordingly can make use of the various types LEADERSHIPS. The
manager should assess the situation and adopt that type of leadership, which suits that situation.
He should remember that leadership is situational. If situation changes, the use of leadership
among its various types also changes. A successful leader is the one who assesses the situation,
studies the psychology of the subordinates and adopts the most useful type of leadership to lead
the people at work to accomplish the organizational goals.

THEORIES OF LEADERSHIP

A number of theories and approaches to study leadership have been developed. There are
broadly three theories of leadership.

 Trait Theory
 Behavior Theory
 Contingency Theory

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(a) Trait Theory

This theory of studying leadership is taken into consideration to analyze the personal,
psychological and physical traits of strong leaders. The assumption made in this theory was that
some basic traits or set of traits differentiates leaders from non-leaders. For example, the
leadership traits might include intelligence, assertiveness, above average height, self-confidence,
initiative and understanding of interpersonal human relations. The existence of these traits
determines the importance of leadership. Possession of these traits helps the individuals to gain
possession of leadership. Since all individuals do not have these qualities, only those who have
them would be considered potential leaders.

Some of the weakness of this theory is:

 All the traits are not identical with regard to essential characteristics of a leader.
 Some traits may not be inherited, but can only be acquired by training.
 It does not identify the traits that are most important and that are least important for a
successful leader.
 It does not explain the leadership failures, in spite of the required traits.
 It has been found that many traits exhibited by leaders are also found among followers
without explaining as to why followers could not become leaders.
 It is difficult to define traits in absolute terms.
 Thus, the trait theory has been criticized for lack of conclusiveness and predictability.

(b) Behavior Theory

The behavioral theory assumed that effective leaders behaved differently from ineffective
leaders. It also identified the need of consistency of behavior of good leaders. This theory can be
more clearly understood with the help of following case studies.

 The Michigan Studies: Researchers at the University of. Michigan, led by Rensis Likert,
began studying leadership in the late 1940s. Depending on broad discussions with both
the managers and sub-ordinates, the Michigan studies identified two forms of leadership
behavior. They are discussed as below:
 Job-centered leadership behavior : The first was called job-centered leadership
behavior, which focuses on performances and efficient completion of the assigned
tasks. A job-centered leader interacts with group members to explain task
procedures and oversee their work.
 Employee centered leadership behavior: The second behavior was identified as
employee centered leader behavior, which focuses on, high performance
standards to be accomplished. This can be done by developing a cohesive work
group and ensuring that employees are satisfied with their jobs. Thus, the leader's
primary concern is the welfare of the ordinates. The Michagan researchers
thought a leader could show signs of one kind of behavior, but not both.

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 The Ohio State Studies: At about the same time, a group of researchers at Ohio State
also began studying leadership. The Ohio State leadership studies also identified two
major kinds of leadership behaviors or styles, which are as follows:
 Initiating-structure behavior: In initiating-structure behavior, the leader clearly
defines the leader-subordinate roles so that everyone knows what is expected. The
leader also establishes formal lines of communication and determines how tasks
will be performed.
 Consideration behavior: In consideration behavior, the leader shows concern for
subordinates feelings' and ideas. He attempts to establish a warm, friendly and
supportive.
The most obvious difference between Michigan and Ohio State studies is that the Ohio
State researchers did not position their two forms of leader behavior at opposite ends of a single
continuum. Rather, they assumed the behaviors to be independent variables, which means that a
leader could exhibit varying degrees of initiating structure and consideration at the same time i.e.
a particular leader could have higher ratings on both measures, low ratings on both or high
ratings on one and low on the other.
The Ohio State researchers found that a leader‘s behavior remains consistent over a
period of time, if the situation also remains same. But the researchers could not come up with
one best combination of behavior suitable to all the situations. The researchers used to believe
that the leaders in possession of both types of behavior are most effective. However, their studies
at International Harvester found that leaders rated highly on initiating structure behavior have
higher performing but dissatisfied sub-ordinates, whereas leaders rated highly on consideration
structure had lower-performing sub-ordinates who showed signs of higher satisfaction.

Most experts now agree that no single set of traits or behaviors appears to be common to
all good leaders. The universal approaches to leadership can help managers examine their own
leadership characteristics and match them against the traits most commonly identified with good
leaders. In order to understand the full complexity of leadership, contingency theory is to be
studied.

(c) Contingency Theory

The main assumption of contingency theory is that the behavior of an appropriate leader varies
from one situation to another. The motive of a contingency theory is to identify key situational
factors and to specify how they interact to determine appropriate behavior of a leader

The three most important and widely accepted contingency theories of leadership are as
follows:

 The LPC theory: The first contingency theory of leadership is Fred Fielder's Least
Preferred Co-worker (LPC) Model. Fielder identified two types of leadership: task-
oriented and relationship-oriented. Fielder believes that a leader's tendency to be task-
oriented or relationship oriented remains constant. In- other words, a leader is either task-
oriented or relationship-oriented while leading his group members. Fielder used the Least
Preferred Co-worker (LPC) scale to measure the type of leadership. A leader is asked to

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describe characteristics of the person with whom he or she is least comfortable while
working. They can do this by marking in a set of sixteen scales at each end, by a positive
or negative adjective. For example, three of the scales Fielder uses in the LPC are:

Helpful -------------------- Frustrating 8 7 6 5 4 3 2 1

Tense ------------------- Relaxed 12345678

Boring ------------------- Interesting 1 2 3 4 5 6 7 8

The leader's LPC score is (hen calculated by adding up the numbers below the line checked on
each scale. A high total score is assumed to reflect a relationship orientation and a low score, a
task orientation by the leader. The LPC measure is controversial because researchers disagree
about its validity. This is because some of the LPC measures show whether the score is an index
of behavior, personality or some other unknown factor.

According to Fielder, the contingency factor favours the situation from the leader's point
of view. This factor is determined by leader-member relations, task-structure and position-power,
which are discussed as below:

 Leader-member relations: A Leader-member relation refers to the nature of relationship

between the leader and his work group. If the leader and the group enjoy mutual trust,
respect, confidence and they like one another, relations will remain good. If there is little
trust, respect or confidence and. if they do not like one another, relations will remain bad.
Good relations are assumed to be favourable and bad relations unfavorable.
 Task-structure: Task-structure is the degree to which the group's task is clearly defined.
When the task is routine, easily understood, and unambiguous and when the group has
standard procedures, the structure is assumed to be high. When the task is non-routine,
ambiguous, complex, with no standard procedures and precedents, structure is assumed to
be low. High structure is more favourable for the leader and low structure is unfavorable.
If the task structure is low, the leader will have to play a major role in guiding and
directing the group's activities. If the task structure is high, the leader will not have to pay
much attention.
 Position-power: Position-power is the power vested in the position of a leader in an
organization. If the leader has the power to assign work, administer rewards and
punishment, recommend employees for promotion or demotion, position-power is
assumed lo be strong. If the leader does not have required powers, the position-power is
weak. From the leader's point of view, strong position power is favourable and weak
position power is unfavorable.
Fielder and his associates conducted various studies highlighting if a situation favors
the leadership and group effectiveness or not.

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When the situation includes good relations, high structure and strong power, a risk-
oriented leader to lie most effective. However, when relations are good but task structure is low
and position-power is weak, LI relationship-oriented leader is considered to be most effective.

 A final point about LPC theory is that, Fielder argues that any particular-type of
leadership, which is measured by the LPC is inflexible and cannot be changed. In other
words a leader cannot change his behavior to fit a particular situation. Fielder's
contingency theory has been criticized on the ground that LPC measure lacks validity and
that the assumption about the inflexibility of the leader's behavior is unrealistic.

(d) The Path-Goal theory

The path-goal model of leadership was introduced by Martin Evans and Robert House. Path-goal
theory says that a leader can motivate subordinates by influencing their expectations. Leaders
can motivate sub-ordinates by making clear what they have to do to get the reward they desire.
The path-goal model assumes that leaders can change their style or behavior to meet the
demands of a particular situation. This model identifies four kinds of leader behavior: directive,
supportive, participative and achievement-oriented. According to this model managers can adjust
their behavior to include any four kinds of leadership behavior mentioned above. For instance,
while leading a new group of sub-ordinates, the leader may be directive in giving guidance and
instructions to them. He may also adopt supportive behavior to encourage group cohesiveness, to
look after their needs and ensuring that they get the rewards and benefits. As the group becomes
more familiar with the task and as new problems are taken into consideration, the leader may use
participative behavior by which he can participate with employees in making decisions and take
their suggestions as well. Finally, the leader may use achievement-oriented behavior to
encourage continued high performance of sub-ordinates.

Environmental characteristics are factors, which are beyond the control of subordinates.
It includes task structure, the primary work group and the formal authority system. For instance,
when structure is high, directive leadership is less effective than when structure is low. Sub-
ordinates do not usually need their boss to repeatedly tell them how to do a routine job.
According to the path-goal theory, these environmental factors can create uncertainty for
employees. A leader who helps employees reduce such uncertainty can motivate them. The
figure 14.1 shows the path goal model of leadership.

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

(e) The Vroom-Yetton-Jago Theory (VYJ)

The Vroom-Yetton-Jago model was first introduced by Vroom and Yetton in 1973 and was
revised by Vroom and Jago in 1988, This model has a much less focus than the path-goal theory.
It helps a leader to determine the extent, to which employees should participate in the decision-
making processes,

The VYJ theory argues that decision-effectiveness is best judged by the quality of
decision and by the acceptance of that decision on the part of employees. Decision acceptance is
the extent to which employees accept and are loyal to their decisions.

To maximize decision effectiveness, the VYJ theory suggests that leaders adopt one of
five decision-making leaderships. The appropriate leadership depends on the situation. As
summarized in the following table, there are two autocratic types of leadership, which are AI and
All, two consultative types of leadership, which are CI and CII and the other one is group GII.

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Decision-Making Styles in the VYJ model

Decision Style Description

AI Manager makes the decision alone.

AII Manager asks for information from subordinates but makes

(he decision alone. Sub- ordinates may or may mil be
informed about what the situation is.

CI Manager shares the situation with individual subordinates

and asks for information and evaluation. Subordinates do
not meet as a group and the manager alone makes the
decision.

C II Manager and subordinates meet as a group to discuss the

situation but the manager makes the decision.

G II Manager and subordinates meet as a group to discuss the

situation and the group makes the decision.

A = Autocratic; C= Consultative; G = Group

The situation is defined by a series of questions about the characteristics or attributes of

the problem under consideration. To address the questions, the leader uses one of the four
decisions. Two of them are used when the problem affects the entire group. For example, a
decision about the facilities to be given to employees in a new office affects the entire group and
the other two are appropriate when the decision affects a single individual only. e.g. a new office
for that individual only.

Moreover, one of each is to be used when the decision has to be made quickly because of
some urgency and the others arc to be used when the decision can be made more slowly and the
leaders wants to use the opportunity to develop subordinates' decision-making abilities.

The VYJ model was criticized because of its complexity. Computer software has been
developed to aid leaders in defining the situation, answering the questions about the problem
attributes and developing a strategy for decision-making participation.

Although the VYJ model is too new to have been thoroughly tested, evidence so far
indicates that this model can help leaders to choose the most effective way to include the sub-
ordinates in decision-making.

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OTHER CONTINGENCY APPROACHES

In addition to these three major theories, there are other contingency models or theories
developed in recent years. The other models are as follows:

 Vertical Dyad Linkage Model: This model stresses the .fact that leaders actually have
different kinds of working relationship with different subordinates. Each manager-
subordinate relationship represents one vertical dyad. The Vertical Dyad Linkage model
suggests that leaders establish special working relationships with some subordinates
based on some combination of respect, trust and liking. These people constitute the ‗in-
group‘. Other subordinates remain in the ‗out-group‘s, who receive less of leader's time
and attention. Those in the 'in-group' receive more of the manager's time and attention
and are better performers. Research shows that people in the ‗in-group‘ are more
productive and more satisfied with their work than ‗out group‘ members.
 Life Cycle Model: The life cycle model suggests-that appropriate leader behavior
depends on the maturity of the followers. In this context, maturity includes motivation,
competence and experience. The model suggests that as followers become more mature,
the leader needs to move gradually from high to low task orientation. Simultaneously, the
leader's employee-oriented behavior should start low, increase at a moderate rate and then
decline again.
Many leaders are familiar with the life cycle theory because it is both simple and logical.
However, it has received little scientific support from researchers.

EMERGING PERSPECTIVES ON LEADERSHIP IN ORGANIZATIONS

The new perspectives that have attracted attention are the concepts of substitutes for leadership
and transformational leadership.

Substitutes for Leadership

The existing leadership theories and models try to specify what kind of leader‘s behavior is
appropriate for different situations. They do not take into consideration, the situations where the
leadership is not needed. The substitute concept identifies the situations where the characteristics
of the subordinates, the task and the organization replace leaders' behaviors. For example, when
a patient is admitted to an emergency room in a hospital, nurses, doctors and attendants act
immediately without waiting for directive or supportive behaviors of leaders in an emergency
ward.

Several characteristics of the sub-ordinate may serve to replace or change .the behavior of
the leaders. For example, employees with much ability and experience may not need to be told
what to do. Similarly, a strong need for independence by the sub-ordinate may result in
ineffectiveness of leaders‘ behavior.

Characteristics of the task that may substitute the leadership include, the availability of
feedback and intrinsic satisfaction. For example, when the job is routine and simple, the

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subordinate may not need direction. When the task is challenging, the subordinate may not need
or want support.

Organizational characteristics that may substitute for leadership include formalization

group cohesion, inflexibility and a rigid reward structure. For example, when policies are formal
and rigid, leadership may not be needed.

Transformational Leadership

Another new concept of leadership goes by a number of labels: charismatic leadership,

inspirational leadership, symbolic leadership and transformational leadership. This is a
leadership that transmits a sense of mission, increases teaming experiences and inspires new
ways of thinking.

Charisma is a form of interpersonal attraction. Charismatic people attract followers and

this type of leader has great power over his or her followers. Charismatic leaders are self-
confident and can influence others. The followers of a charismatic leader identify with the
leader's beliefs, accept, trust and obey the leader without questioning him and thereby contribute
toward the success of the organizational goals.

Leadership Skills

There is now recognition in both leadership theory and practice of the importance of skills, how
leaders should behave and perform effectively. Although there are many skills, such as cultural
flexibility, communication, HRD, creativity, and self-management of learning, the research-
based skills identified by Whetten and Cameron seem to be most valuable. Their personal skills
model, involving developing self-awareness, managing stress and solving problems creatively;
the interpersonal skills model, involving communicating supportively, gaining power and
influence, motivating others and managing conflict, are especially comprehensive and useful.
Finally, the widely recognized organizational behavior .techniques such as, training, job design
and leaders can also effectively use behavioral management.

Communication is one of the most frequently discussed dynamics in the entire field of
organizational behavior. In practice, effective communication is a basic prerequisite for the
attainment of organizational goals. Therefore, communication is considered to be the most
important and most effective ingredient of the management process. Interpersonal
communication is fundamental to all managerial activities. All other management functions
involve communication in some form of directions and feedback. Thus, effective management is
a function of effective communication.

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DEFINITION OF COMMUNICATION

In modern society, the term communication is frequently and freely used by everyone,
including members of the general public, organizational behavior scholars, and management
practitioners.

Communication is the process of transmitting information from one person to another.

Broadly, it means who says what, to whom, through which channel and with what effect. It is a
way of reacting to the other person with ideas, facts, thoughts, feelings and values.
Communication experts emphasize the behavioral implications of communication by pointing
out that "the only means by which one person can influence another is by the behaviors he shows
that is, the communicative exchanges between people provide the sole method by which
influence or effects can be achieved". In other words, the behaviors that occur in an organization
are vital to the communication process. This personal and behavioral exchange view of
communication takes many forms.

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

 To discourage the spread of misinformation, ambiguity and rumors, which can cause
conflict and tension.
 To foster any attitude, that is necessary for motivation, cooperation and job satisfaction.
 To develop information and understanding among all workers. This is necessary for
group effort.
 To prepare workers for a change in methods of environment by giving them necessary
information in advance.
 To encourage subordinates to supply ideas and suggestions for improving the product or
work environment and taking these suggestions seriously.
 To improve labor management relations by keeping the communications channels open
and accessible.
 To improve social relations among workers by encouraging intercommunication. This
would satisfy the basic human need for a sense of belonging and friendship.

Importance of Communication
Interpersonal roles require managers to interact with supervisors, sub-ordinates, peers and others
outside the organization. Thus, for co-ordinated action, communication is necessary.
Communication transforms a group of unrelated individuals into a team that knows what its
goals are and how it will try to reach them.

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Communication allows people to co-ordinate with each other by providing them with a
way to share information. The first type of information that needs to be shared is what the goals
of the organizations are. People need to know-where they are heading and why. They also need
directions for their specific tasks.

Communication is especially important for the task of decision-making. Decision-makers

must share their views on what the problem is and what the alternatives are. Once a decision has
been made, communication is necessary to implement the decision and to evaluate its results.

Changes in market or in customer preferences can lead to uncertainty about whether a

product Or a marketing strategy needs to be updated or overhauled. The uncertainty resulted
from the lack of information, can be reduced by communicating that information. Market
researchers, for example, can communicate with other groups about changes in the market place.
The greater the uncertainty about a task, the more important the communication of information
becomes.

Communication also allows people to express their emotions. Communication of feelings

can be very important to employee morale and productivity. Employees who feel that they
cannot vent their anger or express their joy on the job may feel frustrated and repressed.

On any given day, a manager may communicate for all the purposes described above.
Communication goes up, down and across the levels of the hierarchy of an organization.

COMMUNICATION PROCESS

The figure 13.2 presents a general view of the communication process, as a loop between the
source and the receiver. In the simplest kind of communication, both the sender and the receiver
perform the encoding and decoding functions automatically.

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Source or Sender
The communication cycle begins when one person called the sender wants to transmit a fact,
idea, opinion or other information to someone else. A manager, for instance, might call the
research department to send the latest information on a particular market.

Encoding
The second step is to encode the message into a form appropriate to the situation. The encoding
might take the form of words, facial expressions, gestures, physical actions and symbols such as
numbers, pictures, graphs etc. Indeed, most communication involves a combination of these. The
encoding process is influenced by the content of the message, the familiarity of the sender and
receiver and other situational factors.

Transmission
After the message has been encoded, it is transmitted through the appropriate channel or
medium. Common channels or media in organizations include face-to-face communication using
the media of sound waves, light, letters and reports.

Decoding
The person to whom the message is sent, called the receiver interprets the meaning of the
message through the process of decoding. This process may be simple and automatic, but it can
also be quite complex. Even when you are just reading a letter, you may need to use all your
knowledge of the language, your experience with the letter-writer and so on. If the intended
message and the received message differ a great deal, there is a communication gap and
misunderstanding is likely to follow.

Receiver
The receiver can be an individual, a group, or an individual acting on behalf of a group. The
sender has generally little control over how the receiver will deal with the message. The receiver
may ignore it, decide not to try to decode, understand it or respond immediately. The
communication cycle continues when the receiver responds by the same steps back to the
original sender, which is called the feedback.

Noise
In the communication process, noise takes on a meaning slightly different from its usual one.
Noise refers to any type of disturbance that reduces the clearness of the message being
transmitted. Thus, it might be something that keeps the receiver from paying close attention such
as someone coughing, other people talking dosely, a car driving by etc. It can be a disruption

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such as disturbance in a telephone line, weak signal due to bad weather etc. It can also be internal
to the receiver such as tiredness or hunger or minor ailments, which may affect the message.

METHODS OF COMMUNICATION

There are mainly three primary methods of communication in an organization, which are written,
oral, and non-verbal. These methods of communication are often combined. Considerations that
affect the choice of method include the audience whether it is physically present, the nature of
the message, and the lost of transmission. The figure 13.3 given below shows various forms each
method can take.

Typically organizations produce a great deal of written communication of many kinds. A

letter is a formal means of communication with an individual, generally someone outside the
organization. Probably the most common form of written communication in organizations is the
office memorandum, or a memo. Memos usually are addressed to a person or group inside the
organization. They tend to deal with a single topic and are more impersonal, but less formal than
letters. Other common forms of written communication include reports, manuals and forms.
Reports generally summarize the progress or results of a project and often provide information to
be used in decision-making. Manuals have various functions in organizations. Instruction
manuals tell employees how to operate machines; policy and procedure manuals inform them of

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organizational rules; operations manual describe how to perform tasks and respond to work-
related problems. As such, they represent attempts to make communication more efficient and
information more accessible. A performance appraisal form is an example.

ORAL COMMUNICATION

Oral communication, also known as face-to-face communication is the most prevalent form of
organizational communication. It may be in the form of direct talk and conversation between the
speakers and listeners when they are physically present at one place or through telephone or
intercom system conversation. Where one-way communication is required, then oral
communication may include public address system. Informal rumour mill or grapevine is also a
popular form of oral communication. It is most effective for leaders to address the followers via
public address system or audio-visual media. Oral communication is particularly powerful
because the receiver not only hears the content of the message, but also observes the physical
gestures associated with it as well as the changes in tone, pitch, speed and volume of the spoken
word. The human voice can impart the message much more forcefully and effectively than the
written words and is an effective way of changing attitudes, beliefs and feelings, since faith, trust
and sincerity can be much better judged in a face-to-face conversation rather than in written
words.

Advantages

Some of the advantages of oral communication are:

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

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

 There is no formal record of communication so that any misunderstood message cannot

be referred back to what was actually said.
 If the verbal message is passed on,the long hierarchical chain of command, then some
distortions can occur during the process. The more people the message is to pass through,
the greater is the potential distortion.
 Lengthy and distant communication cannot be conveyed verbally in an efficient way.
 The receiver may receive the message in his own perception and thus misunderstand the
intent of the message.
 Spontaneous responses may not be carefully thought about.
 The spirit of authority cannot be transmitted effectively in verbal transactions.

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Organizational Communications
More or less or a different meaning might be conveyed by manner of speaking, tone of
voice and facial expressions.
WRITTEN COMMUNICATION

A written communication is put in writing and is generally in the form of instructions, letters,
memos, formal reports, rules and regulations, policy manuals, information bulletins and so on.
These areas have to be covered in writing for efficient functioning of the organization. It is most
effective when it is required to communicate information that requires action in the future arid
also in situations where communication is that of general informational nature. It also ensures
that everyone has the same information.

Advantages

 It serves as an evidence of events and proceedings.

 It provides a permanency of record for future references. The message can be stored for
an indefinite period of time.
 It reduces the likelihood of misunderstanding and misinterpretation. The written
communications are more likely to be well considered, logical and clear. The message
can be checked for accuracy before it is transmitted.
 It can save time when many persons must be contacted at the same time.
 It is more reliable for transmitting lengthy statistical data.
 It appears formal and authoritative for action.
Disadvantages

 It can be very time-consuming, specially for lengthy reports.

 There is no immediate feedback opportunity to be sure that the receiver has understood
the message.
 Confidential written material may leak out before time, causing disruption in its
effectiveness.
 It leads to excessive formality in personal relations.
NON-VERBAL COMMUNICATION

Some of the meaningful communication is conveyed through non-verbal ways. Even some of the
verbal messages are strengthened or diluted by non-verbal expressions. These non-verbal
expressions include facial expressions and physical movement. In addition, some of the
environmental elements such as building and office space can convey a message about the
authority of the person. According to Tipkins and Mc-Carter, facial expressions can be
categorized as:

 Interest-excitement
 Enjoyment-joy
 Surprise-startle
 Distress-anguish

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 Fear-terror
 Shame-humiliation
 Contempt-disgust
 Anger-rage
Physical movements or body language is known as "kinesics". A handshake is probably the
most common form of body language and tells a lot about a person's disposition. Other examples
of body language are tilting of head, folding of arms or sitting position in a chair.

Our facial expressions can show anger, frustration, arrogance, shyness, fear and other
characteristics that can never be adequately communicated through written word or through oral
communication itself. Some of the other body language symptoms are shrugging our shoulders
for indifference, wink an eye for mischief or intimacy, tap our fingers on the table for impatience
and we slap our forehead for forgetfulness. As far as environmental elements are concerned, a
large office with luxurious carpeting and expensive furniture conveys a message of status, power
and prestige such as that of a chief operating officer. On the other hand, a small metal desk on a
corner communicates the status of a low ranking officer in the organizational setting.
Accordingly non-verbal actions have considerable impact on the quality of communication.

Communication Networks
A communication network is the pattern of information exchange used by the members of a
group.

When the members of a group communicate mostly with the group leader, a wheel network
develops. When the members of a group are on different levels/of the organization's hierarchy, a
chain network is developed. Members of a task force or committee often develop a circle
network of communication with each person communicating directly to the other members of the
task- force. Informal groups that lack a formal leader often form an all-channel network that
everyone uses to communicate with everyone else. Figure 13.4 shows Wheel Communication
Network. Figure 13.5 shows Chain Communication Network.

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

The density of communication refers to the total quantity of communication among

members. The distance between members describes how far a message must travel to reach the
receiver. The ease with which members can communicate with others is measured by members'
relative freedom to use different paths to communicate. Members' commitment to the group's
work is defined by the centrality of the position of the members. All these provide insight into
possible communication problems. For instance, a group with high density and distance can
expect a lot of noise distortion in its communication, as messages travel a long distance to get to
the receivers.

The following factors influence the formation of communication patterns within small
groups:

Organizational Communications • 123

1. Type of Task: If the task of the group is simple, a chain or wheel network is used. For
hard tasks, all channel networks arises.

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2. Environment: Environment including the group's seating arrangement and meeting

place also affects communication patterns. For instance, if members always sit around a
table, then circle network arises.
3. Group Performance Factors: The group performance factors like group's size,
composition, norms and cohesiveness also affect the' formation of communication
networks. For instance, it is much easier to have an all-channel network in a group of
eight than in a group of eighty.

Managers must make use of all these characteristics and tendencies to help groups
communicate and work most efficiently. A manager, who sees that a wheel network is forming
around an experienced, trusted employee might not interfere with the process. If an assertive but
irresponsible employee becomes the hub of such a wheel, the manager may need to take action.
If the manager relies on a group to help make decisions, the manager may encourage silent group
members to speak in order to get the desired decisions.

FORMS OF ORGANIZATIONAL COMMUNICATION

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

Vertical Communication

Vertical communication is the communication that flows both up and down the organizational
hierarchy. This communication typically takes place between managers and their superiors or
subordinates.

Upward Communication

Upward Communication consists of messages moving up the hierarchy from subordinates to

superiors. The content of upward communication usually includes requests, suggestions or
complaints and information the sub-ordinate thinks is of importance to the superior.

Downward Communication

Downward Communication consists of messages moving down the hierarchy from superiors to
sub-ordinates. The content of downward communication often includes directives, assignments,
performance feedback and information that the superior thinks are of value to the sub-ordinate.

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Transactional Communication

Wenburg and Wilmont suggest that instead of communication being "upward" or "downward"
which is inter-communication, it should be "transactional" communication, which is mutual and
reciprocal because, "all persons are engaged in sending and receiving messages simultaneously.
Each person is constantly sharing in the sending and receiving process and each person is
affecting the other". In the transactional process, the communication is not simply the flow of
information, but it develops a personal linkage between the superior and the subordinate.

Informal Communication

Another term for informal communication network is the grapevine. Informal networks are
found in all organizations. It is in the form of gossip in which a person spreads a message to as
many other people as possible who may either keep the information to themselves or pass it on to
others. The content of gossip is likely to be personal information or the information about the
organization itself.

Managers should have some control over the informal network. For example, the
grapevine in an organization may be carrying harmful information, false information or
politically motivated information. When these kinds of rumors are being spread, managers may
need to intervene. They can hold open meetings and objectively discuss the issues that are being
informally discussed already. They may also issue a clearly worded memo or report stating the
facts and thereby help minimize the damage that the informal network can do.

Managers can also obtain valuable information from the grapevine and use it for
decision-making.

Other Form's of Communication

One that has become especially popular is informally labelled as "management by wandering
around". The basic idea is that some managers keep in touch with what is going on by wandering
around and talking with people such as sub-ordinates, customers, dealers and any one else
involved with the company in any way. This will give managers, new ideas and a better feel for
the entire company.

BARRIERS TO COMMUNICATION

The communication must be interpreted and understood in the same manner as it was-meant to
be sent by the sender, otherwise it will not achieve the desired result and a communication
breakdown will occur. There are certain external roadblocks to effective communication. In
addition, there are personal factors, which affect communication.

Some of the organizational barriers and some of the interpersonal barriers to effective
communication are discussed below:

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Noise Barriers

Noise is any external factor, which interferes with the effectiveness of communication. The term
is derived from noise or static effects in telephone conversation or radio wave transmission. It
may cause interference in the process of communication by distraction or by blocking a part of
the message or by diluting the strength of the communication. Some of the sources contributing
towards noise factor are:

Poor Timing

A message sent on poor timing acts as a barrier. For instance, a last minute communication with
a deadline may put too much pressure on the receiver and may result in resentment. A message
must be sent at an appropriate time to avoid these problems. Hence the manager must know
when to communicate.

Inappropriate Channel

Poor choice of channel of communication can also be contributory to the misunderstanding of

the message. The manager must decide whether the communication would be most effective if it
is in writing or by a telephone call or a face-to-face conversation or a combination of these
modes.

Improper or Inadequate Information

Information must be meaningful to the employee and should be precise or to the point. Too little
or too much information endangers effective communication. Ambiguity in use of words will
lead to different interpretations.

Physical Distractions

Any physical distractions such as telephone interruptions or walk-in visitors can interfere with
the effective face-to-face communication process.

Organizational Structure

Communication may be blocked, chaotic or distorted if the channels are not clear or if there are
bottlenecks. Hence the organization structure should be such that the chain of command and
channels of communication are clearly established and ithe responsibility and authority are
clearly assigned and are traceable.

Information Overhead

Overload occurs when individuals receive more information than they are capable of processing.
The result could be confusion or some important information may be laid aside for the purpose
of convenience.

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Network Breakdown

Network breakdown may be intentional or due to information overload and time pressures under
which a communication has to be acted upon. Some factors contributing to such disruptions are:

 The managers may withhold important negative information.

 The secretary may forget to forward a memo.
 There may be professional jealousy resulting in closed channels.

Interpersonal Barriers

There are many interpersonal barriers that disrupt the effectiveness of the communication
process and generally involve such characteristics that either the sender or the receiver can cause
communication problems. Some of these are:

Filtering

Filtering refers to intentionally withholding or deliberate manipulation of information by the

sender, either because the sender believes that the receiver does not need all the information or
that the receiver is better off not knowing all aspects of a given situation. It could also be that the
receiver is simply told what he wants to hear.

Semantic Barriers

These barriers occur due to differences in individual interpretations of words and symbols. The
words and paragraphs must be interpreted with the same meaning as was intended. The choice of
a wrong word or a comma at a wrong place in a sentence can sometimes alter the meaning of the
intended message. For example, a nightclub advertisement sign, "clean and decent dancing every
night except Sunday", could lead to two interpretations. First, that there is no dancing on
Sundays and second, that there is dancing on Sundays, but it not clean and decent.

Perception

Perception relates to the process through which we receive and interpret information from our
environment and create a meaningful word out of it. Different people may perceive the same
situation differently. Hearing what we want to hear and ignoring information that conflicts with
what we know can totally distort the intent or the content of the message. Some of the perceptual
situations that may distort a manager's assessment of people resulting in reduced effectiveness of
the communication are:

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 A manager may perceive people to belong to one category or another as stereotypes,

rather than unique and distinct individuals. For example, he may perceive women to be
less efficient managers.
 A manager may make total assessment of a person based on a single trait. A pleasant
smile may make a positive first impression.
 A manager may assume that his subordinate's perception about things and situations are
similar to his own.
This perception limits the manager's ability to effectively respond to and deal with individual
differences and differing views of work situations.

Cultural Barriers

The cultural differences can adversely affect the communication effectiveness, specially for
multi-national companies and enterprises.

Sender Credibility

When the sender of the communication has high credibility in the eyes of the receiver, the
message is taken much more seriously and accepted at face value. If the receiver has confidence,
trust and respect for the sender, then the decoding and the interpretation of the message will lead
to a meaning of the sender. Conversely, if the sender is not trusted, then the receiver will
scrutinize the message heavily and deliberately look for hidden meanings or tricks and may end
up distorting the entire message. Similarly, if the source is believed to be an expert in a particular
field then the listener may pay close attention to the message, and believe it specially if the
message is related to the field of expertise.

Emotions
The interpretation of a communication also depends upon the state of the receiver at the time
when message is received. The same message received when the receiver is angry, frustrated or
depressed may be interpreted differently than when he is happy. Extreme emotions are most
likely to hinder effective communication because rational judgments are replaced by emotional
judgments.

Multi-meaning Words

Many words in English language have different meanings when used in different situations.
Accordingly, a manager must not assume that a particular word means the same thing to all
people who use it. Hence, the managers must make sure that they use the word in the same
manner as the receiver is expected to understand it, otherwise it will create a barrier to proper
understanding of the message.

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Feedback Barriers
The final source of communication barrier is the feedback or lack of it. Feedback is the only way
to ascertain as to how the message was interpreted.

Overcoming Communication Barriers

It is very important for the management to recognize and overcome barriers to effective
communication for operational optimization and this would involve diagnosing and analyzing
situations, designing proper messages, selecting appropriate channels for communicating these
messages, assisting receivers of messages in correct decoding and interpretation and providing
an efficient and effective feedback system. Some of the steps that can be taken in this respect are
as follows:

1 Feedback: Feedback helps to reduce misunderstandings. The information is transferred

more accurately when the receiver is given the opportunity to ask for clarifications and
answer to any questions about the message. Two-way communication, even though
more time-consuming, avoids distrust and leads to trust and openness, which helps
in building a healthy relationship contributing to communication effectiveness.

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

3 Develop Writing Skills: Clearly written messages can help avoid semantic and
perception barriers. A well-written communication eliminates the possibility of
misunderstanding and misinterpretation. When writing message it is necessary to be
precise thus making the meaning as clear as possible so that it accomplishes the desired

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purpose. Some helpful hints in written communication are suggested by Robert Degise
as follows:
 Keep words simple: This will reduce your thoughts to essentials and the
message will be easier to understand for the receiver. The message will be lost
if the words are complex and do not lend to a clear single meaning.
 Do not be boggart down by rules of composition: While the rules of grammar
and composition must be respected, they should not take priority over the
ultimate purpose of the communication.
 Write concisely: Use as few words as possible. Do not be brief at the cost of
completeness, but express your thoughts, opinions and ideas in the fewest
number of words possible.
 Be specific: Vagueness destroys accuracy, which leads to misunderstanding of
the meaning or intent of the message. Accordingly, be specific and to the point.
4 Avoid Credibility Gaps: Communication is a continuing process and the goal of the
communication is complete understanding of the message as well as the creation of
trust among all members of. the organization. Accordingly, the management must be
sincere and should earn the trust of the subordinates. Management should not only be
sensitive to the needs and feelings of workers but also its promises should be supported
by actions. According to the studies conducted by J. Luft, openness and an atmosphere
of trust builds healthy relationship and closes credibility gaps, thus contributing to
communication effectiveness.

GUIDELINES FOR EFFECTIVE COMMUNICATION

These guidelines are designed to help management improve their skills in communicating so as
not only avoid any barriers to effective communication, but also to strengthen the basis for
optimum results which depend upon the clear understanding of the desired communication.

The Ideas and Messages should be Clear, Brief and Precise

The ideas to be communicated must be well planned and clearly identified. This will eliminate
ambiguity so that the message will not be subject to more than one interpretation. The message
must be clear, precise and to the point and free from distortions and noise. It should also be brief
so that only necessary and sufficients meanings are provided.

Sense of Timing
The message should not only be timely so that the decisions and actions can be taken in tie and
when necessary, but also the timing of the message and the environmental setting in which the
message is delivered and received is equally important.

Integrity

The communication must pass through the proper channels to reach the intended receiver.
The communication flow and its spread must avoid bypassing levels or people. When these

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concerned levels are omitted or bypassed, it creates bickering, distrust, confusion and conflict.
Accordingly, the established channels must be used as required.

Consult with others who are involved in Planning the Communication

If people have participated in the planning process, they would be highly motivated to give
active support to such communication. The people who are concerned must know exactly what
they need and when they need the communication.

Consider the Receiver's Interest

Take the receivers interests into account, and then the receiver will be more responsive to
the communication. The management must clarify any part of the communication that may be
necessary and must encourage comments, questions, and feedback. The management must
always be helpful in carrying out the intended message of the communication.

Mode of Delivery

While delivering the communication, avoid negative statements like, "I am not sure it will
work", but be confident and definitive. The success of the communication also depends upon the
tone of the voice if the communication is verbal, expressions and emotions exhibited,
attentiveness to the receiver and so on. The written communication should be polite and
unambiguous.

Use proper Follow-up

All communications need a follow-up to ensure that these were properly understood and carried
out. The response and feedback to the communication should determine whether the action to the
communication has been prompt, appropriate and accurate.

Communication should be Comprehensive

Communication should be complete so as not only to meet the present demands. It should also
fee based on future needs of the organization as well as individuals.

Recently, the nature of managerial and organizational communication has changed

dramatically, mainly because of breakthrough of the electronic technology and advent of
computers. Now cellular phones, E-Mail and Internet have made the communication quick and
convenient. It is now even possible for managers from different cities to meet by
teleconferencing method without leaving their offices. At the same time, psychologists are
beginning to discover some problems associates with these new advances in communication.

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Two Marks

1. Define leadership

2. What is inter personal communication.

3. What is free rein leadership.

4. Mention the styles of leadership.

Eight Marks

1. Explain the importance of leader.

2. Explain the qualities of a leader.

3. Distinguish between formal & informal leader.

4. Distinguish between leader & manager.

Fifteen Marks

1. Explain the theories of leadership

2. Explain the styles of leadership.

3. Distinguish between leadership & management.

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UNIT 5

LEARNING & BEHAVIOUR MODIFICATION

In simple terms, learning is the modification of behaviour through practice, training or

experience.

Definition:

According to E.R Hilgard, learning is a relatively permanent change in behaviour that occurs as a
result of a prior experience.

Nature or Components of Learning:

 Change in behaviour: Learning involves a change in behaviour. This change can either be
a positive change or a negative change.
 Change must be permanent: All the changes do not reflect learning-To constitute
learning. Change should be relatively permanent. Temporary changes do not constitute
learning.
 Change must take place as a result of experience, practice or training: The change in
behaviour must be as a result of some practice, experience or training. A change due to
any disease or physical ailment will not be learning.
 The cause must be reinforced, if this is not done, the behaviour may gradually disappear.
 Learning should be reflected in the behaviour & not just in thoughts & attitudes.
 Learning varies according to the difficulty of the task, ability of the individual & physical
factors.
 Early successes increase chances for effective learning.
 It results from stimulation through the senses.

Theories of Learning:

There are basically four theories which explain how learning occurs.

 Classical Conditioning: This is based on the fact or reality that an event (Stimulus) that
does not initially result in a response, gradually acquires the capacity to initiate that
response when repeatedly paired with an event (stimulus) that can initiate such response
or reaction. Such responses are usually involuntary.
Consequences Here we come across 4 terms namely conditioned stimulus, unconditioned
stimulus, conditioned reflex & unconditioned reflex. the above terms can be explained
through an example.
Ex: Ivan Pavlov, a Russian psychologist conducted an experiment on a dog & tried to
relate the dogs salivation & the ringing of a bell. When Pavlov presented the dog with a
piece of meat, the dog started salivating. Then he withheld the presentation of meat &

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merely rang a bell. This time there was no salivation. Later Pavlov linked the meat & the
ringing of the bell. After repeatedly hearing the bell before getting the food, the dog
began to salivate as soon as the bell rang. After a while, the dog would salivate merely at
the sound of the bell, even though no food was offer. Thus the dog had learnt to respond
to the bell.
Here the natural unlearned response is called unconditioned reflex & the event which
created it is called unconditioned stimulus. On the other hand, the learned response is
called conditioned reflex & the event which created it artificially is called conditioned
stimulus.
 Operant Conditioning: It is also called instrumental conditioning. The relationship
between behaviour & consequences are emphasized. Here the behaviour of an individual
is influenced by the consequences. The behaviour will repeat if the consequences are
favourable & will not repeat if the consequences are unfavourable. This theory is based
on the ‗law of effect.‘ This states that there is probability of repetition of the operant
behaviour & this behaviour entirely depends on the consequences.
Differences between classical & operant conditioning.
There are 2 vital differences between classical & operant conditioning. In classical
conditioning, a stimulus is given to get or elicit a response whereas in operant
conditioning, the response depends on the consequences. Classical conditioning is based
on involuntary responses whereas operant conditioning is upon voluntary responses.
In classical conditioning the responses does not have any relation in the consequences
whereas in operant conditioning, the response or behaviour is influenced by the
consequences.
Classical Conditioning:
* Responses are reactive. It‘s the reaction to a stimulus.
* Emphasises on involuntary responses.
* The stimulus can be a sound, object, persons, etc.

Operant Conditioning:
* Responses are reactive. It‘s the reaction well ahead of a consequence.
* Emphasizes on voluntary responses.
* The consequences may relate to office, work social setting, etc.
 Cognitive Theory: Here learning is treated as a cognitive process. According to this
theory, people are active participants in how they learn. According to this theory, firstly
people use their past learning & experiences as a basis for present behaviour. Secondly,
based on this, they make choices about their behaviour & lastly, people identify or
recognise the consequences of their choices.
 Social learning (Observation learning): This emphasize on the ability of an individual to
learn by observing others. This is also known as vicarious learning. A learner acquires

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tactical knowledge & skills through vicarious learning. This may include learning from
parents, teachers, peers, bosses, etc. This also involves 4 steps:
* Attention process: People learn form a model only when the models are capable of
capturing the attention of the person who is learning.
* Retention process: A models influence will depend upon how well the individual
remembers the models action.
* Reproduction process: Here the watching or the observation is converted to doing.
* Reinforcement Process: Individuals will be motivated to show the modelled behaviour
only if rewards are provided.

Determinants of Learning:
The important factors that determine the learning are motive, stimuli, response,
reinforcement & retention.
 Motives/Drives: They are certain goals that an individual attempts to achieve. Motive
prompts people to action. They determine the general direction of an individual‘s
behaviour.
 Stimuli: They exist in the environment in which a person lives. They help in extracting a
specific response from a person.
 Responses: The various stimuli generate responses in individuals. This may either be in
the physical form or in terms of attitudes or perception. This response is also called
behaviour. This response can either be positive or negative.
 Reinforcement: It is a primary condition of learning. This is anything that tends to induce
repetitions of the behaviour. Reinforcement will result in the repetition of any behaviour.
 Retention: The learned behaviour should be retrieved according to the needs. Retention
means remembering learned behaviour overtime. The learning which is forgotten is
called extinction.
Principles of Learning:
 Motivation: Without any motivation or motives, learning does not take place. People
learn only to realise some motives or drives.
 Reinforcement/ Punishment/Extinction: Reinforcement is used to repeat desirable
behaviour while punishment & extinction are employed to minimise undesirable
behaviour.
Reinforcement: Reinforcement strengthens desirable behaviour. There are 2 types of
reinforcement‘s namely positive reinforcement & negative reinforcement.
Positive reinforcement enhances behaviour by presenting positive reinforcers such as
food, water, money, status, etc. Positive reinforcers can either be primary (basic needs) or
secondary/ conditioned reinforcers.
Negative reinforcement enhances behaviour by removing unpleasant events that preceeds
a desired behaviour. This will increase the likelihood that the desired behaviour will
occur.

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Schedules of reinforcement: Reinforcement needs to be properly scheduled. Schedules

of reinforcement will determine when the reinforcers should be applied. When the
reinforcers should be applied. When reinforcement is administered continuously, its
called continuous reinforcement, otherwise its called partial reinforcement.
Partial reinforcement schedules:
*Fixed Interval: In this type of schedule a fixed amount of time has to elapse before
reinforcement is administered .In the beginning of the learning process, only a short
interval is required & later it can be increased. Ex: Wages.
* Variable Interval: Here the reinforcement is administered at random times that cannot
be predicted by the employee. Ex: Surprise visit, Surprise test.
*Fixed Ratio schedule: Here after a fixed number of responses are got from the
employees, a reward or reinforcement. The exact number of responses are fixed is
administered. Ex; Piece rate pay system.
* Variable Ratio Schedule: This is similar to fixed ratio schedule except that the number
of responses required before reinforcement is not fixed. Ex: Telephone sales persons on
commissions.
Punishment: Punishment is the attempt to eliminate or weaken undesirable behaviour. It
is used in 2 ways- to apply punishers following an undesirable behaviour. The other way
to punish a person is to withhold a positive consequence. Sometimes punishments can
result in some negative outcomes.
Extinction: An alternate to punishing is extinction. This refers to the weakening of
behaviour by ignoring it or making sure it is not reinforced. The reason behind this is that
if a behaviour is not followed by reinforce, it weakens.
 Whole versus Part learning: In whole learning, a whole job is learnt at one go whereas
in part learning, the job is broken into several parts & each part is learnt. In part learning,
the individual must learn the part & the ability to combine the different parts into one
whole job.
 Learning curves:

Disorganisation of learning
fatigue

Plateau

Organisation of learning

Initial Spurt

End Spurt

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* Initial Spurt: In the beginning of the learning process, the learners exhibit a lot of
interest & enthusiasm. Hence the most important topics to be communicated are taught
here.
* Learning Plateau: At some point in the learning process, there is a flattening in terms of
improvement.Jumping from one plateau to another is called organisation learning.This
happens when the learner discovers a new method of performing task. Then there is
disorganisation of learning which results in a fall in performance.
* Fatigue: This happens when there is overload of information or stimulus or when the
learned is tired or bored of learning.
* Endspurt: When the training session comes to an end, the learner realises this & there is
again an interest & effort to learn more.
* Meaningfulness of material: There is a definite relationship between learning &
meaningfulness of the subject learnt. The more meaningful the subject & the better is the
learning process.
 Learning Styles: It refers to the ability of an individual to learn. There are basically 4
learning styles. They are:
* Accommodator: An accommodator learns by doing & feeling. He/she learns primarily
from hands- on experience.
* Diverger: He learns by observing & feeling. Takes time & analyses many alternatives.
* Converger: He learns by doing & thinking. He uses practical information to learn.
* Assimilator: He learns by observing & thinking.

Learning Process:
Learning can be defined as a change in behaviour acquired through experience.

The pictorial representation of learning process as follows:

DRIVE CUES RESPONSE

Strong Stimuli coming Learning ends

wants to from positive/ negatie
motivate environment action

Drives: Drive is the basic for motivation. It can be physiological or psychological. Physiological
drives are related to human body & psychological drives are related to the brain. Both respond to
stimuli & are interdependent.

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Ex: A person wishes to purchase perfume. Here, drive is to purchase.

Cues: Cues is a stimuli that draws attention of an individual. Sensory organs receive cues in
environment. Strong cues provide direction to human motive while weak cues are ignored.
Generalisation occurs when same cue is present but in a new way. The more the relatedness of
the cues, they are more likely to generalize the characteristics for retention. Ex; A person is
attracted towards the fragrances of perfume (stimuli) & he wishes to purchase it.

Response: Any action or reaction shown by the individual to the stimuli is response. Response
may be in the physical form or in terms of attitudes or perception or may be either positive or
negative. Ex: A person is attracted towards the fragrance of perfume (stimuli) & he wishes to
purchase (drive), & accordingly if he is satisfied with the cost & other factors(positive
reinforcement), he purchases it. He learns to link the stimuli & response to the environment &
consequently learning has taken place.

Hence, learning is a continuous process. It has the ability to respond adequately to a situation that
may or may not have been encountered. Learning is not restricted to the school days but it is a
lifelong process.

Short note on Positive & Negative reinforcement:

Reinforcement strengthens the response preceding it & induces repetitions of the response.

Positive Reinforcement: It is a reward for a desired behaviour. The reward should be such which
stimulates desired behaviour & strengthens the probability of repeating such behaviour in future.
Positive reinforcers can be primary or secondary. Those reinforcements which have direct
beneficial consequences are known as Primary reinforcements. Ex: Food, clothing & shelter.
Secondary reinforcers also bring benefits but have different meaning for different individuals.
Ex: Pride, Recognition, etc

There are few conditions for the positive reinforcement to be effective. They are:

 The rewards should be matched with the needs of the employees because all
individuals have different motivations for performance.

 The greater the degree of performance of the employee, the greater should be
reward.

 The timing of the reward is also very important & it should not be delayed.

Negative Reinforcement: It is also known as Avoidance learning. It strengthens & increases

behaviour by the termination or withdrawal of an undesirable consequence.

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Ex:1) Manager may like his subordinates to come in formal clothes to the work place & he may
criticise individuals who dress informally or casually. To avoid criticism, the employee may
dress well to keep the manger happy. Thus, they are engaging in desirable behaviour to avoid an
unpleasant consequence.

2) Holding back the incentive for not achieving the sales target.

OB Modification (OB Mod):

According to Stephen Robbins, OB Mod is a programme where managers identify performance

related employee behaviours & then implement a strategy to strengthen desirable behaviour &
weaken undesirable behaviour.

Steps in OB Mod:

 Identification: The first step in OB Mod is identification of performance related

behaviour. The behaviour should be identified as desirable or undesirable
behaviour from the point of view of the organisation. Then critical behaviours that
have significant impact on the employee performance must be identified.

 Measurement: After the critical behaviours of the employees have been identified
the next step for the manager is to measure the frequency of the critical behaviour.
If the frequency is within the acceptable limit, it requires no action but if it
exceeds the acceptable limits, then it requires immediate action.

 Analysis: Managers will do an analysis of the behaviour that requires

modification. The factors, consequences, etc of the behaviour are analysed.

 Intervention: The next step is to develop an effective intervention strategy. This

can either be positive or negative reinforcement, extinction or punishment.

 Evaluation: The last step in ob mod is to evaluate whether the intervention

strategies are working properly or not. This will reveal if undesirable behaviour
have been substituted by desirable behaviour.

Limitations of OB Modification:

 Can‘t reinforce non observable behaviour.

 Ethical concerns about perceived manipulation.

 Reinforcer tends to wear off.

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Organisational Rewards System:

There are two types of rewards. They are:

 Intrinsic rewards: They are the satisfiers that the employees get from the job itself.
These rewards include pride in one‘s work, having a feeling of job
accomplishment, being member of a team, etc.

 Extrinsic Rewards: It include wage/ salary, fringe benefits, welfare measures,

promotions, incentives, etc.

Membership/seniority-based rewards

 Fixed wages, seniority increases

 Advantages

◦ guaranteed wages may attract job applicants

◦ seniority-based rewards reduce turnover

 Disadvantages

◦ don‘t motivate job performance

◦ discourage poor performers from leaving

◦ may act as golden handcuffs

Job status-based rewards

 Include job evaluation and status

 Advantages

◦ job evaluation tries to maintain pay equity.

Internal equity: To ensure that employees feel their pay is fair when compared to
how much others in the firm are paid.

External equity: To ensure that employees feel their pay is fair when compared to
how much people in other firms are paid.

◦ motivate competition for promotions

 Disadvantages

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◦ employees exaggerate duties

◦ create psychological distance across hierarchy

◦ inconsistent with flatter organisations

Competency-based rewards

 Pay increases with competencies acquired or demonstrated

 Skill-based pay

◦ pay increases with skill modules learned

 Advantages

◦ more flexible work force, better quality, consistent with employability

 Disadvantages

◦ potentially subjective, higher training costs

◦ may result in pay disparities which may de-motivate employees.

Task Performance or Performance Based Rewards:

Employees are rewarded on the basis of pay linked with performance rather than to seniority or
membership.

 Advantages:

A) Employees concentrate more on performance.

B) It motivates team members.

 Disadvantage:

A) Expensive

B) It discourages risk taking propensity of people.

Job design:

 Assigning tasks to a job, including the interdependency of those tasks with other jobs

 Technology influences, but does not determine, job design

 Employability affects job design

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Job design is defined as the process of deciding on the content of a job in terms of its duties &
responsibilities, on the methods to be used in carrying out the job, in terms of techniques,
systems & procedures & on the relationships that should exist between the job holder & his
superior, subordinates & colleagues.

Two Marks

1. Define is Learning?

2. What is job design?

3. What is internal equity?

4. What is external equity?

5. What is intrinsic reward?

6. What is extrinsic reward?

7. Define OB Mod.

8. State any two limitations of OB Mod.

9. What is extinction?

Eight Marks

1. Write a note on positive reinforcement & negative reinforcement.

2. Explain Membership & seniority based rewards & its advantages.

3. Examine the determinants of learning.

4. Explain the social learning process.

5. Discuss the nature of learning.

6. Describe the learning styles of an organisation.

Fifteen Marks

1. Distinguish between classical conditioning theory & operant conditioning theory.

2. Explain the types of organisational rewards.

3. Examine the principles of learning.

4. Explain the learning process of the organisation

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Unit 6

ORGANISATIONAL CHANGE

In simple ‗Change‘ means making things different.

Organisational change is the process by which organisations move from their

present state to some desired future state to increase their effectiveness.

Factors/Forces/Causes for Change:

There is number of factors both internal & external which affects organisational
functioning. They are:

 External Forces: The organisations do not have any control over the
variables in such an environmental. They are:

* Technology: The adoption of new technology such as computers, tele-

communication system & flexible manufacturing operations has force the
management to increase the investment in training & education of the
employees because employees slowly are becoming outdated more quickly.

* Marketing Conditions: They are no more static. They are in the process of
change as the customer taste & preferences change rapidly & frequently.

* Social Changes: As employees exists in a society. Organisation has to

accept the changes of social & cultural environment. Those changes may be
equal opportunities to women , equal pay for equal work, etc.

* Political Forces: The corporate sector is regulated by a lot of laws &

regulations. The organisations do not have any control over the political &
legal forces, but they have to adapt to meet the pressure of these forces.

 Internal Forces:

* Nature of the work force: It has changed over a period of time. The profile
of workforce is also changing fast. Organisations have to modify transfer &
promotion policies in order to respond to the changes as younger generation
of workers are loyal to their careers.

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* Change in managerial Personnel: Old managers are replaced by new

managers which are necessitated because of promotion, retirement, transfer
or dismissal. These changes will lead to important changes such as
allocation of work to individuals, lack of co-ordination among various
departments, etc.

Types of change/levels of change:

Change can be broadly categorized into three levels. They are:

 Individual level change: It may take place due to changes in job assignment,
transfer of an employee to different location on the changes in the maturity
level of a person which occurs. Over a passage of time.

 Group level change: Management must consider group factors which

implementing any change. This helps to overcome the resistance of change
at the individual.

 Organisation level change: It involves the major programmes which affect

the individuals& groups. Decisions regarding such changes are made by
senior management. The types of Organisational change are structural
change process oriented change, people , oriented change, etc.

Organisational change can be managed by adopting three steps stated below:

* Planning for change: It involves identifying the need for change & the
areas of change.

* Assessing change forces: The change process will never be successful

unless the cooperation of the employees is ensured.

* Implementing the change: It involves put the plan into action.

Nature of Work Change:

 Change results from the pressure of both internal & external forces in the
organisation.

 The change in any part of the organisation affects the whole of the
organisation.
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 Change may affect people, structure, technology & other elements of the
organisation.

 Change may be reactive or proactive.

 Change may be good or bad to both the management as well as employees.

CHANGE PROCESS:

Change process undergo following six stages. They are:

 Becoming aware of the pressure for change: Organisational changes such as

change in structure, technology, tasks & people in the organisation. It occur
in response to or in anticipation of pressure from inside or outside the
organisation.

 Recognising the need for changes: The necessary requirements of change in

organisation have to be recognised by the management in order to increase
the effectiveness of organisation.

 Diagnosing the problems: For diagnosing the problem various tools can be
adopted by the management such as interviews, questionnaires,
observation& secondary data, etc. It helps to analyse regarding employee
turnover productivity of the organisation & necessary change can be
introduced.

 Planning the change: To introduce change in a organisation, the right

strategy has to adopted by the strategies such as Total quality management,
winding up of divisions or departments, etc.

 Implementing the change: During implementation phase, the resistance to

change may occur by individual or group level. Resistance to change may
result in absenteeism, low productivity, strikes, etc.

 Managing Resistance: The resistance to change can be managed through

participation & involvement of employees, education & communication,
negotiation & agreement, etc.

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 Follow up on the change: Management has to evaluate the effects of the

change & should ensure that the change continues to be implemented.

Resistance to Change:

Change Agents: They are the persons who initiae & manage change in the
organisations.

Action Research: It provides a scientific methodology for managing planned

change. The change agent is usually an outside person who is involved in the total
change process from diagnosis to evaluation.

Resistance to change provides a degree of stability & predictability to behaviour.

The causes of resistance to change may be categorised into following. They are:

 Individual Resistance:

* Economic Factors: Workers may fear that the change will lead to
unemployment. Reduce opportunities for bonus or incentive pay, etc.

* Lack of communication: If the workers are given an opportunity to

participate in the process of change, the resistance is likely to be less.

* Psychological Factors: Workers may be of the fear that the new jobs will
bring boredom & monotony as a result of specialisation brought by new
technology.

* Social Factors: The change will bring a fear in the minds of people
because there is generally dislike for new adjustments, breaking present
social relationships, etc.

* Insecurity: Uncertainty about the impact of change result in resistance to

change.

 Group Resistance:

* Group Norms: Groups develop their own norms to promote desirable

behaviours. Consequently, any change that disrupts group norms will
involve resistance from group members.

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* Group Think: When all the members of a group think in a similar, it

becomes difficult to bring about a change.

 Organisational Resistance:

 * Threat to power: Top management generally consider change as a threat to

their power & influence in the organisation due to which the change will be
resisted by them.

 * Organisational Structure: Organisations are made up of a number of

interdependent sub systems, one system cannot be changed without affecting
the others.

 Resource Constraints: An organisation who does not have sufficient

resources for implementing the change often resist to it.

Overcoming Resistance to Change:

Management has to take the following steps to implement the change successfully.
They are:

 Participation of employees: Before introducing any change in an

organisation the employees should be consulted & communicated regarding
the pros & cons of the change.

 Planning for change: The management should plan for change

systematically. Employees should get an opportunity to participate both in
planning the change & installing it.

 Protecting employees‘ Interest: While introducing change, management

should ensure that employees are protected from loss in status or personal
dignity.

 Cautions & slow introductions: The management should not introduce any
change suddenly. Change must be introduced in sequential parts if possible
results must be reviewed & required adjustments must be made.

 Training & development: Management should plan for change. It should

train the employees beforehand & prepare the employees to invite change.

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 Career planning & development: Change should plan for careers of

employees, possibilities to move the employees to the higher levels &
develop them.

 Organisation Development: It aims at development of employees in the

psychological & behavioural areas with a view to achieve organisational
effectiveness.
MEANING AND DEFINITION OF OD

OD has emerged in response to needs – primarily because of the inadequacy of training and
executive development programs and secondly due to fast pace of change itself. Change occurs
in technology, marketing, human values, attitudes, relationships, social system, organizational
climate, culture, etc. which management has to meet effectively through a systematic and
planned change effort. OD has emerged to help the planned change for organizational
effectiveness.

Warren G Bennis defines OD as ―a complex educational strategy intended to change the beliefs,
attitudes, values and structure of organizations so that they can better adapt to new technologies,
markets and challenges and the dizzying rate of change itself.‖

It is clear from several definitions that -

 OD is a broader concept and includes management development and training as its

subsystems as the primary objective of OD is to change the nature of total organization.

 OD is not a separate discipline but it draws heavily from other disciplines like
psychology, sociology, anthropology, etc.

 OD is based upon theory and research

 OD is concerned with people for increasing organizational effectiveness

 OD is also concerned with improving organizational climate and culture.

CHARACTERISTICS OF OD

1. OD focuses on the whole organization to assure that all parts of the organization are well
coordinated.

2. OD uses one or more change agents who stimulate and coordinate the change within the
group. Some organizations employ change agents while some others have their own
change agents within their organization.

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3. OD is concerned with problem solving approach as it seeks to solve the problems rather
than merely discussing them.

4. OD emphasis learning by experience. As such participants are expected to learn by

experience.

5. OD utilizes group processes like group discussions, intergroup conflicts, collaboration

and cooperation

6. OD provides feedback data and information to the participants.

7. OD is long-term approach to improve overall organizational effectiveness and is research

based as most of its interventions are based on research findings.

GOALS OF OD

OD broadly aims at improving the organizational effectiveness and job satisfaction of the
employees. These goals can be attained by humanising the organizations and encouraging the
personal growth of individual employees. Specifically operational goals of OD are:

 To increase openness of communication among people

 To increase commitment, self direction and self control

 To encourage the people who are at the helm of affairs or close to the point of actual
action to make the decisions regarding their issues through collaborative effort.

 To involve the members in the process of analysis and implementation

 To encourage the confrontation regarding organizational problems with a view to arriving

at effective decisions.

 To enhance the personal enthusiasm and satisfaction levels.

 To increase the level of trust and support among employees.

 To develop strategic solutions to problems with higher frequency.

 To increase the level of individual and group responsibility in planning and execution.

BENEFITS AND LIMITATIONS OF OD

Benefits of OD programs:

 Individual employees, groups/teams and the organizations are benefited by the OD

programs.

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 Benefits of OD include performance improvements, job specification and self change.

 Encourages team work, communication skills, cooperation, interpersonal relations,

openness etc. employees with these changing behavioural dimension feel happy and have
sense of satisfaction about the job and organization.

 Contributes to the change in behaviour, values, attitudes, perceptions, etc. by enabling the
employee to understand about themselves and others in the group and organization. This
results in self change of the employees.

Limitations of OD programs:

 OD involves behavioural change and as such employees should have the

understanding of the psychological concepts. It is difficult for management to create
psychological understanding to all employees.

 Top management is normally busy with strategy formulation and as such may not
concentrate and support the efforts of OD.

 Top management is mostly interested in immediate profits in globalized and highly

competitive era, but OD produces results in the long run rather then immediately.

 Selecting and appointing third party consultants may not produce results as third party
consultants may not have long run commitment in the organization.

 Behavioural change in the employees may not result in improvement in the profits as
profits are determined by external factors also.

PROCESS OF OD PROGRAM

The OD phases are many and complicated and take long time to complete the process. they take
minimum of 1 year and sometimes continue indefinitely. There are different phases to OD
process but the typical process consists of :

1. Initial diagnosis: If executives recognize that there are inadequacies within the
organization which can be corrected by OD activities, it is necessary to find out the
professional and competent people within the organization to plan and execute OD
activities. If not, services of outside consultants are to be taken. The consultants adopt
various methods including interviews, questionnaires, direct observation, analysis of
documents and reports for diagnosing the problem

2. Data collection: Survey method is used to collect the data and information for
determining organizational climate and identifying the behavioural problems

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3. Data feedback and confrontation: Data collected are analysed and reviewed by various
work groups formed for this purpose in order to mediate in the areas of disagreement or
confrontation of ideas or opinions and to establish priorities.

4. Selection and design of interventions: The interventions are planned activities that are
introduced into the system to accomplish desired changes and improvements. At this
stage, suitable interventions are to be selected and designed

5. Implementation of intervention: Intervention may take the form of workshops, data

feedback to the participants, group discussions, written exercises, on-the-job activities,
redesign of control system, etc. Interventions are to be implemented steadily and it
achieves real and lasting changes in the attitudes and behaviour of employees.

6. Action planning and Problem solving: Groups prepare recommendations and specific
action planning to solve the specific and identified problems by using the collected data.

7. Team building: The consultants encourage the employees throughout the process to form
into groups and teams by explaining the advantages of the teams in the OD process, by
arranging joint meeting with the managers, subordinates, etc.

8. Intergroup development: The consultants encourage intergroup meetings, interaction, etc.

after formation of groups/teams

9. Evaluation and Follow-up: The organization evaluates the OD programs, find out their
utility, develop the programs further for correcting the deviations and /or improved
results. The consultants help the organization in this respect.

All steps should be followed by the organization in order to derive full range of OD benefits.

Organisational Techniques/Interventions:

There are four categories of techniques. They are discussed as follows:

 Human Process Interventions: This technique helps to analyse effectively

their own & others‘ behaviour. So that they can improve employees‘ inter
personal skills. The most widely used are:

* Sensitivity Training or T-group Training: To provide the employees

with increased awareness of their own behaviour & how others perceive
them, greater sensitivity to the behaviour of others, & increased
understanding of group processes.

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* Team Building: It is a process of diagnosing & improving the

effectiveness of a work group with particular attention to work
procedures & interpersonal relationship within it. It helps to increase the
effectiveness of teams which will also improve the organisation‘s overall
effectiveness.

* Grid training & development: Managerial grid is otherwise known as

grid training developed by Black & Mouton.

 Grid training is a technique which integrates individual, team &

organisational developments.

A grid OD programme has the following six stages;

* Training: The mangers learn about grid concepts & how they are
applied, in week long seminars.

* Team development: The trained managers bring their new

understandings managerial grid concepts relationships, team
effectiveness. So the team is applied to the actual organisational situation.

* Inter group development: This stage is the beginning of overall

organisational development. The main focus is on improving co-
ordination & co-operation among work groups.

* Organisational Goal settings: A sense of commitment & self control is

instilled in the participants as managers & subordinates work together
throughout the organisation.

* Goal attainment: The participants attempt to accomplish the goals

which they set in the previous stage.

* Stabilisation: Efforts are made to stabilise positive changes & to

identify new area of opportunity for the organisation.

 Structural Techniques:

* Change in the organisations formal structure: It helps to jointly

redesign & implement new organisational structures.

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* Job enlargement:

* Job Enrichment

* Management by Objectives: Both the subordinate & superiors sit & set
together their goals.

* Training & Career development

 Human Resource Management Interventions: HRM practices such as

hiring, training & performance appraisal can mould employee
commitment, motivation & productivity.

 Strategic Interventions:

* Analysing current strategy & organisation design: SWOT Analysis.

* Choosing a desired strategy & organisation design: Senior management

formulates vision statement, strategic plan, etc.

* Designing a strategic change plan: An action plan for moving the

organisation from its current strategy & design to the desired future
strategy.

* Implementing a strategic change plan: Implement change plan &

measure & review it to ensure that the process is proceeding as planned.

Virtual Organisation:

The term virtual organisation represents the new information age. A

virtual design permits manager to change an organisations structure
quickly to meet changing conditions & situations.

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Two Marks

1. Define organisation change.

2. Define organisational development.

3. What is change agent?

4. What is action research?

5. What is virtual Organisation?

6. What is sensitivity training or T-group training?

7. What is MBO?

8. What is Job enrichment?

9. What is Job evaluation?

Eight Marks

1. Explain the grid OD programme.

2. Explain the characteristics of OD.

3. Examine the benefits & limitations of OD.

4. Discuss the causes of resistance to change.

FIFTEEN MARKS

1. Explain the factors influencing organisational change.

2. Explain the organisational development techniques.

3. Examine the causes of resistance to change & measures to overcome

resistance to change.

4. Describe the organisational change process.

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II SEM BBM EXAMINATION MAY 2011

BUSINESS MANAGEMENT
ORGANISATIONAL BEHAVIOUR

I Answer any 10.Each question carries 2marks. 10*2=20

1. Give the meaning of organisational behaviour.

2. Define morale.
3. What is organisational effectiveness?
4. What do you mean by group dynamics?
5. What is meant by attribution?
6. What are hygiene factors?
7. What are intrinsic rewards?
8. How does attitude differs from opinion?
9. What is operant conditioning?
10. What is self esteem need?
11. What is managerial grid?
II Answer any 5.Each question carries 5 marks. 5*5=25
1. What are the different types of attitude?
2. What is learning? How does it take place?
3. Briefly explain the determinants of personality?
4. Distinguish between a leader & manager.
5. Discuss briefly the various techniques used in organisational development.
6. Explain the self-theory in personality.
7. Give a note on perceptual selectivity.
8. Distinguish between positive reinforcement & negative reinforcement.
III Answer any 3.Each question carries 15 marks . 3*15= 45
1. How does culture & family influence personality?
2. Explain the process of organisational change. Suggest measure for
overcoming resistance to change.
3. Explain various theories of learning.
4. Explain the various steps in organisation behaviour modification process.
5. Explain Herzberg‘s hygiene theory of motivation & differentiate it from
Maslow‘s theory.

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II SEM BBM EXAMINATION MAY 2012

BUSINESS MANAGEMENT
ORGANISATIONAL BEHAVIOUR

I Answer any 10.Each question carries 2marks. 10*2=20

1. What is self monitoring?
2. What is likert scale?
3. What is meant by autocratic leadership?
4. Give the meaning of job enrichment.
5. What is meant by learning?
6. What is meant by personality?
7. What is job design?
8. What is managerial grid?
9. What is organisational change?
10.What is reinforcement?
11.What is meant by group cohesiveness?
12.State the different types of attitudes.

II Answer any 5.Each question carries 5 marks. 5*5=25

1. Explain the importance of theory X & theory Y.

2. What are the functions of small groups?
3. Can attitudes be changed? Substantiate your answer.
4. Explain the cognitive theory of learning.
5. What are the features of organisational development?
6. Discuss briefly the various approaches to the study of organisational
behaviour.
7. What are the different types of conflict?
8. Discuss the determinants of personality.

III Answer any 3.Each question carries 15 marks. 3*15= 45

1. Explain the principles of organisation & its significance.
2. Explain the process of perception.
3. Discuss the various factors influencing organisational change.
4. Discuss in detail about the principles of learning.
5. Compare &contrast Maslow‘s &Herzberg‘s theory on motivation.

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II SEM BBM EXAMINATION MAY 2005

BUSINESS MANAGEMENT
ORGANISATIONAL BEHAVIOUR

I Answer any 10.Each question carries 2marks. 10*2=20

1. Define organisational behaviour.
2. State the meaning of interpersonal perception.
3. What is job enrichment?
4. State the meaning of job enrichment.
5. What do you mean by attitude formation?
6. State the meaning of organisational behaviour modification.
7. What do you mean by biological factors?
8. State the meaning of interpersonal conflict.
9. What do you mean by autocratic leadership?
10.State the meaning of pressure for change
11.What do you mean by group thinking?
12.State the meaning of formal leadership.
II Answer any 5.Each question carries 5 marks. 5*5=25
1. Explain the importance of the study of organisational behaviour.
2. Write a note on perceptual process.
3. Explain the importance of theory X & theory Y.
4. Briefly explain the contribution of other disciplines to the study of
organisational behaviour.
5. What are the functions of small groups.
6. Distinguish between autocratic & participative leadership.
7. What are the ways to overcome resistance to change?
8. Explain the significance of cultural factor as a determinant of
personality.
III Answer any 3.Each question carries 15 marks. 3*15= 45
1. Explain the principles of organisation & its significance.
2. Explain the advantages & disadvantages of non financial incentives as
a tool of motivation.
3. Explain how the personality attributes influence individual behaviour
in the organisation.
4. Explain the various steps in Organisational behaviour modification
process.
5. Explain the causes, consequences & remedies of interpersonal conflict.

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