KENYA METHODIST UNIVERSITY

Distance Learning Material

SCHOOL OF BUSINESS

DEPARTMENT OF BUSINESS ADMINISTRATION

BUSS 326

ORGANIZATION THEORY

By

TABITHA MURERWA

Published by Kenya Methodist University

P.O. Box 267 – 60200, Meru
Tel: 254 – 064 – 30301, 31146
Course Overview

An organizational Behaviour study encompasses the study of organizations from multiple

viewpoints, methods, and levels of analysis. For instance, one textbook divides these multiple
viewpoints into three perspectives: modern, symbolic, and postmodern. Another traditional
distinction, present especially in American academia, is between the study of "micro"
organizational behavior -- which refers to individual and group dynamics in an organizational
setting -- and "macro" organizational theory which studies whole organizations, how they adapt,
and the strategies and structures that guide them. To this distinction, some scholars have added
an interest in "meso" -- primarily interested in power, culture, and the networks of individuals
and units in organizations -- and "field" level analysis which study how whole populations of
organizations interact.

Whenever people interact in organizations, many factors come into play. Modern organizational
studies attempt to understand and model these factors. Like all modernist social sciences,
organizational studies seek to control, predict, and explain. There is some controversy over
the ethics of controlling workers' behaviour. As such, organizational behaviour or OB (and
its cousin, Industrial psychology) have at times been accused of being the scientific tool of
the powerful.[citation needed] Those accusations notwithstanding, OB can play a major role in
organizational development and success.

One of the main goals of organizational theorists is, according to Simms (1994) "to revitalize
organizational theory and develop a better conceptualization of organizational life. An
organizational theorist should carefully consider levels assumptions being made in theory and is
concerned to help managers and administrators.

As business environment becomes more and more competitive, managers in organizations need
to equip themselves with theoretical background and skills that will enable them to motivate
workers so that they give their last performance.

Hence, this will course is designed to equip trainees with such skills, knowledge an altitudes that
prepare them to work in harmony with others in the organization. At the same time, prepare them
to make better business managers in tomorrow leadership
Course Objectives
By the end of the course, the trainees should able to,
1. Understand the foundations of behavior in a working setting
2. Probe, diagnose organizations situations in an attempt to understand, interpret and predict
behavior of people in an organization.
3. Appreciate the effect of stress, conflict motivation and organization.
4. Develop solid interpersonal skills and effectives competencies

Course Content

Week 1: Introduction to organizational behavior

• Definitions’ and importance
• Environment and effectiveness with regard to organizational behavior
Week 2: Foundations of behavior
• Learning definition
• Learning theories
Week 3 Individuals in organization
• Perception
• Attitudes
Week 4: Personality and behavior
Week 5: Motivation and behavior
Week 6: Stress management at workplace
Week 7: Interpersonal influence and group behavior
• Group behavior
• Team work and effectiveness
Week 8: Organization power and politics
Week 9: Leadership in the organization
Week 10: Communications in organizations
Week 11: Conflict in organizations
Week 12: Management of Organizational change
• Importance
 • Forces influencing change
• Resistance to change
• Overcoming resistance

Teaching Methodologies
The course objectives will be accomplishment through lectures, class discussion, notes
Study, questions, assignments and case studies where possible

Assessment
Continuous assessment test will account for thirty percent of the total marks.
The semester examinations will account for seventy per cent
Assignments, CATS and class participation will be a major component of continuously
Assessment
Assignment handed in later will not be accepted

Academic staff performance

Students evaluate the course at the end of the semesters

Reference

Nzuve N M (1999): Elements of Organization Behaviour, Nairobi university press

Stephen P. Robinson (1983): Organization Behavior Concepts Controversies and Applications
Van Fleet (1999): Behavior in Organizations, USA print
Meudell K and Callen Management and Organizational Behaviour: A student workbook pitman
Handy,C.B (1993),Understanding Organisations, Penguine
Cole, G .A Management Theory and Practice.,D.P publications
Mullins,L.J Management and Organizational Behaviour.,pitman
TOPIC 1: INTRODUCTIONS TO ORGANIZATION BEHAVIOUR

Objectives
Students will be able to:
i. Understand the meaning and nature of behavior
ii. Comprehend the importance of organizational behavior
iii. Understand the relevance to management in a dynamic and changing world
iv. Understand the influence of behaviour

DEFINITION OF TERMS
Organization behaviour is concerned with the studies of behaviour of people within an
organization/setting. It involves the understanding (why people behave as they do), the
predicting (which employee might be dedicated and productive, absent, late, disruptive, etc so
that managers can take preventive measures) and the controlling of behaviour (managers are held
responsible for performance outcomes so they must make an impact on employee behaviour,
skills development, team effort and productivity). Organization behaviour can thus be defined
as the study and understanding of individual and group behaviour and patterns of structure in
order to help an organization perform effectively. Organization behaviour applies the knowledge
gained about individuals groups and the effects of structure on behaviour in order to make the
organization more effective. It’s concerned with what people do in an organization and how
that behaviour affects performance of the organization. It emphasizes behaviour related to work
absenteeism, employment turnover, productivity, human performance and management.

IMPORTANCE OF STUDYING ORGANIZATION BEHAVIOUR

An understanding of the organization behaviour will;
1. Improve a manager’s understanding of employee’s behaviour and what motivates them.
Enable managers solve work related conflicts.
2. Improve leadership style which is appropriate for employees.
3. Improve team working.
4. How to identity the right operational structures.
5. Enhance understanding of group behaviour.
 6. Broaden the understanding of managers of the people in the organization and
subsequently decision making affecting people.
7. Will help to place people at the centre of competitive advantages i.e. to consider people
as a very important resource of the organization and enhance their motivation to call
achievement

INFLUENCES ON BEHAVIOUR
1. External environment - As a result of these e.g. economic conditions, individuals groups
may respond to expectations of the organization differently. Needs of the individual and
of the organization are incomparable. This can result in frustration and confliction. It’s
a task of management to integrate the individual’s needs and those of the organization in
order to achieve the organizational goals. E.g. Cost cutting verses salary increment.
2. Informal group - This arise from social needs of people within organization. People in
groups influence each other in many ways. Group’s pressure can have a major influence
over the behaviour and performance of individuals’ members.
3. Structure of the organization - Structure is created in an organization to facilitate
coordination and implementation of tasks in the organization. Behaviour is affected by
patterns of structure, technology, style of leadership and system of management.
4. Perception of individuals about the situation - They are in peoples perception of the
situation gives it psychological and meaning which subsequently influences their
behaviour.
5. Wrong ambiguity and conflict. (Presence of more than one meaning).
6. Job x-tics, organization autonomy and challenge
7. Leader behaviour including goal emphasis and work facilitation.
8. Work group x-tics including co-operation and friendliness.
9. Organization/policies that directly affect individuals e.g. reward system/health and safety
policies.
10. Social and current influences e.g. change in organization culture
11. Political/government/actions organization in labour laws/ hiring policies etc.

Summary of the topic

Organization behavior is the study and application of knowledge and how people as individual
a and as groups act within the organization, human behaviour is the function of persons and
environment factors influencing behaviour are personal, biological factors and psychological
factors, environmental factors and organizational factors

? ?

Assuming you are the manager of an organization, what behavior

would you encourage/discourage ?

TOPIC 2: FOUDATIONS OF BEHAVIOUR

Objectives
By the end of the topic the student will be able to:
i) Understand what’s behaviour
ii) Understand the theories of learning
iii) Explain the relationship between the three theories of learning

LEARNING
Meaning – it can be defined any relatively permanent change in behaviour that occurs as a result
of experience. Changes in behaviour indicate that learning has taken place and that learning is a
change in behaviour. Learning has taken place if an individual behaves, reacts or responds as a
result of experience in a manner different from the way he/she formerly behaved.
Learning can be formal or informal.

THEORIES OF LEARNING
Learning Theory is rooted in the work of Ivan Pavlov, the famous scientist who discovered and
documented the principles governing how animals (humans included) learn. The following are
the three types of learning:
 i. Classical conditioning
ii. Operant conditioning
iii. Social learning

1. CLASSICAL CONDITIONING
This is a type of conditioning in which an individual respond to some stimulants that would not
ordinarily produce such response. It grew out of experiment to teach dogs to salivate in response
to ringing of the bell. It was conducted by Iran Pavlov a Russian psychologist as follows.
1. When Pavlov presented the dog with a piece of meat the dog exhibited a noticeable increase
in salivation. When Pavlov withheld the presentation of meat and merely rang the bell the
dog did not salivate.
2. Pavlov proceeded to link the meat and the ringing of the bell and after repeatedly ringing the
bell by getting the food the dog began to salivate.
3. After which the dog would salivate at the sound of the bell even if no food was offered. In
effect, the dog had learnt to respond i.e. to salivate to the bell. In organization setting e.g. at
one manufacturing plant every time the top executives from the head office was scheduled
to make a visit, the plant management would clean up the administration office and wash the
windows. This went on for years; eventually employees would turn on their best behaviour
even in those instances when the cleaning was not paired with the visit of the top executives.
People had learned to associate the cleaning of the windows with a visit from the head office.

2. OPERANT CONDITIONING
Operant conditioning (also known as instrumental conditioning) is a process by which
humans and animals learn to behave in such a way as to obtain rewards and avoid punishments.
This is the use of consequences to modify the occurrence and form of behavior. Operant
conditioning is distinguished from classical conditioning (also called respondent conditioning,
or Pavlovian conditioning) in that operant conditioning deals with the modification of "voluntary
behavior" or operant behavior. Operant behavior "operates" on the environment and is
maintained by its consequences, while classical conditioning deals with the conditioning of
respondent behaviors which are elicited by antecedent conditions. Behaviors conditioned via
a classical conditioning procedure are not maintained by consequence. The main dependent
variable is the rate of response that is developed over a period of time. New operant responses
can be further developed and shaped by reinforcing close approximations of the desired
response.

This is a type of condition in which voluntary behaviour lead to a reward or prevents a

punishment. It argues that behaviour in a function of its consequences. Operate behaviour means
voluntary or learned behaviour in contrast to reflexive or unlearnt behavior. The tendency to
repeat such behaviour is influenced by the reinforcement or lack of reinforcement brought about
by the consequences of the behaviour. Reinforcements strengthen behaviour and increase the
likelihood that it will be repeated. Thus a behaviour which is rewarded is likely to be repeated.
Punishments or rewards are thus consequences of past behaviour which shapes to future
behaviour of an individual.

1. SOCIAL LEARNING THEORY

The theory states that people learn new behavior via observational learning of the social factors
in their environment. If people observe positive, desired outcomes in the observed behavior,
then they are more likely to model, imitate, and adopt the behavior themselves.Social learning
theory focuses on the learning that occurs within a social context. It considers that people learn
from one another, including such concepts as observational learning, imitation, and modeling.
It states that people can learn through observation and direct experience. Individuals can learn
by observing what happens to other people and just being told something an well an direct
experiences e.g. much of what we have learned comes from watching models – parents, teachers
peers, motion pictures and television performance basis e.t.c.

General principles of social learning theory:

1. People can learn by observing the behavior is of others and the outcomes of those behaviors.
2. Learning can occur change in behavior. Behaviorists say that learning has to be represented
by a permanent change in behavior; in contrast social learning theorists say that because
people can learn through observation alone, their learning may not necessarily be shown in
their performance. Learning may or may not result in a behavior change.
3. Cognition plays a role in learning. Over the last 30 years social learning theory has become
increasingly cognitive in its interpretation of human learning. Awareness and expectations
of future reinforcements or punishments can have a major effect on the behaviors that people
 exhibit.
4. Social learning theory can be considered a bridge or a transition between behaviorist learning
theories and cognitive learning theories.

How the environment reinforces and punishes modeling:

People are often reinforced for modeling the behavior of others. Bandura suggested that the
environment also reinforces modeling. This is in several possible ways:
1. The observer is reinforced by the model. For example a student who changes dress to
fit in with a certain group of students has a strong likelihood of being accepted and thus
reinforced by that group.
2. The observer is reinforced by a third person. The observer might be modeling the actions of
someone else, for example, an outstanding class leader or student. The teacher notices this
and compliments and praises the observer for modeling such behavior thus reinforcing that
behavior.
3. The imitated behavior itself leads to reinforcing consequences. Many behaviors that we
learn from others produce satisfying or reinforcing results. For example, a student in my
multimedia class could observe how the extra work a classmate does is fun. This student in
turn would do the same extra work and also receive enjoyment.
4. Consequences of the model’s behavior affect the observers behavior vicariously. This is
known as vicarious reinforcement. This is where in the model is reinforced for a response
and then the observer shows an increase in that same response. Bandura illustrated this by
having students watch a film of a model hitting a inflated clown doll. One group of children
saw the model being praised for such action. Without being reinforced, the group of children
began to also hit the doll .

Explain how behaviour can be learnt and unlearnt with reference to

employee’s behaviour.
TOPIC 3: INDIVIDUALS IN THE ORGANIZATIONS

Objective
At the end of the topic the student will be able to:
i. To recognize the significance of perception
ii. Understand the process of perception
iii. Understand the problems that it may bring in an organization

Perception Define
Perception can be defined as the process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment.
- It should however be noted that what one perceives can substantially differ from
object reality
Perception can be influenced by factors found
1. In the perceiver
2. In the object/ target being perceived
3. Or, in the context of the situation in which the perception is made.

1. FACTORS IN THE PERCEIVER

When an individual looks at something or a target and attempts to interpret what he/she sees.
That interpretation in heavily influenced by personal characteristics of the individual perceiver.
Among the more relevant personal characteristic affecting perception are; attitude, motive,
interests, past experiences and expectations.
i. Attitude – Your feeling about something may make you perceive it positively or
negatively, love or hate it.
ii. Motives – Unsatisfied needs may stimulate individuals and make them extract a strong
influence on their perceptions e.g. someone who has not eaten a whole day may perceive
food positively than someone who has plenty of it.
iii. Interest – The focus of the attention may be influenced by own interest. The supervisor
who has just been reprimanded by her boss for high level of lateness among her staff is
likely to notice lateness by an employee tomorrow than she was last week. If you are pre-
occupied with a personal problem you may find it hard to be attentive in class because
 our individual interest differ considerably what one notices in a situation can differ from
what others perceive.
iv. Part Experience- People perceives those things they can relate to. Iin many instances
your part experiences will act to nullify on object interest. Objects or events that have
never been experienced before are move noticeable than those that have been experience
in the recent part.
v. Expectations – This can distort your perceptions in that you will see what you expect to
see. If you expect police Officers to be authoritative you will see them as such regardless
of their actual trends.

2. FACTORS IN THE TARGETER

Characteristics of the target that is being observed can affect what is perceived e.g. motion,
sound, size, background, proximity etc. Loud people are more likely to be noticed in a group
than quite ones so too extremely attractive or unattractive individuals.

3. FACTORS IN THE SITUATION

The situation may affect our perception. The context in which we see objects or events is also
important. Elements in the surrounding environment can influence our perceptions e.g. time,
social setting, or work setting. The time at which an object or event is seen can influence
attention, so can location, light, heat or other situational factors.

How perception influence judgments of others

When we observe people we attempt to develop explanations of why they behave in certain
ways. Our perception and judgment of others will therefore be significantly influenced by the
assumptions we make about those persons internal state.

The Attribution theory.

This theory has been proposed to develop explanations of the ways in which we judge
people differently, depending on what meaning we attribute to a given behaviour.
This theory states that when individuals observe behaviour they attempt to determine whether
it is internally or externally caused. Internally caused behaviors are those that are believed to be
under the personal control of the individual. Externally caused behaviour is seen as a resulting
from outside courses i.e. the person is seen as having been forced into the behaviour by the
situation. If an employees is late for work this lateness might be attributed to him partying into
the wee hours of the morning and then over- sleeping this, would be internal attribution. But if
you attribute his arriving late to a major automobile accident that fed up traffic on the road that
this employees regularly use then you would be making an external attribution. Determination
of a given behaviour largely depends on three factors.
1. Distinctiveness
2. Consensus
3. Consistency

1. Distinctiveness
This refers to whether an individuals displays different behaviors in different situations e.g.
is the employee who arrives to work late also regularly blows off commitments? Is it a usual
or unusual behaviour? If it is unusual the observer is likely to give the behaviour an external
attribution.

2. Consensus
If everyone who is forced with a similar situation responds on the same way one can say the
behaviour shows consensus.

3. Consistency
The observer looks for consistency in a persons actions i.e. Does the person respond the same
way over time e.g. habitual latecomers may not be treated the same way as those coming in for
work 10mn late for the first time because of inconsistencies in behaviour.

FREQUENTLY USED SHRTCUTS IN JUDGING OTHERS

I. SELECTIVE PERCEPTION
It allows us to see what we want to see, we draw unwanted conclusions from uncertain or unsure
situation.
II. HALO EFFECT
This is the tendency to draw a general impression about an individual on the basis of a single
characteristic, such an intelligence, sociability or appearance. Thus students may give prominent
to a single trait such an enthusiasm and allow their entire evaluation to be influenced by how
they judge their lecturer on that trait. Thus an instructor who is quite assured, knowledgeable and
highly qualified but if his style lacks zeal those students would probably give a low rating.

III.CONTRAST EFFECT
This is a tendency to evaluate a person characteristic in comparison with other people recently
encountered who rank higher or lower on the same characteristic. There is a tendency of people
not to evaluate others in isolation thus our reaction to one person is always influenced by other
persons we have recently encountered.

IV. PROJECTION
This is a tendency to attribute one’s own characteristic to other people. It is easy to judge others
if we assume that they are similar to us thus if you want challenge and responsibility in your
job you assume that others want the same or if you are honest and trustworthy so you take it for
granted that others are equally honest. This can be distort perceptions made about others.

V. STEREOTYPING
This is the tendency to judge someone on the basis of one’s perception of the group to which that
person belongs. Generalization is not without advantages. It is a means of simplifying a complex
world and it permits one to maintain consistency.

? ?

Explain factors that influence behavior in an organization

What is the managers’ role in this area?

TOPIC 4: PERSONALITY AND BEHAVIOUR

Objective
By the end of this topic the students will be able to:
i) Understand the meaning of personality
ii) Explain why individuals in the organization behave differently
iii) Explain how to deal with different personalities in the organization.

INTRODUCTION

Deep down, are people all alike? No. People differ in intelligence, abilities, ambition,
motivation, emotional display, values, priorities, expectations, and the like. If we want to
understand, explain or predict human behavior accurately, we need to focus on individual’s
differences. Your ability to predict behavior will be severely limited if you constantly assume
that all people are alike or everyone is like you.

PERSONILITY DEFINED
Personality is the sum total of ways in which an individual reacts to and interacts with others. it
is most often described in terms of measurable traits that a person exhibits.

PERSONALITY DETERMINANTS.

Personality appears to be a result of both hereditary and environmental factors.

Hereditary
Research done in young children, traits such as shyness, fear and aggression etc can be traced to
inherited genetic characteristics.

Environment
Hereditary provides us with inborn traits and abilities, but our full potential will be determined
by how well we adjust to the demands and requirements of the environment.

WHY HAS SO MUCH ATTENTION BEEN PAID TO PERSONALITY TRAITS?

The traits could help in employee selection, matching people to jobs and in guiding career
development decisions.

PERSONALITY TYPES.

There are many different types of personalities but for the sake of this class, we will only look at
Type A and Type B personalities. Human Resource Management students go deeper than this.
 A. TYPE A PERSONALITY.
They are people who are excessively competitive and always seem to be experiencing a sense of
time urgency. They are aggressively involved in a chronic struggle to achieve more and more in
less and less time, and if required to do so, against the opposing effort of other things/persons.

Type A’s are:

1. Always moving, walking and eating rapidly.
2. Feel impatient with the rate at which most events takes place.
3. Strive to think or do two or more things at once.
4. Cannot cope with leisure time.
5. Are obsessed with numbers, measuring their success in terms of how much of everything
they acquire.

In contrast to Type A personality, is the Type B who is exactly opposite.

B. TYPE B IS
1. Never suffers from a sense of time urgency with its accompanying impatience.
2. Feel no need to display or discuss either their achievements/ accomplishments, unless
such exposure is demanded by the situation.
3. Play for fun and relaxation, rather than to exhibit their superiority at any cost.
4. Can relax without guilt.
Type A operates under moderate to high levels of stress. They subject themselves to more or less
continuous time pressure, creating for themselves a life of deadlines. These characteristics results
in some rather specific behavioral outcomes. For example, Type A’s are fast workers, because
they emphasize quantity over quality. In managerial positions, Type A’s demonstrates their
competitiveness by working long hours and not infrequently, making poor decisions because
they make them too fast.

Type A’s are also rarely creative. Because of their concern with quantity and speed, they rely on
past experiences when faced with problems. They will not allocate the time necessary to develop
unique solutions to new problems. They rarely vary in their responses to specific challenges in
their social surroundings; hence their behavior is easier to predict than that of Type B.

Question: Do Type A’s differ from Type B in their ability to get hired? The answer is yes. Type
A’s do better in job interviews because they are more likely to be judged as having desirable
traits such as high drive, competence, aggressiveness and success motivation.

VALUES.

Is capital punishment right or wrong? If a person likes power, is that good or bad? The answers
to these questions are value-laden. Some might argue that capital punishment is right because it
is an appropriate retribution for crimes like murder and treason. However, others might argue,
just strongly, that no government has the right to take anyone’s life.

Values contain a judgmental element, in that they carry an individual’s ideas as to what is right,
good and desirable.
Values tend to be relatively stable and enduring. You were told for example that you should be
honest and responsible (not a bit honest or a bit responsible).

IMPORTANCE OF VALUES IN O.B.

Values lay the foundation of understanding of people’s attitudes and motivation because they
influence our perceptions. Individuals enter an organization with preconceived notions of what
“ought” and what “ought not” to be.

Values generally influence attitudes and behavior. Suppose that you enter an organization with
the view that allocating pay on the basis of performance is right, while allocating pay on the
basis of seniority is wrong. How are you going to react if you find that the organization you have
just joined reward seniority and not performance? You are likely to be disappointed and this can
lead to job dissatisfaction and the decision not to exert a high level of effort since “it’s probably
not going to lead to more money anyway.” Would your attitude and behavior be different if your
values aligned with the organization’s pay policies? Most likely.

LINKING AN INDIVIDUAL’S PERSONALITY & VALUES TO THE WORK PLACE.

30 years ago, organizations were concerned only with personality because their primary focus
was to match individuals to specific jobs. But in recent years, this interest has been expanded to
include how well the individual’s personality and values match the organization. This is because,
managers today are less interested in an applicant’s ability to perform a specific job than with the
flexibility to meet changing situations and commitment to the organization.

We will now discuss Person-Job fit and Person-Organization fit in more details.

a) Person-Job Fit.
This is matching job requirements with personality characteristics. Satisfaction is highest and
turnover lowest when personality and occupation are in agreement. For example, people who are
CONVENTIONAL TYPE (prefers rule-regulated, orderly, and unambiguous activities), have
personality characteristics which include conforming, efficient, practical, unimaginative and
inflexible. Their suitable occupations are accountant, corporate manager, bank teller, file clerk.

On the other hand, SOCIAL TYPE ( prefer activities that involve helping and developing
others), have personality characterized as sociable, friendly, cooperative, understanding- and
their suitable occupations are social worker, teacher, counselor, clinical psychologist.

This means that, people in jobs suitable with their personality should be more satisfied and less
likely to voluntarily resign than should people in unsuitable jobs.

b) Person-Organization Fit.
This is matching people to organizations as well as jobs. To the degree that an organization faces
a dynamic and changing environment and requires employees who are able to readily change
tasks and move easily between teams, its important that employees personalities fit with the
overall organizational culture than with the characteristics of any specific job.
The Person-Organization Fit essentially argues that people leave organizations that are not
compatible with their personalities. E.g. people who are high on openness to experience (risk
takers) fit better into organizations that emphasize innovation rather than standardization. Also,
people who are extraversion (those who are assertive, like to be with people, and sociable), fit
better with aggressive and team oriented cultures. Their opposites are the introverts’ people
(reserved, timid, and quiet).

At the time of hiring, the interviewers should select new employees who fit better with the
organization’s culture which, in turn, should result in higher employee satisfaction and reduce
turnover.

Therefore, the fit of employee’s values with the culture of their organization predicts job
satisfaction, commitment to the organization and low turnover. Motorola, for example,
emphasizes innovation, tolerance for diversity, and team work. General Electric culture
emphasizes achievement, performance, results and individual responsibility.

Personality determinants
Personality is generally considered to be made up of both hereditary and environmental factors
and moderated by introduction conditions.

Hereditary factors
This refers to factors that were determined at conception. Physical stature, facial attractiveness,
gender temperament, muscle composition and reflexes, energy levels and biological rhythms are
x-tics that are generally considered to be either completely/ substantially influenced by who your
parents were i.e. their biological make up.

ENVIRONMENTAL FACTORS
The environment to which we are exposed plays a substantial role in shaping our personalities
e.g. the culture in which we are raised. The norms among our family members, friends and social
groups and other influences that we experience e.g. culture establishes the norms altitudes and
values that are passed along from one generation to the next and create consistencies overtime.

SITUATION FACTORS
The situation influences the effects of heredity and environment on personality. An individual
personality although generally stable and constant does change in different situation. The
varying demands of different situations saw for different aspects of ones personality situations
substantially in the way they impact on behaviour. Some situations e.g. church, employment,
interview constrain many behaviors. Other situations e.g. a picnic in a public pack constrain
relatively few.

ATTITUDES
They are evaluative statements or judgment concerning objects, people or events. They reflect
how one feels about something e.g. “when you say I like my job,’ you are expressing your
altitude about work.

Type of Attitudes
a) Job satisfaction
b) Job involvement
c) Organizational commitment

Most of the research in O.B. has been concerned with the above.
a) Job Satisfaction
This refers to an individual’s general attitude towards the job. A person with a high level of job
satisfaction holds positive altitude towards the job while a person who is dissatified with his/her
job holds a negative altitude about the job.
b) Job Involvement
Measures the degree to which a person identify psychologically with him/her job and considers
him/her perceived performance level important to self work. Employees with high levels of job
involvement have been found to be related to fewer absences and low resignation rates.
c) Organization Commitment
This is a state in which an employee identifies with a particular organizations and it goal and
wishes to maintain membership in the organization. Studies indicate that an individual’s level
of organization commitment is a better indicator of turnover. Thus, the more frequently used job
satisfaction. An employee may be dissatisfied with his particular job and consider it a temporary
condition yet not dissatisfaction with organization as a whole. But when the dissatisfaction
spread to the organization itself, individuals are more likely to consider resigning.
VALUES
They are basic conditions or fundamental beliefs that specifics a mode of conduct by an
individual. They contain a judgmental element in that they carry an individual idea as to what
is right or good or desirable. Values tend to be relatively stable and enduring. A significant
position of values we hold is established in our early years from parents, teachers, friends and
others. As children we are told that certain behaviors or outcomes are always desirable or always
undesirable. You were told e.g. that you should be honest and responsible people who are
profoundly religious, have strong values, which shapes the ways they behave and interact in an
organization

Individual difference
Individual differ in terms of Age, gender, marital status tenure.

1. Age
There is a positive relationship between age and job performance. There is a wider spread
belief that job performance declines with increase in age. However there are positive quality
that older workers bring to their judgment, a strong work ethic and commitment to quality.
But older people are perceived as lacking flexibility and as being resistant to new technology.
In a time when organization strongly seek individuals who are adaptable and open to change.
The negative perception associated with age hinders the initial hiring of older workers. And it
increases the likelihood that they will let go during downsizing. The older you get the less likely
you are to quite your job. All workers are likely to resign than younger workers because the long
tenure tends to provide them with a higher wage rates, long paid vacations and more attractive
pension benefits. Age adversely affect absenteeism, older people are likely to be more absent
than young people. Productivity also tends to decline with age. Regarding satisfaction studies
have found that satisfaction tends to continually increase among professionals as they increase
in age where as it fall among non-professional during middle age and then rise again in the later
years.

2. Gender
Few issues initiate more miss conceptions and unsupported conditions and a well on jobs as men
do. Evidence suggests there are very few differences between men and women that will affect
job performance. There are instance no consistent male/female difference and problem solving
ability analytical skills, competitive drive motivation sociability or learning ability.
Psychological studies hove found that women are more willing to conform to authority and that
men are more aggressive and more likely than women to have expectations of success but those
differences are minor studies have however found out that there is no significant difference in
job productivity between men and women. Similarly there is no evidence indicating that an
employees gender affects job satisfaction.
Studies on absence and turnover rates have however found that women have a higher turnover
rate and absent rate than men do. When a child is ill e.g. or someone needs to stay at home to
wait for the plumber it not been the women who has traditionally taken time off from work.

3. Marital Status
There are not enough studies to draw any conclusion about the effect of marital status on
productivity but research consistently indicates that married employees have fewer absenteeism
undergo less turnover and are more satisfied with their job than are their married co-workers
Management should impose increased responsibility that may make a steady job more valuable
and important. Research has however not been conducted on whether being divorced or
windowed have impact on employees performance and satisfaction or about couples who live
together without being married.

4. Tenure
Tenure as expressed on work experience appears to be a good predictor of employees
productivity. Most recent studies shows a positive relationship between seniority and job
productivity. The research relating tenure in absence in quite straight forward studies constantly
demonstrate senius to be negatively related to absenteeism long jerrying employees are more
likely to be loyal to the organization. Evidence and suggest that tenure and satisfaction are
positively related when age and tenure are increased separately tenure appears to be more
consistent and stable predictor of job satisfaction than his chronological age.

ABILITY
It can be divided into two:-
a) Mental ability
 b) Physical ability
It is acknowledged that everyone has strengths and weaknesses in terms of ability that makes
him/her relatively superior or inferior to other in performing certain tasks or activities.
From managements stand points the issue is not whether differ in terms of their abilities they
do the issue in knowing how people differ in abilities and using that knowledge to increase the
likelihood that on employee ill perform his/her job well.

Definition of Ability
Ability refers to an individual’s capacity to perform the various tasks in a job it is current
assessment of what one can do. An individual overall ability are essentially made up of two sets
of factors i.e. intellectual and physical abilities.

1. Intellectual Abilities
They are those needed to perform mental activities intelligence quotient (IQ) tests e.g. desired to
a certain ones general intellectual abilities so too are popular college Admission test e.g. GMAT.
Job differ in the demands they place in the incumbence to use their intellectual abilities generally
speaking the more information processing demands that exists in a job the more generally
intelligence and verbal abilities will be necessary to perform the job successfully.

2. Physical Abilities
They are required for doing less skills and more standardized jobs. E.g. jobs in which success
demands stamina manual dexterity leg strength or similar talents require management to identify
employees with such physical ability

SUMMARY AND IMPLICATIONS FOR MANAGERS

From early 1900’s through the mid 1980’s, researchers sought to find a link between personality
and job performance. The past 20 years, have been more promising largely due to the findings
screening candidates for managerial and sales positions.

It is important for managers to determine if employee’s values align with the dominant values of
the organization. Employees performance and satisfaction, are likely to be higher if their values
fit well with the organization. Managers are more likely to appreciate and evaluate positively and
allocate rewards to employees who ‘fit-in’ and employees are more likely to be satisfied if they
perceive that they do ‘ fit-in’.
This argues for management to strive during the selection of new employees to find job
candidates who not only have the ability, experience and motivation to perform but also a value
system that is compatible with the organization.

Discuss various personalities found in your place of work

How do you as a manager deal with altitude problem

TOPIC 5: MOTIVATION AND BEHAVIOUR

Objective
By the end of this topic the students will be able to:
i) Understand the meaning of motivation
ii) Explain various ways of motivating employees
iii) Explain various theories of motivation and its applications.

Introduction
Several theories have been developed to explain what causes employees motivation and work
behaviour.

Meaning: Motivation is concerned with getting organization members to do work willingly and
enthusiastically. In general motivation is a term applying to the entire class of drivers, desires,
needs, wants and other such forces .Saying that managers motivate subordinates implies that
they do those things which they hope will satisfy their needs and wants and induce them to act
in a desired manner. Then they will work towards accomplishing organizational goals since the
level of performance of a worker is a function of both his capability and motivation .The former
determines what he can do and the latter ensuring what he will do willingly.

According to Beach.S.Dale, motivation may be defined as a willingness to expand energy

to achieve a goal or reward. Motivation can therefore be defined as a set of energetic forces
originating from within the individual that initiate behavior and determine its form, direction,
intensity and duration in order to achieve a goal.

Theories of Motivation
A) Maslow’s Hierarchy of Needs Theory Motivation
Abraham Maslow an industrial psychologist found out that employees are motivated by needs
from bottom to top. He reasoned that when onset of need is satisfied it seizes to be a motivator
an individual will focus on the next need in the hierarchy so according to Maslow if you want to
motivate someone you need to understand what level of hierarchy that person is currently on and
satisfy those needs at or above that level.
1. Physiological needs. Includes hunger. Thirst, shelter, sex and other bodily needs.
2. Safety – Includes security and protection from physical and emotional harm of danger.
3. Social needs – Includes affection, belongingness, acceptance and friendship.
4. Esteem needs – Includes internal esteem factors such as self-respect, autonomy and
alternation.
5. Self – Actualization needs – This refers to the drive to become what one is capable of
becoming, it include, growth, achieving one’s potential and self – fulfillments.

Maslow separated the lower needs into higher or lower orders.

1. Lower order needs – This are satisfied externally i.e. physiological needs and safety needs.
2. Higher order needs – This are satisfied internally i.e. social, esteem and self actualization
individuals who are more motivated are more likely to demonstrate positive work behaviors.
A key role of a manager is to increase that level of employees motivation.

Abraham Maslow recognized the human needs exists in hierarchy composed of categories
starting in ascending order from lowest to highest needs .He concluded that when one set of
needs was satisfied it ceases to be a motivator Maslow’s hierarchy of needs can be explained as
follows:
Maslow’s needs hierarchy
Self actualization

Esteem need

Social needs

Safety needs

Physiological needs

i.Psychological needs: - Refers to bodily and sustenance needs. Basic needs e.g. Food and
water until these needs are satisfied to the degree that sustains life other needs will not
motivate employees. Employers should ensure that employees are able to achieve this by
providing them with better wages and salary.
ii. Security /safety needs: Refers to the need to be free from physical danger and fear of
losing job, property /shelter. This includes social security needs and pensions for the future e.g
gratuity.
iii. Social needs/affiliation: Need for love, feelings of belonging and human relationships
since people are social beings they need to belong and be accepted by others .Employers
should provide a friendly working environment to motivate employee’s e.g. involving
employees in decision making and team work.
iv. Esteem /Ego Needs: Refers to the need for self respect and respect from others.
This type of needs produce such satisfaction as power, prestige, status and self confidence.
Employers should treat the employees with esteem they deserve based on positions and ranks.
v.Needs for Self Actualization: Refers to the desire to become what one is capable of becoming
i.e the need for growth to feel fulfillment and realize ones potential. Employers should
encourage career development and growth of individuals by providing training or development
opportunities.

B) Herzberg’s Two Factor Theory of Motivation

Fredrick Herzberg tried a different approach to the study of employee’s motivation and reasoned
that mangers could understand what causes employees to be satisfied or dissatisfied they would
get to know how to handle needs to motivate them. Motivators can be categorized as either
hygiene Factors or motivating factors.
§ Satisfiers/Motivator
§ Dissatisfies/hygiene factors

Satisfiers/Motivators: They are concerned with the job itself other than job environment.
They operate primarily to build strong motivation and high job satisfaction. According to
Herzberg these factors could result into satisfaction or motivation when adequately provided.
When inadequately provided they would reduce the level of satisfaction but would not cause
dissatisfaction such factors include: The job itself, feelings of achievement, recognition
advancement, growth, challenging tasks e.t.c.

Dissatisfier /hygiene factors:

Disatisfiers are also known as hygiene factors because they support the mental health of
worker .They are related to the work environment and are external to the point they include
wages ,fringe benefits ,status ,job security ,working conditions ,level of supervision company
policy procedures e.t.c. According to Herzberg the presence of these factors at satisfactory
level prevents job dissatisfaction but they do not provide motivation to workers when
deficient or inadequately provided they would cause dissatisfaction. According to Herzberg
to improve employees motivation, managers should pay special attention on job related
factors ,which improve satisfaction rather than concentrating on traditional hygiene factors or
dissatisfiers.
 NB: Herzberg argues that only the higher levels of Maslow Hierarchy( self-actualization
and esteem needs) acts as a motivator. The remaining need can only cause dissatisfaction
if not addressed.
Hygiene factors are based on the need for business to avoid unpleasantness at work. If
these factors are considered inadequate by employees, then they can cause dissatisfaction
with work.

C) Alderfer’s ERG Theory of Motivation

Clayton Alderfer’s developed the existence /relatedness/growth (ERG) theory of motivation
which revised Maslow’s theory to make it consistency with research findings concerning
human needs .Since studies have shown that people have 3 sets of needs instead of 5 .
Alderfer’s reduced Maslow’s categories into 3 steps.
• Relatedness needs – similar to Maslow’s social and status needs
• Existence needs – similar to Maslow’s physiological and safety needs
• Growth needs- similar to Maslow’s esteem needs and self - actualization.
D) McClelland’s Achievements Motivation Theory
David McClelland’s defined the need for achievement as “the need to accomplish something
difficult to master ,manipulates or organize physical objects ,human beings or ideas .To do
this as rapidly and independently as possible ,to overcome obstacles and attain high standards
to excel oneself .To rival and surpass others ,to increase self regard by the successful exercise
of talents.

Developing the need for achievement: McClelland’s felt that the need for achievement was an
acquired need developed in childhood as a result of encouragement and enforcement of self
reliance by parent.

How an Organization can Motivate Employees:

Company benefits: Employees can be motivated by the management offering to give benefits to
their employees like medical cover. This could be covering employees inclusive of their nuclear
family members. This gives an employee a sense of appreciation and recognition.
Job recognition: Managements could also organize for events where they have recognition
for the jobs done by employees. This happens by an employer recognizing efforts of the best
employees who met the highest targets of sales within a specific time of the year .By Job
recognition the employees feel appreciated and are motivated to be even better.
Family fun days: Employer’s could also create some fun days. Where all staff members
meet and have fun with their families. This creates a sense of belonging and also reduces
the gap that could be between the top management staff and the subordinates’ .All the staff
members irrespective of their ranks can associate freely and interact freely which creates a good
environment of working in organization
Flexibility in working schedules: Employers could come up with flexible working hours /
schedules for staff member’s .This could be working shifts where some staff members can work
over night, or clock in early in the morning and get to leave early in the day as long as they have
worked for eight hours. They could also be paid for overtime hours.
Opportunities for promotions: Employer’s could motivate their staff members by having
opportunities for promotions. This will ensure that the staff members work to the best of their
abilities so as to achieve rewards.
Opportunities for advancement: Employers could also motivate their staff members by
creating opportunities for advancement by taking their staff members for scholarships and
trainings so as to advance their careers .They could also help in paying the school fees for staff
members as a way of benefits. These promotions should also be fair.
Involvement in decision making: Employers could motivate their staff members by investing
in decision making .This means that they the staff members are involved decision making. This
makes the staff members have a sense of having been part and parcel of the development of
the organization. Employees should also be able to make their own decisions concerning their
welfare e.g having welfare in the company.
Challenging jobs: This means that the employee should not be let to work on one job for too
long since it can cease to be challenging. Therefore one way the employer should deal with this
is enforce job rotation where the employee is moved in different departments in the organization.

How Motivation influences Behavior:

a. Increases commitment of the staff members towards the organizations. This can be seen
by staff members working and willingly going an extra mile.
b. People work effectively-Motivation makes staff members to work extra so as to meet
their targets, and deadlines without supervision.
c. People work efficiently: Motivation could lead to staff members working by not wasting
any of the organization’s resources .They could make the best use of the company
resources to produce good results .
d. Appreciate performance appraisal: the staff members appreciate when they are
evaluated because they are shown their areas of concern and congratulated for their area of
success.
e. Desire to increase personal success and achievement: when one is motivated they have
the enthusiasm to even achieve their own personal goals and targets. This is because they
are in an environment that allows them to do so.
f. Team work involvement: when staff members are motivated, they tend to be more free to
work with their colleagues because they feel they are a part of the company and they work
diligently to meet organization goals

? ?

Explain various ways managers motivate their employees?

Discuss the application of the motivation theories in today’s

management

TOPIC 6: STRESS MANAGEMENT AT WORKPLACE

Objective
By the end of this topic the student will be able to
i) Understand causes of stress
ii) Explain ways of dealing with stress at work place
iii) Explain the types of stress employees undergo.

INTRODUCTION
In a world where competition is becoming the order of the day, most employers have high
expectations on their employees concerning performance. The society too is changing very
fast. The emerging trends in globalization charges in tastes preference and lifestyles, a widening
gap between the affluent and the less affluent and increases in diseases have had tremendous
effects on the stability of employees and their overall performance. The general feeling in
most work environment is manifestation by absenteeism, internal stress which has lead to
dishonest behavior. Stress is normal part of every day life .this is because our lives and the
environment in which we operate do not remain static. These everyday life situations are what
the body sometimes perceives as a threat, thereby resulting in stress. According to Selyel,
stress is not necessary harmful but it depends on how we perceive and react to it. If we perceive
it negatively, and then our reactions and body responses are bound to be negative .and vice
versa. For example when an employee goes through an appraisal, how he\she reacts to the
negative feedback will determine the body’s physiological responses. If the individual perceives
negative feedback as a reflection of work performance, they may experience negative feelings
and humiliation .On the other hand, the employee may choose to look at the feedback area as
a opportunity for growth and experience an urge in creative feelings .Thus, amount of stress is
necessary to help us perform at our best in lives and ultimately help our minds and bodies to
prepare for difficult challenges and react appropriately in a time of crises

DEFINITIONS
Stress
It comes from the middle English word ‘stress’ which was short for distresse or distress –
meaning constrain or to force to draw tight or to press together. It may simply mean being
subjected to external forces or pressures which can be either be positive or negative depending
upon the effect of the external force mostly stress is used to indicate an emotional state of being
which our ability to function.

Stress factors or agents come from four areas of life.

- The physical
- The mental
- The social
- Spiritual
People react to stress differently but all in all, our attitude towards stress is most important e.g.
take it as a challenge that you can overcome. A certain amount is necessary to motivate us to
accomplish goals or profits.

Stress Management
High levels of stress or even low levels sustained over long periods, can lead to reduced
employee performance and thus require action management.

Causes of Stress
Sources of stress are as diverse as the dynamics that surround our day today life. They can be
traumatic events, life events, chronic difficulties, conflicts etc The stimulus that bring about the
physical responses from perceived demands, threats that may cause stress are known as stressors
and are grouped in following:

At work:
According to cooper and Marshall, the following are some of stress intrinsic to job.
Intrinsic to job
• Too much/too little work
• Poor physical working conditions
• Time pressures e.t.c

Role in Organization
1. Role conflict/ambiguity
2. Responsibility for people
3. No participation in decision making e.t.c
Career Development
1. Over-promotion
2. Under-promotion
3. Lack of job security
4. Thwarted ambition e.t.c prevents somebody doing what he intends to do.
Individual
1. Personality
2. Tolerance for ambiguity - Uncertain in meaning
3. Ability to cope with change
4. Motivation
Relationships within organization
• Poor relations with boss
• Poor relations with colleagues and subordinates
• Difficulties in delegating responsibility e.t.c
Organization interface with outside
• Company vs family demands
• Company vs own interests e.t.c
Being in the organization
• Lack of effective consultation
• Restrictions on behavior
• Office politics
At Home
• Dual career parenting
• Demands by extended family
• Problems with adolescents
• Over demanding partners
• Problems with house helps
• Economic hardships
• Single parent performing dual roles
• Domestic violence
• High expectations by family
• Lack of understanding of ones nature of work by family members
• Young children crying at night and keeping you awake etc.
Others
• Environment e.g. poor planning of cities
• Societal/cultural
• New technology
 • Political
• Platonic friends
• Competition between peers
• Problematic in-laws
• Unemployment
• Exams
• Street crime
• Monetary inflation/Economic recession
• Escalation of prices of commodities
• Poverty
• Famine

SIGNS AND SYMPTOMS OF STRESS

Physical
- Palpitations
- Pain and tightness in the chest
- Indigestion
- Breathlessness
- Nausea
- Muscle twitches
- Tiredness
- Vague aches or pains
- Skin irritation or rashes
- Susceptibility to allergies
- Fainting
- Clenched fists or jaws
- Frequent colds, flu or other infections
- Recurrence of previous illnesses
- Constipation or diarrhea
- Rapid weight gain or loss
- Alteration of the menstral pattern in women
Emotional signs
- Swings in mood
- Increased worrying
- Feeling angry
- Feeling guilty
- Feeling drained, no enthusiasm
- Feeling nervous, apprehensive, and anxious
- Feeling of helplessness
- Loss of confidence
- Lack of self – esteem
- Lack of concentration
- Withdrawal into day-dreams

Behavioral signs
- Accident proneness
- Poor work
- Increased irritability
- Increased smoking
- Increased dependence on drugs
- Overeating or loss of appetite
- Change in sleep pattern, difficulty in getting sleep and waking up tired.
- Loss of interest in sex
- Poor time management
- Impaired speech
- Withdrawal from supportive relationships
- Taking work home more often
- Too busy to relax
- Not looking after oneself.

EFFECT OF STRESS
§ Psychosomatic illness, e.g. peptic ulcers, ulcerative colitis, high blood pressure, strokes,
bronchial asthma, e.t.c
§ Depression
§ Low self-esteem/Loss of self confidence
§ Poor performance at work, in bed, e.t.c
§ Accidents
§ Marital breakdown/strained relationships

HOW TO COPE WITH STRESS

1. Relaxation
The human body cannot be in a state of relaxation and stress at the same time. People have
different ways of relaxing hence we talk of stability zones and rituals.
a) Stability zones can be considered as those physical areas where an individual may be
able to relax, feel safe and be able to forget about worries. Some examples might be: holiday
home/upcountry, home with or without family, park, room, bath, shower or warm bath, beach,
Favorite: pub, restaurant, café, chair, country walk, old car, old clothes.

Rituals are enjoyable regular or irregular habits or routines that individuals may have in their
repertoire (what they know) of adaptive behavior. However, these rituals are not to the point
of obsession, e.g. walking the dog, morning cup of tea, hobbies, weekend breaks, eating out on
Friday nights, reading book on the way to work Sunday outings, holidays, watching old films,
taking/meeting old friends.

Often stability zones and rituals are linked together, e.g. drinking tea whilst sitting in favorite
chair listening to favorite radio programme

Other ways to relax constitute therapeutic techniques that have been developed either by custom
or professional people e.g. transcendental meditation, yoga, relaxation response, progressive
relaxation, visualization exercises

2. Physical Exercise
Myriad - Jogging, aerobics, games, both indoor and outdoor, swimming, walking e.t.c

3. Assertion Training
Non – assertiveness means:
• Having difficulty standing up for yourself
• Voluntarily relinquishing responsibility for yourself
• Inviting persecution by assuming the role of victim or martyr
Typical words and phrases: Perhaps; may be; just; never mind; I mean; I wonder if you could.

Aggressiveness means:
• Standing up for your rights in such a way that the rights of others are violated in the process
• Being self enhancing at the expense of putting down or humiliating others
Typical words and phrases: your fault; you’d better; you‘re joking; you should/ought/must.

Assertiveness means:
• Being able to express your needs, preferences and feelings in a manner that is neither
threatening nor punishing to others.
- Without undue fear or anxiety
- Without violating the rights of others
• Direct, honest communication between individuals interacting equally and taking
responsibility for themselves.

Typical words and phrases: “I” statements: I want; I think; I fear. Co-operative: We could: let’s
Open questions: How do you feel? What do you want/think?

4. Diet
• Eat three moderate meals-rather than large one
• Avoid processed foods where possible
• Choose low fat foods
• Eat plenty of fresh vegetables and salads. Choose fresh fruit instead of pudding
• Eat fiber foods like pasta and whole meal bread
• Drink plenty of low-calorie fluids rather than alcohol
• Try to sparing with salt, which tends to raise blood pressure

5. Time Management
Better time management will help in reducing stress. Better time management at work will
provide more time for planning and recreation e.g. walking, dancing, etc.

6. Twisting your Thinking

Twisted, distorted thinking can cause stress. Some examples
a) All –or-nothing thinking - You look at everything in all-or nothing terms.
b) Over generalization - You view a negative event as a never-ending pattern of defeat.
c) Mental filter - You dwell on the negatives and ignore the positives.
d) Discounting positives -You insist that your accompliments or positive qualities don’t
count.
e) Jumping to conclusions - Mind reading: you assume that people are reacting negatively
to you when there is no evidence for this.
Fortune telling: you arbitrarily predict that things will turn badly.
f) Magnification or minimization - You blow up things out of proportion or you shrink their
importance inappropriately.
g) Emotional reasoning - You reason from how you feel: “I feel like an idiot, so I really
must be one”, ‘oughts’, and ‘have tis’are similar offenders.
h) Should statements - You criticize yourself or other people with ‘should’ and ‘shouldn’t’.
i) Labeling - You identify with your shortcomings. Instead of saying ‘I made a mistake’
you tell yourself, ‘I am not ’ ‘fool’, ‘loser’.
k) Personalization and blame - You blame yourself for something you weren’t entirely
responsible for, or you blame other people and overlook ways that your own attitudes and
behavior might contribute to a problem.

Explain the levels of stress and explain how they affect the employees’
performance?
TOPIC 7: THE GROUP FORMATION AND GROUP BEHAVIOUR

Objective
By the end of this topic the student will be able to:
i. Explain why people join groups
ii. Understand the types of groups found in an organization
iii.Explain the process of group formation
iv.Explain the importance of team groups in an organization.

DEFINITION OF GROUP
A group can be defined an combination of two or more people who interact with and influence
ach other towards a common purpose/objective

Types of Groups found in Organization

Formal work groups e.g. command, committees task group
1. Formal work groups e.g. command, committees, task groups
2. Informal work groups e.g., interest groups, friendship groups

1. Formal workgroups
Broadly there are two types of group found in organization below
Form workgroups are those defined by the organization structure, with designated work
assignments establishing tasks e.g. committees, task forces common groups etc.. E.g. of formal
groups- the six members making up an airline flight crew.

a) Command group
These types of group is determined by the organization chart. It is composed of individuals who
report directly to a given manager e.g. the C.E.O. or M.D. of an organization and the team he
works with i.e. manager and subordinates.

b) Task groups
This is a group of people working together to accomplish job related task i.e. a task force
established to solve a complex problem affecting the organization.

c) Committees
These are established as part of organizations structure to deal with recurring issues affecting the
organization e.g. a duplinary committee or planning
committee.

2. Informal Groups
Informal groups refer to alliances that are neither formally structured nor organizationally
determined. These groups are natural formations in the work environment that appear in
response to the need for social contact. Three employees from different departments who
regularly take lunch together are an example of an informal group.

The following informal groups are found in organizations.

a) Interest groups – This are group of people working together to attain specific objectives
with which each is concerned e.g. employees who band together to have their vacation
scheduled altered, to support a peer who has been fired or to seek improved working
conditions. This type of group is suppose to help individual within the group solve their
common problem
b) Friendship Groups – This are groups of people brought together because they share one
or more common characteristic social alliances which frequently extend outside the work
situation, can be based on similar age or ethic heritage e.g. support of a given football
club, or the holding of a given political views etc.

Why people join Groups

1. Security -By joining a group individuals can reduce the insecurity of “standing alone”
people feed stronger, and more resistant to threats when they are part of groups.
2. Status – People may join a group which is viewed as important by others and the need to
obtain recognition and status by the group members.
 3. Self esteem- Groups can provide people with feelings of self worth. In addition to
conveying status to those outside the group, membership can also give increased feelings
of worth to the group members themselves.
4. Affiliation- Groups can fulfill social needs people enjoy regular interaction that comes
with group membership e.g. on the job interactions work groups are people’s primary
source for fulfilling their need for friendship and social relations.
5. Power- Ability to achieve something what cannot be achieved individually often becomes
possible through group action. There in power in numbers.
6. Goal Achievements. There are times when it takes more than one person to accomplish
a particular task there is need to pool talents, knowledge, or power in order to complete
a job. In such instances, management will rely on the use of the formal group e.g. a
committee.

Characteristics Groups in Organization

1. Formal / Informal leadership – The formal leader of a group is appointed or elected to head the
group. Informal leaders on the other hand, tend to immerge gradually as group members interact.
The men or woman who speaks up more than others, who offers more and better suggestions
than anyone, who gives directions to the group duties usually becomes the informal leader.
Even informal groups such self confidence assistive individuals often develop into trials of the
formerly chosen leaders thereby weakening the leaders hold on the group members.

2. Group norms and Conformity

A working group establishes norms or acceptable levels and methods of behaviour to which all
members of the groups are expected to conform. This group attitude will have negative effect
on the organization if its sets low production norms. Groups often apply unfair treatment or
discrimination against others who break their rule.

NB. Groups can place strong pressures on individual members to change their attitudes and
behaviours to conform to the group’s standard.
3. Group Cohesiveness
Group solidarity is an important indicator of how much influence the group as a whole has over
individual members. The more cohesive the groups, the more positive individuals feel about
their membership in the group and the greater the potential influence in the groups. Individual
group members are less likely to violate the norms of the groups to which they are strongly
attached.

Stages of Group Development

I. Forming
This is the first stage of group development. It is characterized by a great deal of uncertainty
about the group’s purpose, structure and leadership. Members are “testing the waters” to
determine what types of behaviour are acceptable. This stage is complete when members have
begun to think of themselves as part of the group.
II. Storming
During this stage there is intra-group conflict. Members accept the instance of the group but
there is some resistance to the constraints that the group imposes on the individuality. There is
conflict over who will control the group. When this stage is complete, there will be relatively
clear hierarchy of leadership within the group.

III. Norming
During this stage close relationship develop and the group demonstrates cohesiveness. There is
now a strong sense of group identity. The norming stage is complete when the group structure
solidifies and the group has assimilated a common set of expectations of what defines a correct
member behavior.

IV. Performing
The structure at this point is fully functional and accepted. Group energy has moved from getting
to know and understand each other to performing the task at hand. For permanent work groups,
performing is the last stage in their development. However for temporary committees, teams
task force, informal groups, adjourning is the last stage.
 V. Adjourning
In this stage the group prepares for disbandment. High task performance is no longer the group’s
top priority. Instead attention is directed towards wrapping up activities. Responses of group
members vary in this stage. Some are up beat, basking in the group’s accomplishments. Others
may be depressed over the loss of friendship gained during the groups life

WORK TEAMS AND EFFECTIVENESS

Define of a Team
A team can be defined as a group of individuals brought together to work on a common task or
problems e.g. A committee, task force or a functional team i.e. members of one department such
as hr, production and operations, marketing etc.

Factors Influencing effectiveness of Work team

1. Teamwork prevailing among members
2. Clarification of the objectives/goals perused by the team members.
3. Commitment to the group objective
4. Wanted support by members to each others.
5. Effective communication between members of a team. Effective leadership provided by
the team leader.
6. Mutual trust among members
7. Relevant skills i.e. individual should have necessary interpersonal and technical skills to
achieve the team objectives.
8. Monitoring of the group norms and ensuring that its supports the groups objectives.
9. Individual should have the motivation to achieve the team objective.
10.There should be cohesiveness by members Decision should be made through
cohesiveness.
11. Expectations should be made clear on all the group members.
12. There should be clarification of individual roles in the group to avoid conflicts etc.
 ? ?

Discuss features of informal groups which can be harmful and useful to

build efficiency and effectiveness in an organization?

Discuss the negative and positive aspects of group cohesiveness

TOPIC 8: POWER & POLITICAL BEHAVIOUR

Objective
At the of the topic the student will be able to,
i) Understand the meaning of power and politics
ii) Explain the types of power that exist in an organization
iii) Discuss the political behaviour found in an organisation

POWER
Definition
Power is the right to implement personal decisions, granted to selected individuals by the
upper hierarchy of the organization (the individual’s concerned can choose to exert the limit of
their authority to the fall (autocracy or can choose to share their authority by delegation, thus
transferring their power to act to others).

Power can also be defined as the control or influence over the behaviour of other people with or
without their concerts. Within an organization, leadership influence will depend upon the type of
power that the leader can excersise over the followers. The exercise of power is a social process
which helps to explain how different people can influence behaviour or action of others.

Leaders can influence their followers and apply their authority effectively because a true leader
has power of one kind or another.

Without power it is believed that a leader would not be able o influence subordinates properly to
voluntarily perform their duties in the productive attainment of the organization objectives.
Power has nothing to do with a manager’s position in the hierarchy and is not acquired through
title or any entry in an organization diagram. A leader has to EARN IT i.e. a manager with
power is far more effective than one who only has authority.

SOURCES OF POWER TO A LEADER

There are five main sources of power upon which the influence of the leader is based (also called
kinds of power) or bases of power as follows:
1. Legitimate power
2. reward power
3. Coercive power
4. Referent power
5. Expert power

1. Legitimate power
- It refers to the authority that the organization grants to a particular position.
- This is what is generally known as “authority” i.e power conferred on an individual by
the organization.
- It implies the power to act as well as power over resources and is invariably limited in
some way. Thus a manager has the right to compel subordinates to perform their duties
and to dismiss them if they do not.
- It is also based on the subordinates perception that the leader has a right to exercise
influence because of the leaders role or position in the organization.
- Based on authority it can be referred to as “position” power because it is based on the
role of the leader in the organization and not the nature of the personal relationship with
others.
NB: Even though equated to authority the fact that a manager has legitimate power does not
necessarily make him/her a good leader.

2. Reward power
This is the use of rewards to influence people’s compliance; one can give or withdraw reward.
- It is based on the subordinates perception that a leader has the ability and resources to
obtain reward for those who comply with directives e.g pay rise, promotion etc.
- The greater the number of reward conferred by a manager and the more important these
rewards are to subordinates, the greater his power.
- To be effective, the reward must also be desired by the target group e.g. where a
firm offers financial inducement to a group under pressure in order to maintain their
commitment to a task, but failed in this because the group valued time off more highly
than extra monetary reward.
3. Coercive Power
This is the crudent form of power, which uses threat and punishment to achieve its end e.g the
threat of dismissal for non-cooperating staff, or physical demonstration such as wack-outs by
employees.
- Coercive power is the power to enforce compliance through fear either psychological or
physical.
- It is also based on the fear and subordinate’s perception that a leader has the ability
to punish or to bring about undesirable outcomes for those who do not comply with
directives. This is in effect, the opposite of reward power and is normally used to bring
pressure to bear on their subordinates.
-
4. Referent power
This is what is generally known as personal power, or charisma. The individuals power
comes from the high regard he or she is held in by others, should that regard father or wane
then this form of power vanishes. Thus referent power is often employed in conjunction
with other power sources.

5. Expert power
It is the power that comes from possessing specialized knowledge and skills.
- It is dependent on the expertise being recognized by those concerned thus “credibility” is
a vital otherwise no one will take any notice.
- Expert power is usually limited to narrow, well deferred area or specialization. The
more important the knowledge/information and the fewer the number of the people who
possess it, the greater the power of the person who commands it.
A manager who possesses all five kinds of power is a strong leader but NOT only managers or
leaders have power, subordinates also possess it.
An effective manager thus uses leadership power in a way that maintains a healthy balance
between their own power and that of their subordinates.

Political behavior (In Organization & Leadership)

- Another general influence on the behavior of a leader and subordinate in an organization
is the ever- phenomenon of politics in an organization
- Political behavior in an organization entails people gaining and exercising power
to obtain specific outcomes. This somewhat plays a decisive role in both leader and
subordinates behavior when decisions have to be made and certain preferences about how
things should be done.
- Politics in an organization may involve decisions such as
• Location of facility or less important decision as determines time for lunch break.
- People participate in political behavior in the organization so as to:
• Advance themselves and their interest
• Protect themselves from others
• Or simply to gain and exercise power (in group or as individuals)
- In most organization politics is often referred as dirty play and backstabbing and does
heavily influence behaviour

Types of Political Behavior in the Organization

Four basic forms of political behavior that occur widely in organizations can be identified.
a. Inducement
b. Persuasion
c. Creation of an obligation
d. Coercion
Inducement - This occurs when a manager/senior offers or promises something to someone in
exchange for that persons support. e.g. A manager can create a post for a subordinate/friend if
they are ready to put good word for the manager section at evaluation period.
Persuasion - This plays on a subordinate’s emotion and may even include fear or guilt.
Creation of an obligation - A manager may e.g. support another in a specific matter even if
opposed to it, being fully aware that the first manager’s support will be needed sometimes in
future to realize his/her own objectives.
Coercion - Is behaviour that borders on the use of violence to get one’s own way. e.g a manager
may threaten to withhold someone’s reward or resources in an effort to get his her own way.

Managing Political Behaviour in an Organization

(Question arising)
- How should managers handle political behaviour in the organization so that it can be used
constructively in leadership process?

Proposed guidelines
a) Managers should be aware of the fact that certain people regard some of their action
as political even if this is not so (thus the need to be cautious in their leadership/
management role).
b) By granting adequate autonomy and responsibilities to subordinates and receiving
regular feedback, managers reduce the risk of political behaviour on the part of
subordinates.
c) Managers should limit the use of power if they wish to reduce the likelihood of being
accused of political behaviour.
d) Managers should clear the air by handling differences and conflicts openly. Frank
and open discussion of differences will reduce the likelihood of political behaviour.
e) Managers should avoid cover behaviour as much as possible.
f) Management systems that avails juniors realistically, reward systems that are directly
serviced to performance and a restriction on competition among managers in respect
of resources allocation can also help to keep political behaviour to a minimum.
Summary
Managers/employees should know that political behaviour develop and occurs in every
conceivable kind of organization and should try to manage rather than pretend it does not exist.
Positive management of political behaviour and conflict is a decisive factor in successful
What should Manager’s do to ensure that political behavior is not tolerated
in the organization? Discuss ? ?
TOPIC 9: LEADERSHIP IN THE ORGANISATION

Objective
At the of the topic the student will be able to,
i) Understand the meaning of leadership
ii) Explain the types of leadership styles that exist in an organization
iii) Discuss the best leadership style suggested for managers

Leadership
Is a process in which one individual or sometimes a small group of individuals influences the
efforts of others towards the achievement of goals in a given circumstances. Leadership can also
be defined as the relationship through which one person influences the behaviour or action of
other people. This means that the process of leadership cannot be separated with the effective
team building.

From management perspective, leadership is influencing and directing the behaviour of

individuals and groups in such a way that they work willingly to pursue the objectives and goals
of the organization.
Thus, the key variables in any leadership situation as follows:
- The leaderThe group members (both as individual and as whole)
- The groups goals and tasks
- The external environment in which the group operates e.g structure, culture.

Effective leadership amounts to find the optimum balance between these four sets of variables,

A leader’s role is fundamental in the success of leadership process. In actual practice leaders are
appointed and the grounds of their experience with the kind of work involved and their potential
for handling interpersonal relationships.

Membership: The nature of membership of the group is a factor in the total leadership equation,
since the leader behaviour will be influenced strongly by the nature of the group members, their
skills, their strengths and weaknesses, their personality and their motivation. Interaction between
leader and members is dynamic and each will set-off reactions in the other.

Goals and task: The effect of group goals and task on leadership situation is also significant for
work teams. External environment: This is the general situation in which a group exist, it has an
impact on the leadership exercised in the group.

The extent to which decision making authorities is delegated down the line, the nature of the
organizations business, the demand exerted on the group by the external clients/customers, the
demand exerted on the group by other group within the structure, the nature of the organization
culture and the time scale within which objectives have to be achieved are some of the factors
that have a bearing on the environment of group and leadership. A leader is thus confronted
by all these issues of goals, tasks, group membership and environment and is complex. How a
leader responds to this situation will depend on support received from the rest of the organization
and on the in his leadership style.

Who is a leader?
It is a person who stands out in influencing the activities of a group in setting goals and making
progress towards achieving these goals.

Comparison between manager and a leader

Introduction
- Leading is not the same as managing
- Leadership and management are only related but are not the same
- A person can be a manager, lead both or neither.
- Management is much broader in scope than leadership and deals with all the functions of
management including leading.
- Managers focus on non behavioural aspects of management e.g systematic selection of
goals and objectives, development of strategies to achieve the goals, the design of the
organization and the control of the activities required to attach the goals.
- Leaders on the other hand focus on behavioural aspect of management. The leader focus
on energizing people to change what needs to be changed and to steer the organization in
certain direction.
- Managers are seen as more directed to maintaining the status quo, in an effective way and
availing the sustained effort needed to maintain new directions.
- Leaders are on the other hand involved in bringing about change envisioning a new future
for the organization and impassioning people to commit and dedicate themselves to the
new direction.

Fundamental differences between management and leadership

1. Managers administer while leaders innovates
2. Managers maintain while leaders develops
3. Managers focuses on systems and structure while leaders focuses on people
4. Managers relies on control while a leader inspires trust
5. A manager keeps an eye on the bottom line while a leader has an eye on the horizon
6. A manager does things right, a leader does the right things i.e. managers concern is
efficiency while leaders concern is effectiveness.

QUALITIES OF A GOOD LEADER

(Should possess)
1. Energy - He should have both mental and physical energy to work for sufficiently long
hours without feeling tired.
2. Emotional maturity and stability: A leader should act with self confidence, avoid anger,
take decisions on rational basis and thank clearly and maturely. He should not be whimsical
but consistent in his action because of his emotional stability and his cool mind.
3. Knowledge of human relations: A leader should have an understanding of human
behaviour, that is, he should know people , know their needs, sentiments, emotions and also
their actions and reactions to particular decisions, their motivation etc
4. Objectivity
A leader’s approach to any issue, problem should be objective and not based on any pressure,
fear, bias, prejudice or pre conceived notions. His decisions should be based upon reasoning,
facts and careful analysis of a problem. Objectivity is a vital aspect of analytical decision
making. It also helps to ensure a fair, consistent course of action from the leader.
5. Empathy
 A leader should also be able to look at things objectively and from the point of view of
others, respect their right of beliefs and sentiments. In other words he should equip himself to
meet the challenges emanating from the action and reaction of other people.
They should be perceptive or empathetic towards his subordinates, followers so that he can
discern their strengths, weakness, ambitions and can give them the attention they deserve.
6. Personal motivation
It involves the creation of enthusiasm within the leader himself to get the job done. Its only
through enthusiasm that one can achieve what he wants.
7. Communication skills
A leader should be able to talk and write clearly and forcefully, have ability to persuade, to
inform, stimulate, direct and convene his subordinates that it is in their own interest to offer
him their willing cooperation in their performance of his task.
8. Teaching ability
A leader should have the ability to demonstrate how to accomplish a given task, to correct
errors, prepare followers for achievement and as questions and offer suggestions.
9. Social skills
He should understand his people and their weak and strong points ie. Have the ability to win
their confidence and loyalty, be helpful, friendly sympathetic and easily approachable. He
should have the skills to ensure that others succeed.
10. Integrity
He should be morally sound, straightforward, honesty in purpose which makes him truthful
not only to others but to himself.
11. Conceptual skills
He should have the ability to look at the enterprise as a whole, to recognize that the various
functions of an organization depends upon one another and are inter-related, that changes in
one affect all the others.
12. Moral courage to do the things which he believes are right and stand by the decision he has
taken. Quote “Without courage there are no virtues for faith, hope, charity and all the rest do
not become virtues until there is courage to exercise them”
13. Flexibility of mind: A leader should have a flexible mind so that he may change in
obedience to the change in circumstances. “A foolish consistency is the hobgoblin of a little
mind”
14. Ability to establish proper priorities: The leader must be capable of sorting out and seeing
what is important and what is not. When decisions are necessary, the gifted leader knows
which alternatives are worthy of consideration and which are not.

MANAGERS ROLES IN THE ORGANIZATION

A manager performs a large number of activities and functions in an organization. A manager
keeps changing his role depending upon the requirement of the situation or the organization.
These roles are also reflected in the behaviour depending upon the profile of the manager which
describes what managers actually do, whereas functions of managers are required to handle
different kinds of problems that’s why they perform different kinds of the functions. In this
regards Mintzberg’s has identified ten functions of a manager and classified them into the major
heads.

1. Interpersonal roles: As the term itself suggests, the interpersonal roles help manager in
achieving their goals in the organizations. These roles are;
• Figure head role: This role makes the manager a figurehead in the organization. It
presents the managers as a symbol, required by the status of his (d) profile, to accomplish
many social, legal and ceremonial duties. This roles is defined basically by the office he
holds.
• Leader role: A leader makes the followers more effective by motivating them in order to
achieve the organization goals. This is basically the relationship between the superior and
the subordinates, his hiring power, training skills etc. As a leader he make the balance
between the needs and requirements of the organization and the subordinates.
• Liasion role: This is the role in which manager communicates with the outsiders. He
serves as a bridge between the organization and the outside such as customer, suppliers,
society, government etc.
2. Informational roles: Communication is the very first requirement of every organization
to achieve its goals. Receiving and transmitting information is required to take actions or
decisions. These roles can be of three types:
• Monitor role: He continually keeps monitoring the market or environment in order to
get the current or latest information. To get this information he uses his liaison role and
leaders’ role.
 • Disseminator role: This is the role of the manager in which he passes information to
the subordinates. This information can be direct or received from the market or the
managers may analyse a situation and generate information which he passes to the
subordinates: But passing information does not mean that manager becomes free from his
responsibilities, of executive and control.
• Spokesman role: In this role, the manager passes information to the outsiders like
clients, suppliers, government, society etc. He basically act as the representative of the
organization. He also represents his subordinates in front of the superiors.
3. Decisional roles: Success of failure of any organization depends upon the type of decision
taken by the managers. These decisions are based on information. The various decisional
roles are:
• Entrepreneur role: In this role, as the term itself suggests, the managers acts as an
entrepreneur i.e an initiator and innovator. He works to bring about changes in the
organization. He endeavors for the opportunities and finds our problem in order to solve
them.
• Disturbance handlers role: Now a days a major problem of every organization is
to survive in the market and for that one of the major requirement is trouble free
environment in the organization i.e the manager has to sort out major crisis, canselation
of orders strikes etc.
• Resource allocator role: In this role the allocates the resources among the members of the
organization so as to ensure a smooth running of the organization. He decides who will
get what, who do what in the organization.
• Negotiator role: This is role in which the manager acts as a negotiator whenever required.
His role is important because he has the information and authority to make decisions. He
may need to negotiate with outsiders like suppliers, customers etc. Or with people in the
organization like his superiors for the “benefit” of his team or subordinates. Negotiation
may be required with subordinates to get acceptance for the polices decided by his
superiors.

APPROACHES TO LEADERSHIP
There are three basic approaches to studying and describing leadership i.e.
- Trait
- Behavioral
- Contingency approaches

a) Leadership traits
Assumes that great leadership possess a set of stable and enduring traits or characteristics that
set them apart from followers. Adherents of this theory attempt to identify these traits so that
they could be used as a basis for selecting managers. Attention was focused on the search for
traits and researchers studied common traits such as intelligence, height, self confidence and
attractiveness. However traits proved to be ineffective bases for selecting leaders because the
known good leaders had such diverse that it was impossible to draw a list of common traits.

b) Behavioural approach
This approach sought to define behaviors that set effective leaders apart from ineffective leaders.
A leader may have either job centered behavior or employee centre contingency approaches.

Contingency approaches
Contingency approaches to leadership suggest that situational factors must be considered. One
kind of behaviour may work in one setting but not in another. The goal of contingency approach
is to identify the situational variables that managers need to consider in assessing how different
forms of leadership will be received.

LEADERSHIP STYLES WEEK 10

The method or style of leadership a manager chooses to use greatly influences his effectiveness
as a leader. An appropriate leadership style coupled with a proper external motivational
technique can lead to the achievement of both individual and organization goals. If the style
is in appropriate, goals could suffer and workers may feel resentful, aggressive, insecure and
dissatisfied.
There are three main styles of leadership
a) Autocratic style
- All authority and decision maker is centred in the leader
- He makes all decisions, exercise total control by use of reward and punishment
- An autocratic leader requires conformity from his subordinates and always consider his
decision to be superior to this of his subordinates. One advantage of autocratic
leadership is that it allows faster decision making but it can easily cause workers to
experience dissatisfaction, dependence on the leaders or passiveness towards.
b) Democratic or participative style
This style of leadership seeks to obtain cooperation of workers in achieving
organizational goals by allowing them to participate in decision making.
- It does not relieve the leader of his decision making responsibilities or of his power over
subordinate but it requires that he recognize subordinates as capable of contributing
positively to decision making. Participative decision making (leadership) can lead
to improved manager-worker relations, higher morale and job satisfaction, decreased
dependence on the leader and better acceptance of decisions. However, it also has
certain limitations, delayed decision making “group think”, time consuming and diluted
decisions due to compromising.
c) Laisses fair style (free reign)
This style does not depend on the leader to provide external motivation but, the worker
motivates themselves based on their needs, wants and desire. They are given goals and
left on their own to achieve them. The leader assumes the role of a group member.

This approach increases worker independence and expression and forces them to function as a
member of a group. The main disadvantage is that group could lack direction or control which
may result into frustration in the workers. For Laisses faire to work the subordinates must be
competent, reliable and well versed with the goals of the organization.

CONTINUUM OF LEADERSHIP
The style of the management styles above depend on three factors i.e.
i) Forces in the leader which include his value system, confidence in own leadership
inclinations, feeling of insecurity and uncertainty and confidence in his subordinates.
ii) Forces in subordinates – each desires experience, training, abilities skills etc. It is
therefore beneficial for the manager to understand these forces at work within his
employee’s e.g a manager can allow participation of subordinates in decisions if this
are competent, well trained and have high need for independence.
 iii) Forces in the situation: Include environmental pressures e.g. type of organization,
effectiveness of work group, type of problems and urgency of the problem. e.g
production workers may work better under one style while professionals may work
better under a different style.

Discuss various styles of leadership found in organization

Leaders are created not born. Discuss

Highlight various characteristics found in almost all managers

TOPIC 9: COMMUNICATION IN ORGANISATIONS

Objective
At the of the topic the student will be able to
i) Understand the meaning of communication
ii) Explain the types of communication channels that exist in an organization
iii) Discuss various ways of communicating formal information to employees.

Definition
1. The process of transmitting information and meaning. This process is used when there is
something that the sender wants the receiver to know, understand or act upon.
Meaning
Implied in this definition is the ability to listen as no meaningful message can be conveyed
without a willing listener.
2. To communicate is to make know, to impart or to transmit information; communication
forms the bridge between managers and employers.
• Communication is an integral part of managing because its only through communication
that a manager can make himself understood by his employees.
• Managers must receive and give ideas, reports, and instructions, explain problems
and give demonstrations. An organization must also keep in touch with its relevant
environment i.e customers, suppliers, dealers, regulations etc. Talking, listening,
attending meetings, reading and writing occupies must of the manager’s time.
 • Communication is therefore essential for effecting organization performance. Effective
and efficient communication results in better overall performance. Ineffective
communication leads to loss of meaning or misunderstanding which in turn leads to
mistakes.
• The success of an organization is a reflection the effectiveness of its communication.
Many mistakes and negative results in an organization e.g accidents, waste, duplication
of work and incomplete work can be traced directly to poor communication.

Purpose of Communication
a) Establish and disseminate goals of an enterprise
b) Develop plans for their achievement
c) Organize human and non human resources
d) Select, develop and appraise staff
e) Control performance
f) Direct, lead to motivate employees.
NB: Communication is a two way process where everyone is both a receiver and sender of
information. Effective communication must involve transfer of meaning from the sender to the
receiver i.e. the information received must be understood by the receiver. I the receiver does not
understand the meaning of the message then communication is not effective.

THE COMMUNICATION PROCESS

The complex nature of the communication process must be understood if it is to be effective and
meaningful. The process traces the movement of information from the sender to the receiver, it
has the following elements (as illustrated in the model of communication.
 TRANSMIT RECEIVE

Message

Message
Sender Encoding Channel Decoding Receiver

Transmit
Receive

Noise or Barriers

FEEDBACK

Communication takes place between sender and a receiver.

Sender
Initiates the communication. In an organization, the sender will be a person with information,
needs or desires and a reason for communicating them to one or more other people.

Encoding
This takes place when one translates the information into a series of symbols for communication.
In this case an organization – the symbol used by the manager could be words or pictures.
Encoding is necessary because information can be transferred only through representation
or symbols. Since communication is the object of encoding, the sender attempts to establish
maturity of meaning with the receiver by choosing symbols, usually in the form of words and
gestures that the sender believes to have meaning for the receiver.

Channel
This is the link between the sender and the receiver of the message i.e the mode of transmission
of the message. For example a manager may choose the following channel: oral, non verbal and
written. He can choose a one-to-one, face to face situation etc.

The choice of the channel is affected by the following factors:

i) Urgency – when the message is very urgent, a telephone call may be the most
appropriate
 ii) Importance – important messages are better communicated face to face
iii) Need for documentation – go for written form
iv) Delicacy of message – for most delicate – go for that which can not be tapped into/
copied/edited.
v) Cost involved – If the sender is constrained by cost the – mass media may for example
be the most appropriate (in relation to numbers intended)
vi) Future reference – where future reference is required written message must be used

Noise
Is any factor that disturbs, confuses or otherwise interfere with the transmission of
the communication. Anything whether in the sender, channel or receiver that hinders
communication must also be considered e.g a noisy or confined environment may affect thinking
by clogging the mind. Ambiguous symbols and words may destroy meaning.

NB: Noise may be internal or external

Internal source e.g experienced discomfort with sender e.g. stress, exhaustion, a dislike for the
sender or even hunger – will cause message to be destructed.

External noise: e.g Phone ringing, moving objects etc.

The receiver
This is the person the sender wants to reach with the message. There may be one receiver
e.g when a manager discusses performance with a staff or there may be many e.g when a
memorandum is addressed to all members.

Decoding
Once the receiver receives the message he has o decode it. It is the process in which the receiver
interprets the message and translates it into meaningful information. It’s a two step process i.e
the receiver must first perceive the message and then interpret it.

NB: Decoding is affected by the receiver’s past experience, personal assessment of the smbol
and gestures used, expectations etc. The more the receiver’s decoding matches the sender’s
intended message the more effective the communication will be.
Feedback
This is the action taken by the message receiver once the message has been conveyed. Its only
through feedback that the sender can know whether the process to the message.

NB: To be able to communicate effectively its important that one gains and holds the attention
of the receiver. This is difficult because the competition for attention is enormous. One receives
too many messages at the same time and because naturally the attention span is limited, peoples
mind keep wondering.

Managers at the top face more noise than heir subordinates. They must keep up to date with
many institutions outside the organization and each institution keeps sending different messages
to the manager which all requires his attention. For communication to be effective the message
sender must have a good knowledge of the receiver. Over estimation of the receiver e.g his
intelligence will lead to misunderstanding of the message. Income, social status, responsibilities
and position of the receiver all affect and influence the way a message is perceived. How well
the receiver knows the sender may also influence perception of the message. People differ in
many ways therefore they interpret message differently. The message sender must therefore tell
or each message to suit the receiver.

ORGANIZATIONAL COMMUNICATION NETWORKS AND TYPES OF

COMMUNICATION
There are two primary organizational communication networks i.e.
a) The formal communication network and
b) The informal communication network

Formal communication network

This is the communication that follows the hierarchical structure of the organization or the chain
of communication. It follows the formal, established, official lines of contact – in other words,
it follows the prescribed path of the hierarchical chart and tends to be explicit in terms of “who
should be talking to who and about what).
Informal network
Involves communication that does not follow the hierarchical path or chain of command it tells
you “who is really talking to whom and about what”. It refers to links that have grown out of
relationships between employees and management and that have little or no correlation with the
formal organization chart. The formal network is very strong in most organizations. It is usually
much faster and more accurate than the formal relational.

TYPES OF COMMUNICATION (IN THE FORMAL ORGANIZATION/NETWORK)

All organizations generate internal communication and the communication flow is
multidirectional. It flows in four directions
- Downwards
- Upwards
- Horizontally
- Laterally

Downward communication
Starts with top management and flows down through the managerial levels to workers.

Purpose
The major purpose of downward communication is to provide subordinates with information e.g.
organizational goals, strategies, policies etc.

NB: Downward communication is likely to be filtered, modified or halted at each level as

managers decide what should be passed down o employees.

UPWARD COMMUNICATION
It is used when employees send message to their superiors.

Purpose
The main function of upward communication is to supply information to the upper level about
what is happening at the lower level e.g. an update about customer’s nails/tastes. Subordinates
can also communicate with managers through progress reports, suggestions, special requests etc.
NB: There is a danger in this form of communication particularly when middle management
involvement filter information before it reaches top management.

To encourage open communication between subordinates and managers- managers often make
use of open-door policies or management by walking around. (MBWA) This later means
that managers get out of their offices and talk freely to employees on the shop floor deal with
difficult customers etc.

HORIZONTAL COMMUNICATION
It occurs between people on the same level of the hierarchy and is designed to ensure or improve
coordination of the work effort.

NB: It’s formal communication but does not follow the chain of command. E.g when the head
of marketing discuss the appointment of a new sales person with head of Human Resource –
horizontal communication takes place. It has the basic task of coordination within departments as
well as between different departments.

NB: Effective horizontal communication should prevent – TUNNER VISION in the

organization i.e the idea that a particular department is the only important one in the
organization. Meetings play a decisive role in promoting effective horizontal communication,
provided that the right people attend them.

LATERAL COMMUNICATION
Takes place between people at different level of the hierarchy development or section and is
usually designed to provide information, coordination or assistance to either or both parties. E.g.
–when head of Human Resource explains new safety policy to supervision in production op the
normal authority path is not followed. However communication occurs with the knowledge
approval and encouragement of managers who understand that lateral communication may help
relieve their communication burden and also reduce inaccuracy by putting relevant people in
direct contact with each other.
 Top Manager

Downward Downward

Asst top Manager Asst top Manager Horizontal Asst Top Manager
Marketing Production Finance
Upward Lateral

Marketing Manager Production Manager Finance Manager

Upward

Sales representative Foremen

Accountant

INFORMAL COMMUNICATION
Communication is seen as informal when its not official or sanctioned by management. Its
communication called GRAPEVINE. It can begin with anyone in the organization and can flow
in any direction.

Grapevine’s prime function is to disseminate information (both managerial and non managerial)
that is relevant to their needs. It derives its existence from employees SOCIAL and PERSONAL
interest, rather then from formal organization requirement.

NB: Rumors and Grapevine are not the same. Rumors is information without factual basis, may
just as easily be communicated via formal as informal channel of communication.
- Whether they view it as an asset or a liability, managers must understand the grapevine –
since it is always
§ Present
§ Speedy
§ Largely accurate.
- Managers should use it as another means of transmitting information. They should learn
who is likely to spread information and “feed” these.

WAYS OF COMMUNICATING IN ORGANIZATION

There are a number of communication media i.e
- Speech or oral communication
- Non-verbal communication
- Written communication
- Audio visual & electronic means

Every each medium there is a variety of methods of communication which can be employed in
an organization.

SUMMARY OF COMMUNICATION MEDIA AND MAIN METHOD OF ORGANIZING

COMMUNICATION & APPROPRIATENESS

Communication medium Communication method Used mainly for

communication
Written communication - Official paperwork
- Information bulletins
- New letters
- Company newspapers Mainly used for downwards
- Company reports
- Employee reports
- Notice boards
- Manuals
- Training handout
- Suggestion schemes
- Attitude survey
Oral communication - Mass meeting
- Meeting of representatives
- Departmental meeting
- Briefing groups
- One-to-one exchanges
- Formal presentations
 Audio Visual - Slides
- Tape sudes
- Film stripes
- Film
- Television/video
- Audio tape
- Company Radio
- Posters/flip chart/blackboards
Electronic communication - Electronic mails
CBT
Non-verbal Present during any communication via speech
and some audio visual communications e.g. facial
expressions, body gesture, eye movement, distance
mainlines ( fans can reinforce what we say or
contradict it)

etc NB: The choice of communication method will depend on the duration of communication
(upward, downward, lateral) and also on the specific nature of the message to be communicated
e.g an initial communication on a stuff unsatisfactory performance- best in official memos,
company rules verbally, induction course-supported by written summary company performance
on newspaper.

NB
As a general rule messages are more successfully communicated if more than one
communication medium is used.
- Smoke signal
- Jungle TomToms
- Taps on the prison walls
- Ordinary conversation

Cost
Another factor to consider when choosing a medium is cost (try to convey a message efficiently
for less money.

Variety
Is another important sector to consider when choosing communication method. If any particular
channel of communication is overloaded – this may result in escape queuing, loss of quality,
delegation or prioritizing. e.g. if organization uses too many posters employees may escape by
ceasing to read any posters or not reading them properly.

Overuse – if a communication channel is overused- it becomes less effective.

BARRIERS TO EFFECTIVE COMMUNICATION

Whichever way messages are being transmitted, communication barriers prevent understanding.
Barrier common to a typical organization can be place in four categories namely:

Intrapersonal Interpersonal Structural

Factors factors
a) Intrapersonal factors
• Perception
• Individual differences in communication skills
b) Interpersonal factors
• Climate
• Trust
• Credibility
• Sender-receiver
Similarly
c) Structural factors
• Status
• Serial transmission
• Group size
• Spatial constraints
d) Technological factors
• Language and meaning
• Non verbal cues
• Media effectiveness
• Information overload
1) INTRAPERSONAL FACTORS
a) Perception
Differing perceptions are one of the most common communication barriers. This difference
will be as a result of different background, values, experience, social and gender issues. In
other words they reject or inaccurately perceive information that is inconsistent with their
expectations. (This phenomenon is called – SELECTIVE PERCEPTION - and is a barrier to
effective communication.
b) Individual difference in communication skills – people differ in their ability to develop
and apply basic communication skills. Some can express themselves orally but can write clearly
and concise messages, others are effective speakers but poor listeners. Others – read slowly
and find it difficult to understand what they have read. Such difficulties are potential barriers to
effective communication.

2) INTERPERSONAL FACTORS
a) Climate
The relationship between superior and juniors is often based on the way each treats the other and
how this reciprocal behaviour arise either limit or encourage the content and frequency of their
communication and the method of their communication. The contribution of these elements
comprises the CLIMATE of an interpersonal relationship.

Trust
Between sender and receiver also influence effectiveness of communication. Honesty and
openness are prerequisite for effective communication. Distrust between senior/subordinate
serve to increase defensiveness and decrease frequency of open expression and he likelihood of
effective communication.

Credibility
Refers to the perceived characteristic of an information source. Honesty, competence,
enthusiasm and objectivity give credibility to a source.
Sender-receiver similarity
The accuracy of communication between two communicators is directly related to how similar
they perceive themselves to be. Those who perceive themselves as being similar are generally
willing to accept each others view point and to express agreement.

3) STRUCTURAL FACTORS
a) Status
The influence of status on the direction and frequency is such that (through studies evident)
• People generally prefer to communicate with people of higher status
• People of higher status generally communicate more with one another that they do with
people of lower status
• The wider the difference in status is, the greater the likelihood that information will flow
from higher to lower status
• In conversation people with high status generally dominate
• People with low status often attempt to gain the favour of those with higher status by
displaying respect, offering praise and agreeing with their views.\

SERIAL TRANSMISSION EFFECT

The greater the number of management layers a message pass through the longer it will take
to reach its destination and the less likely it is to be accurate. In effect, layers of management
often act as communication filters that distort the transmission of information. The changes that
messages undergo as they are successively communicated from layer to layer are known

Size of a work group

As the size of work group increases interpersonal communication becomes increasingly difficult.
This occurs in part because the shear volume of interrelations necessary to keep everyone
informed tend to make concerted action more difficult.

SPATIAL CONSTRAINTS
Refer to physical distances between workers in general the shorter the physical distance between
two individuals the more frequently they will interact.

TECHNOLOGICAL FACTORS
Technical changes have an impact on the effectiveness of communication media and the amount
of available information BUT – NB introduction of new technology does not ever replace the use
of older ones. E.g use of electrical mail hasn’t made face-to-face meeting redundant. For this
reason language and meaning and non-verbal cues are also discussed under technological factors.

Language differences
Often closely related to difference in perceptions thus for proper communication – words used
must have same meaning to senders and receivers e.g NON VERBAL CUES. They usually
accompany orientation and gestures, failure expression etc. These silent messages assist in the
accurate transfer of meaning.

Communication medium – The use of incorrect one may also be a barrier to effective
communication. The comparative effectiveness of each type (managers’ use written, oral,
multimedia in different situation e.g.)
• Written media – most effective for lengthy/detailed massages
• Oral – most effective for requiring transaction and elaborate
• Multimedia – for situations e.g. settling work disputes communication policy change etc.

Information overload
Occurs when individual receives so much information that he is overwhelmed by it. To prevent
it managers often ask juniors for an executive summary.

HOW CAN COMMUNICATION BE IMPROVED (BECOMING BETTER

COMMUNICATE)
- Improvement in communication should be an ongoing goal for managers especially due
to the vital role it plays in an organization.
- Effective communication requires that meanings must be transmitted and understood.
The responsibility for communication resist upon management as they are in charge
of the organization. Both the sender and receiver of the message can improve
communication.

WHAT THE SENDER CAN DO TO IMPROVE COMMUNICATION

1. Clarify ideas before communication and examining the purpose of communication
2. remove hierarchical barriers – e.g status – difference is a limit to effective
communication as it creates psychological distance which makes employees filter the
information
3. Require inter personal barriers – e.g distrust (defensiveness)
4. be sensitive to the receiver’s perspective. The communication should be empathetic to
the receiver
5. Develop and maintain credibility (this is usually measure by one’s expertise on the
subject matter being communication.

OTHER QUALITIES FOR IMPROVING ORGANIZATION COMMUNICATION

1. Define specific communication goals prior to actual communication
2. establish communication mechanisms through which organization members can
interact regularly
3. Facilitate frequent face-to-face interactions between supervisors and employees
4. Encourage employees to express their ideas and concerns in delicity with their jobs.
5. Solicit information from employees concerning their careers and personal problems
6. Involve employees in formulating their task goals and responsibilities.
7. Provide employees with timely feedback on their job performance.
8. inform employees on any change in the company’s goals and policies as soon as they
happen
9. Periodically evaluate the firms’ communication effectiveness.

? ?

Discuss the main type of communication found in the networked formal

and informal organization
 The HR managers must ensure that he employs good communication
strategy when dealing with employee’s .Discuss

TOPIC 11: CONFLICT MANGEMENT IN ORGANISATIONS

Objective
At the of the topic the student will be able to,
i. Understand meaning of conflict
ii. Explain various ways of dealing with conflict
iii. Discuss the the role of managers in conflict management

Definition
1. Its behaviour intended to obstruct the achievement of organization and people’s goals.
2. It is the disagreement within the context of an organizational settings between individual
employees, groups or departments between employees and the organization.

Cause of conflict
1. Multiple value source
People’s values differ as they come from different backgrounds e.g. different religious,
philosophy, education etc.
2. Idealized individual values v/s practical organizational values organization may demand
behaviour that may step against personal want and interest of individual (employee) thus
resulting into conflict.
3. Nature of ideals and activities
Interdependence between people or group within the organization may cause conflict of
another. Fatigue task are highly regarded to raise conflict in organization than less fatigue
tasks.
4. Competition between individual employees (everyone want to emerge the winner).
5. Limited resources
 Most organizations resources are limited thus individual and group have to fight for their
share. The greater the limitation of resources normally, the greater potential for conflict.
6. Difference in goal target in organization.
7. Different departments with different goals to achieve.
8. Stress

Managing conflicts
Depending on expected outcome of a conflict a manager can manage conflict in either:
1. Encouraging conflict
When conflict is likely to lead to increased performance, then management can encourage it
through arranging competition contests of job well done and then publicity results to be known
by every member of organization.
2. Preventing conflict
Rules and regulations can be applied.

Resolving conflict
Ways in which managers can resolve conflict.
1. Avoidance
This basically involves ignoring problems and hoping they will go away. This strategy
Works if a conflict is of minimal intensity.
2. Smoothing
This is similar to avoidance but here the manager acknowledges the existence of conflict
while developing its importance i.e smoothing over to preserve working relationship.
3. Compromise
Involves reaching a point of agreement between what each conflicting party wants.
Conflicting parties meet half way so as to dialogue; each party raises its demand. This
strategy works okay so long as none of the parties feel cheated afterwards.
4. Confrontation
The direct way of resolving conflict and working together to resolve it. There is
open exchange of information the best method of resolving a conflict should result in a
no win no lose situation
Conflict between organization and employees (individual)
Management can deal with the conflict through the following ways:
1. Use of blend
This amounts to the administration by objective to cater for both organization and
individual goals
2. A fusion
This is a personalizing process where individuals pursue their own goals so as to seek
fulfillment and self actualization.
3. Socializing
The organization tend to get people manage their effort in order to pursue the
organizational goals.
4. Integration
Management comes up with an agreed solution from both parties. Here individuals are
given a chance to come with their own goals and ways of achieving them.

Inter-group conflict
Organizational conflict is sometimes referred to as inter-competition because of competition
involved.

Sources of inter-group conflict

Aggressiveness nature of man - Man is aggressive in nature and seeks expression of his
impulses. Some conflict in organization starts from the normal need of people to find outlet for
their aggressive impulses.
Competition for limited resources -Resources are scarce; groups in organization compete to
win their share e.g money, material etc.
Clashes of values and interest -Different in value and interest results into conflict.
Antagonistic roles - Inter-group conflict may arise because different groups occupy different
roles that are apparently dependent to each other e.g. Accounts department whose role is to
conserve and distribute organization money may conflict with marketing department whose role
in promotion may require money in order to fund the promotion process.
 Power/political - Every group in organization may want to lead or be top of other groups this
way rise to conflict in organizations.
Poorly defined responsibilities - When job responsibilities are ambiguous, conflict may arise
from disagreements above which groups have got certain responsibilities over certain task.
Introduction of change - Organization change may bring in conflict e.g. organization may
decide to merge with other organization. This may create conflict in the initial stages, power
struggle, asset management, location etc.
Organizational climate - Organizational character personality/climate e.g distance from
home to working location, location of organization (urban or rural). Working times, shifts and
overtimes. These can be major source of conflicts.
Difference in perception (Attitude and value difference). People see things differently; have
their won picture or image of how they see the real world.

Difference in perception results in different people attracting different meaning to the same
stimuli as perception become a person real value, judgment can be potential major source of
conflict.

Consequences of the organization conflicts

(Justification of use of conflict in organization)
• Bad element removal and unity established.
Dissociating elements in situation may be removed and unit may be reestablished after open
expression of conflict. (Tension is released)
• New leaders’ establishment
After conflict new leadership may be brought into organization because the former leader
may be unsuitable under the pressure of conflict.
• Goal modification/policies
Goals and policies may be modified as a result of conflict.
• Institutionalization. Establishment of outlet where conflict resolved. Outlets may be
established where potential conflict may be resolved in.
• Increased motivational level
Motivation may be increased after resolving conflict in organizations.
• Innovation increase
 Conflict may increase innovation because of the greater diversity of view point to heightened
sense of necessity.
• Develop understanding of own position
Each group member may develop increase in understanding of his own position because
conflict forces people o bring forth supporting urgency and more clearly about issues and
seek support of evidence of the views.
• Group achieve awareness of own identity.
Group may achieve awareness of their own identities. Each group hereby becoming more
independent. They may identify where they belong more clearly.(Reassessment of group
goals and activities).
• Satisfy aggressive people

Negative consequences
1) Mental health stress
The mental health of some people may be adversely affected because of emotional stress
reaction. (Tension that arises when people argue. Conflict stimulates anger. These emotions
should be avoided, not cultivated.)
2) Resource misappropriation
Misallocation of organization resources e.g time wasted, materials, personnel are likely to be
misused.
3) Sub-optimizing part of system. (Obstructing the achievement of organization and people’s
goals.
4) Goals distortion
Distortion of goals may occur as people bring to pay attention non petty issues or embark
on fact finding regarding their opponent instead of pursuing their usage mission. (e.g. fighting
because of scarce resources like office space, thus wasting time.)

STRATEGIES OF MAINTAINING ORGANIZATIONAL CONFLICTS

Conflict may be managed by conflicting parties themselves or by 3rd party. Organizational
conflict can be met with non-attention, suppression resolution.
1) Lose-lose strategy
 In this strategy both parties in the conflict lose in the sense that neither achieves what
they desired in conflict.

Approaches to lose-lose strategy

a) Avoidance
• Form of non attention
• No attempt to deal with conflict
• Here pretend conflict does not exist
• Conflict will disappear
b) Smoothing
The aim is encouraging peaceful co-existence through recognition of common interest.
c) Compromise
In this approach accommodations are made such that every party in the conflict gives up
something of value to each other. Here conflict remains unsolved.

2) Win-lose strategy
This one party lose while other party wins. One party may win by achieving its desire at
the expense of the other party’s desire. Here conflict of similar nature may likely to
occur.
Approaches of win-lose strategy
a) Competition
It is achieved on part of the winning party. (management arranges competition contests of
job well done).
b) Authoritative command
Here a formal authority simply detect a solution and specify what is gained and lost by
whom e.g. government interfere with strike in country. No complaining

3) Win-win strategy
• Provide best solution to the conflict and it resolves the conflict
• It involves the recognition by all conflicting parties that something is wrong and need
attention
• Both parties in conflict win as both achieve their goals.
 ? ?

Explain various ways that managers overcome conflict in an

organization

Sometimes conflicts can be acceptable in an organization, discuss

TOPIC 12: MANAGEMENT OF CHANGE IN THE ORGANISATION

Objective
At the of the topic the student will be able to,
i) Understand the meaning of change
ii) Explain the types of change that exist in an organization
iii) Discuss the various strategies of managing change

Organizational change -occurs when a company makes a transition from its current state to
some desired future state. Change generally implies innovation i.e. the basis idea of introducing
something new in the organizational change thus refers to activities aimed at strengthening
organization performance as well as sustaining the existence. It also refers to any attraction
may involve change in structures, modifying work tasks, introduction of new products/ services
change in technology, change in strategies, procedures, policies/change in organization cultures.

Managing organizational change- is the process of planning and implementing change in

organizations in such a way as to minimize employee resistance and cost to the organization
while simultaneously maximizing the effectiveness of the change effort.

Forms of organizational change

1. Reactive change
2. Pro-active change
Reactive change
This is a change largely introduced due to external environmental pressure e.g. reaction to
competitors change and strategies or to a new government regulation.

Practice change
This is a change introduced because of its usefulness and because the organization feels the
change is necessary e.g. growth to size of the organization would make it necessary to change its
jobs descriptions, policies, structures and procedures.

Forces for Organizational change

Internal forces for change (within the org.)
External forces for change (outside the org.)

1. Internal Forces for change

This are forces which operate from within the org. an given below
a) Managerial policies and style of leadership e.g. an org. pursuing bureaucratic leadership
may change to democratic style.
b) Technology used in the co. e.g. outdated
c) Poor financial position of the organization in
d) Ineffective procedures and systems. Costs more.
e) Narrow product lines or services
f) Poor organizational culture. (Does the culture encourage teamwork? Does it reward
innovation? Caring to customers, communities, and environment? Also, is it a cost
cutting culture?)
g) Ineffective employees e.g. due to lack of training necessary skills.

External forces for change

These are forces which operate from outside the organizational
They include:-
1. Changes in economy conditions e.g. recession in the economy.
2. Competition in the industry
3. Political/legal environmental influences e.g. A
 4. Change in government policy or intervention by the government on the industry
practices.
5. Change in technology e.g. new production.
6. System in the industry cultural forces e.g. composition of the work force for change in
consumers taste.
7. Physical environmental forces e.g. change in climate conditions.

Other force includes: Trade unions, consumers protection org. creditors, e.g. banking Co.

Change models/ Approaches

1. Lewin schein model
2. Action research approach/planned approach to change.

1. LEWIN SCHEIN MODEL

Lwein and Dedgar Schein argued that successful change process in organization should flow 3
steps
1. Unfreezing the status quo. This involves explaining to employees and making them
to understand why things need to change the way things are currently done. This is to
reduce any possible resistance from employees.
2. Changing stage
This involves movement to a new state of doing things in the organization i.e. employees move
to implanting new change introduced by the management.

3. Refreezing
This involves rewarding and reinforcing the change to make it permanents, so that individuals
should not go back to their previous ways of doing things e.g. individuals or groups that embrace
change may be rewarded through promotion or better terms and conditions of service

Action Research approach/planned approach. This refers to a change process based on the
systematic collection of data and then selection of the change action based on the results of the
analyzed data its importance lies in providing a scientific methodology in managing change.
The change agent often an outside consultant begins by gathering information about problems
concerns and changes necessary the following are able steps to be followed;
a. Problem diagnosis – this change agents may ask questions, interview employees, review
records and concern expressed by employers.
b. Analysis of the information collected. The agent analysis the information collected in
order to find the problem affecting the organization
c. Feed back. This requires sharing with employees and managers the problems which have
been identified. The employees with the help of change agent then develop the action
plans for bringing about change.
d. Action – The management acts on the proposed action plans to introduced change and
solve the problem identified employees and the agent is involved in implementing the
change.

RESISTANT TO CHANGE
There are two broad type of resistance to change
1. Individual resistance
2. Organizational resistance

Individual resistance
Individuals may resist change due to the following reasons:-
1. Fear of unknown/uncertainty to be brought by change
2. When self – interest are threatened e.g. job related interests such as promotion
opportunities.
3. Loss of economic gain. (don’t see any economic gain e.g. the new system like new
product line, may cause more).
4. Diff perception on the need 4 change i.e. certain individuals may hold negative need of
change.
5. Insecurity created by change i.e. if people believe that they are more secure in the part
and a change may cause them frustrations e.g. loss of their jobs.
6. Lack of necessary information and training to employees to cope effectively with change.
7. Lack of employee’s involvement in planning change.
8. When change is imposed on employees that may lead also to resistance.
 9. Lack of adequate resources required to implement change this may cause a lot of
frustration to employees hence resistance.

Organizational resistance to change

Organizations by their very nature are conservative they actively resist change org. may set up
strong defense against change and may prefer to concentrate on routine activities they perform
well due to the following reasons;
1. Maintaining stability – org. may want to maintain stability and predictability e.g. stability
in structure methods/procedures rules, policies etc.
2. Investment in resources – Change often requires large amount of resources which might
have already, been committed in other areas or strategies. The company may lack
additional resources to be invested in new changes.
3. Part contract or Agreement – organizations enter into contracts with other parties
such as the government, trade unions, suppliers, other organizations and customers.
These contracts can limit the degree to which certain change can be introduced e.g.
organizations under a special license or permit or fixed priced to supplies certain goods or
services to a government agency.
4. Threat to power or influence – change can be seen as a threat to power or influence of
certain groups within the organization hence the tendency by top managers to resist it.

Overcoming Resistance to change

Managing Resistance
1. Participation and involvement of employees
2. Avoid threat/demand.
3. Educating and communicating to employees effectively the need for charge.
4. Participation and involvement of employees in planning change i.e. their is need to
consult with the employees on the changes to be introduced and planned approach
to change this will ensure that change will be introduced in an orderly manner hence
minimize disruption of activities.
5. Top management support for change. Managers must own the change process and
provide the necessary resources required to implement change.
6. Ensuring that change conforms to well established values and norms of the organizations.
 7. Negotiating change with individuals or departments likely to resist to win their support.
8. Providing adequate training to employees to prepare them effectively for change.
9. Manipulation and co-optation – This involve selecting one of words e.g. giving more
expansion on the benefit of change and hiding negative information on change. Co-
optation involves assigning individuals key roles created in the change process to steer
them away from resistance.
10. Coercion – This involves the application of threat or force on resisting individuals
particularly where change has to be introduced very first and their in high potential of
resistance.
Facilitation and support – The management may adopt a strategy of introducing change
gradually and providing emotional support required by employee’s e.g. constant encouragement
etc.

Causes of change
1. Exit Strategy at The End of the product Life Cycle
As the market for a companies product reaches maturity, market growth and profits begin to
diminish. Despite the fact that cost cutting occurs and marketing budgets are reduced, when
the opportunity cost of deploying capital and resources to another more favorable opportunity
presents, companies either sell off existing operations or cease production altogether. This can
be in response to a new superior product release, a change in consumer purchasing habits or the
introduction of a new technology. Irrespective of the cause, capital and labor are redeployed to
new more promising business activities. The exit strategy is a common cause of organizational
change.
2. Change in Government
Employees that work for government departments can find existing initiatives get discontinued
when a change in government takes place. The subsequent refocus of priorities that takes place
as a result of the new governments mandate can create redundancies or a radical change in the
way the department conducts its affairs.
3. Mergers and Acquisitions
When two competitors merge the existing business operations of both companies get centralized
and streamlined. This can result in the merging of departments and processes, cost cutting and a
redeployment of existing resources. Mergers and acquisitions are one of the most frequent causes
of organizational change.
4. Strategic Refocus
When the company changes its business processes to adopt a new paradigm organizational
change ensues. Consider the plight of a company that shifts its focus form a product centric to
a customer centric platform. New manufacturing specifications, new marketing and a change in
logistical operations create a change reaction for change throughout the organization.
5. Structural Change
When new administrative processes get introduced, organizational change results. Consider the
ramifications of centralizing an archiving process using computer technology. Old redundant
processes get replaced by new software and hardware and staff members are required to retrain
to operate the new systems.
6. Process Oriented
When a company redefines its manufacturing operations by changing its manufacturing process
to a JIT operation, infrastructure, warehousing and logistical operations are required to be
redesigned and deployed. This structural shift in the way a product is created has a domino effect
on organizational change.
7. Technology
The changes in technology has impact the whole sectors and even the whole societies. This
because the changes take place at system level, involving technology and market shifts. This
involves the convergence of a number of trends which result in a 'paradigm shift' where the old
order is replaced. For example, the invention of computer has long been replace the usage of
a typewritter, and since after the appearance of this computer, scenario of the workplace has
changed significantly. We can see that all the work can been done in a short time.

TECHNIQUES FOR MANAGING CHANGE EFFECTIVELY

Managing change effectively requires moving the organization from its current state to a future
desired state at minimal cost to the organization. Key steps in that process are:
1. Understanding the current state of the organization. This involves identifying problems
the company faces, assigning a level of importance to each one, and assessing the kinds
of changes needed to solve the problems.
2. Competently envisioning and laying out the desired future state of the organization. This
involves picturing the ideal situation for the company after the change is implemented,
 conveying this vision clearly to everyone involved in the change effort, and designing
a means of transition to the new state. An important part of the transition should be
maintaining some sort of stability; some things—such as the company's overall mission
or key personnel—should remain constant in the midst of turmoil to help reduce people's
anxiety.
3. Implementing the change in an orderly manner. This involves managing the transition
effectively. It might be helpful to draw up a plan, allocate resources, and appoint a key
person to take charge of the change process. The company's leaders should try to generate
enthusiasm for the change by sharing their goals and vision and acting as role models. In
some cases, it may be useful to try for small victories first in order to pave the way for
later successes.
Change is natural, of course. Proactive management of change to optimize future adaptability is
invariably a more creative way of dealing with the dynamisms of industrial transformation than
letting them happen. That process will succeed better with the help of the the company's human
resources than without.

Barriers to Change
• The nature of the work is inherently about protecting the status quo.
Accounting, administration and many other operations functions are dedicated to keeping
work flow moving, responsibilities balanced, and preventing mistakes. Product development,
marketing and sales departments are more likely to embrace change because their work requires
it in order to succeed
• Implementing a significant change is complicated.
Not only must you address individual barriers to change, but the organizational dynamics that
often thwart these efforts. According to Howard Gardner, author of Changing Minds, it is
the "twin desires of most bureaucracies to avoid expending energy and incurring blame. It is all
too easy to treat lack of active opposition to a course of action as positive support. Those who
harbor doubts may keep quiet because they assume that decision-makers are armed with better
information, or because they want to avoid being held accountable for mistakes."
This is why it is so important to have a comprehensive change plan that takes an organization's
culture into consideration. The next step is to examine the people in the organization.
• Many change initiatives fail because people neglect to create a sense of urgency among
stakeholders and change agents.
Putting together a strong guiding team with credibility, skills, connections, reputations and
formal authority is vital. This guiding team is responsible for creating sensible, uplifting visions
and sets of strategies, then communicating them through as many channels as possible.

RESISTANCE TO CHANGE
The list of reasons why individuals might be resistance to organizational change has grown since
Sander's initial six published in 1950. However, there are several that are quite common and
prevalent, which help provide a solid basis to understanding the concept.
• EMPLOYEES RESIST CHANGE BECAUSE THEY HAVE TO LEARN SOMETHING
NEW. In many case there is not a disagreement with the benefits of the new process, but rather
a fear of the unknown future and about their ability to adapt to it. de Jag er (2001) argues, 'Most
people are reluctant to leave the familiar behind. We are all suspicious about the unfamiliar; we
are naturally concerned about how we will get from the old to the new, especially if it involves
learning something new and risking failure".
A manager trying to implement a change, no matter how small, should expect to encounter some
resistance from within the organization. Resistance to change is normal; people cling to habits
and to the status quo. To be sure, managerial actions can minimize or arouse resistance. People
must be motivated to shake off old habits. This must take place in stages rather than abruptly so
that "managed change" takes on the character of "natural change." In addition to normal inertia,
organization change introduces anxieties about the future. If the future after the change comes to
be perceived positively, resistance will be less.
• PEOPLE ANTICIPATE A LOSS OF STATUS OR QUALITY OF LIFE
Real change reshuffles the deck a bit. Reshuffling the deck can bring winners . . . and losers.
Some people, most likely, will gain in status, job security, quality of life, etc. with the proposed
change, and some will likely lose a bit. Change does not have to be a zero sum game, and
change can (and should) bring more advantage to more people than disadvantage. But we all
live in the real world, and let’s face it – if there were no obstacles aligned against change, then
special efforts to promote change would be unnecessary.
• PEOPLE GENUINELY BELIEVE THAT THE PROPOSED CHANGE IS A BAD IDEA
sometimes someone’s idea of change is just not a good idea. Sometimes people are not being
recalcitrant, or afraid, or muddle-headed, or nasty, or foolish when they resist. They just see that
we’re wrong. And even if we’re not all wrong, but only half wrong, or even if we’re right, it’s
important not to ignore when people have genuine, rational reservations or objections.
• PEOPLE FEAR HIDDEN AGENDAS AMONG WOULD-BE REFORMERS
Reformers can be a motley lot. Not all are to be trusted. Perhaps even more frightening, some
of the worst atrocities modern history has known were begun by earnest people who really
believed they knew what was best for everyone else. Reformers, as a group, share a blemished
past. And so, you can hardly blame those you might seek to move toward change for mistrusting
your motives, or for thinking you have another agenda to follow shortly. If you seek to promote
change in an organization, not only can you expect to encounter resentment for upsetting the
established order and for thinking you know better than everyone else, but you may also be
suspected of wanted to increase your own power, or even eliminate potential opposition through
later stages of change.

OVERCOMING RESISTANCE TO CHANGE

• Education and communication are therefore key ingredients in minimizing negative
reactions. Employees can be informed about both the nature of the change and the logic
behind it before it takes place through reports, memos, group presentations, or individual
discussions. Another important component of overcoming resistance is inviting employee
participation and involvement in both the design and implementation phases of the change
effort. Organized forms of facilitation and support can be deployed. Managers can ensure
that employees will have the resources to bring the change about; managers can make
themselves available to provide explanations and to minimize stress arising in many scores of
situations.
• Some companies manage to overcome resistance to change through negotiation and rewards.
They offer employees concrete incentives to ensure their cooperation. Other companies
resort to manipulation, or using subtle tactics such as giving a resistance leader a prominent
position in the change effort. A final option is coercion, which involves punishing people
who resist or using force to ensure their cooperation. Although this method can be useful
when speed is of the essence, it can have lingering negative effects on the company. Of
course, no method is appropriate to every situation, and a number of different methods may
be combined as needed.
• Be honest about whether decisions can be changed.
If a decision is immutable, say so. Organizations that claim all employees are equally
empowered may inadvertently lead people to believe that they can influence the final
outcome when in fact they really can't. So if you want feedback or questions, be clear about
what kind of feedback you need, and what will happen to feedback and what won't. Inviting
feedback with no plan to consider it will breed far more resistance to a decision than never
asking for feedback in the first place.
• Clarify the intended outcomes for the organization. The more you can inform people
about the motives and goals behind this decision, placing it in a broader business context, the
more likely employees are to come forward with other ideas that can help achieve these goals
as well. Of course, you'll have to put a process in place to make it easy to field and respond
to suggestions.

• Not every change is acceptable in an organization. Explain how change can be

made acceptable in an organization?
• Managers should learn strategies of managing change, Discuss

Suggested further reading

• Ash, M.G. 1992. "Cultural Contexts and Scientific Change in Psychology: Kurt Lewin in
Iowa." American Psychologist, Vol. 47, No. 2, pp. 198-207.
• Hatch, M.J., "Organization Theory: Modern, symbolic, and postmodern perspectives."
2nd Ed. Oxford University Press (2006) ISBN 0-19-926021-4.
• Robbins, Stephen P. Organizational Behavior - Concepts, Controversies, Applications.
4th Ed. Prentice Hall (2004) ISBN 0-13-170901-1.
• Scott, W. Richard. Organizations and Organizing: Rational, Natural, and Open Systems
Perspectives. Pearson Prentice Hall (2007) ISBN 0-13-195893-3.
• Weick, Karl E. The Social Psychology of Organizing 2nd Ed. McGraw Hill (1979) ISBN
0-07-554808-9.
• Simon, Herbert A. Administrative Behavior: A Study of Decision-Making Processes in
Administrative Organizations, 4th ed. 1997, The Free Press.
• Tompkins, Jonathan R. "Organization Theory and Public Management".Thompson
Wadsworth (2005) ISBN 978-0-534-17468-2
• Kanigel, R. (1997). The One Best Way, Frederick Winslow Taylor and the Enigma of
Efficiency. London: Brown and Co