UNIT-I

Organizational Behaviour

Definition of Organization

 An organization is a group of people working together towards common goals, like corporations, charities, unions,
or government departments.
 It also refers to the process of arranging resources systematically to achieve efficiency.
Key Definitions

1. Oliver Sheldon: Organization is the process of combining work and resources efficiently to achieve systematic and
coordinated efforts.
2. George Terry: Organization establishes effective relationships between people, tasks, and workplaces to promote
efficient group efforts.

Organizational Behavior (OB): Introduction

 Definition: Organizational Behavior is the study of individual and group behavior within an organization, aiming to
improve organizational effectiveness.
 It examines how individuals and groups interact and the impact of organizational structures on behavior.
 OB addresses questions like:
o Why do individuals or groups behave differently in specific situations?
o What makes one employee or group more effective than another?

Key Levels of Analysis in OB

1. Individual Level:
o Focus on concepts like personality, perception, motivation, learning, and attitudes.
o Example: Studying how an employee’s personality affects job performance.
2. Group Level:
o Focus on team dynamics, leadership, conflict resolution, power, and politics.
o Example: Understanding how a manager’s behavior influences team cohesion.
3. Organizational Level:
o Examines organizational culture, change management, and working conditions.
o Example: Studying the impact of company policies on employee behavior.

Nature and Features of Organizational Behavior

1. Field of Study:
o OB is a multidisciplinary field, applying principles from psychology, sociology, anthropology, etc.
2. Science and Art:
o OB is scientific as it uses theories and empirical data, and artistic because its application varies with
context.
3. System Approach:
o It considers the interaction between organizational elements and external environments.
4. Contingency Approach:
o Recognizes that no single method works for all situations due to environmental uncertainties.
5. Humanistic and Optimistic:
o Emphasizes motivation and human needs.
6. Organizational Objectives:
o Aligns individual and group efforts with organizational goals.

Contributing Disciplines to OB
 1. Psychology:
o Studies individual behavior and mental processes to predict and influence behavior.
2. Sociology:
o Focuses on group dynamics and social systems within organizations.
3. Social Psychology:
o Investigates how individuals' behavior is influenced by the presence or perception of others.
4. Anthropology:
o Studies human culture and how it influences workplace behaviors and environments.
5. Political Science:
o Examines power dynamics, leadership, and decision-making within organizations.
6. Economics:
o Focuses on organizational structure, transaction costs, and resource allocation.

Scope of Organizational Behavior

 Individual Level: Motivation, perception, personality, and learning.

 Interpersonal Level: Leadership, communication, and relationships.
 Group Level: Team building, conflict resolution, and power dynamics.
 Organizational Level: Organizational climate, adaptation, and structural change.

Key Benefits of Studying OB

1. Improves job performance by understanding individual and group dynamics.

2. Enhances job satisfaction through effective leadership and communication.
3. Promotes organizational effectiveness by aligning individual goals with organizational objectives.
4. Facilitates change management by understanding the human aspects of adaptation.

1. Autocratic Model

 Root Level: Power

 Managerial Orientation: Authority

 Key Features:
o Managers make all decisions and enforce obedience.
o Employees are motivated by instructions and fear of penalties.
o Minimal employee initiative or responsibility.
o “You do this or else…” approach.

 Drawbacks:
o Frustration and insecurity among employees.
o Dependency on superiors.
o Low performance and minimal effort due to limited motivation (only minimum wage).

2. Custodial Model

 Root Level: Economic resources

 Managerial Orientation: Money

 Key Features:
o Employees depend on organizational resources for security (e.g., financial benefits, health packages,
bonuses).
o Creates passive cooperation; employees feel satisfied but not highly motivated or empowered.
o Focus on economic incentives rather than personal growth.
  Advantages: Employees gain security and benefits.

 Drawbacks: Satisfaction is passive; employees are not strongly encouraged to excel or innovate.

3. Supportive Model

 Root Level: Leadership

 Managerial Orientation: Support

 Key Features:
o Managers provide support and assistance to enhance job performance.
o Employees feel valued, leading to active participation and motivation.
o Focuses on status and recognition as key psychological needs.

 Outcomes:
o Employees feel respected and driven to perform better.
o Awakens employees’ inner drive and initiative.

4. Collegial Model

 Root Level: Teamwork

 Managerial Orientation: Partnership

 Key Features:
o Organization operates like a team of colleagues, without a strict hierarchy.
o Employees practice self-discipline and responsible behavior.
o Employees work collaboratively towards shared goals.

 Employee Needs Met: Self-actualization (realizing potential).

 Performance Outcome: Moderate enthusiasm; focus on innovation and new technologies for continuous
improvement.

5. System Model

 Root Level: Trust and Community

 Managerial Orientation: Care for employees' well-being

 Key Features:
o Focuses on creating trust, respect, and integrity in the workplace.
o Employees feel their work has meaning, value, and ethical alignment.
o Encourages transparency, authenticity, and social intelligence.

 Outcomes:
o Employees are self-motivated and committed.
o High performance and sense of purpose.
o Promotes a sense of community and collaboration among employees.

Comparison of Models
 Model Focus Employee Need Fulfilled Performance Outcome
Autocratic Power and authority Obedience Minimal performance and effort
Custodial Economic security Security Passive cooperation
Supportive Leadership and support Status and recognition Active participation and motivation
Collegial Teamwork and partnership Self-discipline, self-actualization Moderate enthusiasm
System Trust and community Meaning and purpose High commitment and collaboration

This table summarizes each model for easier understanding. Let me know if you'd like more details on any specific
model!

UNIT-IV
Grievance Procedure and Discipline Management

Introduction

 A grievance represents an employee's discontent with their job, stemming from unmet expectations or
dissatisfaction with organizational practices.
 Definition (J.M. Jucius): A grievance is any dissatisfaction, whether expressed or not, valid or not, arising
from anything connected with the company that the employee perceives as unfair or unjust.

Key Terminologies

1. Dissatisfaction: Any unrest or disturbance felt by an employee, even if not expressed verbally.
2. Complaint: Dissatisfaction formally communicated to a supervisor in spoken or written form.
3. Grievance: A formal complaint presented to a management representative or union official.
Categories of Grievances (sources)

1. Concerning Wages:
o Issues with wage adjustments, calculation errors, or complicated incentive systems.
2. Concerning Supervision:
o Complaints about unfair discipline, favoritism, lack of clear instructions, or excessive rules.
3. General Working Conditions:
o Poor hygiene, substandard production standards, or lack of tools and materials.
4. Collective Bargaining:
o Disputes over the company undermining trade unions, ignoring agreements, or restricting union
activities.
5. Management Policy:
o Issues related to wages, overtime, promotions, career growth, leave policies, and violations of rules.

Methods of Identifying Grievances

1. Exit Interview:
o Information gathered from exiting employees is often reliable and insightful.
2. Gripe Box System:
o Allows employees to submit anonymous complaints, especially in environments lacking trust.
3. Opinion Surveys:
o Surveys like morale, attitude, or grievance surveys offer insights into organizational issues without
compromising anonymity.
4. Meetings:
o Group meetings, interviews, and informal gatherings help collect grievances.
5. Open-Door Policy:
o Employees can file complaints directly with a designated manager, fostering upward
communication.
Grievance Handling Procedure

1. Step 1: Initial Reporting

o The employee communicates their grievance verbally to the immediate supervisor.
o The supervisor attempts to resolve the issue using problem-solving techniques.
2. Step 2: Escalation to Higher Management
o If unresolved, the grievance is forwarded to a higher manager (e.g., superintendent or industrial
relations officer) with detailed notes.
3. Step 3: Grievance Committee
o A grievance committee (comprising employee and management representatives) reviews the case
and suggests solutions.
4. Step 4: Management Review
o If the grievance remains unresolved, it is escalated to senior management for review and a final
decision.
5. Step 5: Arbitration
o If all previous steps fail, the grievance is referred to an arbitrator acceptable to both the employee
and management.

Model Grievance Procedure (India)

Adopted from the 16th Indian Labor Conference in 1958, this voluntary procedure includes five time-bound
levels:

1. Level I:
o Employee presents grievance verbally to a designated officer, who must respond within 48 hours.
2. Level II:
o If unresolved, the grievance is presented to the department head, who must respond within 3 days.
3. Level III:
o The grievance committee reviews the case and provides recommendations within 7 days.
Management's decision must follow within 3 days.
4. Level IV:
 oThe employee may appeal to management for revision, with union representation if desired.
Management must respond within a week.
5. Level V:
o If no resolution is reached, the matter is referred to voluntary arbitration within a week.

Note: For grievances related to discharge or dismissal, a separate appeal process applies.

Importance of Grievance Handling

1. For Employees: Promotes fairness, reduces dissatisfaction, and improves morale.

2. For Organizations: Helps identify systemic issues, fosters trust, and ensures compliance with labor laws.
3. For Overall Environment: Enhances harmony, productivity, and employee relations.

Organizational Conflicts

Organizational conflict refers to a state of disagreement or opposition arising between individuals, teams, or
departments within an organization due to differences in goals, opinions, values, or interests. It can occur at
various levels, such as individual, group, or organizational, and may affect productivity and relationships.

Concept of Organizational Conflict

Conflict is an inevitable part of organizational life because of the diverse nature of people, goals, and resources. It
is not always negative; constructive conflict can lead to innovation and improvement. It arises when there is:

 Goal incompatibility (e.g., one department’s goals clash with another).

 Differing perceptions (e.g., misunderstanding priorities or actions).
 Resource scarcity (e.g., competition for budgets or manpower).
Types of Conflict:

1. Intrapersonal Conflict: Within an individual (e.g., role conflict).

2. Interpersonal Conflict: Between two or more individuals.
3. Intergroup Conflict: Among groups or departments.
4. Organizational Conflict: Between the organization and external entities (e.g., unions, suppliers).

Features of Organizational Conflict

1. Inevitable: Conflict is a natural part of any organization.

2. Dynamic: It evolves over time as individuals or groups interact.
3. Multi-dimensional: It can arise from various sources (e.g., interpersonal, structural, or environmental factors).
4. Positive or Negative: Conflict can lead to innovation or disrupt teamwork, depending on how it’s managed.
5. Goal-Oriented: Often revolves around differences in objectives or resource allocation.
6. Requires Management: Proper conflict resolution strategies are crucial to mitigate negative effects.

Conflict Episode and its Stages

A conflict episode refers to the process or cycle of a conflict, from its initial causes to its resolution and
consequences. It consists of the following stages:

1. Latent Conflict:
o The potential for conflict exists but hasn’t yet surfaced.
o Causes: Scarce resources, incompatible goals, or communication gaps.
o Example: Two departments wanting the same budget but not yet openly competing for it.

2. Perceived Conflict:
o Parties recognize the existence of conflict.
o Misunderstandings or disagreements become apparent.
o Example: A manager notices that two teams disagree on project priorities.

3. Felt Conflict:
o Emotional involvement occurs, such as stress, anger, or frustration.
o The conflict becomes personal, and individuals/groups start taking sides.
o Example: A team feels undermined by another team’s actions.

4. Manifest Conflict:
o The conflict becomes visible through actions like arguments, protests, or non-cooperation.
o Can be constructive (debates) or destructive (hostility).
o Example: Open disagreements in meetings or refusal to share resources.

5. Conflict Aftermath:
o The consequences of the conflict are felt, either positive or negative.
o Resolved conflicts may lead to improved understanding and teamwork, while unresolved ones may create
long-term resentment.
o Example: Teams collaborate better after resolving differences, or they harbor grudges if issues remain
unresolved.

Illustration of the Conflict Episode Stages

Stage Key Characteristics Example
Two teams require the same resource, but no one has
Latent Potential for conflict exists but hasn’t surfaced yet.
openly addressed the issue.
The conflict is recognized, but no emotional Teams realize they have overlapping deadlines for the
Perceived
involvement yet. same resource.
Emotional responses like stress, anger, or frustration Team A feels neglected because Team B gets
Felt
emerge. preferential treatment.
Conflict is openly expressed through arguments, non- Team A files complaints or openly argues with Team B
Manifest
cooperation, or disputes. in meetings.
Conflict resolution (or lack of it) affects future Teams agree on resource-sharing terms or hold
Aftermath
interactions, positively or negatively. grudges, leading to ongoing tension.
Significance of Understanding Conflict Episodes

1. Early Detection: Recognizing latent or perceived conflict allows for timely intervention.
2. Better Management: Helps managers adopt appropriate strategies for each stage.
3. Improved Productivity: Effective resolution minimizes disruptions.
4. Strengthens Relationships: Addressing conflict builds trust and understanding among teams.

Let me know if you'd like to explore conflict resolution techniques or organizational conflict management!

Power in Organizations

Power is a fundamental concept in organizational behavior, as it influences how decisions are made, how people
interact, and how tasks are accomplished within an organization.

Definition of Power

Power is the capacity or ability of an individual or group to influence the behavior of others to achieve specific
goals or objectives. It is not always related to authority but is often derived from one's position, knowledge, or
relationship dynamics.

Key Definitions:

 Robbins & Judge: Power is the capacity that A has to influence the behavior of B so that B acts in accordance with
A’s wishes.
 Max Weber: Power is the probability that one actor within a social relationship will be in a position to carry out his
own will despite resistance.

Importance of Power in Organizations

1. Decision-Making: Facilitates efficient decision-making by influencing outcomes and directing resources.

2. Coordination: Helps in aligning goals and efforts across teams and departments.
3. Conflict Resolution: Power can be used to mediate and resolve disputes within the organization.
4. Motivation: Rewards and recognition (forms of power) encourage employees to perform better.
5. Leadership: Leaders use power to guide and inspire their teams to achieve organizational objectives.
6. Change Management: Essential for implementing and driving organizational change.

Responses to the Use of Power

When power is exercised in an organization, individuals or groups may respond in the following ways:

1. Resistance:
o Refusal to comply or perform as requested.
o Can be active (e.g., protests) or passive (e.g., delays, lack of cooperation).
o Example: Employees resisting a new policy by not following it.

2. Obedience:
o Unquestioning acceptance and adherence to the authority or commands of a superior.
o Often stems from legitimate power or fear of consequences.
o Example: Following strict safety protocols without questioning.

3. Compliance:
o Agreement to perform a task or follow a directive without necessarily agreeing with it.
o Often associated with coercive or reward power.
o Example: Completing a task to meet deadlines, even if one disagrees with it.
 4. Conformity:
o Aligning behavior with group norms or expectations, sometimes due to social pressure.
o Example: Dressing formally because it is expected in the office environment.

5. Commitment:
o Enthusiastic agreement and dedication to a task, usually resulting from referent or expert power.
o Example: Employees willingly taking on extra responsibilities because they believe in their leader’s vision.

Types of Power

1. Coercive Power:
o Definition: Based on fear of punishment or negative consequences.
o Sources: Authority to penalize or discipline.
o Example: A manager threatening to demote an employee for poor performance.
o Effect: May lead to resistance or resentment if overused.

2. Reward Power:
o Definition: Based on the ability to provide rewards for compliance or good performance.
o Sources: Monetary rewards, promotions, recognition, or benefits.
o Example: Offering bonuses for meeting sales targets.
o Effect: Increases motivation if rewards are meaningful.

3. Legitimate Power:
o Definition: Derived from a formal position or authority in the organization.
o Sources: Job title, hierarchy, organizational structure.
o Example: A CEO directing the organization’s strategy.
o Effect: Encourages compliance but requires trust and respect to maintain effectiveness.

4. Referent Power:
o Definition: Based on admiration, respect, or charisma of the leader.
o Sources: Personal qualities, relationships, or popularity.
o Example: Employees following a charismatic leader they admire.
o Effect: Encourages commitment and loyalty.

5. Expert Power:
o Definition: Derived from specialized knowledge, skills, or expertise.
o Sources: Education, experience, or technical proficiency.
o Example: An IT professional trusted to fix technical issues.
o Effect: Encourages trust and commitment.

Comparison of Types of Power

Type Source Response Likely to Evoke Example
Coercive Fear of punishment Resistance or compliance Threatening demotion for underperformance.
Reward Ability to provide rewards Compliance or commitment Offering incentives for meeting goals.
Legitimate Formal authority Compliance or obedience Manager assigning tasks.
Referent Personal admiration Commitment Following a charismatic leader’s vision.
Expert Specialized knowledge Commitment Relying on an expert for critical advice.

Effective Use of Power in Organizations

 Use coercive power sparingly to avoid creating a negative work environment.

 Balance reward and legitimate power to motivate employees.
 Build referent power by demonstrating empathy, integrity, and charisma.
 Develop expert power through continuous learning and skill improvement.
  Encourage participative decision-making to foster trust and commitment.

By understanding power and its dynamics, organizations can foster better relationships, improve productivity, and
achieve their goals more effectively.

Politics in Organizations

Concept of Politics
Organizational politics refers to activities within an organization aimed at improving personal or group interests,
often at the expense of others or organizational goals. It involves informal, sometimes hidden strategies and tactics
used to gain power, influence decisions, and control resources.

Definitions:

 Robbins & Judge: Organizational politics is the use of power to affect decision-making in the organization or to
achieve personal goals.
 Mintzberg: Politics in organizations is the act of influencing people, forming alliances, and maneuvering to achieve
one’s objectives.

Features of Organizational Politics

1. Informal Behavior:
Politics typically operates outside formal structures and rules of the organization. It often involves behind-
the-scenes actions.

2. Goal-Oriented:
The primary aim is to achieve personal, group, or departmental goals, which may or may not align with
organizational objectives.

3. Power Dynamics:
Politics is closely linked to power, as individuals or groups compete to gain influence over decisions,
resources, or promotions.

4. Subjective Perception:
Political behavior is often perceived differently by individuals. Some may see it as a necessary strategy,
while others view it as manipulative.

5. Inevitable in Organizations:
Politics arises due to conflicting interests, resource limitations, and human nature, making it an inherent
part of organizational life.

Reasons for Organizational Politics

1. Scarcity of Resources:
Limited resources, such as budgets, promotions, or recognition, lead to competition and political behavior
to secure them.

2. Diverse Goals and Interests:

Individuals or departments may have differing goals, leading to conflicts and the use of political tactics to
prioritize personal or departmental objectives.

3. Ambiguity in Roles or Policies:

Lack of clarity in organizational policies, procedures, or roles creates opportunities for political
maneuvering to interpret rules in one’s favor.
 4. Power Dynamics:
Unequal distribution of power encourages individuals to engage in politics to gain influence or challenge
authority.

5. Organizational Change:
Changes such as restructuring, mergers, or new leadership often create uncertainty, prompting political
behavior to secure one’s position.

6. Individual Personality Traits:

Employees with high self-interest, ambition, or need for power are more likely to engage in organizational
politics.

7. Lack of Transparency:
When decision-making processes are opaque, employees resort to political tactics to influence outcomes.

Management of Organizational Politics

To minimize the negative impact of organizational politics and harness its positive potential, managers can
implement the following strategies:

1. Ensure Transparency:
o Clearly communicate policies, procedures, and decision-making processes to eliminate ambiguity.
o Example: Sharing the criteria for promotions or rewards with employees.

2. Encourage Open Communication:

o Foster a culture where employees feel safe discussing concerns and conflicts openly.
o Example: Organizing team meetings to address issues collaboratively.

3. Fair Distribution of Resources:

o Allocate resources such as promotions, budgets, and benefits equitably to reduce competition.
o Example: Developing objective performance evaluation criteria.

4. Empower Employees:
o Involve employees in decision-making to reduce feelings of powerlessness and increase their commitment
to organizational goals.
o Example: Including team members in planning discussions.

5. Address Conflicts Promptly:

o Resolve disputes early to prevent them from escalating into political issues.
o Example: Using mediation techniques to resolve interdepartmental conflicts.

6. Develop Ethical Leadership:

o Leaders should act as role models by demonstrating integrity, fairness, and accountability.
o Example: A manager promoting employees based on merit rather than favoritism.

7. Monitor and Mitigate Political Behavior:

o Regularly observe and address negative political behaviors, such as gossip or manipulation.
o Example: Providing feedback and coaching to employees engaged in political activities.

8. Promote Organizational Justice:

o Ensure that procedural, distributive, and interactional justice are upheld to build trust and reduce the need
for politics.
o Example: Conducting transparent appraisals and explaining the reasoning behind decisions.

Conclusion
Organizational politics is an unavoidable aspect of workplace dynamics. While it can sometimes lead to positive
outcomes, such as innovation and collaboration, it often creates conflicts and reduces productivity if mismanaged.
Effective management of politics requires transparency, fairness, and fostering a culture of trust and inclusivity.