Organizational Behavior

MODULE -1

Definition and Meaning

Organizational behavior (often abbreviated OB) is a field of study that

investigates the impact that individuals, groups, and structure have on behavior
within organizations, for the purpose of applying such knowledge
towardimproving an organization’s effectiveness.

OB is the study of what people do in an organization

and how their behavior affects the organization’s performance.

OB includes the core topics of motivation, leader behavior and power,

interpersonal communication, group structure and processes, learning, attitude
development and perception, change processes, conflict, work design, and work
stress.

Why study OB?

Today’s challenges bring opportunities for managers to use OB concepts.
In this section, we review some of the most critical issues confronting managers
for which OB offers solutions—or at least meaningful insights toward solutions.

Responding to Economic Pressures

When times are bad, though, managersare on the front lines with employees who
must be fired, who are asked tomake do with less, and who worry about their
futures. The difference between good and bad management can be the difference
between profit and loss or,ultimately,between survival and failure. In good times,
understanding how to reward, satisfy, and retain employees is at a premium.In bad
times, issues like stress, decision making, and coping come to the fore.

Responding to Globalization
Organizations are no longer constrained by national borders
all major automobile makers now manufacture
cars outside their borders; Honda builds cars in Ohio, Ford in Brazil,
Volkswagenin Mexico, and both Mercedes and BMW in South Africa.

The world has become a global village. In the process, the manager’s job
haschanged.all major automobile makers now manufacture
cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin
Mexico, and both Mercedes and BMW in South Africa.
The world has become a global village. In the process, the manager’s job
haschanged.All major automobile makers now manufacture
cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagenin
Mexico, and both Mercedes and BMW in South Africa
The world has become a global village. In the process, the manager’s job has
changed.

Increased Foreign Assignments

If you’re a manager and you are transferred to your employer’s subsidiary in another
country, you have to manage a workforce having different needs,
aspirations, and attitudes.

Working with People from Different Cultures

To work effectively with people from different
cultures, you need to understand how their culture, geography, and religion
have shaped them and how to adapt your management style to their differences.

Overseeing Movement of Jobs to Countries with Low-Cost Labor

In a global economy, jobs tend to flow where lower costs give businesses a
comparative advantage. It’s not by chance that many in the United States wear
clothes made in China, work on computers whose microchips came from Taiwan,
and watch movies filmed in Canada.

Managing Workforce Diversity

One of the most important challenges for organizations is adapting to people
who are different. We describe this challenge as workforce diversity. Whereas
globalization focuses on differences among people from different countries,
workforce diversity addresses differences among people within given countries.

Workforce diversity acknowledges a workforce of women and men; many racial

and ethnic groups; individuals with a variety of physical or psychologicalabilities;
and people who differ in age and sexual orientation.

Improving Customer Service

Management needs to create a customer-responsive culture. OB can provide

considerable guidance in helping managers create such cultures—in which

employees are friendly and courteous, accessible, knowledgeable, prompt in
responding to customer needs, and willing to do what’s necessary to please the
customer.
Improving People Skills
You’ll gain insights into specific people skills that you can use on the job. You’ll
learn ways to design motivating jobs, techniques for improving your listening skills,
and how to create more effective teams.

Stimulating Innovation and Change

An organization’s employees can be the impetus for innovation and change,
The challenge for managers is to stimulate their employees’ creativity and tolerance
for change. The field of OB provides a wealth of ideas and techniques to aid in
realizing these goals.

Coping with “Temporariness

Today most managers and employees today work in a climate best characterized as
“temporary. permanent employees are replaced with temporary workers.
Managers and employees must learn to cope with temporariness,
flexibility, spontaneity, and unpredictability. The study of OB can help you
better understand a work world of continual change, overcome resistance to
change, and create an organizational culture that thrives on change.

Working in Networked Organizations

Networked organizations use e-mail, the Internet, and video-conferencing allow
employees to communicate and work together even though they are thousands of
miles apart. The manager’s job in a networked organization requires different
techniques from those used when workers are physically present in a single location.

Helping Employees Balance Work–Life Conflicts

Employees increasingly recognize that work infringes on their personal
lives, and they’re not happy about it. Recent studies suggest employees want
jobs that give them flexibility in their work schedules so they can better manage
work–life conflicts. OB offers a number of suggestions to guide managers in
designing workplaces and jobs that can help employees deal with work–life conflicts.

Creating a Positive Work Environment

organizations are trying to realize a competitive advantage by fostering a
positive work environment which means practicing engagement, hope, optimism,
and resilience in the face of strain.

Improving Ethical Behavior

Employees see people all around them engaging in unethical practices—elected
official Employees paid expense accounts or take bribes; corporate executives inflate
profits so they can cash in lucrative stock options; and university administrators look
the other way when winning coaches encourage scholarship athletes to take easy
courses.
Managers and their organizations are responding to the problem of unethical
behavior in a number of ways.They’re writing and distributing codes of
ethics to guide employees through ethical dilemmas. They’re offering seminars,
workshops, and other training programs to try to improve ethical behaviors.
They’re providing in-house advisors who can be contacted, in many cases
anonymously, for assistance in dealing with ethical issues, and they’re creating
protection mechanisms for employees who reveal internal unethical practices
 LEARNING
INTRODUCTION
If a manager wants to explain and predict human behaviour, he/she needs to
understand how learning occurs or how people learn. So it is very very necessary to
know the nature, process and principles of learning.
According to S.P. Robbins, “learning is any relatively permanent change in behavior
that occurs as a result of experience.”

LEARNING PROCESS/NATURE
Theories of Learning: Learning is part of every one’s life. In our life, all complex
behavior is learned. Learning is defined as any relatively permanent change in
behavior that occurs as a result of experience. Whenever any change occurs learning
is taken place in the individual. If an individual behaves, reacts, responds as a result
of experience which is different from others, a person has encountered some new
learning experience in his life. This definition consists of the following four key
elements:
i) Change process: Learning involves some change in oneself in terms of observable
actions explicitly shown to others or change in one’s attitude or thought process
occur with oneself implicitly. Change may be good or bad or positive or negative
from an organization point of view. If a person is happened to experience some
negative incidents, that person will hold prejudices or bias or to restrict their output.
On the contrary, if a person is encountering some good incident, that person is likely
to hold positive attitude.
ii) Permanent change: Due to whatever exposure a person encounters, the impact
what it generates may be long lasting and permanent. Hence, the change must be of
relatively permanent. If change occurs due to fatigue or alcohol consumption or
temporary adaptation, it may be vanished once the goal is achieved.
iii) Setting behavioral actions: Explicit changes occurring in behavior is the main
goal of learning process. A change in an individual’s thought process or attitudes
without any changes in many explicit behavior will not be considered as learning
process.
iv) Need for meaningful experiences: Some form of experiences is necessary for
learning. Experience may be acquired directly through observation or practice. If
experience results in a relatively permanent change in behavior, one can confidently
say that learning has taken place.
Theories of Learning: There are three types of learning theories. These theories are
classical conditioning, operant conditioning and social learning.

FACTORS AFFECTING LEARNING

 Motivation of the learner
 Mental set of the learner
  Nature of Learning Material
 Practice
 Environment

CLASSICAL CONDITIONING THEORY

Russian physiologist Ivan Pavlov developed classical conditioning theory. When he
was doing a research on the chemical properties of saliva of dog, he noticed
accidentally that the dog started salivating the moment hearing the sound of a door of
cupboard clinging. Based on his observation, he wanted to do some experiment
whether the dog can be conditioned to respond to any neutral stimuli. He used a
simple surgical procedure to operate the salivary glands of a dog
to measure accurately the amount of saliva.
Pavlov’s Experiment: Pavlov conducted his experiment in three stages.
Stage I: When Pavlov presented the dog with a piece of meat, the dog exhibited a
noticeable increase in salivation. The meat is unconditional stimulus and salivation is
unconditional response.
Stage II: In this stage, the dog was not given a peace of meat but only exposed to a
sound of ringing bell; the dog did not salivate to the mere sound of a ringing bell.
Stage III: Pavlov decided to link both the presentation of meat and the ringing of a
bell one after the other with an interval of 5 minutes. After repeatedly hearing the
bell before getting the meat, the dog began to salivate as soon the bell rang. There is
an association or link between meat and ringing a bell. After repeating the
association between meat and ringing a bell, the dog started
salivating merely at the sound of the bell, even if no food was offered. The dog is
now conditioned to respond to a sound of a bell and started salivating. This is called
classical conditioning process.
Thus, classical condition is defined as the formation of S-R link (Stimulus-Response)
or habit between a conditioned stimulus and a conditioned response through the
repeated paring of conditioned stimulus with an unconditioned stimulus. In this
experiment, the meat is unconditioned stimulus, and the expected response that is,
salivating to the meat is called as unconditioned response. The sound of a bell is a
neutral stimulus which does not have any property to elicit salivation, is called as
conditioned stimulus.
Although it was originally neutral, if the bell was paired with meat (unconditioned
stimulus) it acquired the same property as meat eliciting the salivation.
The sound of a bell produced salivation when presented alone. This is called
conditioned response, that is, now the dog is conditioned to respond to the sound of a
bell. Learning conditioned response involves building up an association between a
conditioned stimulus and unconditioned stimulus. When the stimuli, one is natural
and the other one neutral are paired, the neutral one becomes a conditioned stimulus
and hence takes on the properties of the unconditioned stimulus.
APPLICATION OF CLASSICAL CONDITIONING PRINCIPLES AT WORK

Whenever President or Vice-President of Corporate Office visits factory site the

employees in the shop floor will more attentive at work and look more prim, proper
and active in their work life. It is quite natural that top management personnel visit
(Unconditioned Stimulus) evoking or eliciting a desired response- being prim and
proper at work from the employees (Unconditioned Response). The routine cleaning
of windows or floor of the administrative office will be neutral stimulus never
evoking any response from the employees. If the visit of the top
management personnel is associated with such cleaning process, eventually the
employees would turn on their best output and look prim and active the moment
windows and floor are being cleaned up. The employees had learned to associate the
cleaning of the windows with a visit from the head office. The cleaning process
(conditioned stimulus) evoked attentive and active work behavior (conditioned
response). Similarly, Christmas Carols songs bring pleasant memories of childhood
as these songs are being associated with the festive Christmas Spirit.
Classical conditioning is passive. It is elicited in response to a specific, identifiable
event.

OPERANT CONDITIONING
Operant conditioned principle is proposed by B.F. Skinner, an American
Psychologist. It is a type of conditioning in which desired voluntary behavior leads to
a reward or prevent a punishment. Operant conditioning principle emphasizes
strongly that the behavior of an individual is a function of its consequences. If the
consequences are pleasant, the behavior associated with such consequences will be
repeated again and again. If the consequences are unpleasant, the behavior will be in
extinct. The rationale behind this theory is that people learn to
behave in order to get something they want or to avoid something they don’t want.
Operant condition is learned process. The tendency to repeat such behaviour is
influenced by the reinforcement or lack of reinforcement brought about by the
consequences of the behavior. The proper reinforcement strengthens a behavior and
increases the likelihood that it will be repeated.
Skinner’s Experiment: Skinner developed an apparatus to conduct a series of
learning experiment using rats. He named that apparatus as Skinner’s Box which has
certain features such as a lever, bowl, light, water container etc. A highly deprived rat
is placed in the box. Once a rat nudges or touches or hits the lever attached in the
corner of the box, a piece of food pellet is dropped in the bowl. By trial and error, the
rat learns that hitting the lever is followed by getting
a food pellet in the bowl. Skinner coined the term operant response to any behavioral
act such as pressing or hitting or nudging the lever that has some effect on the
environment. Thus in a typical experiment with a skinner box, hitting or pressing the
lever is an operant response, and the increased rate of lever hitting or pressing that
occurs when the response is followed by a pellet of food exemplifies operant
conditioning.

APPLICATION OF OPERANT CONDITIONING IN WORK LIFE

If a sales person who hits the assigned target of sales quota will be reinforced with a
suitable attractive reward, the chances of hitting further sales target in future will be
exemplified. Skinner argued that creating pleasant consequences (giving attractive
rewards) to follow specific forms of behavior (hitting sales target) would increase the
frequency of that behavior. People will most likely engage in desired behaviors if
they are positively reinforced for doing so. Rewards are
most effective if they immediately follow the desired response. In addition, behavior
that is not rewarded is less likely to be repeated. A commissioned sales person
wanting to earn a sizeable income finds that doing so is contingent on generating
high sales in his territory.

COGNITIVE LEARNING THEORY

Cognition refers to an individual’s thoughts, knowledge, interpretations,
understandings or views about oneself and his/her environment. Based on it cognitive
theory argues that the person tries to formhis/her cognitive structure in memory,
which preserves and organizes all information relating to the events that may occur
in learning situation. Here an experiment was conducted on a monkey by Kohler.
Kohler presented two sticks to a monkey in a cage. Both sticks were too short to
reach a banana lying outside cage. This produced an experience, or say, cognition,
insight monkey. What monkey did without any prior exposure, joined both sticks
together and pulled the banana inside the cage. Clearly learning took place inside the
mind of monkey. Thus, the learning process involved in this case is putting or
organizing bits of information in a new manner perceived inside the mind. This type
of learning is very imp in
organizational behaviour for changing attitudes by the individuals.

SOCIAL LEARNING THEORY

People learn through both observation and direct experience, which is called as social
learning theory. Individual learn by observing what happens to other people and just
by being told about something, as well as by direct experiences. By observing people
around us, mostly from parents, teachers, peers, films and television performers,
bosses, we learn new behavior pattern.
The following four processes are vital to determine the influence that a model will
have on an individual.
i) Attention Process: People learn from a model only when they recognize and pay
attention to its critical features. People tend to be most influenced by models that are
attractive, repeatedly available similar to us in our estimation.
ii) Retention Process: A model’s influence will depend on how well the individual
remembers the model’s action after the model is no longer readily available.
iii) Motor Reproduction Process: After a person has seen a new behavior by
observing the model, the watching must be converted to doing. This process then
demonstrates that the individual can perform the modeled activities.
iv) Reinforcement Process: Individual will be motivated to exhibit they modeled
behavior if positive incentives or rewards are provided. Behavior that is positively
reinforced will be given more attention, learned better and performed more often.
 Personality
Meaning and Definition
personality is defined as the sum total of ways in which an individual reacts
to and interacts with others.

Personality Determinants
An individual’s personality is the result of heredity and environment.
Heredity refers to factors determined at conception. Heredity approach
argues that the ultimate explanation of an individual’s personality is the
molecular structure of the genes, located in the chromosomes.
Physical environment determines cultural development and to the extent, that
culture in turn determines personality, a relationship between personality and
environment becomes clear. Climate and topography determine to a great extent the
physical and mental traits of a people. The people of mountains as well as deserts are
usually bold, hard and powerful.

PERSONALITY TRAITS
Big Five Model gives five basic personality traits presented below.
● Extraversion. The extraversion dimension captures our comfort level with
relationships. Extraverts tend to be gregarious, assertive, and sociable.
Introverts tend to be reserved, timid, and quiet.
● Agreeableness. The agreeableness dimension refers to an individual’s
propensity to defer to others. Highly agreeable people are cooperative,
warm, and trusting. People who score low on agreeableness are cold,
disagreeable, and antagonistic.
● Conscientiousness. The conscientiousness dimension is a measure of
reliability. A highly conscientious person is responsible, organized,
dependable, and persistent. Those who score low on this dimension are
easily distracted, disorganized, and unreliable.
● Emotional stability. The emotional stability dimension—often labeled
by its converse, neuroticism—taps a person’s ability to withstand stress.
People with positive emotional stability tend to be calm, self-confident,
and secure. Those with high negative scores tend to be nervous, anxious,
depressed, and insecure.
● Openness to experience. The openness to experience dimension addresses
range of interests and fascination with novelty. Extremely open people
are creative, curious, and artistically sensitive. Those at the other end of
the category are conventional and find comfort in the familiar.
PERSONALITY AND OB
Here we would discuss How the Big Five personality Traits affect OB Criteria.

Emotional stability
WHY IS IT RELEVANT?
• Less negative thinking and
fewer negative emotions
• Less hyper-vigilant
WHAT DOES IT AFFECT?
• Higher job & life satisfaction
• Lower stress levels

Extroversion
WHY IS IT RELEVANT?
• Better interpersonal skills
• Greater social dominance
• More emotionally expressive
WHAT DOES IT AFFECT?
• Higher performance*
• Enhanced leadership
• Higher job & life satisfaction
Openness
WHY IS IT RELEVANT?
• Increased learning
• More creative
• More flexible & autonomous
WHAT DOES IT AFFECT?
• Training performance
• Enhanced leadership
• More adaptable to change
Agreeableness
WHY IS IT RELEVANT?
• Better liked
• More compliant and
Conforming
WHAT DOES IT AFFECT?
• Higher performance*
• Lower levels of deviant
behavior

Conscientiousness
WHY IS IT RELEVANT?
• Greater effort & persistence
• More drive and discipline
• Better organized & planning
WHAT DOES IT AFFECT?
• Higher performance
• Enhanced leadership
• Greater longevity

Other Personality Traits Relevant to OB

The other personality traits are Machiavellianism, narcissism, self-monitoring,

propensity for risk taking, proactive personality, and other-orientation.
core self-evaluation Bottom-line conclusions individuals have about their
capabilities, competence, and worth as a person.
Machiavellianism The degree to which an individual is pragmatic,maintains
emotional distance, and believes that ends can justify means.
narcissism The tendency to be arrogant, have a grandiose sense
of self-importance, require excessive admiration, and have a sense of
entitlement.
self-monitoring A personality trait that measures an individual’s
ability to adjust his or her behavior to external, situational factors.
High risk-taking managers made more rapid decisions and used less
information than did the low risk takers. Interestingly, decision accuracy was
the same for both groups.
proactive personality People who identify opportunities, show initiative,
take action, and persevere until meaningful change occurs.
Other-orientation, a personality trait that reflects the extent to which decisions are
affected by social influences and concerns vs. our own well-being and outcomes. It
appears that having a strong orientation toward helping others does affect some
behaviors that actually matter for organizations.
 PERCEPTION

Perception is a process by which individuals organize and interpret their

sensory impressions in order to give meaning to their environment.

Factors That Influence Perception

A number of factors influence perception.
There are three factors influencing perception which are related to the perceiver,
factors relate d to the target, Factors related to the situation.

FACTORS RELATED TO THE PERCEIVER

i)Projection: The perceiver tries to project his personality attributes in others is

known as projection.
ii)Mental makeup: The perceiver has pre set notion in his mind about certain objects,
events and people. The moment he has to deal or act upon those events, he already
knows how to act or react as he has made his mental set up to deal with such
situations.

iii)Stereotyping: Judging someone on the basis of one’s perception of the group to

which that person belongs.
In organizations, we frequently hear comments that represent stereotypes based
on gender, age, race, religion, ethnicity, and even weight .
“Men aren’t interested in child care,” “Older workers can’t learn new skills,”
“Asian immigrants are hardworking and conscientious.”
iv) Halo Effect: . When we draw a general impression about an individual on the
basis of a single characteristic, such as intelligence, sociability, or appearance, a
halo effect is operating.
v) First Impression :The perceiver forms an impression about the perceived when he
meets him for the first time. First impression is normally difficult to change
vi) Recency Effect: Recency effect is the effect that the recent event has on the
perceiver. During performance appraisal, the employees are rated on the basis of
their latest performance.

FACTORS RELATED TO THE TARGET

Characteristics of the target also affect what we perceive. Loud people are more
likely to be noticed in a group than quiet ones. So, too, are extremely attractive or
unattractive individuals. Because we don’t look at targets in isolation, the
relationship of a target to its background also influences perception, as does our
tendency.

FACTORS RELATED TO THE SITUATION:

Situation matters too. Factors in the situation are time,work setting and social setting
The time at which we see an object or event can influence our attention, as can
location, light, heat, or any number of situational factors.
PERCEPTUAL PROCESS:
Stage I: Receiving stimuli : The perception process starts with receiving stimuli. It
depicts the environmental stimuli being received by the fives sense organs.
Stage II: Selection of the Stimuli: In this stage, selection of some stimuli happens for
further processing while the rest are screened out. This is governed by both factors
external to the individual, such as the size, intensity, repetition, contrast and internal
to the individual, such as the self concept, belief, expectation, response disposition of
the perceiver.
Stage III: Organisation of stimuli : The selected stimuli is organized in the
perceiver’s mind to give it a meaningful term. The perceiver is influenced by figure
and ground and percetual grouping .

Figure and Ground:

What a person observes is dependent on how a central figure is being separated

from its background. This implies that the perceived object or person or event stands
out distinct from its background and occupies the cognitive space of the individual.
In a dance programme, the spectators’ tend to perceive the dance performance
against the back ground music, backdrop setup etc. The perceiver thus tends to
organize only the information which stands out in the environment which seems to
be significant to the individual.

Perceptual Grouping: It means grouping stimuli into an organized pattern. It

happens on the basis of proximity, similarity and closure.

Proximity: People tend to perceive things, which are nearer to each other, as
together as group rather than separately. If four or five members are standing
together, we tend to assume that they are belonging to same group rather than as
separately. As a result of physical proximity, we often put together objects or events
or people as one group even though they are unrelated. Employees
in a particular section are seen as group.
Similarity: Persons, objects or events that are similar to each other also tend to be
grouped together. This organizing mechanism helps us to deal with information in an
efficiently way rather than getting bogged down and confused with too many details.
For examples, if we happen to see a group of foreign nationals at an International
seminar, Indians are grouped as one group, British as another, Americans as yet
another based on the similarity of nationalities.

Closure: In many situation, the information what we intend to get may be in bits and
pieces and not fully complete in all respects. However, we tend to fill up the gaps in
the missing parts and making it as meaningful whole. Such mental process of filling
up the missing element is called as closure. For example, while giving promotions to
the staff members, the managers will try to get full information to make an effective
decision, in absence of getting complete information,
managers try to make meaningful assumptions and based on that suitable decision
will be made.
Stage IV: Interpretation: Assigning meaning to data is called interpretation. Once the
inputs are organized in human mind, the perceiver interpretes the inputs and draws
conclusion from it.But interpretation is subjective as different people interpret the
same information in different ways.
Stage V: Behavior Response or Action: In this stage the response of the perceiver
takes on both covert and overt characteristics. Covert response will be reflected in the
attitudes, motives, and feelings of the perceiver and overt responses will be reflected
in the actions of the individual.

IMPORTANCE OF PERCEPTION IN OB
People in organisations are always assessing others. Managers must appraise their
subordinate's performance, evaluate how co-workers are working. When a new
person joins a department he or she is immediately assessed by the other persons.
These have important effect on the organisation.
Employment Interview: Employment interview is an important input into the hiring
decision, and perceptual factors influence who is hired and vis-à-vis the Quality of an
organistaions labour force.
Performance Appraisals: Performance appraisal is dependent on the perceptual
process. An employee’s future is closely tied to the appraisal—promotion,
pay raises, and continuation of employment are among the most obvious
outcomes.
Assessing Level of Effort: In many organisations, the level of an employee's effort is
given high importance. Assessment of an individual's effort is a subjective judgment
susceptible to perceptual distortions and bias.
Assessing Loyalty: Another important judgment that managers decide about
employees is whether they are loyal to the organisation.
Productivity: What individuals perceive from their work situation will influence
their productivity. More than the situation itself than whether a job is actually
interesting or challenging is not relevant. How a manager successfully plans and
organises the work of his subordinates and actually helps them in structuring their
work is far less important than how his subordinates perceive his efforts.
Therefore, to be able to influence productivity, it is necessary to assess how workers
perceive their jobs.
Absenteeism and Turnover: Absence and Turnover are some of the reactions to the
individuals perception. Managers must understand how each individual interprets his
job. and where there is a significant difference between what is seen and what exists
and try to eliminate the distortions. Failure to deal with the differences when
individuals perceive the job in negative terms will result in increased absenteeism
and turnover.
Job Satisfaction:
Job satisfaction is a highly subjective, and feeling of the benefits that derive
from the job. Clearly his variable is critically linked to perception. If job satisfaction
is to be improved, the worker's perception of the job characteristics, supervision and
the organisation as a whole must be positive.
Understanding the process of perception is important because (1) It is unlikely that
any person's definition of reality will be identical to an objective assessment of
reality. (2) It is unlikely thattwo different person’s definition of reality will be exactly
the same. (3) Individual perceptions directly influences the behaviour exhibited in a
given situation.
 MOTIVATION

Nature and importance of Motivation:

We define motivation as the processes that account for an individual’s
intensity, direction, and persistence of effort toward attaining a goal.

Importance of Motivation
To increase work efficiency
To combine ability with willingness
To reduce the rate of labour turnover
To develop the leadership quality

THEOREIS OF MOTIVATION
Maslow’s Hierarchy of Needs
The best-known theory of motivation is Abraham Maslow’s hierarchy of needs . 5
Maslow hypothesized that within every human being, there exists a hierarchy of
five needs:
1. Physiological. Includes hunger, thirst, shelter, sex, and other bodily needs.
2. Safety. Security and protection from physical and emotional harm.
3. Social. Affection, belongingness, acceptance, and friendship.
4. Esteem. Internal factors such as self-respect, autonomy, and achievement,
and external factors such as status, recognition, and attention.
5. Self-actualization. Drive to become what we are capable of becoming;
includes growth, achieving our potential, and self-fulfillment.
Although no need is ever fully gratified, a substantially satisfied need no longer
motivates. Thus as each becomes substantially satisfied, the next one becomes
dominant. So if you want to motivate someone, according to Maslow, you need to
understand what level of the hierarchy that person is currently on and focus on
satisfying needs at or above that level, moving up the steps in.

Implications of Maslow’s Hierarchy of Needs Theory

This model helps the managers to understand and deal with issues of employee
motivation at the workplace. This model can be applied to motivate people at all
levels in the organization. Managers who understand the need patterns of their staff
can help the employees to engage in the kinds of work activities and provide the
types of work environment that will satisfy their needs at work. For instance, the
employees love and belonging needs can be fully satisfied by organizing
yearly dinner and dance program, office week end parties, creating recreation clubs
or social clubs etc. Fortunately, the workplace has the potential to offer need
gratification for several different types of needs, and mangers can motivate
employees by giving appropriate organizational support which will gratify
individual’s needs. Thus, despite its drawbacks, Maslow’s theory offers managers a
good technique on understanding the motives or needs of individuals and how to
motivate organizational members.

Herzberg’s Two-Factor Theory of Motivation

Herzberg’s Two-Factor Theory is also called motivation-hygiene theory.
A theory that relates intrinsic factors to job satisfaction and associates extrinsic
factors with dissatisfaction.
hygiene factors Factors—such as company policy and administration,
supervision, and salary—that, when adequate in a job, placate workers.
Herzberg argued that improvement in the hygiene factors would
only minimize dissatisfaction but not increase satisfaction and motivation
Motivating Factors
The presence of motivating factors always ensures job satisfaction and happiness
among the employees. They are: achievement, recognition, responsibility,
advancement, growth and the work itself. These motivating factors are relating to the
work content factors.
Implications for Managers
In Herzberg’s framework, these managerial reactions have focused primarily on the
hygiene factors surrounding the job, which has resulted in bringing individual to the
theoretical “zero point” of motivation. The two-factor theory would predict that
improvements in motivation would only appear when managerial action focused not
only the factors surrounding the job but on the inherent in most assembly line jobs
and developing jobs that can provide increased levels
of challenge and opportunities for a sense of achievement, advancement, growth and
personal development.

ERG THEORY:
ERG Theory:
Alderfer proposed a modified version of Maslow’s need hierarchy and labeled as
ERG theory.
Alderfer’s ERG refers to three groups of core needs – Existence, Relatedness and
Growth(ERG).
Existence Needs:
These needs are various forms of physiological needs, such as hunger, thirst and
shelter. In organizational settings, the need for pay, benefits, and physical working
conditions are included in this category. This category is comparable to Maslow’s
physiological and certain safety needs.
Relatedness Needs:
These needs include interpersonal relationships with others in the workplace. This
type of needs in individuals depends on the process of sharing and mutuality of
feelings between others to attain satisfaction. This category is similar to Maslow’s
safety, social and certain ego-esteem needs.
Growth Needs:
These needs involve a person’s efforts toward personal growth on the job.
Satisfaction of growth needs results from an individual engaging in tasks that not
only require the person’s full use of his or her capabilities, but also may require the
development of new capabilities. Maslow’s self-actualization and certain of his ego
esteem needs are comparable to those growth needs.

Implications of ERG Theory:

Alderfer has proposed two sets of views on individual’s aspirations and fulfillment.
One is satisfaction-progression and other frustration-regression. Satisfaction-
progression is similar to Maslow’s model in which once an individual’s basic needs
are satisfied, he/she will progress to the next level to satisfy the succeeding higher
level to have them satisfied. Alderfer proposed yet another view of individual’s
aspirations and fulfillment. If people eventually become frustrated in trying to satisfy
their needs at one level, their next lower level needs will re-emerge and they will
regress to the lower level to satisfy more basic needs. This is called as frustration-
regression. For manages, ERG theory provides a more
workable approach to motivation in organization. Because of the frustration-
regression approach component, it provides the manager with the opportunity of
directing employee behavior in a constructive manner even though higher order
needs are temporarily frustrated. In summary, ERG theory argues that satisfied
lower-order needs lead to the desire to satisfy higher-order needs; but multiple needs
can be operating as motivators at the same time and frustration in attempting to
satisfy a higher-level need can result in regression to a lower level need .

-------------------------------------
Using feedback mechanisms:

Since feedback involved both receiver and sender, it is important to understand the
conditions under which feedback session will be more effective both from the sender’s and
receiver’s perspective. For feedback to be most effective, the person giving the feedback must:

a) give specific and not general or vague feedback

b) give feedback immediately or soon after the event has taken place rather than long after the
event has occurred
c) give feedback on aspects that the receiver can rectify rather than on aspects over which the
individual has no control
d) Be descriptive than evaluative
e) Give feedback on a few critical issues where improvement is most urgently expected rather
than on a wide range of problem areas
f) Examine your own motivation in giving the feedback
g) Be sure that the receiver is ready to receive feedback
h) Be non-threatening and disregard you superior status while offering feedback.

Minimize Physical distraction:

Taking due care in minimizing the external noise, interruptions, awkward mannerism,
unusual and unwanted incidences etc facilitate to heighten the attention levels of the members in
attempting to satisfy a higher-level need can result in regression to a lower-level need.

GROUPS

INTRODUCTION

Groups have been a central part of our everybody lives. At any given time, we are
members in many different groups such as family, student association, workgroups, different
clubs.

A group is a collection of two or more individuals, interacting and interdependent, who

have come together to achieve a particular common objective.

According to D.H.Smith, “A group is the largest set of two or more individuals who are
jointly characterized by a network of relevant communication, a shared sense of collective
identity and one or more shared disposition with associated normative strength.

The above definition stresses the following points.

Interaction
Size
Shared goal interest
Collective Identity
TYPES OF GROUPS

Various methods are used to classify the types of groups that exist in our organizations.
In organizations, the predominant operating groups are the functional groups, task or project
groups and interest groups. In addition, groups are also classified as formal and informal groups.

Formal groups:

Formal groups are collections of employees who are made to work together by the
organization to get the job done smoothly and efficiently. For example, if five members are put
together in a department to attend to customer complaints they would be a formal group. The
formal groups are those whose primary purpose is facilitating, through member interactions, the
attainment of the goals of the organization .Task groups/project groups, command groups and
committees come under formal groups.

Task or Project Groups:

When a number of employees are formally brought together for the purpose of
accomplishing a specific task – for a short-term or long term period – such a collection of
individuals is called a task or project group. For example, the plant manager of a chemical
processing plant may be interested in identifying potential safety problems in the plant. To
provide a coordinated effort, the manager creates a four-person task force consisting of the
production superintendent, maintenance superintendent, director of engineering and the safety
engineer. The group members will deliberate these issues bring out suitable remediable measure
for those safety problems within a deadline period.

If any problems are found, the plant manager may create other task forces to work toward
the elimination of the potential problems. These activities create a situation that encourages the
members of the task force to communicate, interact and to coordinate activities, if the purpose of
the group is to be accomplished.

Informal groups:

Informal groups are groups that emerge or randomly get formed due to the formal group
members’ interaction with each other, and thereby develop common interest. For example,
members who are showing interest in cricket will join together and share and enjoy taking about
the cricket games. Informal groups provide a very important service by satisfying their members’
social needs. Because of interactions that result from the close proximity of task interactions,
group members play cricket together, spending their tea breaks together etc.Friendship groups,
Interest groups and Reference groups come under informal groups.

Interest and Friendship Groups:

The group members form relationships based on some common characteristics such as
age, political belief, or interests. Generally, it can be considered as informal group.
Employees who joined together to have their fringe benefits continued to have its
implementation, to support a peer who has been fired, or to seek more festival holidays etc. they
tend to unite together to further their common interest. Groups often develop because the
individual members have one or more common characteristics. This is called friendship groups.
For example, recreation clubs, social groups etc. Management usually doesn’t have any control
over these informal groups.

REASONS FOR JOINING GROUPS:

The most popular reasons for joining a group are related to our needs for security,
identity, affiliation, power and engaging in common tasks.

Protection of common and individual Interest:

By joining a group, members can reduce the insecurity of being alone. The membership
will make them feel stronger, gaining resistant to threats, having fewer self-doubts etc. New
employees are particularly vulnerable to a sense of isolation and turn to the group for guidance
and support. Employees develop a sense of security at personal as well as professional front by
joining groups.

Status:

Inclusion in a group that is viewed as important by others provides recognition and status
for its members. Being a member of Rotary Club, the members feel pride and gain status and
recognition.

Self-Esteem:

Groups can provide people with feelings of self-worth. That is, in addition to conveying
status to those outside the group, membership can also give increased feelings of worth to the
group members themselves. The self-esteem is bolstered when members are accepted by a highly
valued group. Being assigned to a task force whose purpose is to review and make
recommendations for the location of the company’s new corporate headquarters can fulfill one’s
intrinsic needs for competence and growth.

Affiliation:

Groups can fulfill social needs. People enjoy the regular interaction that comes with
group membership. For many people, these on-the-job interactions at work are the primary
source for fulfilling their needs for affiliation.

Power:

For individuals who desire to influence others, groups can offer power without a formal
position of authority in the organization. As a group leader he or she may be able to make
requests of group members and obtain compliance without any of the responsibilities that
traditionally go either formal managerial position.

Goal Achievement:

There are times when it takes more than one person to accomplish a particular task- there
is a need to pool talents, knowledge in order to complete a job. In such instances, management
will rely on the use of a formal group.

STAGES OF GROUP DEVELOPMENT:

i) Forming: At this stage, group members try to comprehend where they stand in the group and
how they are being perceived by others in the group. The members are very cautious in their
interactions with each other and the relationships among the group members are very superficial.
Members’ seldom express their feelings in the group and the individual members who are trying
to understand who they are in the group have concerns about how they will fit in the group as
permanent group members. This is characterized by much uncertainty about group’s purpose,
structure and leadership. Members are ‘testing the waters’ to determine what types of behavior
are acceptable. This stage is complete when members have begun to think of themselves as part
of a group.

ii) Storming: At this stage, disagreement tends to get expressed among the group members, and
feelings of anxiety and resentment are also expressed. Some power struggle may ensure at this
stage to determine who should assume the informal leadership role in the group. This storming
stage is also known as the sub-grouping and confrontation. This group is characterized by intra-
group conflict. Members accept the existence of the group, but there is resistance to the control
the group imposes on individuality. There is sometimes conflict over who will control the group.
When this stage is complete, there will be a relatively clear hierarchy of leadership within the
group.

iii) Norming: This stage is characterized by close relationships and cohesiveness. The group sets
norms, tries to attain some degree of cohesiveness, understands the goals of the group, starts
making good decision, expresses feelings openly and makes attempts to resolve problems and
attain group effectiveness. At this stage, members’ roles get defined, and task and maintenance
roles are assumed by group members. Group members’ also begin to express satisfaction and
confidence about being members of the group.

iv) Performing: This stage is characterized by collaboration and integration. The group
members evaluate their performance so that the members develop and grow. The group
relationships and structures are set and accepted. Group energy has moved from getting to know
and understand each other, to performing the task at hand. Feelings are expressed at this stage
without fear, leadership roles shared among the members, and the group members’ activities are
highly co-coordinated. The task and maintenance roles are played very effectively. The task
performance levels are high and member satisfaction, pride and commitment to the group also
high. Both performance and members’ satisfaction are sustained indefinitely;

v) Adjourning: This stage is characterized by concern with wrapping up activities rather than
task performance. The group prepares for its disbandment. High task performance is no longer
the group’s top priority. Instead, attention is directed towards finalizing activities. As the group
approaches the terminal phase, members break off their bonds of affection and stop interaction
with each other. Responses of group members vary in this state. Some feel pride in what the
group has accomplished. Others may be negative and critical of the way the organization has
treated the group and others may be sad over the loss of friendship gained during the life of the
work groups. These five stages of group development are only a suggestive and not prescriptive.
Sometimes, groups do not always proceed clearly from one stage to the next. Sometimes, several
stages go on simultaneously as when groups are storming and performing at the same time.
Under some conditions, high levels of conflict are conducive to high group performance.

GROUP COHESION:

Cohesion refers to the extent of unity in the group and is reflected in the members’
conformity to the norms of the group, feelings of attraction for each other, and wanting to
be co-members of the group. Attraction, cohesion and conforming to norms are all
intertwined. The more the members feel attracted to the group, the greater will be the
group cohesion. The greater the cohesion, the greater the influence of group members to
persuade one another to conform to the group norms. The greater the conformity, the
greater the identification of the members with the group, and the greater the group
cohesion. Cohesive groups work together to achieve the group goals. They can be
considered as valuable assets to the organization if the group’s goals coincide with the
organization’s goals.

Factors increasing Cohesiveness:

The following factors can facilitate to increase the cohesiveness of the work group.

i) Common conscent on Group Goals: If the group agrees on the purpose and direction of its
activities, this will serve to bind the group together and structure interaction patterns towards
successful goal accomplishment.

ii) Frequent Interactions: When group member have the opportunity to interact frequently with
each other, the probability for closeness to develop will increase. Managers can provide
opportunities for increased group interaction by calling frequent formal and informal meetings,
providing a common meetings place or physically designing the facilities so that group members
are within sight of one another.

iii) Personal Attractiveness: Cohesiveness is enhanced when members are attractive to one
another if mutual trust and support already exists. Personal attraction also helps group members
to overcome obstacles to goal accomplishment and personal growth and development.

iv) Inter-group Competition: Competition with other groups, both written and external to the
organization is a mechanism that acts to bring groups closer together for attaining a common
purpose.

v) Favorable Evaluation: If a group has performed in an outstanding manner, some recognition

for its performance by management serves to elevate the prestige of the group in the eyes of the
group members and other members of the group. Favorable evaluation helps make group
members feel proud about being members of the group.

vi) Group Size: As the size of the group increases, the frequency of interaction between
members decreases, thus decreasing the probability of maintaining cohesiveness. Past studies have
shown the groups of four to six members provide the best opportunity for interaction.
vii) Pleasant experiences with the group: When group members are attracted to each other or
there is a full trust and cooperation, interaction may become a pleasant experience resulting in
high level of cohesiveness in the group.

viii) Lack of Domination: When one or few members dominate the group, cohesiveness cannot
adequately develop. Such behavior can create smaller “cliques” within the group or identify
individual members as isolates or deviates.

ix) Gender of Members: It is reported that women tend to have greater cohesion than men. A
possible reason is that women are more likely to be feeling types than thinking types.

x) Previous Success: If a group has a history of success, it builds an espirit de corps that attracts
and unites members. Successful organizations find it easier to attract and hire new employees
than unsuccessful ones.

xi) Humor: Humor has been linked to increased cohesion in several studies. It is reported that
the greater the cohesion, the greater the influence of the group over the behavior of members and
subsequently group performance. As groups are composed of individuals who are attracted to the
goals of the group and to each other, one would expect to find a strong relationship between
cohesiveness and group performance. The major difference between highly cohesive and low
cohesive groups would be how closely members conformed to the group norms. Further, the
group performance would be influenced not only by cohesion, but by the level of group norms.

GROUP DECISION MAKING:

Decisions made by the members of the group in a collective way is known as group
decision making. Groups offer excellent techniques for performing many of the steps in the
decision making process. If the group is composed of individuals with diverse backgrounds, the
alternatives generated should be more extensive and the analysis will be more critical.

Strengths of Group Decision-making:

The following aspects identified the main advantages that groups offer over individuals in the
making of decisions.

i) More information and knowledge: By aggregating the resources of several individuals, the
group brings more input into the decision process.

ii) Increased diversity of views: Group brings heterogeneity to the decision-making process and
this opens up the opportunity for more approaches and alternatives to be considered.

iii) Increased acceptance of a solution: The group acceptance facilitates higher satisfaction
among those employees required to implement it.
iv) Increased legitimacy: The group decision making process is consistent with demographic
ideals and therefore may be perceived as being more legitimate than decisions made by an
individual.

Weakness of group decision making:

Some of the main disadvantages are:

i) Time-consuming: It takes time to assemble a group.

ii) Pressures to conform: The desire by group members to be accepted and considered as an asset
to the group can result in squashing any overt disagreement, thus encouraging conformity among
viewpoints.

iii) Domination by the few: Few people will try to dominate the group discussion. If such people
are happened to be mediocre, the group overall effectiveness will suffer.

iv) Ambiguous responsibility: In group decision, the responsibility of any single member is
reduced.

Teams require individuals with technical expertise, as well as problem-solving, decision-

making and interpersonal skills and high scores on the personality characteristics of extroversion,
agreeableness, conscientious and emotional stability. Effective teams are neither too large nor
too small- typically they range in size from five to twelve people. They also have adequate
resources, effective leadership and a performance evaluation and reward system that reflect team
contribution Effective teams have members committed to a common purpose, specific team
goals, member who believe in the team’s capabilities and a manageable level of conflict.

--------------------------------------------------
ii) Goal Setting: Focusing on shared understanding of the mission and goals of the team. During
this activity the team members clarify general goals and define specific tasks and sub goal to be
accomplished within a specific time with set measurement criteria and reporting mechanisms.
iii) Defining Roles: The members must define the roles without any ambiguity and ensure that
instructions are very clear. The responsibilities, norms and expressions and requirements of each
role are clarified.
iv) Problem Solving: The member must identify the problem and must follow steps such as
gathering and analyzing data, finding causes, understanding solutions, choosing solutions,
planning an action and implementing and evaluating the action.

---------------------------------------

LEADERSHIP
INTRODUCTION
Leadership is a process whereby an individual influences a group of individuals to achieve
a common goal. Leadership is defined as the process of influencing others to get the job done
more effectively over a sustained period of time. Leaders play a critical role in influencing the
work behavior of others in the system.
According to Pearce &Robbinson, “Leadership is the process of influencing others to work
towards the attainment of specific goals.”
Importance of Motivation
• Task support
• Psychological Support
• Development of individuals
• Building the team spirit
• Motivation
• Provides feedback
• Facilitates change
• Maintains discipline

STYLES OF LEADERSHIP

A-Autocratic style, also known as authoritarian leadership, is a leadership style

characterized by individual control over all decisions and little input from group members.
Autocratic leaders typically make choices based on their own ideas and judgments and rarely
accept advice from followers. Autocratic leadership involves absolute, authoritarian control over
a group.

Characteristics of Autocratic Leadership

Some of the primary characteristics of autocratic leadership include:
•Little or no input from group members
•Leaders make the decisions
•Group leaders dictate all the work methods and processes
•Group members are rarely trusted with decisions or important tasks
Advantages :
Autocratic leadership can be beneficial in some instances, such as when decisions need to be
made quickly without consulting with a large group of people. Some projects require strong
leadership in order to get things accomplished quickly and efficiently.
In situations that are particularly successful, such as during military conflicts, group members
may actually prefer an autocratic style. It allows members of the group to focus on performing
specific tasks without worrying about making complex decisions..

Disadvantages :
While autocratic leadership can be beneficial at times, there are also many instances where this
leadership style can be problematic. People who abuse an autocratic leadership style are often
viewed as bossy, controlling, and dictatorial, which can lead to resentment among group
members.
Because autocratic leaders make decisions without consulting the group, people in the group may
dislike that they are unable to contribute ideas.

B-Democratic style
It is also known as participative leadership, is a type of leadership style in which members of
the group take a more participative role in the decision-making process. Researchers have
found that this learning style is usually one of the most effective and lead to higher
productivity, better contributions from group members, and increased group morale.

Characteristics :

Some of the primary characteristics of democratic leadership include:

•Group members are encouraged to share ideas and opinions, even though the leader retains the
final say over decisions.
•Members of the group feel more engaged in the process.
•Creativity is encouraged and rewarded.

Advantages :

Because group members are encouraged to share their thoughts, democratic leadership can leader
to better ideas and more creative solutions to problems. Group members also feel more involved
and committed to projects, making them more likely to care about the end results. Research on
leadership styles has also shown that democratic leadership leads to higher productivity among
group members.

Disadvantages :

While democratic leadership has been described as the most effective leadership style, it does
have some potential downsides. In situations where roles are unclear or time is of the essence,
democratic leadership can lead to communication failures and uncompleted projects. In some
cases, group members may not have the necessary knowledge or expertise to make quality
contributions to the decision-making process.
Democratic leadership works best in situations where group members are skilled and eager to
share their knowledge. It is also important to have plenty of time to allow people to contribute,
develop a plan and then vote on the best course of action.
C-Laissez-faire style
This style is also known as delegative leadership, is a type of leadership style in which
leaders are hands-off and allow group members to make the decisions. Researchers have found
that this is generally the leadership style that leads to the lowest productivity among group
members.

Characteristics :
•Very little guidance from leaders
•Complete freedom for followers to make decisions
•Leaders provide the tools and resources needed
•Group members are expected to solve problems on their own
Laissez-faire leadership can be effective in situations where group members are highly
skilled, motivated and capable of working on their own. While the conventional term for this
style is 'laissez-faire' and implies a completely hands-off approach, many leaders still remain
open and available to group members for consultation and feedback.

Disadvantages

Laissez-faire leadership is not ideal in situations where group members lack the knowledge or
experience they need to complete tasks and make decisions. Some people are not good at setting
their own deadlines, managing their own projects and solving problems on their own. In such
situations, projects can go off-track and deadlines can be missed when team mem

THEORIES OF LEADERSHIP

There are three major approaches to leadership: a) trait theories, b) behavioral theories, c)
situational theories. Trait theories highlight that there exists a finite set of individual traits
or characteristics that distinguish successful from unsuccessful leaders. Behavioral theories
highlight that the most important aspect of leadership is not the traits of the leader, but what
the leader does in various situations. Successful leaders are distinguished form unsuccessful
leaders by their particular style of leadership. Situational theories outlines that the
effectiveness of the leader is not only determined by his or her style of behavior, but also by the
situation surrounding the leadership environment. Situational factors include the
characteristics of the leader and the subordinates, the nature of the task and the structure of the
group.

TRAIT THEORY:

Some of the significant characteristics of leaders are categorized as follows:

- Physical Characteristics – age, appearance, height, weight
- Social Background – Education, social status, mobility
- Intelligence – Intelligence, ability, judgment, knowledge, decisiveness, fluency of speech
- Personality – Aggressiveness, alertness, dominance, enthusiasm, extroversion, independence,
creativity, personal integrity, self-confidence
- Task-related Characteristics – Achievement drive, drive for responsibility, initiative,
persistence, enterprise, task orientation
- Social Characteristics – Administrative ability, attractiveness, cooperativeness, popularity,
prestige, sociability, interpersonal skill, tack and diplomacy

The list of important leadership traits is endless and grows with each passing year. It has
 not yet been shown that a finite set of traits can distinguish successful from unsuccessful leaders.
For example, successful research administrators are usually inquisitive, independent, perspective,
and experts within their field. Successful sales manages are usually high-need achievers

gregarious, enthusiastic and project a professional stature, What may be important traits for one
occupation may not be important for other roles in the same organization. Uniformity of traits
across all levels is thus questioned. Trait identifies who the leader is, not the behavioral patterns
he or she will exhibit in attempting to influence subordinate actions.

BEHAVIOURAL THEORY:

The foundation for the style of leadership approach was the belief that effective leaders
utilized a particular style to lead individuals and groups to achieving certain goals, resulting in
high productivity and morale. Unlike trait theories, the behavioral approach focused on leader
effectiveness, not the emergence of an individual as a leader. There are two prominent styles of
leadership such as task orientation, and employee orientation.

Task orientation is the emphasis the leader place on getting the job done by such actions
as assigning and organizing the work, making decision, and evaluating performance. Employee
orientation is the openness and friendless exhibited by the leader and his concern for the needs of
subordinates. Two major research studies directed toward investigating the behavioral approach
to leaderships is i) Ohio State University Studies and ii) University of Michigan Studies.

Ohio State Studies: Initiating Structures and Consideration: They identified two independent
leadership dimensions.
- Initiating Structure: This concerned the degree to which the leader organized and defined the
task, assigned the work to be done, established communication networks and evaluated work-
group performance.
- Consideration, which was defined as behavior that involves trust, mutual respect, friendship;
support and concern for the welfare of the employee. Consideration refers to an emphasis on an
employee orientation leadership style. Their findings indicated that a mixture of initiating-
structure and consideration leader behavior, which are achieved the highest effectiveness,
depends largely on situational factors.

Michigan State Studies: Two distinct styles of leadership were developed from their studies:
- Job-centered leaderships style, which focused on the use of close supervision, legitimate and
coercive power, meeting schedules and evaluating work performance.
- Employee-centered style, which is people oriented and emphasis delegation of responsibility
and a concern for employee welfare, needs, advancement and personal growth. Their findings
reported that employee centered and job centered styles result in productivity increase. However,
job centered behavior created tension and pressure and resulted in lower satisfaction and
increased turnover and absenteeism. Employee centered style is the best leadership style.
-Leadership’s style is too complex to be viewed as uni-dimensional, but more than two
dimensions may complicate the interpretation of leadership behavior. The measurement of
leadership style for each of the approaches was accomplished through the use of questionnaire.
This method of measurement is both limited and controversial. Further, in search of the most
effective leadership’s style, the research findings suggested that a universally accepted best style
was inappropriate to the complexities of modern organizations.

Managerial Grid: The five basic approaches to management identified by Black and Mouton
are based on the two dimensions of concern of people and concern for production that are
associated with leaders. A managerial grid is formed based on these two dimensions which are
rated on 9 point scale. If manager is securing the lowest score on these two dimensions I,I is
identified as impoverished style of managers who are low on both their concern of people and
production, 1,9 or country club style is designated to those managers who are having high
concern for people but low concern for production. The 5, 5 or the middle-of-the road style
concerns the moderate levels of concern for both people and production. The 9,1 or task
management style is one where there is a high concern for production but very little concern for
people and finally, 9,9 or team management style is one where the manager has high concern for
both people and production. According to Blake and Mouton the one best style for all mangers is
the 9,9 or team management style.

Likert’s System Four Model: Rensis Likert suggests that managers operate under four different
systems.
System I – Exploitative Authoritative: The manager believes in very authoritarian manner and
actually exploits the subordinates
System II – Benevolent Authoritative: The manager takes a paternalistic approach while still
being autocratic. Behaving as benevolent autocratic, the leader maintains strict control over the
subordinates albeit in a paternalistic manner.
System III – Consultative: The manager consults the subordinates and still maintains the right
to make the final decision.
System IV – Participative Groups: The manager uses a democratic style and makes decision
by consensus and majority vote.

Likert feels that the best way for all organizations to manage employees is to move towards
System IV.

Situational Theory:

Situational approaches to leadership take the position that there is no “one best way to lead in
all the situations. Effective leadership style will vary from situations to situation, depending
on several factors such as the personality predisposition of the leaders, the characteristics of the
followers, the nature of task being done and other situational factors.
Tannenbaum and Schmidt reported that the use of authority by the manager (boss centered
leaderships style) or the area of freedom given to subordinates (subordinate centered leadership)
is a function of the following factors such as i) forces in the manager – value system, confidence
in subordinates, leadership predispositions and feelings of security and insecurity), ii) forces in
the subordinates (their needs for independence or dependence, readiness to assume
responsibility, tolerance for ambiguity, abilities, knowledge and experience and inclination to
participate in decision making) and iii) forces in the situation (type of organization, group
effectiveness, time pressures and the nature of the problem itself)

Fiedler’s Contingency Model of Leadership: Fiedler developed a model to predict work group
effectiveness by taking into consideration the best fit between the leadership style and the degree
of favorableness of the situation. The following three factors are considered to check whether the
situation will be favorable or unfavorable. These factors are i) Leader- Member relations, ii)
Task structure of the group, iii) Perceived position power of the manager.

Leadership Style Assessment – Leased Preferred Coworkers Scale: Fiedler developed a scale
to rate the type of relationship a supervisor holds towards the least preferred coworkers on a
twenty-item questionnaire. The supervisor is asked to describe the person with whom he has
associated with leaders. A managerial grid is formed based on these two dimensions which are
rated on 9 point scale. If manager is securing the lowest score on these two dimensions I,I is
identified as impoverished style of managers who are low on both their concern of people and
production, 1,9 or country club style is designated to those managers who are having high
concern for people but low concern for production. The 5, 5 or the middle-of-the road style
concerns the moderate levels of concern for both people and production. The 9,1 or task
management style is one where there is a high concern for production but very little concern for
people and finally, 9,9 or team management style is one where the manager has high concern for
both people and production. According to Blake and Mouton the one best style for all mangers is
the 9,9 or team management style.

Likert’s System Four Model: Rensis Likert suggests that managers operate under four different
systems.
System I – Exploitative Authoritative: The manager believes in very authoritarian manner and
actually exploits the subordinates
System II – Benevolent Authoritative: The manager takes a paternalistic approach while still
being autocratic. Behaving as benevolent autocratic, the leader maintains strict control over the
subordinates albeit in a paternalistic manner.
System III – Consultative: The manager consults the subordinates and still maintains the right
to make the final decision.
System IV – Participative Groups: The manager uses a democratic style and makes decision
by consensus and majority vote.

Likert feels that the best way for all organizations to manage employees is to move towards
System IV.

Situational Theory:

Situational approaches to leadership take the position that there is no “one best way to lead in
all the situations. Effective leadership style will vary from situations to situation, depending
on several factors such as the personality predisposition of the leaders, the characteristics of the
followers, the nature of task being done and other situational factors.
Tannenbaum and Schmidt reported that the use of authority by the manager (boss centered
leaderships style) or the area of freedom given to subordinates (subordinate centered leadership)
is a function of the following factors such as i) forces in the manager – value system, confidence
in subordinates, leadership predispositions and feelings of security and insecurity), ii) forces in
the subordinates (their needs for independence or dependence, readiness to assume
responsibility, tolerance for ambiguity, abilities, knowledge and experience and inclination to
participate in decision making) and iii) forces in the situation (type of organization, group
effectiveness, time pressures and the nature of the problem itself)

Fiedler’s Contingency Model of Leadership: Fiedler developed a model to predict work group
effectiveness by taking into consideration the best fit between the leadership style and the degree
of favorableness of the situation. The following three factors are considered to check whether the
situation will be favorable or unfavorable. These factors are i) Leader- Member relations, ii)
Task structure of the group, iii) Perceived position power of the manager.

Leadership Style Assessment – Leased Preferred Coworkers Scale: Fiedler developed a scale
to rate the type of relationship a supervisor holds towards the least preferred coworkers on a
twenty-item questionnaire. The supervisor is asked to describe the person with whom he has
worked least well in accomplishing some task. The model postulates that a low LPC score
(unfavorable avoidable evaluation) indicates the degree to which a leader is ready to reject those
with whom he cannot work. Therefore, the lower the LPC score, the greater the tendency for the
leader to be task oriented. On the other hand, a high LPC (favorable evaluation) indicates a
willingness to perceive even the worst coworker as having some positive attributes. Therefore,
the higher the LPC score, the greatest the tendency for the leader to be employee oriented.

Favorable Situation: The situation is considered as highly favorable if it possess a high level of
positive interpersonal relations between leaders and members, a well-defined task structures and
a leaders perceive that they are bestowed with strong perceived positional power. In such
type of situation the leader will have a great deal of control over situations and will simply have
to make sure that he gives the necessary instructions to get the task done. There is no need for
him to waste time talking to each employee in order to be perceived as friendly. A task-oriented
style will be effective in such situation.

Unfavorable Situation: The situation is considered as highly unfavorable if it possesses a low

level of interpersonal relationship between leaders and members, a poorly defined task and a
relatively a weak perceived power. The leader of a task-force committee which is appointed to
solve problems encountered in the work setting is likely to find him in such a situation. In such
type of situation, the leader is in highly vulnerable situations and there is no other way to enforce
a strict discipline and order to bring the situation in normalcy than following relationship
oriented style.

Moderately Favorable Situation: Here the leader might find herself in a mixed situation. For
instance, a manager might have good relationship with her workers, but the task structure and
position power of the leader may be low. For example, a bank officer may have a good
relationship staff member, but the task structure or the power to control the staff members (either
to reward or punish members) is not strong enough. In such situations, the manager will be very
successful and get the desirable results if he follows more of relationships oriented style than
task oriented task style. The major findings of fielder are that the task-oriented leaders perform
better than relationship oriented leaders in both extreme situations that are very favorable and
thosethat are unfavorable. Relationship oriented leaders tend to perform better than task oriented
leaders in situations that are intermediate in favorableness. These findings suggest that each of
the leadership style can be effective in certain situation. Fiedler also suggests that the
organization can change the effectiveness of the group’s performance by changing the
favorableness of the situations or by changing the leader’s preferred style through education and
training.

Fiedler’s contingency model has proven to be major addition to the study of leadership in
organizations for a number of reasons. First, the contingency model was one of the first
approaches to leadership that included situational factors within its theoretical framework. The
model will probably continue to be an important source of new ideas, propositions and
hypotheses about situational leadership. Second, it provides the subtle but important implication
that one should not speak of leadership as being either good or poor. Rather, a more realistic
viewpoint would be that a manager’s style of leading may be effective in one situation but not in
another. Finally, leadership effectiveness is a function of the leader’s style and the interaction of
situational factors. The organization may improve the effectiveness of a particular work
environment either modifying the situational factors or attempting to change the manager’s
leadership style.

Path-Goal Theory of Leader Effectiveness: A second situational theory of leadership has been
proposed by House and Evan. The principle function of the leader is facilitating to increase
valence perception of their subordinates and clarify and increase expectancy probabilities of
them. This will in turn make them to put greater amount of effort and derive higher level of
satisfaction and performance in their work. The theory is composed of two basic propositions
such as i) role of the leader and ii) dynamics of the situation. The two main aspects of this model
are as follows:

Leadership Role: Leader behavior is acceptable and satisfying to the extent that subordinates
perceive such behavior as a source of satisfaction or instrumental to future satisfaction. There are
four styles of leadership:

- Directive Leadership Behavior: This deals with planning, organizing, controlling and
coordinating of subordinates activities by the leader. It is similar to the traditional dimension of
initiating structure in that the leader’s emphasis is on letting the subordinates know what is
expected of them.

- Supportive Leadership Behavior: This concerns giving support consideration to the needs of
the subordinates, displaying concern for their well-being and welfare and creating a friendly and
pleasant environment.

- Participative Leadership Behavior: This deals with sharing of information and an emphasis
on consultation with subordinates and use of their ideas and suggestions in reaching group-
related decision.

- Achievement-Oriented Leadership Behavior: This deals with setting challenging goals,

expecting subordinates to perform at the highest level, continually seeking improvement in
performance. The leader wants good performance, but at the same time displays confidence in
the ability of his subordinates to do a good job.

Dynamics of Situation: The leadership style is determined by the situation in which the leader
functions. Two main factors that influence the situational effectiveness of the leader’s behavior
are: a) the characteristics of the subordinates and b) the characteristics of his work environment,
including task, work group and other organizational factors. The theory proposes that leader
behavior will be perceived as acceptable to subordinates to the extent that the subordinates see
such behavior as either an immediate source of satisfaction or as needed for future satisfaction.

Characteristics of Subordinates: Subordinates characteristics are seen to partially determine

this perception. The following are the characteristics:

- Ability: This refers to the subordinates perception of his or own ability

- Locus of Control: This deals with the degree to which an employee believes that he or she has
control of what happens to him. People who believe that they controlled their environment and
who believe what happens to them occurs because of their behavior are called internal. People
who believe what happens to them is not under their control and occurs because of luck or fate
are externals.
- Need and Motives: A subordinate’s dominant needs may affect the impact of leader behavior.
For example, individuals with high safety and security needs may accept an instrumental leader
style, but employees with high affiliation and esteem needs may react more positively to a
supportive leader.

Characteristics of Work Environment:

There are three broad aspects work environment such as i) task structures, ii) primary work
group and iii) formal authority system.

Path-Goal theory states that leaders can exercise four different kinds of styles such as directive
leadership, supportive leadership, participative leadership and achievement oriented leadership.
The Path-Goal theory postulates that any of the four styles can be used effectively by the leader,
depending upon situational factors such as subordinate characteristics (ability internal or external
locus of control, needs and motives), and attributes in the work setting (task characteristics,
authority system and the nature of the primary work groups). If there is a good fit between the
leadership style and the situational factors in the work setting, then subordinates will experience
job satisfaction, accept and value the leader as a dispense or valued rewards and will engage in
motivated behavior because they will know that their effort will lead to performance and that
performance will lead to valued rewards. The rationale behind the theory is that leader can help
the subordinates to achieve their goals by providing what is missing in the situation. Employees
are helped by the leader to see the path by which their efforts will lead to performance and
performance to desired rewards. The leader can take care of the missing links in the situation and
facilitate to fulfill the needs of the subordinates. This suggests that leaders should involve their
subordinates as much as possible in goal setting. This will enhance a person’s sense of control
over the organization’s goal and have significant benefits in terms of job satisfaction, self-esteem
and self-efficacy as well as productivity improvement for the organization. Goals need to be
difficult enough to be challenging and yet realistic and achievable. Goal setting needs to be
consistent across everyone and over time.

Hersey and Blanchard’s Life Cycle Model of Situation Leadership: Heresy and Blanchard
developed a situational model focusing on the followers characteristics. Successful leadership is
achieved by selecting the right leadership style, which is contingent on the level of the followers’
developmental level. It is the followers who accept or reject the leader, so that they are important
factors in a leader’s success. Blanchard defined developmental level as the skill and willingness
of people to take responsibility for directing their own behavior. It consists of two components
such as job maturity (Job competence – skills and abilities) and psychological maturity
(motivation and willingness to take responsibility).

Situational Leadership Styles:

Situational leadership uses the same two leadership dimensions – task and relationship behavior.
However, the situational leadership approach goes a step further by considering each as either
high or low and then combining them into for specific leadership styles:

Directing, Coaching, Supporting and Delegating.

i) Directing: (high directive – low supportive): The leader defines roles and tells people what
tasks to do and how, when and where to do them. It emphasis directive behavior.
ii) Coaching: (high directive – high supportive): The leader provides both directive behavior
and supportive behavior)
iii) Supporting (low directive-high supportive): The leader and follower share in decision-
making, with the main role of the leader being facilitating and communicating.
iv) Delegating: (low directive-low supportive): The leader provides little direction or support.

INSPIRATIONAL APPROACHES TO LEADERSHIP

These contemporary leadership theories view leaders as individuals who inspire followers
through their words, ideas, and behaviors.

A. Charismatic Leadership. Charisma, as defined by Max Weber, is “a certain quality of an

individual personality, by virtue of which he or she is set apart from ordinary people and
treated as endowed with supernatural, superhuman, or at least specifically exceptional
powers or qualities. These are not assessable to the ordinary person, but are regarded as of
divine origin or as exemplary, and on the basis of them the individual concerned is treated as
a leader.”

B. Transformational Leadership. While transformational leadership does divide leadership

into two categories, these are not opposites but complements. Transformational leadership
builds on top of transactional leadership and produces levels of follower effort and
performance that go beyond what would occur with a transactional approach alone. But the
reverse is not true.

Leadership Types. This theory of leadership divides leaders into two types, based on their
methods and outcomes:

a. Transactional Leaders: those who guide or motivate their followers in the direction of
establish goals by clarifying role and task requirements. These leaders were described in
the other (non-inspirational) sections of this chapter.
 b. Transformational Leaders: those who inspire followers to transcend their own self-
interests for the good of the organization and are capable of having a profound or
extraordinary effect on their followers.

What Makes Leadership Effective:

The following points make the leadership effective.

Sound mental and physical health
Knowledge and Intelligent
Clear cut and worthy goal
Conviction
Sense of responsibility
Motivation
Initiative and Drive
Leader’s own personality, past experience & expectation
Expectation & behaviour of his superior
Expectation & behaviour of his subordinate
Task Requirement
Organisational culture & climate

--------------------------------------------

CONFLICT
INTRODUCTION
Human beings experience conflict in their everyday life. Hence organizations are not
free of it. Conflict has considerable influence on individual and organizational performance.
Therefore conflict management is very very necessary.
According to Kolb and Bartinek, “conflict can be a disagreement, the presence of tension, or
some other difficulty within or between two or more parties.

TYPES OF CONFLICT

Intrapersonal Conflict: When conflict occurs within an individual, it is called intrapersonal

conflict. It occurs in three ways.

a)Approach-Approach Conflict-Here an individual must choose between two alternatives which

have expected positive outcome.

b)Avoidance-Avoidance Conflict- Here an individual must choose between two alternatives

which have expected negative outcome.

c)Approach-Avoidance Conflict- Here an individual must decide whether to do something that is

expected to have both positive and negative outcome.

Interpersonal Conflict: When conflict occurs in between individual to individual ,it is called
interpersonal conflict.

Intragroup Conflict: When conflict occurs within one group,it is called intragroup conflict.
Intergroup Conflict: When conflict occurs amongst different groups, it is called intergroup
conflict. It occurs in three ways.

a)Vertical Conflict-It refers to conflicts that occur between individuals at different levels.
Conflict between the superior and subordinate is an example of vertical conflict.

b)Horizontal conflict-It refers to tensions between employees or groups at the same hierarchical
level. Horizontal conflict occurs because of interdependence among the parties concerned in the
work situation.

c)Line & Staff Conflict- It refers to the conflicts that arise between those who assist or act in an
advisory capacity (staff) and those who have direct authority to create the products, process, and
services of the organizing (line).

CONFLICT PROCESS
The conflict process can be categorized into five stages. They are as follows:

Stage I: Potential opposition or incompatibility:

This covers the present condition that creates opportunity for conflicts to arise. This may be one
of the conditions responsible for the occurrence of conflict. The major sources of conflict can be
further categorized as communication, structure and personal variables. Communication: It is
reported that word connotations, jargon, insufficient exchange of information and noise in the
communication channel are all barriers to communication and potential antecedent conditions to
conflict.
Stage II: Cognition and personalization:
Perception or sense making plays a major role in the resolving conflict. Conflict may either be
perceived or felt in nature. Perceived conflict is defined as awareness by one or more parties of
the existence of conditions that create opportunities for conflict to arise. Felt conflict is defined
as emotional involvement in a conflict creating anxiety, tenseness, frustrations or hostility.
Negative emotions have been found to produce over simplification of issues, reductions in trust,
and negative interpretations of the other party’s behavior.
Stage III: Intentions:
Using two dimensions – cooperativeness (the degree to which one party attempts to satisfy the
other party’s concerns) and assertiveness (the degree to which one party attempts to satisfy his or
her own concerns) – five conflict handling intentions can be identified. There are as follows: i)
competing (assertive and uncooperative), ii) collaborating (assertive and cooperative), iii)
avoiding (unassertive and uncooperative), iv) accommodating (unassertive and cooperative) and
ii) compromising (mid-range on both assertiveness and cooperativeness).
Stage IV: Behaviour:
All conflicts manifest in behavior somewhere along with continuum ranging from no conflict or
minor conflict such as minor disagreements or misunderstanding, overt questioning or
challenging of others, to annihilatory conflict such as threats and ultimatum, aggressive physical
attacks or overt efforts to destroy the other party.
Stage V: Outcomes:
The outcomes of conflict may be functional or dysfunctional. Conflict is constructive when it
improves the quality of decision, stimulates creativity and innovation, encourages interest and
curiosity among group members, provides the medium through which problems can be aired and
tensions released and fosters an environment of self-evaluation and change.

CAUSES OF INTER-GROUP CONFLICT:

There are three basic sources of inter-group conflict: i) goal incompatibility, ii) decision-making
requirements and iii) performance expectations.
Interdependence: Conflict potential increases when groups are interdependent. The different
types of Interdependence are as follows:
1. Pooled interdependence—no direct interaction occurs between groups;
interdependence exists because their pooled performance determines organizational performance
(e.g.,
the Cadillac, Buick and Chevrolet divisions at General Motors). Creates relatively low conflict
potential.
2. Sequential interdependence—Occurs when one group must complete
its task before another group can complete its task (e.g., two groups on an assembly line). Makes
conflict more likely because output (quality and quantity) of one group depends on the task input
of
another.
3. Reciprocal interdependence—the output of each group is the input for
other groups and vice versa (e.g., the anesthesiology, nursing, and surgical teams in an operating
room).
Creates high conflict potential.
All organizations have pooled interdependence; complex organizations have sequential
interdependence; and the more complex organizations have reciprocal interdependence. The
more
complex the organization, the greater the conflict potential.
B. Goals Difference: Groups with different goals have different expectations that can cause
conflict
when the groups interact. Goal differences become more evident when resources are limited and
are
allocated across the groups. Conflict pressures increase when groups think resources have not
been
allocated equitably. Different goal can produce different perceptions. Different time horizons can
produce different times perspectives and affect perceived importance of problems (e.g., a
company
president's time perspective of five-to-ten years vs. a foreman's perspective of one month to one
year).
C. Perceptual Differences: Status incongruency-one group perceiving itself as more prestigious
than another can provoke intergroup conflict. Inaccurate perceptions often causes groups to
develop
stereotypes about other groups, which can provoke conflict and erode intergroup relations.
When conflict is low rational model describes the organization where goals are consistent across
participants, power and control are centralized, decision process are orderly, logical, rational,
rules and
norms are norms of efficiency, information is extensive, systematic and accurate.
When conflict is high political model describes the organization where goals are inconsistent and
pluralistic within the organization, power and control are decentralized and shifting coalitions
and
interest groups, decision process are disorderly and result of bargaining and interplay among
interests,

Conflict management Techniques:

The various strategies for minimizing and resolving conflicts can be classified into five
categories: i) Avoidance, ii) Accommodating, iii) Compromise, iv) Competition and v)
Collaboration.

Avoidance:
This strategy involves a general disregard for the causes of the conflict and the person might
diplomatically sidestep a conflicting issue, postpone addressing it till later, or withdraw
physically or psychologically from a threatening situation. Avoiding mode is used when the
individual is both unassertive and uncooperative – that is, the person has a very low concern for
his own and his opponent’s needs. The individual follows the following three methods

i) Non-attention: The manager totally avoids or ignores the dysfunctional situation. Individuals
tend to “look the other way” or disregard hostile action in hopes that the situation will resolve
itself in time
ii) Physical separation: It involves moving conflicting groups physically apart from each other.
The rationale is that if the groups cannot interact, conflict will diminish.
iii) Limited interaction: Groups are allowed to interact only on formal situations.

Accommodation:
Accommodation is a negotiation style where one party is willing to oblige or adapt to meet the
needs of the other party. That party that accommodates loses and the other party wins.
Accommodation is useful for negotiation on minor matters. The negotiation parties may not look
for creative, new solutions. Accommodation might take the form of selfless generosity, or
obeying another’s order rather unwillingly or giving in to another person’s point of view. In all
these cases, the individual neglects his or her own concern to satisfy the concerns of their other
party. There is an element of self-sacrifice.

Competition:
Competition occurs when one party negotiates to maximize its results at the expense of the other
party’s needs. Competition leads to one party gaining the advantage over the other. One party
wins while the other party loses. Although it is quick and can be used as counter against another
person, this option usually produces a win-lose result. Competing is a power oriented mode of
resolving tensions and one uses whatever power one has or can muster such skills, knowledge,
abilities, rank being well-connected etc. to win.

Compromising:
Compromise is the settlement of differences through concessions of one or both parties. In
compromising, the party tries to find some expedient, mutually acceptable solutions with
partially satisfies both parties, though neither is fully satisfied. A compromising stance addresses
the issue without avoiding it, but does not explore the alternative in a way that would be
completely satisfying to both parties as in the case of collaboration. Compromising involves
“splitting the difference”, exchanging concessions and seeking quick middle-ground solutions.
Collaboration:
Collaboration occurs when people cooperate to produce a solution satisfactory to both.
Collaborating involves an attempt to work with the other person to find solutions that would be
satisfying to both parties. Here, the underlying concerns of both parties are explored in depth, the
disagreements examine in detail and resolutions arrived at by combining the insights of both the
parties. A creative solution usually emerges because of the joint efforts of both the parties who
are keen on both gaining from the situation without hurting the other.

------------------------------------

TRANSACTIONAL ANALYSIS
INTRODUCTION
When people interact in assertive or non-assertive ways, there is a social transaction in
which one person responds to another. The study of these social transactions between people is
called Transactional Analysis (TA). Transactional analysis was developed by Eric Berne for
psychotherapy in the 1950s. The objective of TA is to provide better understanding of how
people relate to one another, so that they may develop improved communication and human
relationship.

KEY IDEAS IN TA
Ego States

The personality of a person is the collection of behaviour patterns developed over a period of
time that other people begin to recognize as that person. these behaviour patterns are evolved
in differing degrees from three ego states - Parent, Adult and Child.
Parent ego is formed by external events and influences upon us as we grow through early
childhood to adulthood. Parent ego is characterized by protective, nurturing, commanding, and
directing.
There are two kinds of Parent ego states : (i) Nurturing Parent and (ii) Critical parent. The
Nurturing parent is that part of a person which is understanding and caring about other
people. Behaviour coming from the nurturing parent may set limits on and provide direction
for people behaviour. It will not put the people down and make them feel not OK as
individual. Critical parent behaviour attacks people's personalities as well as their behaviour.
Critical parent makes people feel that they are not OK. When people are in their critical parent
ego state they are very evaluative and judgmental. They are always ready to respond with a
'should' or 'ought' to almost anything people tell them.
The Adult ego state evokes behaviour that could be described simply as logical, reasonable,
rationale and unemotional. Behaviour from the adult ego state is characterized by problem
solving analysis and rationale decision-making. People operating from the adult ego state are
taking emotional content of their child ego state, the value-laden content of their parent ego state
and checking them out in the reality of the external world. These people are examining
alternatives, probabilities and values prior to engaging in behaviour.
The child ego state is associated with behaviours that appear when a person is responding
emotionally. A person's child contains the 'natural' impulses and attitudes learned from child
experiences. There are several forms of the child ego state. However, two kinds of ego states
 MODULE-3

ORGANISATIONAL CULTURE
INTRODUCTION
Culture deals with past and current assumptions, experiences, values, attitudes,
beliefs, expectations, customs etc. Culture relates to the informal aspects of organisations rather
than their official elements. They focus on the values, beliefs and norms of individuals in the
organization Culture is manifested by symbols and rituals rather than through the formal
structure of the organization.

The values and behaviour that contribute to the unique social and psychological environment of
an organization is called organizational culture. It refers to the system of shared meaning held
by the members that distinguishes one organization from other organization.
Features of Organisational Culture:
Shared meaning
Values and Norms
Behavioural Consistency
Descriptive
Organisational Philosophy
Clear Guidelines
Sense of Belongingness

Factors determining org. culture

Org. Founder:
Whatever impression founders create about the organization, it continues and develops for a long
period of time.
Corporate success & shared Experiences:
Corporate success for a long period develops a strong culture. If the members share common
experience, it remains in their mind forever.
Innovation & risk taking:
Innovative and risk taking employees develop a strong culture.
Outcome rather than technique: Organisations whose managers focus on outcome rather
than technique, they develop strong culture.

Competitiveness:
Organisations whose employees are competitive are actually stronger than non-competitive.
Shared interpretation:
Organisations whose members have common perception and thinking about organizational
values, norms, they can develop a strong culture.
Functions of Organisational Culture
● It distinguishes one organization from another organization. That means it creates
brand name for the organization.
● It develops a sense of identity amongst its members.
● It promotes commitment amongst employees to achieve oganisational goals.
● It develops appropriate standards for employees & holds them together to achieve
those standards.
 ● It provides a control mechanism for shaping the attitude & behaviour of
employees.

Transmission of organizational Culture/How is culture learnt:

● Stories:
The stories be these true or false, told to the organizational members can have a
profound impact on organizational culture.
● Symbols:
Examples of symbols include the size of offices, the elegance of office furnishing etc for
certain employees. The value of these symbols is that they communicate important
cultural values.
● Language:
Organisations use a language in terms of specific slogan, metaphor to convey special
meaning to employees. It symbolizes what the company stands for to both employees
and society.
● Rituals:
Rituals such as annual function, award ceremonies etc reinforce the key values of the
organization, which goal is imp, which people is important. The annual function is an
example of ritual performed in an educational institution.

------------------------------------------

ORGANISATIONAL CHANGE

The way we individuals change due to age, education, change of job, illness, change in
geographical area,organizations also change due to several reasons over a period of time. Change
is necessary for survival and growth. Changes are constantly taking place in our environment.
Changes occur outside organization that requires internal adaptation. The manager has to ensure
that individual and groups in organizations, and structures, process and behaviors of sub-
systems must adapt to the changing external and internal environments. In effect, the
manager is a change agent who facilitates changes to occur in the various subsystems of the
organization needed.
Any alteration which occurs in the overall work environment of an organization is called
organizational change.

FACTORS AFFECTING CHANGE:

There are both external and internal forces that result in pressure for change,

External Factors:
The external forces that create the need for change come from various sources. Some of them are
as follows:

a-Competitive Market Force:

Competition is changing. The global economy means that competitors are as likely to come from
across the ocean as from across town. Heightened competition also means the established
organizations need to defend themselves against both traditional competitors that develop new
products and services and small, entrepreneurial firms with innovative offers. Successful
organizations will be the ones that can change in response to the competitor.
Government laws and regulations:
These are frequent impetus for change. Creation of special economic zones and foreign direct
investment in India sparked off major changes in the IT Industries, Insurance, and Car
manufacturing industries. More foreign automobile industries are setting up manufacturing
plants and generating more employment opportunities in India.

b-Technology:
It creates the need for change. For example, technological developments in sophisticated and
extremely expensive diagnostic equipment have created significant economy of scale for
hospitals and medical centers. Assembly-line technology is undergoing dramatic change as
organizations replace human labor with robots. Even in the greetings card industry, electronic
mail and internet have influenced the way people send greetings.

c-Labor Markets:
The fluctuation in labor markets forces managers to change. For instance, the demand for
webpage designers and website managers made it necessary for organizations that need those
kinds of employees to change their human resources management activities to attract and retain
skilled employees in the areas of greatest need.

d-Economic Changes:
Economic changes affect almost all organization. The appreciation of rupee value against the US
dollar affects the export prospects of knitwear products from India to America as those products
cost more to Americans. But even in strong economy, uncertainties about interest rates,
government budgets deficits and current exchange rates create conditions that may force
organizations to change.

Internal Factors:
Internal forces can also stimulate the need for change. These internal forces tend to originate
primarily from the internal operations of the organizations or from the impact of external
changes.

a-Structural factors:
A structural force would be the inability to transmit important information from the top of
the organization to the lower level cadre. Because of numerous layers in the hierarchy,
information moves slowly from one level to the next. This could be viewed as a process or a
behavioral problem involving a failure to communicate effectively.

b-Strategy:
A redefinition or modification of an organization’s strategy often introduces a host of change.
The strategic move of Reliance Industries in getting into retail business in urban and rural
markets made them to introduce a change in the managerial approach as well as the human
relations approach to gain acceptance from the different cross section of the customers.

c-Organizations Workforce:
 In recent times, the work force composition is varied and is not very static. Its composition
changes in terms of age, education, sex and so forth. In a stable organization with a large pool of
seasoned executives, there might be a need to restructure jobs in order to retain younger
managers who occupy lower ranks. The compensation and benefit system might also need to be
adapted to reflect the needs of an older work force.

d-Introduction of new technology:

The introduction of new equipment represents another internal force for change. Employees may

manufacturing industries. More foreign automobile industries are setting up manufacturing

plants and generating more employment opportunities in India.

b-Technology:
It creates the need for change. For example, technological developments in sophisticated and
extremely expensive diagnostic equipment have created significant economy of scale for
hospitals and medical centers. Assembly-line technology is undergoing dramatic change as
organizations replace human labor with robots. Even in the greetings card industry, electronic
mail and internet have influenced the way people send greetings.

c-Labor Markets:
The fluctuation in labor markets forces managers to change. For instance, the demand for
webpage designers and website managers made it necessary for organizations that need those
kinds of employees to change their human resources management activities to attract and retain
skilled employees in the areas of greatest need.

d-Economic Changes:
Economic changes affect almost all organization. The appreciation of rupee value against the US
dollar affects the export prospects of knitwear products from India to America as those products
cost more to Americans. But even in strong economy, uncertainties about interest rates,
government budgets deficits and current exchange rates create conditions that may force
organizations to change.

Internal Factors:
Internal forces can also stimulate the need for change. These internal forces tend to originate
primarily from the internal operations of the organizations or from the impact of external
changes.

a-Structural factors:
A structural force would be the inability to transmit important information from the top of
the organization to the lower level cadre. Because of numerous layers in the hierarchy,
information moves slowly from one level to the next. This could be viewed as a process or a
behavioral problem involving a failure to communicate effectively.

b-Strategy:
A redefinition or modification of an organization’s strategy often introduces a host of change.
The strategic move of Reliance Industries in getting into retail business in urban and rural
markets made them to introduce a change in the managerial approach as well as the human
relations approach to gain acceptance from the different cross section of the customers.
 c-Organizations Workforce:
In recent times, the work force composition is varied and is not very static. Its composition
changes in terms of age, education, sex and so forth. In a stable organization with a large pool of
seasoned executives, there might be a need to restructure jobs in order to retain younger
managers who occupy lower ranks. The compensation and benefit system might also need to be
adapted to reflect the needs of an older work force.

d-Introduction of new technology:

The introduction of new equipment represents another internal force for change. Employees may

have their jobs redesigned, they need to undergo training on how to operate the new equipment
or they may be required to establish new interactions patterns with their work group.

e-Employee Attitudes:
Employee attitudes such as increased job satisfaction may lead to increased absenteeism, more
voluntary resignations, and even labor strikes. Such events will often lead to changes in
management policies and practices.
RESISTANCE TO CHANGE

In planning for change, the team leaders must take into consideration the various factors on
which the members exhibit their resistance to implement the change process. For example, the
company wanted to install a new software program in cash counter computer terminals to
facilitate the fast movement. But some employees may not respond favorably and display their
refusal to cooperate by increasing absenteeism, sub-standard work, joining of union increased
labor turn over etc. Resistance to change can also be a source of functional conflict. For example,
resistance to a reorganization plan or a change in a product line can stimulate a healthy debate
over the merits of the idea and result in a better decision.

Resistance can be overt, implicit, immediate or deferred. It is the easiest for management to deal
with resistance when it is overt and immediate such as employees strike, work slowdown etc.
The greater challenge is managing resistance that is implicit or deferred. Such as loss of loyalty
to the organization, loss of motivation to work, increased errors or mistakes increased
absenteeism etc. .

a-Individual Resistance

Individual sources of resistance to change lie in basic human characteristics such as

perceptions, personalities and needs.

Habit: The team members are habituated or conditioned to do their job or activity
in a particular way. When they are asked to do differently, they tend to respond to resist change.
When employees are asked to move to new office building across the town, they are likely to
change their routine habits like waking up ten minutes earlier, finding new parking place,
adjusting to new office layout, developing new lunch time routine etc.

Security: The team members with a high need for security are likely to resist change
because it threatens their feelings of safety. When Indian Railway introduced new online
booking for their reservations, employees may have similar fears.

Economic Factors: If the members feel that the new changes result in lower pay, they
may likely to resist change process. Changes in jobs or established work routine can also
arouse economic fears if people are concerned that they won’t be able to perform the new
tasks or routines to their previous standards, especially when the pay is closely tied to
productivity.

Fear of the Unknown: The cashiers or secretaries might fear the new activities due to
lack of knowledge in operating the new software program. They might develop a negative
attitude towards working with new programs or behave dysfunctionally if required to use them.
Employees in organizations hold the same dislike for uncertainty. For example, if an
organization introduced TQM, the production employees will have to learn statistical process
control techniques. Therefore, they may develop a negative attitude towards TQM or behavior
dysfunctionally if required, to use statistical techniques.

Selective Information Processing: Once the team members shape their world through
their own way, they prefer to do their work based on their perceptions. If the change process
demands to follow the new method, the members tend to resist. So individuals are guilty of
selectively
 processing information in order to keep their perception intact. They hear what they want to hear.
They ignore information that challenges the world they have created.

b-Organizational Resistance

Some organizations prefer to follow their routine and reluctant to venture new things or
follow any new methods of doing. Government agencies want to continue doing what they have
been doing for years, whether the need for their service changes or remains the same. Six major
sources of organizational resistance have been identified. They are as follows:

Structural Inertia: Organizations have built in mechanisms to produce stability. For

instance, the training and orientation programs reinforce specific role requirements and skills.
Formalization provides job descriptions, rules and procedures for employees to follow. Once the
routine has been established, organization is very reluctant to adapt to new changes. When an
organization is confronted with the change process, the team members tend to resist.

Limited Focus of Change: The change process is interlinked. One activity cannot be
changed without affecting the others. If change is introduced in technology without considering
the structural changes, the change in technology is not likely to be accepted. Organizations are
made up of number of interdependent subsystems.

Group Inertia: Some times the group norm or standards could act as a constraint.
For example, the union norms may dictate resistance to change process.

Threat to Expertise: The change process could threaten the expertise of team members
of the groups. Once the members feel that they are forced to learn something new, they tend
to resist. The introduction of decentralized personal computers, which allow managers to gain
access to information directly from a company’s mainframe, is an example of a change that was
strongly resisted by many information system departments in the 1980s. Because of decentralized
end-user computing was a threat to the specialized skills held by those in the centralized
information system departments.

Threat to Established Power Relationship: The change process can threaten long
established power relationships within the organization. Due to this reason, the members can
resist the change.

Threat to established resource allocation: The group, which enjoys sizable resources,
may not like to accept the change process that facilitates reduction in their budget.

OVERCOMING RESISTANCE TO CHANGE

John Kotter and Leonard Schlesinger offered six ways of overcoming resistance to change,
which are highly situation dependent. More than one of these techniques may be used in any
given situations.

□□Education and Communication: If the logic and advantages of the change are explained
early to the team members, resistance can be reduced. This can be achieved through one-to-one
discussions, memos, group presentations, or reports. This tactics assumes that the source of
resistance lies in misinformed or poor communication. If the team members received the full
facts and have their misunderstanding cleared up, their resistance will subside. Once people have
bought into the idea, they will implement the change. The only problem is that this could be very
time consuming process, if too many people are to be communicated with.

□□Participation and Involvement: Resistance to change can be reduced or eliminated by

having those involved participate in the decision of the change through meetings and induction.
It is difficult for individuals to resist a change decision in which they participated. Once people
have had an opportunity to contribute ideas and become a part of the change process, they will be
less inclined to see it fail. However, working in committees or task forces is a time consuming
activity, and hence it will take a longer time to bring about changes.

□□Facilitation and Support: Easing the change process and providing support for those caught
up in it is another way managers can deal with resistance. Retraining programs, allowing time off
after a difficult period, and offering emotional support and understanding may help. This
emotional support can be given through empathic listening, offering training and other types of
help. Such facilitation and emotional support help individual to deal more effectively with their
adjustment problems. This process can be time consuming and there is no guarantee that it will
always work.

□□Negotiation and Agreement: It is sometimes necessary for a team leader to negotiate with
potential resistance or exchange something of value for a lessening the resistance. For instance, if
the resistance is from a few powerful individuals in the team, a specific reward package can be
negotiated that will meet their individual needs. Though in some instances this may be the
relatively easy way to gain acceptance, it is possible that this could be an expensive way of
effecting changes as well. Also, if the use of this strategy becomes public knowledge, others
might also want to try to negotiate before they accept the change.

□□Manipulation and Co-optation: The team leader seeks to ‘buy off’ the key members who
are resisting by giving them an important role in the change decision. The team leader’s advice is
sought, not to arrive at a better decision but to get their endorsement. Some of the co-opting
tactics include selectively sharing information and consciously structuring certain types of events
that would win support. This can be a quick and relatively easy and inexpensive strategy to gain
support. However, the purpose will be defeated if people feel they are being manipulated.

□□Explicit and Implicit Coercion: The team leaders can force the members to go along with
changes by threats involving loss or transfers of jobs, lack of promotion, etc. Such methods,
though not uncommon, i s more difficult to gain support for future change efforts. This strategy
can be particularly resorted to when changes have to be speedily enforced or when changes are
of a temporary nature. Though speedy and effective in the short run, it may make people angry
and resort to all kinds of mean behaviors in the long run.

LEWIN’S MODEL OF CHANGE/APPROACHES TO

MANAGING ORG. CHANGE/PLANNED CHANGE
Kurt Lewin argued that successful change in organizations should follow three steps
i) Unfreezing the status quo
ii) Movement to a new state
iii) freezing the new change to make it permanent.
 Unfreezing:
It is actually the process of preparing the system for change through disconfirmation of the old
practices, attitudes, tendencies, or behaviors. This is the initial phase where those involved in the
change experience a need for something different and a sense of restlessness with the status quo.
In essence, the feeling that the system is hurting itself badly now and desperately requires a
change to survive, is sensed by all. Initiative for changes efforts are taken to overcome the
pressures of both individual resistance and group conformity.

Movement to a new state:

Changing or moving is the phase where the changes that have been planned are actually initiated
and carried out. Changes could relate to the mission, strategy, objectives, people, tasks, work
roles, technology, structure, corporate culture, or any other aspects of the organization. Well
thought out changes have to be carefully implemented with participation of the members who
will be affected by the change. Changes incorporated too quickly without adequate preparation
will result in resistance to change.

Refreezing:
It is the last phase of the planned change process. Refreezing ensures that the planned changes
that have been introduced are working satisfactorily, that any modifications, extra considerations,
or support needed for making the changes operational are attended to, and that there is
reasonable guarantee that the changes will indeed fill the gap and bring the system to the new,
desired state of equilibrium. This necessarily implies that the results are monitored and
evaluated, and wherever necessary corrective measures are taken up to reach the new goal. If the
refreezing phase is neglected or temporarily attended to, the desired results will not ensure and
the change may even be total disaster.

Forced Field Analysis:

Kurt Lewin stated that there are two types of forces operating in the change process. I) Those
forces which prepare or make the system ready for changes to occur, are called as driving forces,
ii) Those forces which oppose or operate against changes taking place in the system, are called as
restraining forces. If the two sets of forces are equal in strength, then the systems is in a state of
equilibrium and changes will not occur. If the driving forces are stronger than the restraining
forces, then the system will be changing to find a new equilibrium as the gap to be filled gets
narrowed down. A more viable option is to reduce existing resistance by dealing with and
minimizing the forces that resist the change. In practice, a combination of both strategies –
reducing the restraining factors and increasing the driving forces often ensures best results.

-------------------------------------------------

HUMAN RESOURCE MANAGEMENT

INTRODUCTION
HRM is the study of activities regarding people working in an organization. It is a
managerial function that tries to match an organization’s needs to the skills and abilities of its
employees.
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in organizations.
Human resource management is designing management systems to ensure that human talent is