UNIT - 3

DYNAMICS OF OB - I & II

 COMMUNICATION

 DEFINITION
 Communication is the process of passing information and understanding from one person to
another.

 The process of transferring information between senders and receivers through oral, written,
visual or electronic media is referred to as communication.

 COMMUNICATION PROCESS

1. Sender has an Idea

The sender thinks of an idea or message to share.

2. Sender Encodes the Message

The sender puts the idea into words, symbols, or gestures.

3. Sender Creates the Message

The message is prepared clearly to express the idea.

4. Sender Uses a Channel

The message is sent through a medium (e.g., phone, email, report).

5. Receiver Gets the Message

The person on the other end receives the message.

6. Receiver Decodes the Message

The receiver tries to understand the message in their own way.

7. Receiver Sends Feedback

The receiver responds, letting the sender know they understood.

 COMMUNICATION TYPES
I. Based on Expression

1. Verbal Communication

This type of communication uses spoken or written words. It happens when people talk or write to
each other.
It includes oral communication like conversations, phone calls, and speeches, and written
communication like emails, reports, or letters.

2. Non-Verbal Communication
This type of communication does not use words. Instead, it uses signs, symbols, gestures,
facial expressions, body language, and eye contact.
For example, a thumbs up, a smile, or a head nod are all non-verbal messages.

II. Based on Flow

1. Vertical Communication
This type of communication happens between people at different levels in an organization.
It is of two types:

a. Upward Communication, where subordinates share information with superiors.

b. Downward Communication, where superiors give instructions or messages to subordinates.

2. Horizontal Communication
This happens between people of the same rank or status in the organization.
For example, managers from different departments talking to each other to coordinate work.

3. Diagonal Communication
This takes place between people who are not on the same level and not in the same
department.
It helps when communication needs to be fast, even if it is outside the formal reporting lines.
For example, an HR staff talking directly to a finance officer.

III. Communication on the Basis of Organizational Relation

1. Formal Communication
This happens through official channels set by the organization. It follows rules, is well-structured,
and is used for official work like instructions and reports.
2. Informal Communication
This is casual and happens without any formal rules. It spreads quickly through personal
conversations, gestures, or friendly chats.

 Formal communication is the flow of communication between various positions in an

organization through an officially prescribed channel. It ensures accuracy and accountability,
although it may take time and create overload problems.

 Advantages of Formal Communication

1. Responsibilities can be fixed easily within the organization.

2. Ensures the information reaches the right person accurately.

 Disadvantages of Formal Communication

1. It increases workload and delays due to passing through many levels.

2. Possibility of filtering or omission of important details.

 Informal communication is not passed in accordance with formalities, rules, or regulations. It

spreads through personal or social interactions in an organization and travels fast in all
directions.

 Advantages of Informal Communication

1. Information spreads quickly and easily.

2. Builds cooperation and helps where formal communication is insufficient.

 Disadvantages of Informal Communication

1. Unordered and messages may be inaccurate.

2. The original message may be changed or misinterpreted.

 Differences between Formal and Informal Communication

1. Formal messages are usually written, whereas informal communication is mostly done verbally
or through gestures.
2. In formal communication, there is a fixed structure or path, but informal communication doesn't
follow any particular path.
3. Formal communication is documented and can be used as proof, while informal communication
is not recorded, so it can’t be used as evidence.
4. Since formal communication is written, there are fewer chances of misunderstandings. In
informal communication, there is a higher risk of confusion or rumors.
5. Formal communication is work-related and follows roles given by the organization. Informal
communication happens due to personal relationships between employees.

 Downward communication is the communication that starts from top-level executives and flows
down to lower levels of employees. It is used to control, influence, and guide subordinates.

− Five Objectives of Downward Communication

1. Providing Instructions
Directs how tasks or processes must be done.

2. Giving Orders
Formal assignment of work tasks to employees.

3. Providing Education and Training

Helps employees develop skills and improve performance.

4. Motivating Employees
Encourages employees by recognizing and appreciating their work.

5. Increasing Morale
Boosts confidence and team spirit through effective communication.

 Importance and Benefits of Effective Communication

− Effective communication helps in clearly expressing ideas and connecting with others, making it
essential for personal and professional success.

− It plays a major role in management, where communication is key to influencing others, sharing
opinions, and leading teams effectively.

− Businesses benefit by maintaining strong relationships with the market and community through
consistent and persuasive messages.

− It improves teamwork and employee cooperation, leading to better morale, higher job
satisfaction, and lower employee turnover.

− Communication ensures faster problem-solving and better decisions by providing timely,

reliable information, which increases productivity.

− Customers feel more satisfied when teams communicate professionally and consistently, which
builds trust and reduces errors or confusion.

 Dyadic Communication refers to communication between two people. It is the simplest and
most common form of interpersonal communication, where both participants act as sender and
receiver. It can be:
a. Formal (like an interview or counseling session), or

b. Informal (like a friendly conversation between two friends).

 INTERACTIVE COMMUNICATION IN ORGANIZATION

 Interactive communication is a two-way process where two or more people exchange

messages, and each message is shaped by the responses of others.

 It involves active participation from all members.

 It includes horizontal communication (between people at the same level), which is important for
coordination in organizations.

 It adds a personal touch to communication and supports teamwork.

 Modern organizations like Dupont and Motorola use this to improve communication through
direct communication and horizontal desks (less hierarchy).

 Reasons for Using Interactive Communication:

1. Departments hold regular meetings to discuss progress and align on goals.

2. Team members come together to find solutions to problems, like budget cuts.

3. Information is shared between departments to keep everyone informed.

4. Members sit together to resolve conflicts or misunderstandings in the team.

 BARRIERS TO COMMUNICATION & STRATEGIES TO IMPROVE THE FLOW

OF COMMUNICATION

 Barriers to Communication

1. Semantic Barriers

These are related to the meaning and interpretation of words.

a. Vocabulary – A limited or different vocabulary leads to misunderstanding the message.

b. Jargon – Technical terms that common people may not understand.

c. Slang – Informal language used by specific groups may confuse others.

d. Wrong Translation – Translating words wrongly from one language to another distorts meaning.

e. Euphemisms – Using mild expressions instead of direct words can confuse the receiver.

2. Socio-Psychological Barriers

These occur due to mental state or social background of individuals.

a. Conflicting Signals – When verbal and non-verbal messages do not match.

b. Perceptual Differences – Different understanding based on age, experience, or background.

c. Attitudinal Differences – Difficulty in communication due to very different attitudes.

3. Personal Barriers

These are related to the individual’s personality or state of mind.

a. Poor Listening – Not actively listening leads to misunderstanding.

b. Emotional Conflict – Strong emotions disturb clear communication.

c. Poor Retention – Forgetting the message due to stress, distractions, or noise.

5. Physical Barriers

These are caused by physical surroundings or technical issues.

a. Defective Equipment – Faulty phones or devices interrupt communication.

b. Distance – Being far from the other person affects clarity.

c. Noise – Background sounds or disturbances make it hard to hear or focus.

5. Organizational Barriers
These are barriers that arise from the organizational environment or structure.

a. Role and Status – Communication gap due to position differences in the hierarchy.

b. Organization Structure – Too many levels can delay or distort messages.

c. Rules and Regulations – Rigid or unclear rules may stop smooth communication.

 Measures to Overcome Barriers to Communication

1. Train the Employees

Employees should be trained in communication skills such as writing, listening, concentration,

public speaking, and giving feedback.

2. Encourage Two-Way Communication

Allow both speaking and listening. Everyone should feel free to express their thoughts. This builds
creativity and clarity.

3. Convey Clear and Concise Message

Messages should be short, clear, and to the point. Avoid overloading with unnecessary details.
Match the message with the receiver’s understanding level.

4. Ensure Correctness of Information

Information shared should be factually correct and accurate. Wrong facts or figures can lead to
poor decisions and harm the organization’s image.

5. Focus on Dynamism

Communication strategies should be flexible and adapt to changing situations. One fixed method
may not work every time.

6. Improve Relationships

Organizations should treat all employees equally and promote good relationships at every level.
This strengthens understanding and reduces conflict.

7. Adopt Flat Organization Structure

Having fewer hierarchical levels helps in faster and clearer communication. It also builds mutual
respect and teamwork.

8. Provide Timely Information

Information should be shared on time using systems like MIS (Management Information System).
Delays or outdated info can lead to poor results and bad decisions.

 DECISION MAKING

 Decision making is the process of identifying and selecting the best possible course of action
from the available alternatives to resolve a problem.

 Phases of Decision Making Process (As given by Herbert A. Simon)

1. Intelligence Activity (Identification Phase):

 The organization identifies problems or opportunities that need attention.

 These can be mild or serious issues, requiring analysis and understanding.

 It involves gathering information and detecting issues that require decisions.

2. Design Activity (Development Phase):

 Possible solutions are developed, invented, or analyzed.

 If no solution is found, new procedures or methods may be created.

 It includes evaluating different alternatives to solve the problem.

3. Choice Activity (Selection Phase):

 The best solution is selected based on criteria such as feasibility, cost, and benefits.

 This phase also involves diagnosing the issue and recognizing the decision-maker's ability to
choose wisely.

 It focuses on making the final decision through logical and systematic analysis.
 Herbert A. Simon gave the rational model of decision-making with three steps: Intelligence,
Design, and Choice, focusing on how decisions should be made logically. On the other hand,
Mintzberg described how decisions are actually made in real situations through Identification,
Development, and Selection, emphasizing experience and practical judgment.

 PARTICIPATIVE DECISION MAKING

 Participative decision making is a technique where individuals or groups are involved in making
decisions. It can be formal or informal and requires mental, emotional, and sometimes physical
involvement. The level of participation depends on the situation—sometimes the manager
decides everything, while in other cases, employees and managers work together.

 In modern organizations, this method has become popular because it helps deal with
competition, removes old hierarchical systems, and supports teamwork through new
technologies.

 There are two main types:

1. Consultative: The manager decides but considers input from employees.

2. Democratic: Decisions are made by majority vote among participants.

 Participative decision making has both advantages and disadvantages. Its success depends on
leadership, team personality, and how well these aspects are balanced.

 CREATIVITY

 Creativity is the process of combining ideas in new and innovative ways. It means thinking
beyond the usual by using observation, knowledge, and experience to form something new.

 Two Main Dimensions of Creativity

1. Divergent Thinking: Ability to give multiple or unusual ideas. For example, using a newspaper
to make a bowl shows divergent thinking.

2. Cognitive Complexity: Creative people prefer complex information, are independent, and enjoy
solving logical problems.

 Creative Process
1. Expertise – This includes the knowledge, skills, and experience a person has in a specific area
—technical, intellectual, or practical.

2. Creative Thinking Skills – These are the skills to think flexibly, solve problems imaginatively,
and make creative decisions.

3. Motivation – It refers to a person’s passion and drive to find solutions. Highly motivated
individuals usually produce more creative results.

 Creativity Techniques for Management Decision-Making

1. Organizational Structuring
This is a technique used by companies like Toyota, where creativity is encouraged through
teamwork, employee motivation, and job satisfaction.
Japanese firms use this method not to control outcomes directly, but to help employees
express their ideas creatively through a supportive structure.

2. Empathetic Design Approach

This technique focuses on observing customer behavior instead of directly asking for feedback.
For example, companies watch how customers use their products (sometimes even through
photos) and draw creative insights from those actions to improve product design and customer
experience.

3. Groups
Forming discussion groups is a simple yet effective way to come up with new ideas.
People sitting together to discuss a problem can trigger innovative thinking.
Organizations now pay more attention to group dynamics and teamwork as they play a key role
in decision-making.

 GROUP DECISION MAKING

 Group decision-making happens when a group of people come together to discuss a problem
and select the best solution from different possible options.

 How Group Decisions Are Made

1. First Shift Rule - The decision is based on the first member who changes their opinion.
Example: In a car company, if one member who didn’t want a new model changes their mind,
the group may follow that shift.
2. Majority Rule - The decision that is supported by most members becomes final. This is used
when there is no clear answer, but the group needs to choose something.

3. Two-Thirds Majority Rule - Like majority rule, but a decision is made only if two-thirds of the
group agrees. This is more strict and is used when a stronger agreement is needed.

4. Truth Wins Rule - The group members discuss ideas and facts, and finally choose the option
that is most logically or factually correct.

 Sometimes, groups stick to old ways and avoid new ideas. This is called status quo tendency,
which means they resist change and keep doing what they are already doing.

 How to Reduce Resistance to Change

1. Look at all other options, even if the current plan seems to be working.

2. Create small teams to explore new ideas, trends, or technologies.

3. Create reward systems that allow people to take smart risks and try new things.

4. Managers should consider worst-case scenarios and long-term consequences while planning.

 STRESS & CONFLICT

 MEANING AND TYPES OF STRESS

 Stress is a situation where a person faces an opportunity, demand, or limitation that is very
important to them—but the result is uncertain.

 In simple words, stress is the pressure or tension a person feels when they deal with
unexpected or heavy demands in life or work. It pushes people to focus on solving the issue.

 Types and Causes of Stress

1. Individual-Level Stress

These are personal causes of stress:

− Life and Career Changes: Big changes like promotion, demotion, job transfer, or even events in
personal life can disturb balance and lead to stress.
− Personality Type: A person’s nature or personality plays a role. Traits like being too rigid,
anxious, overly emotional, or needing constant achievement can increase stress.

− Role Conflict: When a person has two or more roles that clash or when job demands are
unclear or too much.

− Role Ambiguity: When people are unsure of what exactly is expected from their job or role.

2. Group-Level Stress

Stress can also come from the people we work with:

− Lack of Group Unity (Cohesiveness): If team members do not cooperate well or work together,
the person feels lonely or unsupported.

− Conflicts in Group: Arguments or disagreements among team members increase stress for
everyone.

3. Organizational-Level Stress

These stress factors come from the way the organization is run:

− Unclear or Unfair Policies: Confusing rules, unfair evaluations, frequent job changes, and
rotating shifts can cause pressure.

− Weak Organizational Structure: If the company’s setup is poor, it affects communication,

teamwork, and commitment.

− Bad Work Processes: Poor feedback, confusing roles, or unfair control systems also stress
employees.

− Poor Physical Environment: Uncomfortable or unsafe workplaces make it hard to focus and
cause stress.

4. External or Extra-Organizational Stress

Some stress comes from outside the workplace, like:

− Economic and Financial Issues: Inflation, job market problems, or personal financial struggles.
− Social and Technical Changes: Rapid changes in society or technology can be hard to adapt
to.

− Community Problems: Poor living conditions or social unrest also affect mental peace.

 Stress can be beneficial for an employee if it is at a manageable level and motivates them to
perform better. This kind of stress is known as positive stress or eustress.

 It can push an employee to stay focused, meet deadlines, improve productivity, and perform at
their best. It often leads to creative thinking, better time management, and goal achievement.

 Example: If an employee has to give an important presentation, a little stress can help them
prepare thoroughly, practice well, and stay alert during the presentation. As a result, they may
perform better and impress their seniors, leading to praise or even a promotion.

 MEANING AND TYPES OF CONFLICT

 Conflict is a process that starts when one person or group believes that another has negatively
affected, or is about to affect, something important to them.

 It is also seen as a situation where one party tries to block or oppose the goals, interests, or
efforts of another, leading to tension or disagreement.

 Four types of conflicts

1. Inter-Group Conflict

This type of conflict occurs between two or more groups in an organization. Example: The
marketing team and the sales team may have a conflict if marketing blames sales for poor results,
while sales says the marketing strategy is weak.

2. Intra-Group Conflict

This conflict happens within the same group or team when members disagree with each other.
Example: In a project team, two members may argue about how to divide the work or which method
to use to complete a task.

3. Inter-Individual (Interpersonal) Conflict

This type occurs between two individuals, often due to personality clashes, communication issues,
or competition. Example: Two employees working in the same department may have conflict
because one is very punctual and the other is often late, leading to misunderstandings and blame.

4. Intra-Individual (Intrapersonal) Conflict

This conflict is within the individual, when a person is confused or stressed about a decision or role.
Example: An employee who is asked to work overtime may feel torn between completing office
tasks and spending time with family, leading to inner stress.

 Forms of Intra-Individual Conflict

1. Conflict Due to Frustration

This occurs when a person is blocked from achieving a goal or satisfying a need, causing
frustration and stress. Example: An employee who works hard but is denied promotion repeatedly
feels frustrated and demotivated.

2. Goal Conflict

Goal conflict arises when a person must choose between competing goals, each with pros and
cons. It is further divided into:

a) Approach-Approach Conflict:
A person chooses between two attractive options.
Example: Choosing between two good job offers.

b) Avoidance-Avoidance Conflict:
A person chooses between two unattractive options.
Example: Choosing to either work overtime on weekends or face a pay cut.

c) Approach-Avoidance Conflict:
A person is drawn to and pushed away from the same goal.
Example: Wanting a promotion (approach) but fearing the increased responsibility (avoidance).
d) Multiple Approach-Avoidance Conflict:
A person faces several options, each with both positive and negative aspects.
Example: Choosing among three jobs – one has high pay but a bad location, another has good
work-life balance but low salary, and a third offers growth but high pressure.

3. Role Conflict

This conflict happens when a person faces conflicting expectations from different roles they play.
Example: A working mother struggling to meet both office deadlines and her child’s school events.

4. Cognitive Conflict

Occurs when a person has contradicting beliefs or ideas, leading to mental stress. Example:
Believing in honesty but feeling pressure to lie for the company’s benefit.

5. Neurotic Tendencies

These are deep internal conflicts caused by anxiety, insecurity, or guilt, often linked to personality
traits. Example: A perfectionist feeling constant fear of failure despite good performance.

 Interactive Conflict and Its Causes

− Interactive conflict refers to conflict that happens between people or groups within an
organization.

− It includes interpersonal conflict and intergroup conflict.

− Causes of Interpersonal Conflict (between individuals)

1. Differences in Personality and Values

Every person has their own way of thinking, behaving, and believing. When two individuals have
opposite personalities or values, they may clash during work.

2. Poor or Unclear Communication

Misunderstandings often happen when people do not express their ideas clearly or don’t listen
properly. This leads to confusion and conflict.
3. Competition for Recognition or Resources

When individuals compete for promotions, rewards, or appreciation, it may create jealousy and lead
to personal conflict.

− Causes of Intergroup Conflict (between teams or departments)

1. Conflicting Departmental Goals

Different teams often have different targets. For example, the marketing team may want to sell
more, while the finance team wants to reduce spending. This creates conflict.

2. Lack of Cooperation or Coordination

When teams don’t share information or do not work together properly, it causes
misunderstanding and blame.

3. Unequal Distribution of Resources or Support

If one team gets more budget, tools, or management attention than another, it can lead to
feelings of unfairness and tension between groups.

 Types of Interpersonal Conflicts

1. Mass Conflict

Involves a large group of people. It happens when many employees are unhappy about issues like
unfair rules or pay cuts. Example: A group of workers protesting salary delays.

2. Mediated Conflict

A third person (like a manager) helps two people or teams resolve a disagreement. Example: A
manager helps settle a dispute between two coworkers.

3. Direct Conflict

Two people solve their issue by talking directly, without involving anyone else. Example: Two team
members discuss and resolve a misunderstanding on their own.

 EFFECT OF STRESS & INTRA INDIVIDUAL CONFLICT

 Consequences or Effects of Stress

1. Psychological Effects

These are the effects of stress on a person’s mind or emotions. Stress can lead to anxiety,
depression, mood swings, irritability, and feelings of helplessness. It may also reduce a person’s
ability to concentrate or make decisions.

2. Physiological Effects

These are the physical effects that stress causes in the body. Stress can lead to headaches, high
blood pressure, fatigue, sleep problems, digestion issues, and even heart problems. Long-term
stress can weaken the immune system and make a person more prone to illness.

3. Behavioral Effects

These are changes in the way a person behaves due to stress. A stressed person might avoid
responsibilities, show aggression, eat too much or too little, smoke or drink more, or withdraw from
social situations. It can also lead to absenteeism, poor performance, and conflicts at work.

 Effects of Intra-Individual Conflict

Positive Consequences

Self-Reflection and Growth – It helps the individual think deeply about their goals, values, and
choices, which can lead to personal development.

Improved Decision-Making – Facing internal conflict may push the person to weigh pros and cons
more carefully and make better decisions.

Creativity and Innovation – Conflicting thoughts can lead to new perspectives, creative ideas, and
solutions.

Negative Consequences

Stress and Anxiety – Constant inner conflict can cause mental tension, leading to worry, confusion,
and emotional exhaustion.
Low Confidence – When a person is unable to resolve inner conflict, they may feel doubtful and
lose confidence in their actions.

Delay in Decision-Making – Inner conflict can lead to indecisiveness and difficulty in choosing
between options, affecting performance.

 STRATEGIES TO COPE WITH STRESS & CONFLICT

 Strategies to Cope with Stress

A. Strategies at the Individual Level

1. Physical Exercise

Regular exercise like walking, jogging, or yoga helps release stress and improves mood.

2. Time Manegement

Planning daily activities properly helps avoid last-minute pressure and reduces stress.

3. Relaxation Techniques

Deep breathing, meditation, or listening to music can calm the mind and body.

4. Cognitive Therapy

This helps in changing negative thinking patterns and replacing them with positive thoughts.

5. Other Strategies

Spending time with family, hobbies, and healthy lifestyle choices can also reduce stress.

B. Strategies at the Organizational Level

1. Sound Organizational Climate

A positive work environment with open communication and support helps reduce stress.

2. Role Clarity

Clearly defining job roles and responsibilities prevents confusion and tension.

3. Job Enrichment

Making jobs more meaningful and giving employees some control increases satisfaction.

4. Career Planning and Counseling

Providing guidance about career paths and listening to employee concerns helps them cope better.
5. Other Strategies

Flexible work hours, wellness programs, and team-building activities also help manage stress at
work.

 Strategies to Cope with Conflict

1. Intrapersonal Conflict

A person should increase self-awareness by understanding their thoughts, emotions, and reactions
to situations.

Setting clear personal and professional goals helps avoid confusion and internal conflict.

Taking time alone for reflection and decision-making can reduce stress and bring clarity.

2. Interpersonal Conflict

Open and respectful communication is essential for resolving conflicts between individuals.

Listening actively without interrupting allows both sides to feel heard and understood.

Trying to understand the other person’s perspective can reduce misunderstandings and build trust.

3. Intra-group Conflict

Encouraging all team members to participate in discussions can help resolve internal team
conflicts.

Clearly defining roles and responsibilities helps avoid confusion and role overlap.

Promoting trust-building activities strengthens relationships and reduces tension in the group.

4. Intergroup Conflict

Focusing on common goals helps reduce rivalry and builds cooperation between groups.

Using a neutral third party or mediator can help solve disagreements fairly.

Assigning shared tasks to both groups encourages teamwork and mutual respect.