M.B.A.

PAPER 1.: ORGANISATIONAL BEHAVIOUR

SYLLABUS

UNIT 1

Introduction to Organisational Behaviour – Meaning – Elements – Need –

Approaches – Models – Global scenario.

UNIT 2

Individual Behaviour – Personality – Learning – Attitudes – Perception –

Motivation – Ability – Their relevance to organisational behaviour.

UNIT 3

Group Behaviour – Group dynamics – Group norms – Group cohesiveness – Their

relevance to organisational behaviour.

UNIT 4

Leadership – Styles – Qualities – Organisational communication – Meaning,

importance, process, barriers – Methods to reduce barriers – Principles of effective

communication.

UNIT 5

Stress – Meaning – Types – Sources – Consequences – Management of stress.

UNIT 6

Power and Politics – Definition – Types of powers – Sources – Characteristics –

Effective use of power.

UNIT 7

Organisational Dynamics – Organisational Design – Organisational effectiveness

– Meaning, approaches – Organisational Culture – Meaning, significance –

Organisational Climate – Implications on organisational behaviour.

UNIT 8

Organisational Change – Meaning – Nature – Causes of change – Resistance to

change – Management of change – Organisational Development – Meaning – OD

Interventions.

REFERENCES BOOKS:

1. Fred Luthans, Organisational Behaviours, McGraw Hill Book Co., 1995.

2. Stephen P. Robbins, Organisational Behaviour, Prentice Hall, 1997.

3. Keith Davis, Human Behaviour at Work, McGraw Hill Book Co., 1991.

4. Gregory Moorehead and R.S. Griffin, Organisational Behaviour - Managing People

and Organisations, Jaico, 1994.

5. Judith R. Gordon, A Diagnostic Approach to Organisational Behaviour, Allyn &

Bacon, 1993.

Course Material prepared by -

Dr. S. SUDALAIMUTHU

Professor of Corporate Secretaryship

Alagappa University

ORGANISATIONAL BEHAVIOUR

MODEL QUESTION PAPER Time: 3 Hours Max. Marks: 100

SECTION - A (5 x 8 = 40)

Answer any Five questions

All questions carry equal marks

1. What do you understand by organisational behaviour? Bring out its nature and

importance.

2. Discuss the personality attributes in organisation.

3. What is the organisational design? What are its forms?

4. What is group cohesiveness? What are its determinants?

5. What are the forms of organisational communications?

6. What are the sources of power?

7. What are the causes of stress?

8. What is organisational culture? How it affects the behaviour of the people?

SECTION - B (4 x 15 = 60)

Answer any Four questions

Question No.15 is compulsory.

9. Compare the Maslow’s Theory with ERG Theory of Motivation.

10. What are the barriers to effective communication? How to overcome those barriers?

11. What are the techniques of managing political behaviour?

12. State the consequences of stress and method of managing the stress.

13. Suggest strategies to resolve inter-group conflicts.

14. Why do people resist change? As a manager how would you overcome such

resistance?

15. Case Study:

Raman is the Sales Manager of a reputed Corporation. He has 25 employees in his

Department, and all are paid commission for their sales in their territories. For the past

three years, the market for the company’s goods has been steadily growing and the

majority of Raman’s staff have met this growth with increased sales. However, one

employee in particular, Krishnan has not kept up with the pace.

Krishnan has been with this Corporation for over 20 years and is now 56 years old.

Krishnan is a friendly man and is well liked by his peers and those to whom he sells the

company’s products on a regular basis. The company has always considered Krishnan

dependable and loyal. Through the years Krishnan has been counted as an asset to the

company, but at the age of 56 he has gone into a state of semi-retirement. Krishnan’s

sales have not increased as the others have and he does not have the determination to

acquire a significant increase in sales.

Raman wishes to change this situation. He wants to motivate Krishnan into

increasing his sales to match that of his younger peers. To accomplish this Krishnan

must begin to do more than but in his time, but Raman is not sure how to go about trying

to motivate him. Unlike the majority of the new employees Krishnan is an old man, who

within a few years will reach the age of retirement.

If you are Raman what would you do?

Questions :

1. Would you threaten to fire him?

2. Does your solution involve the feeling of others in your staff?

3. Would you increase his commission?

4. Would you increase the retirement benefits for Krishnan rather than offer him the

increased commission rate?

5. Would you offer him more status in the way of a new title or a new company car or

pace his table in a better position in the office?

6. Is there some way in terms of appraisal and rewards with what you can motivate

Krishnan?

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REFERENCES

1. Nirmal Singh, “Organisational Behaviour: Concepts, Theory and Practices”.

2. Gordon Judith R, “A Diagnostic Approach to Organizational Behaviour”.

3. Keith Davis, “Human Behaviour at Work”.

4. Barney/Griffin, “The Management of Organisations”.

5. Van Fleet, “Behaviour in Organisations”.

6. Hugh J. Arnold, Daniel C. Fledman, “Organisational Behaviour”.

7. Stephen P. Robins, “Organisational Behaviour”.

8. Chandan, S.Jit, “Organisational Behaviour”.

9. Prasad L M, “Organisational Behaviour”.

10. Gangadhar Rao, VSP Rao, P.S. Narayana, “Organisational Behaviour”.

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LESSON – 1 - INTRODUCTION TO ORGANISATIONAL BEHAVIOUR

Learning Objectives

After reading this lesson, you should be able to understand:

• The major environmental challenges and the paradigm shift facing today’s

management

• Organisational behaviour perspective for management

• Historical background for modern organisational behaviour

• Modern approach to organisational behaviour

The knowledge and information explosion, global competition, total quality and

diversity are some of the harsh reality facing managers today. There are many solutions

being offered to deal with these complex challenges. Yet the simple but most profound

solution may be found in the words of Sam Walton, the founder of Wal-Mart and richest

person in the world. Sam was once asked what was the answer to successful

organisations and management. Sam quickly replied, “People are the key”.

The term paradigm comes from the Greek paradigma, which translates as “model,

pattern or example”. First introduced over thirty years ago by the Philosophy and science

historian Thomas Khun, the term “paradigm” is now used to mean a broad model, a

framework, a way of thinking, or a scheme for understanding reality. The impact of

internationalisation, information technology, total quality and diversity mentioned earlier

has led to a paradigm shift. In otherwords, for today’s and tomorrow’s organisations and

management, there are new rules with different boundaries requiring new and different

behaviour inside the boundaries for organisations and management to be successful.

Commonly called the “paradigm effect”, a situation arises in which those in the existing

paradigm may not even see the changes that are occurring, let alone reason and draw

logical inferences and perceptions about the changes. This effect helps explain why there

is considerable resistance to change and why it is very difficult to move from the old

organisation and management paradigm to the new.

New Paradigm

The organisational behaviour has the goal to help managers make the transition to

the new paradigm. Some of the new paradigm characteristics include coverage of

second-generation information technology, total quality management (including

empowerment, reengineering and bench-marking), and learning organisation and

description of and suggestions for managing diversity. The new paradigm sets the stage

for the study, understanding, and application of the time-tested micro-variables, dynamics

and macro-variables. One must know why management needs a new perspective to help

meet the environmental challenges and the shift to a new paradigm.

A New Perspective for Management

Management is generally considered to have three major dimensions – technical,

conceptual and human. The technical dimension consists of the manager’s expertise in

functional areas. They know the requirements of the jobs and have the functional know-

how to get the job done. But most practicing managers ignored the conceptual and

human dimensions of their jobs.

Most managers think that their employees are basically lazy, and are interested

only in money, and that if you could make them happy, they would be productive. When

such assumptions were accepted, the human problems facing management were relatively

easy to solve.

But human behaviour at work is much more complicated and diverse. The new

perspective assumes that employees are extremely complex and that there is a need for

theoretical understanding backed by empirical research before applications can be made

for managing people effectively.

Modern Approach to Organisational Behaviour

The modern approach to organisational behaviour is the search for the truth of

why people behave the way they do and it is a delicate and complex process. If one aims

to manage organisations, it is necessary to understand how they operate. Organisations

combine science and people. While science and technology is predictable, the human

behaviour in organisations is rather unpredictable. This is because it arises from people’s

deep-seated needs and value systems.

Historical Background for Modern Organisational Behaviour

Scientific Management Approach:

Scientific management approach was developed by F.W. Taylor at the beginning

of 20th century. This theory advocated use of certain steps in scientifically studying each

element of a job, selecting and training the best workers for the job, making sure that the

workers follow prescribed method of doing the job. It provided a scientific rationale for

job specialisation and mass production. His assumption was that employees are

motivated largely by money. To increase output, Taylor advised managers to pay

monetary incentives to efficient workers. Yet, his theory was criticised by employers and

workers. Workers objected to the pressure to work ever harder and faster. Critics

worried that the methods took the humanity out of labour, reducing workers to machines

responding to management incentives. Now the Taylor’s view is considered inadequate

and narrow.

Bureaucratic Approach:

While scientific management was focusing on the interaction between worker and

task, other researchers began to studying how to structure organisations more effectively.

Instead of trying to make each worker more efficient, classical organisation theory sought

the most effective overall organisational structure for workers and managers.

The theory’s most prominent advocate, Max Weber, proposed a ‘bureaucratic

form’ of structure which he thought would work for all organisations. Weber’s ideal

bureaucracy was logical, rational and efficient. He made the naive assumption that one

structure would work best for all organisations.

Henry Ford, Henry Fayol and Frederick W. Taylor, the early management

pioneers, recognised the behavioural side of management. However, they did not

emphasise the human dimensions. Although there were varied and complex reasons for

the emergence of the importance of the behavioural approach to management, it is

generally recognised that the Hawthrone studies mark the historical roots for the field of

organisational behaviour.

Hawthorne Studies

Even as Taylor and Weber brought attention with their rational, logical approaches

to more efficient productivity, their views were criticised on the ground that both

approaches ignored worker’s humanity.

The real beginning of applied research in the area of organisational behaviour

started with Hawthorne Experiments. The findings of these studies were given a new

name ‘human relations’. In 1924, a group of Professors such as Elton Mayo began an

enquiry into the human aspects of work and working conditions at the Hawthorne plant of

Western Electric Company, Chicago.

The studies brought out a number of findings relevant to understanding human

behaviour at work which are as follows:

The human element in the work place was considerably more important. The

workers are influenced by social factors and the behaviour of the individual worker is

determined by the group.

Hawthorne studies have been criticised for their research methods and conclusions

drawn. But their effect on the emerging field of organisational behaviour was dramatic.

They helped usher in a more human centered approach to work.

Approaches to Organisational Behaviour

There are mainly four approaches to organisational behaviour. They are:

• A human resources approach

• A contingency approach

• A productivity approach

• A systems approach

Human Resources Approach:

The human resources approach is concerned with the growth and development of

people towards higher levels of competency, creativity and fulfillment, because people

are the central resource in any organisation. This approach helps employees become

better, more responsible and then it tries to create a climate in which they may contribute

to the limits of their improved abilities. This approach is also known as ‘supportive

approach’ because the manager’s primary role changes from control of employees to

active support of their growth and performance.

A Contingency Approach:

A contingency approach to organisational behaviour implies that different

situations require different behavioural practices for effectiveness instead of the

traditional approach to one best way for all situations. Each situation must be analyzed

carefully to determine the significant variables that exist in order to establish the kinds of

practices that will be more effective. The strength of this approach is that it encourages

analysis of each situation prior to action. Thus it helps to use in the most appropriate

manner all the current knowledge about people in organisation.

Productivity Approach:

Productivity is a ratio that compares units of output with units of input. It is often

measured in terms of economic inputs and outputs. If more outputs can be produced

from the same amount of inputs, productivity is improved. But besides economic inputs

and outputs, human and social inputs and outputs also are important.

Systems Approach:

A system is an interrelated part that interact with one another and functions as a

whole. Within the organisation ‘people’ employ ‘technology’ in performing the ‘taks’

that they are responsible for, while the ‘structure’ of the organisation serves as a basis for

co-ordinating all their different activities. The system view emphasizes the

interdependence of each of these elements within the organisation, if the organisation as a

whole is to function effectively. The other key aspect of the systems view of

organisations is its emphasis on the interaction between the organisation and its broader

environment which consists of social, economic, cultural and political within which they

operate.

Organisations are dependent upon their environment in two main ways: First, the

organisation requires ‘inputs’ from the environment in the form of raw material, people,

money, ideas and so on. The organisation itself can be thought of as performing certain

‘transformation processes; on its inputs in order to create outputs in the form of products

or services. Secondly, the organisation depends on environment i.e., public to accept its

output i.e., products/services.

The systems view of organisation, thus emphasizes the key interdependencies that

organisations must manage. Within themselves the organisations must trade off the

interdependencies among people, tasks, technology and structure in order to perform their

transformation processes effectively and efficiently. Organisations must also recognise

their interdependence with the broader environments within which they exist.

Contemporary Organisational Behaviour

A Separate Field of Study:

Organisational behaviour can be treated as a distinct field of study. It has yet to

become a science. Now efforts are being taken to synthesize principles, concepts and

processes in this field of study.

Interdisciplinary Approach:

Organisational behaviour is basically an interdisciplinary approach.

Organisational behaviour draws heavily from other disciplines like psychology, sociology

and anthropology. Besides, it also takes relevant things from economics, political

science, law and history. Organisational behaviour integrates the relevant contents of

these disciplines to make them applicable for organisational analysis. For example, it

addresses issues such as the following which may be relevant to the case:

� What facilitates accurate perception and attribution?

� What influences individual, group and organisational learning and the

development of individual attitudes toward work?

� How do individual differences in personality, personal development, and

career development affect individual’s behaviours and attitudes?

� What motivates people to work, and how does the organisation’s reward

system influence worker behaviour and attitudes?

� How do managers build effective teams?

� What contributes to effective decision-making?

� What constitutes effective communication?

� What characterises effective communication?

� How can power be secured and used productively?

� What factors contribute to effective negotiations?

� How can conflict (between groups or between a manager and subordinates) be

resolved or managed?

� How can jobs and organizations be effectively designed?

� How can managers help workers deal effectively with change?

An Applied Science:

The basic objective of organisational behaviour is to make application of various

researches to solve the organisational problems, particularly related to human behaviour

aspect.

Normative and Value Centred:

Organisational Behaviour is normative science. A normative science prescribes

how the various findings of researches can be applied to get organisational results which

are acceptable to the society. Thus, what is acceptable by the society or individuals

engaged in an organisation is a matter of values of the society and people concerned.

Humanistic and Optimistic:

Organisational behaviour focuses the attention on people from humanistic point of

view. It is based on the belief that needs and motivation of people are of high concern.

Further, there is optimism about the innate potential of man to be independent, creative,

predictive and capable of contributing positively to the objectives of the organisation.

Oriented towards Organisational Objectives:

Organisational behaviour is oriented towards organisation objectives. In fact,

organisational behaviour tries to integrate both individual and organisational objectives

so that both are achieved simultaneously.

A Total System Approach:

The individual’s behaviour can be analysed keeping in view his psychological

frame-work, interpersonal-orientation, group influence and social and cultural factors.

Thus, individual’s nature is quite complex and organisational behaviour by applying

systems approach tries to find solution of this complexity.

Review Questions:

1. Discuss the major environmental challenges and the paradigm shift facing

management today.

2. Discuss the historical background for the modern organisational behaviour.

3. What is the modern approach to organisational behaviour?

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LESSON – 2

FOUNDATION OF ORGANISATIONAL BEHAVIOUR

Learning Objectives

After reading this lesson, you should be able to:

• Define and explain the meaning of organisational behaviour

• Understand the nature and importance of organisational behaviour

• Relate the organisational behaviour to manager’s job

Definition of Management

Management is commonly defined as “getting work done through other people”.

This simple definition explains the significance of the role of the people. The work will

not be done unless “people” want to do this work and if the work is not done then there

will be no organisation. Hence, it is the understanding that the cooperation of the

organisational workers which is crucial to the success or failure of the organisation.

Definition of Organisation

“Organisations”, according to Gary Johns, “are social inventions for

accomplishing goals through group efforts”. This definition covers wide variety of

groups such as businesses, schools, hospitals, fraternal groups, religious bodies,

government agencies and the like. There are three significant aspects in the above

definition which require further analysis. These are:

(i) Social Inventions: The word “social” as a derivative of society, basically

means gathering of people. It is the people that primarily make up

organisations.

(ii) Accomplishing Goals: All organisations have reasons for their existence.

These reasons are the goals towards which all organisational efforts are

directed. While the primary goal of any commercial organisation is to make

money for its owners, this goal is inter-related with many other goals.

Accordingly, any organisational goal must integrate in itself the personal goals

of all individuals associated with the organisation.

(iii) Group Effort: People, both as members of the society at large and as a part of

an organisation interact with each other and are inter-dependent. Individuals in

themselves have physical and intellectual limitations and these limitations can

only be overcome by group efforts.

Meaning and Definition of Organisational Behaviour

Organisational behaviour is concerned with people’s thoughts, feelings, emotions,

and actions in a work setting. Understanding an individual behaviour is in itself a

challenge, but understanding group behaviour in an organisational environment is a

monumental managerial task.

As Nadler and Thushman put it:

“Understanding one individual’s behaviour is challenging in and of itself;

understanding a group that is made up of different individuals and comprehending

the many relationships among those individuals is even more complex. Ultimately,

the organisation’s work gets done through people, individually or collectively, on

their own or in collaboration with technology. Therefore, the management of

organisational behaviour is central to the management task – a task that involves

the capacity to “understand” the behaviour patterns of individuals, groups and

organisations, to “predict” what behavioural responses will be elicited by various

managerial actions and finally to use this understanding and these predictions to

achieve “control”.

Organisational behaviour can then defined as:

“the study of human behaviour in organisational settings, the interface between

human behaviour and the organisational context, and the organisation itself.”

The above definition has three facets – the individual behaviour, the organisation

and the interface between the two. Each individual brings to an organisation a unique set

of beliefs, values, attitudes and other personal characteristics and these characteristics of

all individuals must interact with each other in order to create an organisational setting.

The organisational behaviour is specifically concerned with work-related behaviour

which takes place in organisations.

In addition to understanding the on-going behavioural processes involved in their

own jobs, managers must understand the basic human element of their work.

Organisational behaviour offers three major ways of understanding this context; people

as organisations, people as resources and people as people.

Above all, organisations are people; and without people there would be no

organisations. Thus, if managers are to understand the organisations in which they work,

they must first understand the people who make up the organisations.

As resources, people are one of an organisation’s most valuable assets. People

create the organisation, guide and direct its course, and vitalise and revitalise it. People

make its decisions, solve its problems, and answer its questions. As managers

increasingly recognise the value of potential contributions by their employees, it will

become more and more important for managers and employees to grasp the complexities

of organisational behaviour.

Finally, there is people as people – an argument derived from the simple notion of

humanistic management. People spend a large part of their lives in organisational

settings, mostly as employees. They have a right to expect something in return beyond

wages and benefits. They have right to expect satisfaction and to learn new skills. An

understanding of organisational behaviour can help the manager better appreciate this

variety of individual needs and expectations.

Organisational behaviour is concerned with the characteristics and behaviours of

employees in isolation; the characteristics and processes that are part of the organisation

itself; and the characteristics and behaviours directly resulting from people with their

individual needs and motivations working within the structure of the organisation. One

cannot understand an individual’s behaviour completely without learning something

about that individual’s organisation. Similarly, he cannot understand how the

organisation operates without studying the people who make it up. Thus, the

organisation influences and is influenced by individuals.

Elements of Organisational Behaviour

The key elements in the organisational behaviour are people, structure, technology

and the environment in which the organisation operates.

People:

People make up the internal and social system of the organisation. They consists

of individuals and groups. The groups may be big or small; formal or informal; official

or unofficial. Groups are dynamic. They work in the organisation to achieve their

objectives.

Structure:

Structure defines the formal relationships of the people in organisations. Different

people in the organisation are performing different type of jobs and they need to be

related in some structural way so that their work can be effectively co-ordinated.

Technology:

Technology such as machines and work processes provide the resources with

which people work and affects the tasks that they perform. The technology used has a

significant influence on working relationships. It allows people to do more and better

work but it also restricts people in various ways.

Environment:

All organisations operate within an external environment. It is part of a larger

system that contains many other elements such as government, the family and other

organisations. All of these mutually influence each other in a complex system that

creates a context for a group of people.

Nature of Organisational Behaviour

Each individual brings to an organisation a unique set of personal characteristics,

experiences from other organisation, and the environment surrounding the organisation

and they also posses a personal background. In considering the people who work in

organisations, organisational behaviour must look at the unique perspective that each

individual brings to the work setting.

But individuals do not work in isolation. They come in contact with other

individuals and the organisation in a variety of ways. Points of contact include managers,

co-workers, the formal policies and procedures of the organisation, and various changes

implemented by the organisation. Over time, the individual, too, changes; as a function

of both the personal experiences and the organisation. The organisation is also affected

by the presence, and eventual absence of the individual. Clearly, the study of

organisational behaviour must consider the ways in which the individual and the

organisation interact.

An organisation, characteristically, exists before a particular person joins it and

continues to exist after he leaves it. Thus, the organisation itself represents a crucial third

perspective from which to view organisational behaviour.

Need for Studying Organisational Behaviour

The rules of work are different from the rules of play. The uniqueness of rules and

the environment of organisations forces managers to study organisational behaviour to

learn about normal and abnormal ranges of behaviour.

More specifically, organisational behaviour serves three purposes:

� What causes behaviour?

� Why particular antecedents cause behaviour?

� Which antecedents of behaviour can be controlled directly and which are

beyond control?

A more specific and formal course in organisational behaviour helps an individual

to develop a more refined, workable set of assumptions more directly relevant to his work

interactions. Organisational behaviour helps in predicting human behaviour in the

organisational setting by drawing a clear distinction between individual behaviour and

group behaviour.

Organisational behaviour does not provide solution to all complex and

multifarious behaviour puzzles of organisations. It is only the intelligent judgement of

the manager in dealing with a specific issue can try to solve problem. Organisational

behaviour only assists in making judgements that derived from tenable assumptions,

judgement that takes into account the important variables underlying the situation;

judgement that assigns due recognition to the complexity of individual or group

behaviour; judgement that explicity takes into account the managers own goals, motives,

hang-ups, blind spots and frailties.

Importance of Organisational Behaviour

Organisational behaviour offers several ideas to management as to how human

factor should be properly emphasised to achieve organisational objectives. Barnard has

observed that an organisation is a conscious interaction of two or more persons. This

suggests that since organisation is the interaction of persons, they should be given

adequate importance in managing the organisation. Organisational behaviour provides

opportunity to management to analyse human behaviour and prescribe means for shaping

human behaviour to a particular direction.

Understanding Human Behaviour:

Organisational behaviour provides for understanding human behaviour in all the

directions in which human beings interact. Thus organisational behaviour can be

understood at the individual level, interpersonal level, group level and inter-group level.

Organisational behaviour helps analyse ‘why’ and ‘how’ an individual behaves in

a particular way. Human behaviour is a complex phenomenon and is affected by large

number of factors - psychological, social, cultural and others. Organisational behaviour

integrates these factors to provide simplicity in understanding human behaviour.

Interpersonal Level:

Human behaviour can be understood at the level of interpersonal interaction.

When one focuses on the influence of one’s peer and its effect in working relationship is

inevitable in the organisation. Organisation behaviour provides means for understanding

these interpersonal relationships in the organisation. Analysis of reciprocal relationships,

role analysis and transactional analysis are some of the common methods which provide

such understanding.

Group Level:

Though people interpret anything at their individual level, they are often modified

by group pressures which, thus, becomes a force in shaping human behaviour. Thus

individuals should be studied in group also. Research in group dynamics has contributed

vitally to organisational behaviour and shows how a group behaves in its norms,

cohesion, goals, procedures, communication pattern and leadership. These research

results are furthering managerial knowledge of understanding group behaviour which is

very important for organisational morale and productivity.

Intergroup Level:

The organisation is made up of many groups that develop a complex of

relationships to build its process and substance. Understanding the effect of group

relationships is important for managers in to-day’s organisation. Inter-group relationship

may be in the form of co-operation or competition.

The co-operative relationships help the organisation in achieving its objectives.

Organisational behaviour provides means to understand and achieve co-operative group

relationships through interaction, rotation of members among groups, avoidance of win-

lose situation and focus on total group objectives.

Controlling and Directing Behaviour:

After understanding the mechanism of human behaviour, managers are required to

control and direct the behaviour so that it conforms to standards required for achieving

organisational objectives. Thus, managers are required to control and direct the

behaviour at all levels of individual interaction. For this purpose, organisational

behaviour helps managers in different areas such as use of power and sanction,

leadership, communication and building organisation climate conducive for better

interaction.

Use of Power and Sanction:

The behaviours can be controlled and directed by the use of power and sanction

which are formally defined by the organisation. Power is referred to as capacity of an

individual to take certain action and may be utilised in many ways. The use of power is

related with sanction in the organisation. Organisational behaviour explains how various

means of power and sanction can be utilised so that both organisational and individual

objectives are achieved simultaneously.

Leadership:

Organisational behaviour brings new insights and understanding to the practice

and theory of leadership. It identifies various leadership styles available to a manager

and analyses which style is more appropriate in a given situation. Thus, managers can

adopt styles keeping in view the various dimensions of organisations, individuals and

situations.

Communication:

Communication help people to come in contact with others. To achieve

organisational effectiveness, the communication must be effective. The communication

process and it works in inter-personal dynamics has been evaluated by organisational

behaviour.

Organisational Climate:

Organisational climate refers to the total organisational situations affecting human

behaviour. Organisational climate takes a system perspective that affect human

behaviour. Besides improving the satisfactory working conditions, adequate

compensation, organisational climate includes creation of an atmosphere of effective

supervision, the opportunity for the realization of personal goals, congenial relations with

others at the work place and a sense of accomplishment.

Organisational Adaptation:

Organisations as dynamic entities are characterized by pervasive changes.

Organisations have to adapt themselves to the environment changes by making suitable

internal arrangements by convincing employees who normally have the tendency of

resisting any change.

Levels of Analysis

Organisational behaviour can be viewed from different perspectives or levels of

analysis. At one level, the organisation can be viewed as consisting of individuals

working on tasks in the pursuit of the organisation’s goals. A second level of analysis

focuses upon the interaction among organisation members as they work in teams, groups

and departments. Finally, organisational behaviour can be analysed from the perspective

of the organisation as a whole.

At the Individual Level:

Organisational behaviour can be studied in the perspective of individual member

of the organisation. This approach to organisational behaviour, draws heavily on

discipline of psychology, explains why individuals behave and react as they do to

different organisational policies, practices and procedures. Within this perspective,

psychologically based theories of learning, motivation, satisfaction, leadership and so on

are brought to bear upon the behaviour and performance of individual organisation

members. Factors such as attitudes, beliefs, perceptions and personalities are taken into

account and their impact upon individuals’ behaviour and performance on the job is

studied.

At the Group Level:

People rarely work independently in organisations, they have to necessarily work

co-ordinatively to meet the organisational goals. This frequently results in people

working together in teams, committees, groups and the like. How do people work

together in groups? What factors determine whether group will be cohesive and

productive? What types of tasks could be assigned to groups? These are some of the

questions that can be asked about the effective functioning of groups in organisations.

An important component of organisational behaviour involves the application of

knowledge and theories from social psychology to the study of groups in organisations.

At the Organisational Level:

Some organisational behaviour researchers take the organisation as a whole as

their object of study. This macro perspective on organisational behaviour draws heavily

on theories and concepts from the discipline of ‘sociology’. Researchers seek to

understand the implications of the relationship between the organisation and its

environment for the effectiveness of the organisation. Emphasis is placed upon

understanding how organisational structure and design influence the effectiveness of

organisation. Other factors such as the technology employed by the organisation, the size

of the organisation and the organisation’s age are also examined and their implications

for effective organisational functioning are explored.

These different perspectives on the study of organisational behaviour are not in

conflict with one another. Instead they are complementary. A full and complete

understanding of the nature of organisations and the determinants of their effectiveness

requires a blending together of knowledge derived from each perspective.

Fundamental Concepts of Organisational Behaviour

Organisational behaviour starts with the following six fundamental concepts

revolving around the nature of people and organisations:

The nature of people:

� Individual differences

� A whole person

� Motivated behaviour

� Value of the person

The nature of organisation:

� Social system

� Mutual interest

Result :

� Holistic organisational behaviour

Individual Differences:

Individuals are different in their physical and mental traits. They are different not

only in the physical appearance such as sex, age, height, weight, complexion and so on

but also different in their psychological traits such as intelligence, attitude, motivation,

perception, etc. This belief that each person is different from all others is typically called

the ‘Law of Individual Differences’. Individual differences mean that the management

has to treat them different to get best out of them.

A Whole Person:

Though the organisation may feel that they are employing only the individual’s

skill or intelligence, in fact, they employ ‘whole person’. This means that individual does

not have skill and intelligence only, he has personal life, needs and desires. In

otherwords, his personal life cannot be separated from his work life, since people

function as total human beings.

When management practices organisational behaviour, it is not only trying to

develop a better employee but also it wants to develop a ‘better person’ in terms of all

round growth and development. The benefit will extend beyond the firm into the larger

society in which each employee lives.

Motivated Behaviour:

It is the urge of the individual to satisfy a particular need, in fact, motivates him to

do an act. The motivation could be positive or negative.

Motivation is essential to the functioning of organisations. The organisation can

show to its employees how certain actions will increase their need fulfillment.

Value of the Person:

It is more an ethical philosophy. It stresses that people are to be treated with

respect and dignity. Every job, however simple, entitles the people who do it to proper

respect and recognition of their unique aspirations and abilities. Since organisational

behaviour involves people, ethical philosophy is involved in one way or another in each

action.

Holistic Organisational Behaviour:

When the above six concepts of organisational behaviour are considered together,

they provide a holistic concept of the subject. Holistic organisational behaviour

interprets people-organisation relationships in terms of the whole person, whole group,

whole organisation and whole social system.

Review Questions:

1. What do you understand by organisational behaviour? What are its elements?

2. What are the fundamental concepts of organisational behaviour?

3. Bring out the importance of studying organisational behaviour.

� � �

LESSON - 3

MODELS OF ORGANISATIONAL BEHAVIOUR

Learning Objectives

After reading this lesson, you should be able to understand:

• The different models of organisational behaviour

• Its importance to managers

• The future of organisational behaviour

The organisations have undergone tremendous changes now. Although employers

in early days had no systematic program for managing their employees, their simple rules

still exerted a powerful influence on the organisation. Increasing number of

organisations today are experimenting with exciting new ways to attract and motivate

their employees.

An Organisational Behaviour System

Organisations achieve their goals by creating, communicating and operating an

organisational behaviour system as shown below:

Management’s

Philosophy � Values � Vision � Goals

Formal organisation Organisational Social

Culture Environment

Informal organisation

Leadership � Communication � Group dynamics

Quality of Work Life

Motivation

Outcomes:

� Performance

� Individual Satisfaction

� Personal growth and development

The major elements of a good organisational behaviour system are given in the

above chart. These systems exist in every organisation, but sometimes in varying forms.

They have a greater chance of being successful, though, if they have been consciously,

created regularly examined and updated to meet new and emerging conditions. The

primary advantage of organisational behaviour system is to identify the major human and

organisational variables that affect the results they are trying to achieve. For some of

these variables, managers can only be aware of them and acknowledge their impact, for

others, they can exert some control over them. The end results are typically measured in

various forms of performance (quantity and quality of products and services; level of

customer service), as well as in human outcomes, such as employee satisfaction or

personal growth and development.

Elements of the System

The system’s base rests in the fundamental beliefs and intentions of those who join

together to create it(such as owners) and of the managers who currently administer it.

The philosophy (model) of organisational behaviour held by management consists of an

integrated set of assumptions and beliefs about the way things are, the purpose for these

activities, and the way they should be. These philosophies are sometimes explicit, and

occasionally implicit, in the minds of managers.

Organisations differ in the quality of organisational behaviour that they develop.

These differences are substantially caused by different models of organisational

behaviour that dominate management’s thought in each organisation. The model that a

manager holds usually begins with certain assumptions about people and leads to certain

interpretations of events.

The following four models of organisational behaviour are discussed here:

1) Autocratic model

2) Custodial model

3) Supportive model; and

4) Collegial model

Autocratic Model:

In the autocratic model, the manager must have the power to command the

workers to do a specific job. Management believes that it knows what is best and the

employee’s obligation is to follow/obey orders. The psychological result for employees

is dependence on their boss. It does get results, but usually only moderate results. Its

main weakness is its high human cost.

Custodial Model:

This model focuses better employee satisfaction and security. The organisations

satisfy the security and welfare needs of employees. Hence it is known as custodian

model. This model leads to employee dependence on the organisation rather than the

boss. As a result of economic rewards and benefits, employees are happy and contented

but they are not strongly motivated.

Supportive Model:

The supportive model depends on ‘leadership’ instead of power or money.

Through leadership, management provides a climate to help employees grow and

accomplish in the interests of the organisation. This model assumes that employees will

take responsibility, develop a drive to contribute and improve themselves if management

will give them a chance. Management orientation, therefore is, to ‘support’ the

employee’s job performance rather than simply supporting employee benefit payments as

in the custodial approach. Since management supports employees in their work, the

psychological result is a feeling of participation and task involvement in the organisation.

Collegial Model:

The term ‘collegial’ relates to a body of persons having a common purpose. It is a

team concept. Management is the coach that builds a better team. The management is

seen as joint contributor rather than as boss. The employee response to this situation is

responsibility. The psychological result of the collegial approach for the employee is

‘self-discipline’. In this kind of environment employees normally feel some degree of

fulfillment, worthwhile contribution and self-actualisation. This self-actualisation will

lead to moderate enthusiasm in performance.

Four Models of Organisational Behaviour

Autocratic Custodial Supportive Collegial

Basis of

Model

Power Economic

resources

Leadership Partnership

Managerial-

orientation

Authority Money Support Teamwork

Employee-

orientation

Obedience Security and

benefits

Job

performance

Responsible

behaviour

Employee

psychological

result

Dependence

on boss

Dependence

on

organisation

Participation Self-discipline

Employee

needs met

Subsistence Security Status and

recognition

Self-

actualisation

Performance

result

Minimum Passive

cooperation

Awakened

drives

Moderate

enthusiasm

It is wrong to assume that one particular model is the best model because what is

best is contingent on what is known about human behaviour in a particular environment.

The primary challenge for management is to identify the model it is actually using and

then assess its current effectiveness.

The selection of model by a manager is determined by a number of factors. The

prevailing philosophy, vision and goals of manager affect their organisational behaviour

model. In addition, environmental conditions help determine which model will be most

effective. The current turbulent conditions in some industries, for example, may drive

firms toward the more collegial models, since rapid decision-making and flexibility are

needed. This suggests that one’s model should not be static and changing, but adapted

across time.

Importance of Organisational Behaviour to Managers

Managers perform a four major functions such as planning, organising, directing

and controlling. In addition to these functions there are ten managerial roles which can

be defined as organised sets of behaviours identified with the position. These roles are

developed by Henry Mintzberg in 1960s after a careful study of executives at work. All

these roles, in one form or another deal with people and their behaviour. These ten

managerial roles are divided into three categories. The first category of “interpersonal

roles” arises directly from the manager’s position and the formal authority bestowed upon

him. The second category of “informational role” is played as a direct result of the

interpersonal roles and these two categories give rise to the third category of “decisional

roles”.

Formal Positional Authority

Interpersonal Roles

Figurehead

Leadership

Liasion

Informational Roles

Monitor

Disseminator

Spokesperson

Decisional Roles

Entrepreneur

Problem-Solver

Resource Allocator

Negotiator

These roles, in the context of organisational behaviour, are explained in detail

Interpersonal Roles

In every organisation managers spend a considerable amount of time in interacting

with other people both within their own organisations as well as outside. These people

include peers, subordinates, superiors, suppliers, customers, government officials,

community leaders and so on. All these interactions require an understanding of

interpersonal behaviour. Studies show that interacting with people takes up nearly 80%

of a manager’s time. These interactions involve the following three major interpersonal

roles:

Figurehead Role :

Managers act as symbolic figureheads performing social or legal obligations.

These duties include greeting visitors, signing legal documents, taking important

customers to lunch, attending a subordinate’s wedding or speaking at functions in schools

and churches. All these, primarily, are duties of a ceremonial nature but are important to

the smooth functioning of the organisation.

Leadership Role :

The influence of the manager is most clearly seen in this role as a leader of the

unit or organisation. Since he is responsible for the activities of his subordinates, he must

lead and coordinate their activities in meeting task-related goals and he must motivate

them to perform better. He must be an exemplary leader so that his subordinates follow

his directions and guidelines with respect and dedication.

Liaison Role :

The managers must maintain a network of outside contacts. In addition to their

constant contact with their own subordinates, peers and superiors in order to assess the

external environment of competition, social changes or changes in governmental rules

and regulations. In this role, the managers build up their own external information

system. This can be achieved by attending meetings and professional conferences, by

personal phone calls, trade journals and informal personal contacts within outside

agencies.

Information Roles

A manager, by virtue of his interpersonal contacts, emerges as a source of

information about a variety of issues concerning the organisation. In this capacity of

information processing, a manager executes the following three roles.

Monitor Role :

The managers are constantly monitoring and scanning their environment both

internal and external, collecting and studying information regarding their organisation

and the outside environment affecting their organisation. This can be done by reading

reports and periodicals, by interrogating their liaison contacts and through gossip, hearsay

and speculation.

Information Disseminator Role :

The managers must transmit the information regarding changes in policies or other

matters to their subordinates, their peers and to other members of the organisation. This

can be done through memos, phone calls, individual meetings or group meetings.

Spokesman Role :

A manager has to be a spokesman for his unit and represent his unit in either

sending relevant information to people outside his unit or making some demands on

behalf of his unit.

Decision Roles

A manager must make decisions and solve organisational problems on the basis of

the environmental information received. In that respect, a manager plays four important

roles.

Entrepreneur Role :

Managers as entrepreneurs are constantly involved in improving their units and

facing the dynamic technological challenges. They are constantly on the lookout for new

ideas for or in product improvement or product addition. They initiate feasibility studies,

arrange for capital for new products if necessary and ask for suggestions from the

employees for ways to improve the organisation. This can be achieved through

suggestion boxes, holding strategy meetings with project managers and R&D personnel.

Conflict Handling Role :

The managers are constantly involved as arbitrators in solving differences among

the subordinates of the employee’s conflicts with the management. Mangers must

anticipate such problems and take preventive action if possible or take corrective action,

once the problems have arisen. These problems may involve labour disputes, customer

complaints, employee grievances, machine breakdowns, cash flow shortages and

interpersonal conflicts.

Resource Allocator :

The managers or resource allocator establish priorities among various projects or

programs and make budgetary allocations to different activities of the organisation based

upon these priorities.

Negotiator Role :

The managers in their negotiator role represent their units or organisations in

negotiating deals and agreements within and outside of the organisation. They negotiate

contracts with the unions. Sales managers may negotiate prices with prime customers.

Purchasing managers may negotiate prices with vendors.

All these ten roles are important in a manager’s job and are interrelated, even

though some roles may be more influential than others depending upon the managerial

position. For example, sales managers may give more importance to interpersonal roles,

while the production managers give more importance to decisional roles.

Limitations of Organisational Behaviour

Organisational behaviour will not abolish conflict and frustration; it can only reduce

them. It is a way to improve, not an absolute answer to problems.

It is only one of many systems operating within a larger social system.

People who lack system understanding may develop a ‘behavioural basis’, which

gives them a narrow view point i.e. a tunnel vision that emphasises satisfying

employee experiences while overlooking the broader system of the organisation in

relation to all its publics.

The law of diminishing returns operates in the case of organisational behaviour also.

It states that at some point increase of a desirable practice produce declining returns

and sometimes negative returns. The concept implies that for any situation there is an

optimum amount of a desirable practice. When that point is exceeded, there is a

decline in returns. For example, too much security may lead to less employee

initiative and growth. This relationship shows that organisational effectiveness is

achieved not by maximising one human variable but by working all system variables

together in a balanced way.

A significant concern about organisational behaviour is that its knowledge and

techniques could be used to manipulate people without regard for human welfare.

People who lack ethical values could use people in unethical ways.

Future of Organisational Behaviour

The growing interest in organisational behaviour stems from both a philosophical

desire by many people to create more humanistic work places and a practical need to

design more productive work environments. As a result of these forces, organisational

behaviour is now part in the curriculum of almost all courses including engineering and

medical.

The field of organisational behaviour has grown in depth and breadth. The keys to

its past and future success revolve around the related processes of theory development,

research and managerial practice.

Although organisational behaviour has certain limitations, it has a tremendous

potential to contribute to the advancement of civilisation. It has provided and will

provide much improvement in the human environment. By building a better climate for

people, organisational behaviour will release their creative potential to help solve major

social problems. In this way organisational behaviour may contribute to social

improvements. Improved organisational behaviour is not easy to apply. But the

opportunities are there. It should produce a higher quality of life in which there is

improved harmony within each person, among people and among the organisations of

future.

Review Questions :

1.Discuss the different models of organisational behaviour.

2.Explain the importance of organisational behaviour to managers.

3.What are the limitations of organisational behaviour?

� � �

LESSON - 4

GLOBAL SCENARIO OF ORGANISATIONAL BEHAVIOUR

Learning Objectives

After reading this lesson, you should be able to understand:

• The global scenario of organisational behaviour

• The barriers to cultural adaptation and measures to overcome those barriers

Due to globalisation of economy, many organisations now operate in more than

one country and these multi-national operations add new dimensions to organisational

behaviour. It is a step into different social, political and economic environments.

Communication and control naturally becomes difficult. The socio, political and

economic differences among countries influence international organisational behaviour.

Social Conditions

In many countries due to poorly developed resources, there is shortage of

managerial personnel, scientists and technicians. Hence needed skills must be

temporarily imported from other countries, and training programmes need to be

developed to prepare local workers. The training multiplier effect is in action, by which

the skilled people develop others and these trained local become the nucleus for

developing still more people.

Another significant social condition in many countries is that the local culture is

not familiar with advanced technology. A few countries are agriculture dominated and a

few other manufacturing industry dominated. Naturally, the nature of their culture and

work life will be different.

Political Conditions

Political conditions that have a significant effect on organisational behaviour

include instability of the Government, nationalistic drives and subordination of

employers and labour to an authoritarian State. When the Government is unstable,

organisations become cautious about further investments. This organisational instability

leaves workers insecure and causes them to be passive and low in initiative.

Inspite of instability, a nationalistic drive is strong for locals to run their country

and their organisations by themselves without interference by foreign nationals.

In some nations, organised labour is mostly an arm of the authoritarian State and

in some other nations, labour is somewhat independent. In some nations, State tends to

be involved in collective bargaining and other practices affecting workers. In some

nations, for example, employee lay-offs are restricted by law and in some other countries

workers’ participation in management is permitted.

Economic Conditions

The most significant economic conditions in less developed nations are low per

capita income and rapid inflation. Inflation makes the economic life of workers insecure

when compared to developed countries.

The different socio-economic and political conditions prevailing in countries

influence the introduction of advanced technology and sophisticated organisational

systems. A developed country can easily adopt advanced technology whereas a less

developed cannot do it. These limiting conditions cannot be changed rapidly because

they are too well established and woven into the whole social fabric of a nation.

Managing an International Workforce

Whenever an organisation expands its operations to other countries, it tends to

become multicultural and will then face the challenge of blending various cultures

together. The managerial personnel entering another nation need to adjust their

leadership styles, communication patterns and other practices to fit their host country.

Their role is to provide a fusion of cultures in which employees from both countries

adjust to the new situation of seeking greater productivity for the benefit of both the

organisation and the people of the country in which it operates.

Barriers to Cultural Adaptation

♦ One category of managers and other employees who come into a host country tend to

exhibit a variety of behaviours and somewhat see situation around them from their

own perspective. They may fail to recognise key differences between their own and

other cultures. These people are called ‘parochial’.

♦ Another category called ‘individualistic’ who place greatest emphasis on their

personal needs and welfare. They are more concerned about themselves than others

in host country.

♦ Another potential barrier to easy adaptation to another culture occurs when people are

predisposed to believe that their homeland conditions are the best. This

predisposition is known as the self-reference criterion or ‘ethnocentrism’. This

feeling interferes with understanding human behaviour in other cultures and obtaining

productivity from local employees.

Cultural Distance

To decide the amount of adaptation that may be required when personnel moves to

another country, it is helpful to understand the cultural distance between the two

countries, Cultural distance is the amount of distance between any two social systems.

Whatever the amount of cultural distance, it does affect the responses of all persons to

business. The manager’s jobs require employees to be adaptable enough to integrate the

interests of the two or more cultures involved.

Cultural Shock

When employees enter another nation they tend to suffer cultural shock, which is

the insecurity and disorientation caused by encountering a different culture. They may

not know how to act, may fear losing face and self-confidence or may become

emotionally upset. Cultural shock is virtually universal. Some of the more frequent

reasons for cultural shock are as follows:

� Different management philosophies

� New language

� Alternative food, dress, availability of goods

� Attitude towards work and productivity

� Separation from family, friends and colleagues

� Unique currency system

Many expatriates report difficulty in adjusting to different human resource

management philosophies, the language, the different currency and work attitudes in

another culture.

Overcoming Barriers to Cultural Adaptation

Careful selection of employees for assignments to other countries who can

withstand/adjust cultural shocks is important.

Pre-departure training in geography, customs, culture and political environment in

which the employee will be living will help for cultural adaptation.

Incentives and guarantees for better position will motivate employees for cultural

adaptation in the new country.

Employees who return to their home country after working in another nation for

sometime tend to suffer cultural shock in their own homeland. After adjusting to the

culture of another nation and enjoying its uniqueness, it is difficult for expatriates to

readjust to the surroundings of their home country. Hence organisations need

repatriation policies and programmes to help returning employees obtain suitable

assignments and adjust to the ‘new’ environments.

Cultural Contingencies

Productive business practices from one country cannot be transferred directly to

another country. This reflects the idea of cultural contingency - that the most productive

practices for a particular nation will depend heavily on its culture, the social system,

economic development and employee’s values in host country. Hence the expatriate

managers must learn to operate effectively in a new environment with certain amount of

flexibility. Labour policy, personnel practices and production methods need to be

adapted to a different labour force. Organisation structures and communication patterns

need to be suitable for local operations.

Management’s Integrating Role

Once managers are on location in a host country, their attention needs to be

directed toward integrating the technological approaches with the local cultures involved.

Motivating and Leading Local Employees:

Same motivational tools may not suit the employees of all the nations. Hence

appropriate motivational techniques need to be evolved depending on the requirement of

employees of that particular nation.

Similarly, communication problems may also arise between the expatriate

manager and the employees of host country. Hence, managers need to make adjustments

in their communication suited to local cultures. If local culture is ignored, the resulting

imbalance in the social system interferes with the productivity.

Eventually, a cadre of employees with cross-cultural adaptability can be developed

in organisations with large international operations. These employees are ‘transcultural’

employees because they operate effectively in several cultures. They are low in

ethnocentrism and adapt readily to different cultures without major cultural shock. They

usually can communicate fluently with more than one language.

Transcultural employees are especially needed in large, multinational firms that

operate in a variety of national culture. For a firm to be truly multi-national in character,

it should have ownership, operations, markets and managers truly diversified. Its leaders

look to the world as an economic and social unit; but they recognise each local culture,

respect its integrity, acknowledge its benefits and use its differences effectively in their

organisation.

Review Questions

1. Explain the global scenario of organisational behaviour.

2. What are the barriers to cultural adaptation? Suggest measures to overcome those

barriers.

� � �

LESSON - 5

FOUNDATION OF INDIVIDUAL BEHAVIOUR

Learning Objectives

After reading this lesson, you should be able to:

• Understand the nature of individual differences in organisations.

• Identify the individual factors affecting organisational behaviour.

Foundations of Individual Behaviour

Human behaviour, a complex phenomenon as it is, is most difficult to define in

absolute terms. It is primarily a combination of responses to external and internal stimuli.

These responses would reflect psychological structure of the person and may be a result

of combination of biological and psychological processes, interprets them, responds to

them in an appropriate manner and learns from the result of these responses.

Psychologist Kurt Levin has conducted considerable research into the human

behaviour and its causes. He believes that people are influenced by a number of

diversified factors, both genetic and environmental, and the influence of these factors

determines the pattern of behaviour.

Whenever people buy something, for example, a car, both the buyer and the seller

sign a contract that specifies the terms of the sales agreement. Similarly, most people,

when they begin a working relationship with an organisation formulate a psychological

contract with their employer. A psychological contract is the overall set of expectations

that an individual holds with respect to his/her contributions to the organisation and the

organisation’s response to those contributions. A psychological contract is not written

down like a legal contract.

The individual makes a variety of contributions to the organisation - effort, skills,

ability, time, loyalty and so forth. These contributions presumably satisfy various needs

and requirements of the organisation. In return for contributions, the organisation

provides inducements such as pay, promotion, job security, etc. to the individual. Just as

the contributions available from the individual must satisfy the organisation’s needs, the

inducements must serve the individual’s needs.

If both the individual and the organisation consider the psychological contract fair

and equitable, they will be satisfied with the relationship and will likely to continue it. If

either party perceives an imbalance or inequity in the contract, it may initiate a change.

A major challenge faced by an organisation, thus, is to manage psychological contracts.

One specific aspect of managing psychological contracts is managing the person-

job fit. The ‘person-job fit’ is the extent to which the contributions made by the

individual match the inducements offered by the organisation. In theory, each employee

has a specific set of needs to fulfill and a set of job related behaviours and abilities to

contribute. If the organisation can take complete advantage of those behaviours and

abilities and exactly fulfill the employee’s needs, it will have achieved a perfect person-

job fit. Of course, such a precise level of person-job fit is seldom achieved due to various

reasons such as imperfect selection procedures, differences in individual skills, constant

change in the needs and requirements of people and organisation, etc. Thus, the

behaviour of individuals in organisation is the primary concern of management and it is

essential that managers have an understanding of the factors influencing the behaviour of

the individuals they manage. The following figure identifies five sets of factors that have

an impact upon individual behaviour in organisation.

Individual Individual Individual

Behaviour Performance Effectiveness

The Nature of Individual Differences

Individual differences are personal attributes that vary from one person to another.

Individual differences may be physical and psychological.

Job

Requirements

Standards of

Performance Motivation

Ability

Perception

Organisational

Behaviour and

Resources

Personality

Psychological Differences

• Personality

• Attitudes

• Perception

• Motivation

• Learning

Physical Differences

• Height

• Weight

• Body shape

• Appearance

• Complexion

Whenever an organisation attempts to assess for individual differences among its

employees, it must consider the situation in which behaviour occurs. Individuals who are

satisfied in one context may prove to be dissatisfied in another context. Assessing both

individual differences and contributions in relation to inducements and contexts, then, is a

major challenge for organisations as they attempt to establish effective psychological

contracts with their employees and achieve optimal fits between people and jobs.

Individual differences make the manager’s job endlessly, challenging. In fact,

according to recent research, “variability among workers is substantial at all levels but

increases dramatically with job complexity. Due to these reasons, growing work force

diversity compels managers to view individual differences in a fresh way. Leaders now

talk frequently about “valuing differences” and learning to “manage diversity”. So rather

than limiting diversity, as in the past, today’s managers need to better understand and

accommodate employee diversity and individual differences.

Important Dimensions of Individual Differences

• Self-concept

• Personality dimensions

• Abilities, and

• Personal values and ethics

Self-Concept

Everyone knows, self is the core of one’s conscious existence. Awareness of self

is referred to as one’s self-concept. Sociologists Viktor Gecas defines self-concept as

“the concept the individual has of himself as a physical, social and spiritual or moral

being”. In other words, every individual recognises himself as a distinct individual. A

self-concept would be impossible without the capacity to think. This brings us to the role

of cognitions. Cognitions represent “any knowledge, opinion, or belief about the

environment about oneself, or about one’s behaviour”. Among many different types of

cognitions, those involving anticipation, planning, goal-setting, evaluating and setting

personal standards are particularly relevant to organisational behaviour.

Self-Esteem :

Self-esteem is a belief about one’s own worth based on an overall self-evaluation.

Those with low self-esteem tend to view themselves in negative terms. They do not feel

good about themselves, tend to have trouble in dealing effectively with others, and are

hampered by self-doubts. High self-esteem individuals, in contrast, see themselves as

worthwhile, capable and acceptable. Although high self-esteem is generally considered a

good thing because it is associated with better performance and greater satisfaction,

recent research uncovered a flaw among those with high self-esteem. Specifically, high

self-esteem subjects tended to become egotistical and boastful when faced with pressure

situations. Hence moderate self-esteem is desirable.

Managers can build employee self-esteem in four ways:

1) Be supportive by showing concern for personal problems, interests, status and

contribution.

2) Offer work involving variety, autonomy and challenges that suit the

individual’s values, skills and abilities.

3) Strive for management-employee cohesiveness and build trust.

4) Have faith in each employee’s self-management ability, reward successes.

Self-Efficacy :

Self-Efficacy is a person’s belief about his or her chances of successfully

accomplishing a specific task. According to one organisational behaviour writer, “self-

efficacy arises from the gradual acquisition of complex, cognitive, social, linguistic,

and/or physical skills through experience”.

There is strong linkage between high self-efficacy expectations and success in

widely varied physical and mental tasks, anxiety reduction, addiction control, pain

tolerance and illness recovery. Oppositely, those with low self-efficacy expectations tend

to have low success rates.

Self-Efficacy Implications for Managers

Managers need to nurture self-efficacy, both in themselves and in others. Self-

efficacy requires constructive action in each of the following managerial areas:

� To design recruitment selection procedure.

� To design interview questions to probe applicant’s general self-efficacy for

determining orientation and training needs.

� For designing job.

� For systematic self-management training.

� For goal-setting and quality improvement.

� To evolve suitable leadership.

� To design suitable rewards.

Personality Dimensions

The big five personality dimensions are – extroversion, agreeableness,

conscientiousness, emotional stability and openness to experience. Ideally, these

personality dimensions that correlate positively and strongly with job performance would

be helpful in the selection, training and appraisal of employees. The individuals who

exhibit traits associated with a strong sense of purpose, obligation and persistence

generally perform better than those who do not.

Physical and Intellectual Qualities

Physical differences among individuals are the most visible of all differences.

They are also relatively easy to assess. Intellectual differences are somewhat more

difficult to discern, but they too can be assessed by fairly objective means. The abilities,

skills and competencies of employees are both physical and intellectual qualities.

Ability

Abilities refer to an individual’s skill and to perform effectively in one or more

areas of activity, such as physical, mental or interpersonal work. Individuals with

numerical ability for example, can be trained to apply their ability in the field of

engineering, accounting and computer science. Abilities develop from an individual’s

natural aptitudes and subsequent learning opportunities. Aptitudes are relatively

enduring capacities for performing some activity effectively. Learning opportunities

translate aptitudes into abilities through practice and experience and formal training.

Organisations have to ensure that people possess the necessary abilities to engage in the

behaviours required for effective performance. This can be accomplished either by

careful selection of people or by a combination of selection and training.

Skills are generally thought of as being more task-specific capabilities than

abilities. For example, an individual with numerical ability who goes to school to learn

accounting develops a numerical skill ‘specific to that field’. Thus when a particular

ability is applied to a specialised area (for example Accounting), it becomes a skill.

Competencies are skills associated with specialisation. Competencies are skills

that have been refined by practice and experience and that enable the individual to

specialise in some field. For example, an accountant with numerical ability and

accounting skill takes a position in the Taxation Department and as time passes, he

develops more competency as a tax expert.

Physical abilities such as strength, flexibility, endurance and stamina can be

developed with exercise and training. Mental abilities such as reasoning, memory

visualisation and comprehension and inter-personal abilities can also be developed

through practice and education. Even in the absence of such formal programmes, many

individuals manage their own careers in such a way as to continually upgrade their

abilities, skills and competencies in order to remain valuable to their organisations.

Personal Values and Ethics

According to Milton Rokeach, a value is “an enduring belief that a specific mode

of conduct or end-stated of existence is personally or socially preferable to an opposite or

converse mode of conduct are end-state of existence”.

Ethics involves the study of moral issues and choices. It is concerned with right

versus wrong and good versus bad. Relative to the workplace, the terms business ethics

and management ethics are often heard.

Moral Principles for Managers:

� Judge actions by their consequences; achieve the greatest good for the greatest

number of people.

� Basic human rights should be respected.

� Rules and rewards should be administered impartially, fairly and equitably.

Improving Organisation’s Ethical Climate:

Managers are potent role models whose habits and actual behaviour send clear

signals about the importance of ethical conduct. Ethical behaviour is a top to bottom

proposition.

Screen potential employees by checking references, credentials, and other

information for ascertaining their ethical behaviour.

Review Question :

1. Briefly state the factors that have an impact upon the individual behaviour in the

organisation.

� � �

LESSON – 6

PERSONALITY

Learning Objectives

After reading this lesson, you should be able to understand:

• Perceptual clarity about personality.

• Main determinants of personality.

• Nature and dimensions of personality.

• Personality attributes that are relevant to organisational behaviour.

Personality is a complex, multi-dimensional construct and there is no simple

definition of what personality is. Maddi defines personality as:

“a stable set of characteristics and tendencies that determine those communalities

and differences in the psychological behaviour and that may not be easily

understood as the sole result of the social and biological pressures of the moment”.

The above definition indicates that people have some traits in common with other

and they are also different from others in certain other respects. This is the reason that

managers cannot assume that they can use the same kinds of rewards or motivation

techniques to influence every individual’s behaviour. Maddi’s definition does not imply

that people do not ever change. It simply indicates that individuals do not change

drastically overnight and their thoughts, feelings, values and actions remain relatively

stable over time. Changes in personality that take place in individuals occur slowly over

an extended period of time. Thus, by understanding certain dimensions of personality,

managers can, to a great extent, predict the daily behaviours of employees.

Some personality theorists emphasise the need to recognise the person-situation

interaction, that is, the social learning aspects of personality. Such a social learning

interpretation may be the most comprehensive and meaningful to the overall study of

organisational behaviour. In this context personality will mean how people affect others

and how they understand and view themselves, as well as their pattern of inner and outer

measurable traits, and the person-situation interaction. How people affect others depends

primarily upon their external appearance (height, weight, facial features, colour and other

physical aspects) and traits.

Of more importance to organisational behaviour are the personality traits. In

particular, five personality traits have recently emerged from research as being especially

related to job performance. Characteristics of these traits can be summarised as follows:

1. Extraversion: Sociable, talkative and assertive.

2. Agreeableness: Good-natured, cooperative and trusting.

3. Conscientiousness: Responsible, dependable, persistent and achievement-

oriented.

4. Emotional Stability: Viewed from a negative standpoint – tense, insecure and

nervous.

5. Openness to Experience: Imaginative, artistically sensitive and intellectual.

The identification of the above “big five” traits that relate to performance indicates

the important role that personality plays in organisational behaviour. Besides physical

appearance and personality traits, the aspects of personality dealing with the self-concept

(both self-esteem and self-efficacy) and the person-situation interaction also play

important roles.

Personality Formation

The personality formation of an individual starts at birth and continues throughout.

Three major types of factors play important roles in personality formation. They are

determinants, stages and traits.

Determinants: The most widely studied determinants of personality are

biological, social and cultural. Hereditary characteristics (eg body shape and height) and

the social context (family and friends) and cultural context (religion and values) in which

people grow up interact to shape personality. As people grow into adulthood, their

personalities become very clearly defined and generally stable.

Stages and Traits: Sigmund Freud saw human personality development as

progressing through four stages: dependent, compulsive, oedipal and mature. The

concept of stages of growth provides a valuable perspective from which to view

organisational behaviour. Experienced managers become aware of the stages that their

employees often go through and they learn how to deal with these stages to promote

maximum growth for the individual and for the organisation.

Trait approaches to personality formation are also based on psychology.

According to some trait theories, all people share common traits, like social, political,

religious and aesthetic preferences but each individual’s disposition differentiates that

person from all others.

Personality Factors in Organisations

Some of the important personality factors that determine what kind of behaviours

are exhibited at work include the following :

1) Need Pattern

2) Locus of Control

3) Introversion and Extroversion

4) Tolerance for Ambiguity

5) Self-esteem and Self-concept

6) Authoritarianism and Dogmatism

7) Risk Propensity

8) Machiavellianism

9) Types A and B Personalities

10) Work-Ethic Orientation

1. Need Pattern :

Steers and Braunstein (1976) developed a scale for the four personality needs that

manisfest themselves in the work setting. They are: the needs for achievement,

affiliation, autonomy and dominance. Those who are high in achievement engage

themselves proactively in work behaviours in order to feel proud about their

achievements and successes; those high in need for affiliation like to work cooperatively

with others; those high in need for autonomy function best when not closely supervised;

and those high in their need for dominance are very effective while operating in

environments where they can actively enforce their legitimate authority.

2. Locus of Control :

Locus of control is the degree to which an individual believes that his/her

behaviour has direct impact on the consequences of that behaviour. Some people, for

example, believe that if they work hard they are certain to succeed. They strongly

believe that each individual is in control of his/her life. They are said to have an internal

locus of control. By contrast, some people think that what happens to them is a result of

fate, chance, luck or the behaviour of other people, rather than lack of skills or poor

performance. Because these individuals think that forces beyond their control dictate

what happens to them, they are said to have an external locus of control.

As a personality attribute, locus of control has clear implications for organisations.

For example, individuals with an internal locus of control may have a relatively strong

desire to participate in the management of their organisations and have a freedom in how

do their jobs. Thus, they may prefer a decentralised organisation where right of decision-

making is given to them and a leader who provides them freedom and autonomy. They

may like a reward system that recognises individual performance and contributions.

People with an external locus of control, on the other hand, are likely to prefer a

more centralised organisation where they need not take any decisions. They may

gravitate to structured jobs where standard procedures are defined for them. They may

prefer a leader who makes most of the decisions and may prefer a reward system that

considers mainly seniority rather than merit.

3. Introversion and Extroversion :

Introversion is the tendency in individuals which directs them to turn inward and

experience and process feelings, thoughts and ideas within themselves. Extroversion, on

the other hand, refers to the tendency in individuals to turn outward of themselves

searching for external stimuli with which they can interact. While there is some element

of introversion as well as extroversion in all of us, people tend to be dominant as either

extroverts or introverts. Extroverts are sociable, lively, gregarious and seek outward

stimuli or external interactions. Such individuals are likely to be most successful

working in the sales department, publicity office, personal relations unit, and so on,

where they can interact face to face with others. Introverts, on the other hand, are quiet,

reflective, introspective, and intellectual people, preferring to interact with a small

intimate circle of friends. Introverts are more likely to be successful when they can work

on highly abstract ideas (such as R&D work), in a relatively quiet atmosphere. Since

managers have to constantly interact with individuals both within and outside the

organisation and influence people to achieve the organisation’s goals, it is believed that

extroverts are likely to be more successful as managers.

4. Tolerance for Ambiguity :

This personality characteristic indicates the level of uncertainty that people can

tolerate without experiencing undue stress and can still function effectively. Managers

have to work well under conditions of extreme uncertainty and insufficient information,

especially when things are rapidly changing in the organisation’s external environment.

Managers who have a high tolerance for ambiguity can cope well under these conditions.

Managers, who have a low tolerance for ambiguity may be effective in structured work

settings but find it almost impossible to operate effectively when things are rapidly

changing and much information about the future turn of events is not available. Thus,

tolerance for ambiguity is a personality dimension necessary for managerial success.

5. Self-Esteem and Self-Concept :

Self-esteem denotes the extent to which individuals consistently regard themselves

as capable, successful, important and worthy individuals. Self-esteem is an important

personality factor that determines how managers perceive themselves and their role in the

organisation. Self-esteem is important to self-concept, i.e. the way individuals define

themselves as to who they are and derive their sense of identity. High self-esteem

provides a high sense of self-concept; high self-concept, in turn, reinforces high self-

esteem. Thus, the two are mutually reinforcing. Individuals high in self-esteem will try

to take on more challenging assignments and be successful, thus enhancing their self-

concept; i.e. they would tend to define themselves as highly valuable and valued

individuals in the organisational system. The higher the self-concept and self-esteem, the

greater will be their contributions to the goals of the organisation, especially when the

system rewards them for their contributions.

6. Authoritarianism and Dogmatism :

Authoritarianism is the extent to which an individual believes that power and

status differences are appropriate within hierarchical social systems like organisations.

For example, an employee who is highly authoritarian may unquestioningly accept

directives or orders from his superior with more authority. A person who is not highly

authoritarian may agree to carry out appropriate and reasonable directives from his boss

but is also likely to raise questions, express disagreement and even refuse to carry out

requests if they are for some reason objectionable.

Dogmatism is the rigidity of a person’s beliefs and his/her openness to other view

points. The popular terms ‘close-minded’ and ‘open-minded’ describe people who are

more and less dogmatic in their beliefs. For example, a manager may be unwilling to

listen to a new idea for doing something more efficiently. He is said to be a person with

close-minded or highly dogmatic. A manager in the same circumstances who is very

receptive to hearing about and trying out new ideas might be seen as more open-minded

or less dogmatic. Dogmatism can be either beneficial or detrimental to organisations, but

given the degree of change in the nature of organisations and their environments,

individuals who are not dogmatic are most likely to be useful and productive

organisational members.

7. Risk Propensity:

Risk-propensity is the degree to which an individual is willing to take chances and

make risky decisions. A manager with a high risk propensity might be expected to

experiment with new ideas and to lead the organisation in new directions. In contrast, a

manager with low risk propensity might lead to a stagnant and overly conservative

organisation.

8. Machiavellianism :

Machiavellianism is manipulation or influencing of other people as a primary way

of achieving one’s goal. An individual tends to be machiavellian, if he tends to be cool,

logical in assessing the system around them, willing to twist and turn facts to influence

others, and try to gain control of people, events and situations by manipulating the system

to his advantage.

9. Types A and B Personalities :

Type A persons feel a chronic sense of time urgency, are highly achievement-

oriented, exhibit a competitive drive, and are impatient when their work is slowed down

for any reason. Type B persons are easy-going individuals who do not sense the time

urgency, and who do not experience the competitive drive. Type A individuals are

significantly more prone to heart attacks than Type B individuals. While Type A persons

help the organisation to move ahead in a relatively short period of time they may also

suffer health problems which might be detrimental to both themselves and the

organisation in the long-run.

10. Work-Ethic Orientation :

Some individuals are highly work-oriented while others try to do the minimum

that is necessary to get by without being fired on-the-job. The extremely work ethic

oriented person gets greatly involved in the job. Extreme work ethic values could lead to

traits of “workohlism” when work becomes to be considered as the only primary motive

for living with very little outside interests. For the workoholic, turning to work can

sometimes become a viable alternative to facing non-work-related problems. Though a

high level of work ethic orientation of members is good for the organisation to achieve its

goals, too much “workoholism” which might lead to premature burnout and health

problems is dysfunctional for both organisation and the workoholic members.

The above ten different personality predispositions are important for individual,

managerial and organisational effectiveness.

Desired Personality Characteristics for Effective Managers

Obviously, there are some personality predispositions which are conducive to

managerial effectiveness and to the success of managers. Apart from possessing the

necessary skills and abilities, managers need to develop a high tolerance for ambiguity.

Since many factors in any given complex situation are unknown, especially when there

are many changes taking place in the internal and/or the external environment of the

organisation, managers need to be able to handle situations as they come, without

experiencing undue stress. Thus, a high tolerance for ambiguity is a desired managerial

trait. Managers with a good mix of achievement, affiliation and power needs will be

successful in most situations since they will have the drive to achieve the goals and the

interpersonal orientation to get the job done through others. In sales and other people-

oriented roles, extrovert managers will fit better in their jobs, and managers with internal

locus of control will be better performers. Managers with good work ethic values,

compared to those who do not have them, will get more involved in their jobs and make

things happen, and are likely to be more successful in their jobs. Managers with Type A

personalities may suit very well for some jobs which have inbuilt performance pressures

and deadlines, but they need to know how to relax through exercises and self-monitor

their stress levels.

Personality is a relatively stable factor, but our predispositions can be changed

through conscious choice. For instance, our tolerance for ambiguity and ability to handle

stress can be considerably enhanced; the attributions we make for success – internal

versus external locus of control can be changed; our latent needs activated; and our skills

in decision-making increased through training programmes and by deliberately making

the changes necessary for being successful in our jobs. Recognising the essential

ingredients for managerial success is the first step towards making the changes.

The Self-Concept: Self-Esteem and Self-Efficacy

People’s attempts to understand themselves are called the self-concept in

personality theory. The self is a unique product of many interacting parts and may be

thought of as the personality viewed from within. This self is particularly relevant to the

concepts of self-esteem and self-efficacy in the field of organisational behaviour.

People’s self-esteem has to do with their self-perceived competence and self-

image. There is considerable research on the role that self-esteem may play in

organisational behaviour and its outcomes. Most recent studies indicate that self-esteem

plays at least an important moderating role in areas such as emotional and behavioural

responses and stress of organisational members. As was recently noted, “both research

and everyday experience confirm that employees with high self-esteem feel unique,

competent, secure, empowered and connected to the people around them”.

Self-efficacy is concerned with self-perceptions of how well a person can cope

with situations as they arise. Those with high self-efficacy feel capable and confident of

performing well in a situation. Only recently given attention in the field of organisational

behaviour, self-efficacy is conceptually close to self-esteem. Miner points out the

differences by noting that self-esteem tends to be a generalised trait (it will be present in

any situation), while self-efficacy tends to be situation specific. Self-efficacy has been

shown to have an empirical relationship with organisational performance and other

dynamics of organisational behaviour.

In summary, personality is a very diverse and complex cognitive process. It

incorporates almost everything. As defined above, personality is the whole person and is

concerned with external appearance and traits, self and situational interactions. Probably

the best statement on personality was made many years ago by Kluckhohn and Murray,

who said that, to some extent, a person’s personality is like all other people’s, like some

other people’s, and like no other people’s.

Review Questions:

1. Define personality. What are its major elements?

2. How does personality relate to organisational behaviour?

� � �

LESSON- 7

LEARNING AND BEHAVIOUR MODIFICATION

Learning Objectives

After reading this lesson, you should be able to understand:

• Learning as a factor affecting human behaviour

• Implications of behaviour modification

• Reinforcement for inducing positive behaviour

Learning is another important psychological process determining human

behaviour. Learning can be defined as “relatively permanent change in behaviour that

occurs as a result of experience or reinforced practice”. There are four important points

in the definition of learning:

1) Learning involves a change in behaviour, though this change is not necessarily

an improvement over previous behaviour. Learning generally has the

connotation of improved behaviour, but bad habits, prejudices, stereotypes,

and work restrictions are also learned.

2) The behavioural change must be relatively permanent. Any temporary change

in behaviour is not a part of learning.

3) The behavioural change must be based on some form of practice or

experience.

4) The practice or experience must be reinforced in order for learning to occur.

Components of Learning Process

The components of learning process are: drive, cue stimuli, response,

reinforcement and retention.

1. Drive

Learning frequently occurs in the presence of drive – any strong stimulus that

impels action. Drives are basically of two types – primary or physiological drives and

secondary or psychological drives. These two categories of drives often interact.

Individuals operate under many drives at the same time. To predict behaviour, it is

necessary to establish which drives are stimulating the most.

2. Cue Stimuli

Cue stimuli are any objects existing in the environment as perceived by the

individual. The idea is to discover the conditions under which stimulus will increase the

probability of eliciting a specific response. There may be two types of stimuli so far as

their results in terms of response are concerned: generalisation and discrimination.

Generalisation occurs when a response is elicited by a similar but new stimulus.

If two stimuli are exactly alike, they will have the same probability of evoking a specified

response. The principle of generalisation has important implications for human learning.

Because of generalisation, a person does not have to completely relearn each of the new

tasks. It allows the members to adapt to overall changing conditions and specific new

assignments. The individual can borrow from past learning experiences to adjust more

smoothly to new learning situations.

Discrimination is a process whereby an orgaisation learns to emit a response to a

stimulus but avoids making the same response to a similar but somewhat different

stimulus. Discrimination has wide applications in organisational behaviour. For

example, a supervisor can discriminate between two equally high producing workers, one

with low quality and other with high quality.

3. Responses

The stimulus results in responses. Responses may be in the physical form or may

be in terms of attitudes, familiarity, perception or other complex phenomena. In the

above example, the supervisor discriminates between the worker producing low quality

products and the worker producing high quality products, and positively responds only to

the quality conscious worker.

4. Reinforcement

Reinforcement is a fundamental condition of learning. Without reinforcement, no

measurable modification of behaviour takes place. Reinforcement may be defined as

environmental events affects the probability of occurrence of responses with which they

are associated.

5. Retention

The stability of learned behaviour over time is defined as retention and the

converse is forgetting. Some of the learning is retained over a period of time; while other

may be forgotten.

Learning Theories

Classical Conditioning

The work of the famous Russian Physiologist Ivan Pavlov demonstrated the

classical conditioning process. When Pavlov presented a piece of meat to the dog in the

experiment, Pavlov noticed a great deal of salivation. He termed the food an

unconditioned stimulus and the salivation an unconditioned response. When the dog saw

the meat, it salivated. On the other hand, when Pavlov merely rang a bell, the dog did not

salivate. Pavlov subsequently introduced the sound of a bell each time the meat was

given to the dog. The dog eventually learned to salivate in response to the ringing of the

bell even when there was no meat. Pavlov had conditioned the dog to respond to a

learned stimulus. Thorndike called this the “law of exercise” which states that behaviour

can be learned by repetitive association between a stimulus and a response.

Classical conditioning has a limited value in the study of organisational behaviour.

As pointed out by Skinner, classical conditioning represents an insignificant part of total

human learning. Classical conditional is passive. Something happens and we react in a

specific or particular fashion. It is elicited in response to a specific, identifiable event and

as such it explains simple and reflexive behaviours. But behaviour of people in

organisations is emitted rather than elicited, and it is voluntary rather than reflexive. The

learning of these complex behaviours can be explained or better understood by looking at

operant conditioning.

Operant Conditioning

Operant is defined as behaviour that produces effects. Operant conditioning,

basically a product of Skinnerian psychology, suggests that individuals emit responses

that are either not rewarded or are punished. Operant conditioning is voluntary behaviour

and it is determined, maintained and controlled by its consequences.

Operant conditioning is a powerful tool for managing people in organisations.

Most behaviours in organisations are learned, controlled and altered by the consequences;

i.e. operant behaviours. Management can use the operant conditioning process

successfully to control and influence the behaviour of employees by manipulating its

reward system. Reinforcement is anything that both increases the strength of response

and tends to induce repetitions of the behaviour. Four types of reinforcement strategies

can be employed by managers to influence the behaviour of the employees, viz., positive

reinforcement, negative reinforcement, extinction and punishment.

1. Positive Reinforcement:

Positive reinforcement strengthens and increases behaviour by the presentation of

a desirable consequence (reward). In other words, a positive reinforcer is a reward that

follows behaviour and is capable of increasing the frequency of that behaviour. There are

two types of positive reinforces: primary and secondary. Primary reinforcers such as

food, water and sex are of biological importance and have effects which are independent

of past experiences. For instance, a primary reinforcer like food satisfies hunger need and

reinforced food-producing behaviour. Secondary reinforcers like job advancement,

recognition, praise and esteem result from previous association with a primary reinforcer.

Primary reinforcers must be learned. In order to apply reinforcement procedures

successfully, management must select reinforcers that are sufficiently powerful and

durable.

2. Negative Reinforcement:

The threat of punishment is known as negative reinforcement. Negative

reinforcers also serve to strengthen desired behaviour responses leading to their removal

or termination.

3. Extinction:

Extinction is an effective method of controlling undesirable behaviour. It refers to

non-reinforcement. It is based on the principle that if a response is not reinforced, it will

eventually disappear. Extinction is a behavioural strategy that does not promote desirable

behaviours but can reduce undesirable behaviours.

4. Punishment:

Punishment is a control device employed in organisations to discourage and

reduce annoying behaviours of employees.

Observational Learning

Observational learning results in as a result of watching the behaviour of another

person and appraising the consequences of that behaviour. It does not require an overt

response. When Mr. X observes that Y is rewarded for superior performance, X learns

the positive relationship between performance and rewards without actually obtaining the

reward himself. Observational learning plays a crucial role in altering behaviours in

organisations.

Cognitive Learning

Here the primary emphasis is on knowing how events and objects are related to

each other. Most of the learning that takes place in the class room is cognitive learning.

Cognitive learning is important because it increases the change that the learner will do the

right thing first time, without going through a lengthy operant conditioning process.

Learning Theory and Organisation Behaviour

The relevance of the learning theories for explaining and predicting of

organisational behaviour is marginal. This does not mean that learning theories are

totally irrelevant. Learning concepts provide a basis for changing behaviours that are

unacceptable and maintaining those that are acceptable. When individuals engage in

various types of dysfunctional behaviour (late for work, disobeying orders, poor

performance), the manager will attempt to educate more functional behaviours.

Learning theory can also provide certain guidelines for conditioning organisational

behaviour. Managers know that individuals capable of turning out superior performance

must be given more reinforces than those with average or low performance. Managers

can successfully use the operant conditioning process to control and influence the

behaviour of employees by manipulating its reward system.

Review Questions:

1. What is learning? What are the components of learning process?

2. Examine the application learning theories to organisational behaviour.

� � �

LESSON - 8

ATTITUDES AND PERCEPTION

Learning Objectives

After reading this lesson, you should be able to understand:

• Conceptual clarity about attitudes in organisation.

• Method of formation of attitudes.

• Individual attitudes in organisations and indicate how they affect behaviour.

• Conceptual clarity about perception and perceptual process.

• Perception attribution in organisations.

Simply explained, an “attitude” is an individual’s point of view or an individual’s

way of looking at something, or to be more explicit, an “attitude”, may be explained, as

the mental state of an individual, which prepares him to react or make him behave in a

particular pre-determined way.

An attitude is defined as, “a learned pre-disposition to respond in a consistently

favourable or unfavourable manner with respect to a given object”.

Attitudes are complexes of beliefs and feelings that people have about specific

ideas, situations or other people. Attitudes are important because they are the mechanism

through which most people express their feelings.

Components of Attitude

Attitudes have three components namely affective component, cognitive

component and intentional component.

Affective Component

How we feel

toward the Situation?

Intentional

Component how we

intend to behave

toward the situation

Cognitive

Component why we

feel that way?

The affective component of an attitude reflects ‘feelings and emotions’ that an individual

has toward a situation. The cognitive component of an attitude is derived from

‘knowledge’ that an individual has about a situation. Finally, the intentional component

of an attitude reflects how an individual ‘expects to behave’ toward or in the situation.

For example, attitude towards a firm which supply the products irregularly as well as

inferior could be described as follows:

“I don’t like that company” - Affective component.

“They are the worst supply firm I have ever dealt with” - Cognitive component.

“I will never do business with them again” - Intentional component.

People try to maintain consistency among the three components of their attitudes.

However, circumstances sometimes arise that lead to conflicts. The conflict that

individuals may experience among their own attitudes is called ‘cognitive dissonance’.

Attitude Formation and Change

Individual attitudes form over time as a result of repeated personal experiences

with ideas, situations or people. Attitudes that are situationally specific and learned is

one very important way to understand individual behaviour in organisations.

An attitude may change as a result of new information. A manager may have a

negative attitude about a new employee because of his lack of job-related experience.

After working with the new person the manager may come to realise that he is actually

very talented and subsequently may develop a more positive attitude toward him.

Work-Related Attitudes

People in an organisation form attitudes about many things - about their salary,

promotion possibilities, superior, fringe benefits, food in the canteen, uniform, etc.

Especially some important attitudes are job satisfaction or dissatisfaction, organisational

commitment and job involvement.

Job Satisfaction :

Job satisfaction is an attitude that reflects the extent to which an individual is

gratified by or fulfilled in his or her work. Extensive research conducted on job

satisfaction has indicated that personal factors such as an individual’s needs and

aspirations determine this attitude, along with group and organisational factors such as

relationships with co-workers and supervisors and working conditions, work policies and

compensation.

A satisfied employee also tends to be absent less often, to make positive

contributions, and to stay with the organisation. In contrast, a dissatisfied employee may

be absent more often, may experience stress that disrupts co-workers, and may be

continually looking for another job.

Organisational factors that influence employee satisfaction include pay,

promotion, policies and procedures of the organisations and working conditions. Group

factors involving relationship with co-workers and supervisors also influence job

satisfaction. Similarly, satisfaction depends on individual factors like individual’s needs

and aspirations. If employees are satisfied with their job, it may lead to low employee

turnover and less absenteeism and vice-versa.

Organisational Commitment and Involvement :

Two other important work-related attitudes are organisational commitment and

involvement. Organisational commitment is the individual’s feeling of identification

with and attachment to an organisation. Involvement refers to a person’s willingness to

be a team member and work beyond the usual standards of the job. An employee with

little involvement is motivated by extrinsic motivational factor and an employee with

strong involvement is motivated by intrinsic motivational factors.

A number of factors lead to commitment and involvement. Both may increase

with an employee’s age and years with the organisation, sense of job security and

participation in decision-making. If the organisation treats its employees fairly and

provides reasonable rewards and job security, employees are more likely to be satisfied

and committed. Involving employees in decision-making can also help to increase

commitments. In particular, designing jobs which are interesting and stimulating can

enhance job involvement.

Attitude: Its Importance in Organisational Behaviour

Attitudes of both workers and management react to each other and determine

mutual relationships.

Attitudes, that is, understanding or learning why employees feel and act the way,

they do, helps supervisors in winning cooperation from them, so very essential for the

efficient working of an organisation.

From a personal perspective, attitudes provide knowledge-base – or prepare our

mental state, for our interaction with others, and with world around us, which directly

affects organisational behaviour, and in turn organisational working.

Perception

Perception is an important mediating cognitive process. Through this complex

process, persons make interpretations of the stimulus or situation they are faced with.

Both selectivity and organisation go into perceptual interpretations. Externally,

selectivity is affected by intensity, size, contrast, repetition, motion and novelty and

familiarity. Internally, perceptual selectivity is influenced by the individual’s motivation,

learning and personality. After the stimulus situation is filtered by the selective process,

the incoming information is organised into a meaningful whole.

Individual differences and uniqueness are largely the result of the cognitive

processes. Although there are a number of cognitive processes, it is generally recognised

that the perceptual process is a very important one that takes place between the situation

and the behaviour and is most relevant to the study of organisational behaviour. For

example, the observation that a department head and a subordinate may react quite

differently to the same top management directive can be better understood and explained

by the perceptual process.

In the process of perception, people receive many different kinds of information

through all five senses, assimilate them and then interpret them. Different people used to

perceive the same information differently.

Perception plays a key role in determining individual behaviour in organisations.

Organisations send messages in variety of forms to their members regarding what they

are expected to do and not to do. In spite of organisations sending clear messages, those

messages are subject to distortion in the process of being perceived by organisation

members. Hence managers need to have a general understanding of basic perceptual

process.

Basic Perceptual Process :

Perception is influenced by characteristics of the object being perceived and of the

person and by situational processes.

• Characteristics of the object include contrast, intensity, movement, repetition

and novelty.

• Characteristics of the person include attitudes, self-concept and personality.

The details of a particular situation affect the way a person perceives an object; the

same person may perceive the same object very differently in different situations. The

processes through which a person’s perceptions are altered by the situation include

selection, organisation, attribution, stereotyping, the halo effect and projection. Among

these, selective perception and stereotyping are particularly relevant to organisations.

Selective Perception:

Selective perception is the process of screening out information that we are

uncomfortable with or that contradicts our beliefs. For example, a manager has a very

positive attitude about a particular worker and one day he notices that the worker seems

to be goofing off. Selective perception may make the manager to quickly disregard what

he observed. Suppose another manager has formed a very negative attitude about a

particular worker and when he happens to observe a high performance from the worker,

he too disregard it.

In one sense, selective perception is beneficial because it allows us to disregard

minor bits of information. If selective perception causes managers to ignore important

information, it can become quite detrimental.

Stereotyping:

Stereotyping is the process of categorising or labeling people on the basis of a

single attribute. Perceptions based on stereotypes about people’s sex exist more or less in

most work places. Typically, these perceptions lead to the belief that an individual’s sex

determines which tasks he or she will be able to perform. For example, if a women

sitting behind the table in the office is, very often, perceived as a clerk and not an

executive but would make the opposite assumption about a man. Stereotyping consists of

three steps: identifying categories of people (like women, politician), associating certain

characteristics with those categories (like passivity, dishonesty) and then assuming that

any one who fits a certain category must have those characteristics. For example, if

dishonesty is associated with politicians, we are likely to assume that the next politician

we meet is also dishonest.

Perception and Attribution

Perception is also closely linked with another process called attribution.

Attribution is a mechanism through which we observe behaviour and then attribute

causes to it. According to attribution theory, once we observe behaviour we evaluate it in

terms of its consensus, consistency and distinctiveness. Consensus is the extent to which

other people in the same situation behave in the same way. Consistency is the degree to

which the same person behaves in the same way at different times. Distinctiveness is the

extent to which the same person behaves in the same way in other situations. The forces

within the person (internal) or outside the person (external) led to the behaviour.

For instance, if you observe that an employee is much more motivated than the

people around her (low consensus), is consistently motivated (high consistency), and

seems to work hard no matter what the task (low distinctiveness) you might conclude that

internal factors are causing the behaviour. Another example, is that suppose a manager

observes that an employee is late for a meeting, the manager might realise that this

employee is the only one who is late (low consensus), recall that he is often late for other

meetings (high consistency), and subsequently recall that the same employee is

sometimes late for work (low distinctiveness). This pattern of attributions might cause

the manager to decide that the individual’s behaviour is something that should be

changed. At this point, the manager might meet with the subordinate to establish some

punitive consequences for future tardiness.

Impression Management

Whereas social perception is concerned with how one individual perceives other

individuals, impression management is the process by which people attempt to manage or

control the perceptions others form of them. There is often a tendency for people to try to

present themselves in such a way as to impress others in a socially desirable way. Thus,

impression management has considerable implications for areas such as the validity of

performance appraisals and a pragmatic, political tool for one to climb the ladder of

success in organisations.

The Process of Impression Management

As with other cognitive processes, impression management has many possible

conceptual dimensions and has been researched in relation to aggression, attitude change,

attributions and social facilitation, among other things. Most recently, however, two

separate components of impression management have been identified – impression

motivation and impression construction. Especially in an employment situation,

subordinates may be motivated to control how their boss perceives them. The degree of

this motivation to impression-manage will depend on such factors as the relevance the

impressions have to the individual’s goals, the value of these goals, and the discrepancy

between the image one would like others to hold and the image one believes others

already hold.

Impression construction, the other major process, is concerned with the specific

type of impression people want to make and how they go about doing it. Although some

theorists limit the type of impression only to personal characteristics, others include such

other things as attitudes, physical status, interests, or values. Using this broader

approach, five factors have been identified as being especially relevant to the kinds of

impressions people try to construct: the self-concept, desired and undesired identity

images, role constraints, target’s values and current social image. Although there is

considerable research on how these five factors influence the type of impression that

people try to make, there is still little known of how they select the way to manage

others’ perceptions of them.

Employee Impression Management Strategies

There are two basic strategies of impression management that employees can use.

If employees are trying to minimise responsibility for some negative event or to stay out

of trouble, they may employ a demotion-preventative strategy. On the other hand, if they

are seeking to maximise responsibility for a positive outcome or to look better than they

really are, then they can use a promotion-enhancing strategy.

The demotion-preventative strategy is characterised by the following:

Employees’ attempts to excuse or justify their actions.

Employee may apologise to the boss for some negative event.

Employees may secretly tell their boss that they fought for the right thing, but

were overruled. Employees using this approach try to disassociate themselves

from the group and from the problem.

The promotion enhancing strategies involves the following:

� Employees feel that they have not been given credit for a positive outcome.

� Employees point out that they really did more, but received only lesser credit.

� Employees identify either personal or organisational obstacles they had to

overcome to accomplish an outcome and deserve a higher credit.

� Employees make sure to be seen with the right people at the right times.

Coping with Individual Differences

Individual differences and people’s perception of them affect every aspect of

behaviour in organisations. Managers must never underestimate the differences between

individuals. Successful manager constantly monitor their own assumptions, perceptions

and attributions, trying to treat each individual as the unique person he or she is.

Review Questions :

1. What are the three parts of an attitude according to the structural view? Explain their

relevance to organisational behaviour.

2. Discuss the importance of perception to organisational behaviour.

� � �

LESSON - 9

MOTIVATION AND BEHAVIOUR

Learning Objectives

After reading this lesson, you should be able to understand:

• The meaning, nature and importance of motivation

• The important need theories of motivation

• The expectancy theory of motivation

• The ways of enhancing employee motivation

The word motivation is derived from the word ‘motive’ which is defined as an

active form of a desire, craving or need which must be satisfied. Motivation is the key to

organisational effectiveness. The manager in general has to get the work done through

others. These ‘others’ are human assets or resources. They are to be motivated to work

to attain the organisational objectives.

Definition

Motivation is defined as, “the set of forces that cause people to choose certain

behaviours from among the many alternatives open to them”.

“Motivation is the desire within an individual that stimulates him or her to action”

– George R. Terry.

“The complex of forces starting and keeping a person at work in an organisation”

– Robert Dubin.

Viteles defines motivation as, “an unsatisfied need which creates a state of tension

or disequilibrium, causing the individual to move in a goal directed pattern towards

restoring a state of equilibrium, by satisfying the need”.

“Motivation refers to the degree of readiness of an organism to pursue some

designated goals and implies the determination of the nature and locus of force inducing

degree of readiness” – Encyclopaedia of Management.

On the basis of above definitions, the following observations can be made

regarding motivation:

� Motivation is an inner psychological force which activates and compels the

person to behave in a particular manner.

� Motivation process is influenced by personality traits learning abilities,

perception and competence of an individual.

� Highly motivated employee works more efficiently and his level of production

tends to be higher than others.

� Motivation originates from the needs and wants of an individual. It is a tension

of lacking something in his mind which forces him to work more efficiently.

� Motivation is also a process of stimulating and channelising an energy of an

individual for achieving set goals.

� Motivation also plays a crucial role in determining the level of performance.

Highly motivated employee will get higher satisfaction which may lead higher

efficiency.

� Motivating force and its degree, may differ from individual to individual

depending on his personality, needs, competence and other factors.

� The process of motivation helps the manager in analysing and understanding

human behaviour and finding out that how an individual can be inspired to

produce desirable working behaviour.

� Motivation may be positive as well as negative. Positive motivation includes

incentives, rewards and other benefits while negative motivation implies some

punishment, fear, use of force etc.

� The process of motivation contributes to and boosts up the morale of the

employees. And high degree of motivation may lead to high morale.

Characteristic Features of Motivation

Motivation is a internal feeling and forces a person to action.

Motivation is a continuous activity.

It varies from person to person and from time to time.

It may be positive or negative.

Importance of Motivation

Motivation is an important part of managing process. A team of highly qualified

and motivated employees is necessary for achieving objectives of an organisation. It is

only through motivation process, they contribute maximum for accomplishing objectives.

Highly motivated employees make optimum use of available resources for achieving

objectives.

Motivation is directly related to the level of efficiency.

Highly motivated employees make full use of their energy and other abilities to raise

the existing level of efficiency.

Highly motivated employees would make goal-directed efforts. They are more

committed and cooperative for achieving organisational objectives.

Highly motivated employees are more loyal and sincere, and wants to remain with the

organisation for longer period of time. These factors help reduce absenteeism and

labour turnover.

Motivation is considered as a backbone of good industrial relations.

Effectively motivated employees get more job satisfaction and carry high morale.

Motivation also helps in improving the image of the organisation.

The motivation framework is a good starting point for understanding how people

choose certain behaviours.

The motivation process begins with needs that individuals identify for themselves.

For example, a worker feels that he is underpaid. This deficiency becomes a need that

the worker seeks to satisfy, perhaps, by asking for a raise, by working harder to earn a

raise or by seeking a new job. Once he chooses to pursue one or more of these options

and then enacts them (working harder while simultaneously looking for a job, for

example), he evaluates his success. If his hard work resulted in a pay rise, he probably

feels satisfied and will continue to work hard.

But if no raise has been provided he is likely to try another option. Since people

have many different needs, the satisfaction of one need or set of needs is likely to give

rise to the identification of other needs. Thus, the cycle of motivation is being constantly

repeated.

Understanding human motivation is crucial for managing people. Many people

have done extensive research to find out what make people work and how to motivate

them. This include managers, social scientists, behaviourists and psychologists. A

number of theories have been developed, even though there is no university accepted

motivation theory. Understanding these theories assist managers to get a better insight

into the human behaviour.

Need-Based Theories to Motivation

Need-based theories try to answer the question, “what factor(s) motivate people to

choose certain behaviours?” Some of the widely known need-based theories are

discussed below:

Maslow’s Hierarchy of Needs:

Maslow Abraham proposed his theory in 1940s. Maslow’s hierarchy of needs

assumes that people are motivated to satisfy five levels of needs: physiological, security,

belongingness, esteem and self-actualisation needs.

Self

Actualisation

Needs

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

According to Maslow’s hierarchy physiological needs for food, sex, water and air

which represent basic issues of survival. In organisational settings, most physiological

needs are satisfied by adequate wages and by the work environment itself, which

provides employees with rest rooms, adequate lighting, comfortable temperatures and

ventilation.

Next are security or safety needs - the requirements for a secure physical and

emotional environment. Examples include the desire for adequate housing and clothing,

the need to be free from worry about money and job security, and the desire for safe

working conditions. Security needs are satisfied for people in the work place by job

continuity, a grievance redressal system and an adequate insurance and retirement benefit

package.

Belonging needs are related to the social aspect of human life. They include the

need for love and affection and the need to be accepted by one’s peers. For most people

these needs are satisfied by a combination of family and community relationships outside

of work and friendships on the job. Managers can help ensure the satisfaction of these

important needs by allowing social interaction and by making employees feel like part of

a team or work group.

Esteem needs actually comprise of two different sets of needs: the need for a

positive self-image and self-respect and the need for recognition and respect from others.

Organisations can help address esteem needs by providing a variety of extrinsic symbols

of accomplishment such as job titles, spacious offices and similar rewards as appropriate.

At a more intrinsic level, organisations can also help satisfy esteem needs by providing

employees with challenging job assignments that carry with them a sense of

accomplishment.

At the top of the hierarchy are what Maslow calls the self-actualisation needs.

These involve realising one’s potential for continued growth and individual development.

Because they are highly individualised and personal, self-actualisation needs are perhaps

the most difficult for managers to address. In fact, it can be argued that individuals must

meet these needs entirely by themselves. Organisations, can help, however, by creating a

climate wherein self-actualisation is possible. For instance, an organisation can promote

the fulfillment of these needs by providing employees with a chance to participate in

making decisions about their work and with the opportunity to learn new things about

their jobs and the organisation. The process of contributing to actual organisational

performance (through decision-making) and learning more about the organisation are

likely to help people experience the personal growth and development associated with

self-actualising.

Maslow suggests that the five levels of needs are arranged in order of importance,

starting at the bottom of the hierarchy (refer figure). An individual is motivated first and

foremost to satisfy physiological needs. As long as these needs remain unsatisfied, the

individual is motivated to fulfill only them. When those needs are satisfied, the

individual is motivated and he ‘moves up’ the hierarchy and becomes concerned with

security needs. This ‘moving up’ process continues until the individual reaches the self-

actualisation level.

Maslow’s concept of the need hierarchy has a certain intuitive logic and has been

accepted by many managers. But research has revealed several short-comings of the

theory. For example, some research has found that five levels of needs are not always

present and that the order of the levels is not always the same as postulated by Maslow.

Moreover, it is difficult for organisations to use the need hierarchy to enhance employee

motivation.

ERG Theory of Motivation:

Clayton Alderfer has proposed an alternative hierarchy of needs called the ERG

Theory of Motivation. The letters E, R and G stand for Existence, Relatedness and

Growth.

Satisfaction/ Growth Needs

Progression

Relatedness Needs

Existence Needs Frustration/

Regression

EGR theory, as figure shows, combines the need hierarchy developed by Maslow

into three levels. Existence needs correspond to the physiological and security needs of

Maslow’s, Relatedness needs to Maslow’s belongingness and esteem needs and Growth

needs to Maslow’s both self-esteem and self-actualisation needs.

Although ERG Theory assumes that motivated behaviour follows a hierarchy in

somewhat the same fashion as suggested by Maslow, there are two important differences.

First, ERG theory suggests that more than one kind of need might motivate a person at

the same time. For example, it allows for the possibility that people can be motivated by

a desire for money (existence), friendship (relatedness), and the opportunity to learn new

skills (growth) all at the same time.

Second ERG theory has an element of frustration - regression which is missing

from Maslow’s need hierarchy. Maslow maintained that one need must be satisfied

before an individual can progress to needs at a higher level, for example, from security

needs to belongingness. This is termed as satisfaction - progression process. Although

the ERG theory includes this same process, it also suggests that if needs remain

unsatisfied at some higher level, the individual will become frustrated, regress to a lower

level, and begin to pursue those low level needs again. For example, a worker previously

motivated by money (existence needs) is awarded a pay rise to satisfy those needs. Then

he attempts to establish more friendship to satisfy relatedness needs. If for some reason

the employee finds that it is impossible to become better friends with others in the work

place, he may eventually become frustrated and regress to being motivated to earn even

more money. This is termed as ‘frustration-regression’ process.

There are two key insights to be gleaned from the need hierarchy view. The first

is that some needs may be more important than others. The second is that people may

change their behaviour after any particular set of needs has been satisfied.

The Dual-Structure Approach to Motivation:

Another popular need-based approach to motivation is the dual-structure approach

developed by Frederick Herzberg. This is also known as Two-factor Theory. Herzberg

developed this approach after interviewing 200 accountants and engineers in Pittsburg.

He asked them to recall occasions when they had been dissatisfied and less motivated.

He found that entirely different sets of factors were associated with satisfaction and with

dissatisfaction. For instance, an individual who identified ‘low pay’ as causing

dissatisfaction did not necessarily mention ‘high pay’ as a cause of satisfaction. Instead,

different kinds of factors, such as recognition or accomplishment, were cited as causing

satisfaction.

This finding suggests that satisfaction and dissatisfaction are at opposite ends of a

single continuum. Employees would therefore be satisfied, dissatisfied or somewhere in

between. Herzberg argued that attitudes and motivation consists of a dual structure. One

structure involves a set of factors that result in feelings ranging from satisfaction to no

satisfaction. The other structure involves a set of factors that result in feelings ranging

from dissatisfaction to no satisfaction.

Herzberg identified two sets of factors as causing either satisfaction or

dissatisfaction. The factors influencing satisfaction are called motivation factors which

are related specifically to the job itself and the factors causing dissatisfaction are called

hygiene factors which are related to the work environment in which the job is

performed.

Hygiene or Maintenance Factors :

• Company policies

• Technical supervision

• Interpersonal relations with supervisor

• Interpersonal relations with peers

• Interpersonal relations with subordinates

• Salary

• Job security

• Personal life

• Work conditions

• Status

Motivators :

� Achievement

� Recognition

� Advancement

� The work itself

� The possibility of personal growth

� Responsibility

Based on these findings, Herzberg recommended that managers seeking to

motivate employees should first make sure that hygiene factors are taken care of and that

employees are not dissatisfied with pay, security and working conditions etc. Once a

manager has eliminated employee dissatisfaction, Herzberg recommends focusing on a

different set of factors to increase motivation, by improving opportunities for

advancement, recognition, advancement and growth. Specifically, he recommends job

enrichment as a means of enhancing the availability of motivation factors.

Although widely accepted by managers, Herzberg’s dual structure approach is not

without it critics. Other Researchers who measured satisfaction and dissatisfaction

differently reached very different conclusions. They have also criticised Herzberg’s

theory for failing to define the relationship between satisfaction and motivation and for

failing to pay enough attention to differences between individuals. Hence, at present

Herzberg’s theory is not held in high esteem by researchers in the field of motivation.

The theory, however, has had a major impact on managers and has played a key role in

increasing their awareness of motivation and its importance in the work place.

Theories “X” and “Y” of Motivation

Douglas McGregor observed two diametrically opposing view points of managers

about their employees, one is negative called “Theory of X” and another positive called

“Theory of Y”.

Theory of X

Following are the assumptions of managers who believe in the “Theory of X” in

regard to their employees.

♦ Employees dislike work; if possible avoid the same.

♦ Employees must be coerced, controlled or threatened to do the work.

♦ Employees avoid responsibilities and seek formal direction.

♦ Most employees consider security of job, most important of all other factors in

the job and have very little ambition.

Theory of Y

Following are the assumptions of managers who believe in the “Theory of Y” in

regard to their employees.

� Employees love work as play or rest.

� Employees are self-directed and self-controlled and committed to the

organisational objectives.

� Employees accept and seek responsibilities.

� Innovative spirit is not confined to managers alone, some employees also

possess it.

Theories X and Y : Their Applicability

In its applicability theory ‘X’, places exclusive reliance upon external control of

human behaviour, while theory ‘Y’, in its applicability relies heavily on self-control and

self-direction. Theory ‘X’ points to the traditional approach of management.

Strictly speaking, this theory of behaviour is characteristic of organisations that lay

down hard and rigid standards of work behaviour – like, breaking down jobs into

specialised elements, establishing norms of production, designing equipment is such a

way, so as to ensure that the worker’s pace of work should be more or less controlled,

and have also stringent rules and regulations, that are sometimes very vigorously

enforced.

Theory ‘Y’ secures the commitment of employees to organisational objectives.

This motivational theory places emphasis on satisfaction of employees. In its

applicability, the use of authority, as an instrument of command and control is minimal.

Employees exercise self-direction and self-control.

The concepts of ‘Job Enlargement’, ‘Participation’ and ‘Management by

Objectives’ are quite consistent with theory ‘Y’.

McGregor advocates the applicability of motivational theory ‘Y’, instead of theory

‘X’. It needs to be well understood that once theory ‘X’ brought in application in the

organisational working, it is a difficult task to shift to the applicability of theory ‘Y’, all

of a sudden, by the management. However, with systematic, judicious and slow steps,

shifting in the practical applicability of theory ‘X’ to theory ‘Y’ usually can be

successfully achieved.

Mc-Clelland’s Need Theory of Motivation

David C. McClelland and his associate Atkinson have contributed to the

understanding of motivation by identifying three types of basic motivating needs. These

needs have been classified as:

1. Need for Power

2. Need for Affiliation, and

3. Need for Achievement.

Need for Power :

The need for power might be defined as the desire to be influential in a group and

to control one’s environment. Research suggests that people with a strong need for

power are likely to be superior performers and occupy supervisory positions. Such type

of individuals generally look for positions of leadership, they act effectively, are

outspoken, have a stubborn character, and exert authority.

Need for Affiliation :

The need for affiliation is a desire for human companionship and acceptance.

Those with a high need for affiliation often behave the way they think other people want

them to, in an effort to try to friendship. They prefer a job that entails a good deal of

social interaction and offers opportunities to make friends. The following are the

characteristics:

• Desire to like and be liked.

• Enjoy company and friendship.

• Prefer cooperative situation.

• Excels group task.

• Star attraction in gathering.

• Leadership qualities.

This need is closely associated to “social-type” of personality who are sociable,

friendly, cooperative and understanding. Persons with high motivation for power and for

affiliation have better chances of becoming good managers.

Need for Achievement :

People with a high need for achievement, always feel ambitious to be successful;

ever prepared to face challenging situations; set arduous goals for themselves; they are

prone to take calculated risks; have a high sense of their personal responsibility in getting

jobs done, how far, and to what extent, they have progressed, they would always like to

know; they feel inclined to put in longer hours of work; failures never dishearten them;

and they are always ready to put in their best efforts for excellent performance.

Process-Based Theories to Motivation

The field of organisational behaviour has generally moved a way from the needs

theories of motivation. Needs theories are content-oriented - that they explain what

causes lead to motivated behaviours. They do not explain why or how motivated

behaviour occurs. These questions pertain to behaviours or actions, goals and feelings of

satisfaction - concepts that are addressed by various process-based theories to

motivation.

Process-based theories to motivation are concerned with how motivation occurs.

Process based approaches focus on why people choose to enact certain behavioural

options to fulfil their needs and how they evaluate their satisfaction after they have

attained these goals. Two of the most useful process-based approaches to motivation are

expectancy theory and equity theory.

Expectancy Theory of Motivation

Basically, Vroom’s expectancy theory views motivation as a process governing

choices. The expectancy theory tries to explain how and why people choose a particular

behaviour over an alternative. The theory suggests that motivation depends on two

things: how much an individual desires a particular goal and how likely he thinks he can

get it. For instance, you are looking for a job, and you see an advertisement for a position

of Marketing Executive with a starting salary of Rs.3 lakhs per year. Eventhough you

might want the job, you probably do not apply because you realise that you have little

chance of getting it. The next advertisement you see is for Field Supervisor for a salary

of Rs.1 lakh per year. Eventhough you realise that you could probably get the job, you

do not apply because you do not want it. Then you see an advertisement for a

Management Trainee in a big company with a starting salary of Rs.2 lakhs per year. You

apply for this job because you want it and because you think you have a reasonable

chance of getting it.

The formal framework of expectancy theory was developed by Victor Vroom.

Expectancy theory rests on four assumptions:

♦ The theory assumes that behaviour is determined by a combination of forces in the

individual and in the environment.

♦ It assumes that people make decisions about their own behaviour in organisations.

♦ It assumes that different people have different types of needs, desires and goals.

♦ It assumes that people make choices from among alternative plans of behaviour

based on their perceptions of the extent to which a given behaviour will lead to

desired outcomes.

Expectancy Model of Motivation

Effort for Performance Performance to outcome

Expectancy Expectancy

The above model suggests that motivation leads to efforts and that effort, when

combined with individual ability and environmental factors, result in performance.

Performance, in turn, leads to various outcomes - each of which has an associated value

called its ‘valence’. According to this model, individuals develop some sense of these

expectations before they exhibit motivated or non-motivated behaviour.

Effort-to-Performance Expectancy:

The effort-to-performance expectancy is an individual’s perception of the

probability that effort will result in high performance. When the individual believes that

effort will lead directly to high performance, expectancy is quite strong (close to 1.00).

For instance, if you feel sure that studying hard for an examination (effort) will result in

your scoring high marks (performance), then your effort-to-performance expectancy is

high, close to 1.0. When the individual believes that effort and performance are

unrelated, the effort-to-performance expectancy is very weak (close to 0.0). Usually we

P

E

R

F

O

R

M

A

N

C

E

Outcome with

Valence

Individual

Ability

Outcome with

Valence

Effort Motivation

Outcome with

Valence

Environmental

Factors

Outcome with

Valence

are not sure about our expectations, so they fall somewhere between 0.0 and 1.0 with a

moderate expectancy.

Performance-to-Outcome Expectancy:

The performance-to-outcome expectancy is an individual’s perception of the

probability that performance will result in a specific outcome. For example, an

individual who believes that high performance will lead to a pay raise has a high

performance-to-outcome expectancy (approaching 1.00). An individual who believes

that high performance may possibly lead to a pay raise has a moderate expectancy

(between 1.00 and 0). And an individual who believes that performance has no

relationship to rewards has a low performance-to-outcome expectancy (close to 0).

Outcomes and Valences:

Expectancy theory recognises that an individual may experience a variety of

outcomes (consequences of behaviour) in an organisational setting. A high performer,

for example, may get big pay raises, fast promotions, and praise from the boss. But she

may also be subject to a lot of stress and incur resentment from co-workers. Each of

these outcomes has an associated value or valence - an index of how much an individual

desires a particular outcome. If the individual wants the outcome, its valence is positive.

If the individual does not want the outcome, its valence is negative. If the individual is

indifferent to the outcome, its valence is zero. It is this part of expectancy theory that

goes beyond the need-based approaches to motivation.

For motivated behaviour to occur on the part of any one individual, then, three

conditions must be met. First, the effort-to-performance expectancy must be greater than

zero. Second, the performance-to-outcome expectancy must also be greater than zero.

Third, the sum of the valences for all relevant outcomes must be greater than zero.

Expectancy theory maintains that when all of these conditions are met, the individual is

motivated to expand effort.

The expectancy theory does have several important practical implications which

managers should consider. They can –

determine what outcomes employees prefer

define, communicate and clarify the level of performance that is desired

establish attainable performance goals

link desired outcomes to performance goal achievement

Expectancy Theory: Its Practical Applicability

If a manager wishes to motivate his employees for increased and better

performance, he will have to make sure first, that the reward system is highly supportive

to hard work or high quality. The manager will particularly see that the particular

system, as applicable in their case, is communicated to them, so that they gain confidence

that their energised efforts will be rewarded.

Another important point which should not be ignored by the manger is, that

rewards must correspond to the varying preferences of the individual employees.

In conclusion, no doubt ‘expectancy’ theory has gained much popularity with

theorists, but much more work still needs to be put in, before it can be accepted for use as

an effective instrument of explanation of ‘motivation’ with all its implications.

The Porter-Lawler Extension

An interesting extension to expectancy theory has been proposed by Porter and

Lawler. The human relationists assumed employee satisfaction causes good performance

but research has not supported such relationship. Porter and Lawler suggest that there

may indeed be a relationship between satisfaction and performance but that it goes in the

opposite direction, that superior performance can lead to satisfaction.

Porter-Lawler Model

First, the individual’s initial effort is influenced by his/her perception of the value

of the reward and the likelihood that the effort will yield the reward. The probability that

increased effort will lead to improved performance is affected by the individual’s traits,

abilities and perception of his or her role in the organisation. The model also

distinguishes between intrinsic and extrinsic rewards. Finally, the Porter-Lawler model

borrows from equity theory the idea that the employee’s satisfaction depends on the

perceived equity of the rewards relative to the effort expended and the level of

performance attained.

Implications for Managers

Expectancy theory can be useful for organisations attempting to improve the

motivation of their employees. Nadler and Lawler suggest a series of steps in applying

the basic ideas of the theory.

1. Managers should determine the primary outcomes that each employee is likely to

want.

2. They should decide what kinds and levels of performance are needed to meet

organisational goals.

3. They should make sure that the desired levels of performance are attainable.

4. They should ensure that desired outcomes and desired performance are linked.

5. They should also analyse the complete work situation for conflicting expectancies.

6. They should make sure that the rewards are large enough.

7. They should make sure that the overall system is equitable for everyone.

The expectancy theory has also its limitations. It is quite difficult to apply. To

apply this theory in the work place, for example, it would be necessary to identify all the

potential outcomes for each employee, to determine all relevant expectancies, and then to

balance everything somehow to maximise employee motivation. Expectancy theory also

assumes that people are rational - that they will systematically consider all of the

potential outcomes and their associated expectancies before selecting a particular

behaviour. But few people actually make decisions in such a precise, rational manner.

Equity Theory

The equity theory of motivation was developed by J. Stacy Adams. The equity

theory argues that motivations arise out of simple desire to be treated fairly. Equity can

be defined as an individual’s belief that he or she is being treated fairly relative to the

treatment of others.

A person’s perception of equity develops through a four-step process shown

below:

First the individual evaluates the way he/she is treated by the organisation. The

next step is for the individual to choose a co-worker who seems to be in a roughly similar

situation and to observe how the organisation treats that comparison-other. In the crucial

step of equity theory the individual ‘compares’ the two treatments and winds up with a

sense of equity, if the two treatments seem similar, or of inequity, if the treatments seem

different.

Adam suggests that employees make these comparisons by focusing on

input/outcome ratios. An employee’s contributions or input, to the organisation include

time, education, effort, experience and loyalty. Outcomes are what the individual

receives from the organisation, like pay, recognition and social relationships. The theory

suggests that people view their outcomes and inputs as ratio and then compare their ratio

to the ratio of someone else. This other ‘person’ may be someone in the work group.

The comparison may result in three types of attitudes: the individual may feel equitably

rewarded, under-rewarded or over-rewarded. The individual will experience a feeling of

equity when the two ratios are equal.

If the individual has the feeling of equity he shall maintain the status quo. If he

has a feeling of inequity, he is likely to change the input.

The single most important idea for managers to remember about equity theory is

that if rewards are to motivate employees, they must be perceived as being equitable and

fair. But managers must remember that different employees have different senses of

Feelings of

equity or

inequity

Comparison

of self with

others

Evaluation

of Others

Evaluation

of Self

what constitutes a reward and this may result in problems. Hence, the best way to avoid

such problems is for the company to make all employees aware of the basis for rewards.

Reinforcement Based Approaches to Motivation

A final approach to the motivation process focuses on why some behaviours are

maintained overtime and why other behaviours change. Reinforcement-based approaches

explain the role of those rewards as they cause behaviour to change or remain the same

overtime. Specifically, reinforcement theory is based on the fairly simple assumption

that behaviours that results in rewarding consequences is likely to be repeated, whereas

behaviour that results in punishing consequences is less likely to be repeated. There are

similarities between expectancy theory and reinforcement theory, in that both consider

the processes by which an individual chooses behaviours in a particular situation.

However, the expectancy theory focuses more on behaviour choices and the latter is more

concerned with the consequences of those choices.

Reinforcement Contingencies

Reinforcement contingencies are the possible outcomes that an individual may

experience as a result of his or her behaviours. The four types of reinforcement

contingencies that can affect individuals in an organisational setting are positive

reinforcement, avoidance, punishment and extinction.

Positive Reinforcement, a method of strengthening behaviour, is a reward or a

positive outcome after a desired behaviour is performed. When a manager observes an

employee doing an especially good job and offers praise, the praise serves to positively

reinforce the behaviour or good work. Other positive reinforces include pay, promotions

and awards.

The other reinforcement contingency that can strengthen desired behaviour is

avoidance. This occurs when the individual chooses a certain behaviour in order to

avoid unpleasant consequences. For instance, an employee may come to work on time to

avoid reprimand.

Punishment is used by some managers to weaker undesired behaviours. The

logic is that the unpleasant consequence will reduce the undesirable behaviour again, for

example, punishing with fine for coming late.

Extinction can also be used to weaken behaviour, especially that has previously

been rewarded. When an employee tells a vulgar joke and boss laughs, the laughter

reinforces the behaviour and the employee may continue to tell similar jokes. By simply

ignoring this behaviour and not reinforcing it, the boss can cause the behaviour to subside

and eventually become ‘extinct’.

Positive reinforcement and punishment are the most common reinforcement

contingencies practiced by organisations. Most managers prefer to use positive

reinforcement and punishment to be used judiciously. Avoidance and extinction are

generally used only in specialised circumstances.

New Approaches to Motivation in Organisation

New approaches are emerging to supplement the established models and theories

of motivation. Two of the most promising are Goal-Setting Theory and the Japanese

Approach.

Goal-Setting Theory

This approach to motivation has been pioneered in the USA by Edwin Locke and

his associates in 1960s and refined in 1980s. Goal-setting theory suggests that managers

and sub-ordinates should set goals for the individual on a regular basis (as suggested by

MBO). These goals should be moderately difficult and very specific and of a type that

the employee will accept and make a commitment to accomplishing. Rewards should be

tied directly to accomplished goals. When involved in goal-settings, employees see how

their effort will lead to performance, rewards and personal satisfaction.

Salient features of this theory are the following:

Specific goal fixes the needs of resources and efforts

It increases performance

Difficult goals result higher performance than easy job

Better feedback of results leads to better performances than lack of feedback.

Participation of employees in goal has mixed result.

Participation of setting goal, however, increases acceptance of goal and

involvements.

Goal setting theory has defined two factors which influences the performance.

These are given below:

� Goal commitment, and

� Self efficiency.

The mere act of goal-setting does not ensure higher levels of motivation among

employees. In fact, there appear to be three important criteria that goals must meet if

they are to influence the behaviour of organisation members. They are goal specificity,

goal difficulty and goal acceptance.

Goal Specificity

Goals must be stated in specific terms if they are to motivate effective

performance. Goals must be set in terms of measurable criteria of work performance i.e.

number of units produced, new sales etc. and must specify a time period within which the

goal is to be attained. It also gives a sense of personal satisfaction and accomplishment

to workers if he is able to meet the specific goal.

Goal Difficulty/Challenge

There exists a relationship between goal difficulty and work motivation. The

more difficult and challenging the goal, the higher the level of motivation and

performance. But it is essential that goals be set at levels that are realistic to a person.

Goals that are very difficult to achieve, lose their capacity to motivate, since it is beyond

the capacity of the individual.

Goal Acceptance

In order to influence motivation and performance, a goal must be internalised by

the individual. In other words, the person has to feel some personal ownership of the

goal and must have commitment to achieve it.

Goal Setting in Practice

The most obvious implication of goal-setting theory is that managers should be

helping sub-ordinates to set goals that are specific and reasonably difficult and that sub-

ordinates accept and internalise as their own. Besides this, there are a number of issues

that arise in implementing goal-setting in practice.

1. Though specificity of goal is essential and measurability is desirable, it should not

affect in identifying meaningful and valid objective measures of goal attainment.

2. The manager can stimulate goal acceptance in atleast three ways:

� By involving sub-ordinates in goal-setting process.

� By demonstrative a supportive attitude and approach toward his/her sub-

ordinates.

� By trying various rewards to the achievement of goals.

Management by Objectives (MBO) is a managerial technique for improving

motivation and performance using goal-setting principles.

Cognitive Evaluation Theory

A researcher Charms in 1960, has reported that extrinsic motivation like pay or

rewards for a job which has an intrinsic-motivation content prior to such rewards, tend to

decrease overall level of motivation. This proposal is called “Cognitive Evaluation

Theory” which has supported by a large number of research studies conducted

subsequently.

Japanese Approach to Motivation

The Japanese approach to motivation has gained increasing popularity around the

world during the past few years. This approach is not really a theory or model but instead

a philosophy of management. The basic tenet of the Japanese approach is that managers

and workers should work together as partners. Since both of them see themselves as one

group, all members are committed and motivated to work in the best interests of the

organisation. No one is called an employee; instead everyone is a team member, team

leader or coach and everyone owns ‘share’ of the company. Like goal-setting theory, the

Japanese approach is likely to become more common in businesses throughout the world.

Integration of Motivation Theories

More number of theories complicate our understanding. Some of these theories

are compatible and some are not. The real challenge facing researcher is to integrate all

or atleast some of these together so that their inter and intra-relationships are established.

This will also improve the understanding of motivation. Certain attempts are made in

USA and elsewhere. However, it has not standardised or obtained wide approval or

acceptance.

Enhancing Motivation in Organisations

Managers trying to enhance the motivation of their employees can, of course, draw

on any of the theories described above. They may in practice adopt specific interventions

derived from one or more theories or they may influence motivation through the

organisation’s reward system. The organisation can enhance motivation in following

ways:

� Humanise the work environment: Respect the need to treat each employee as

an individual.

� Publicise both short and long-term company goals: Encourage personal and

departmental goal setting.

� Promote from within: It’s great for morale and simplifies hiring procedures.

� Use incentive programs: If you’are creative enough, you won’t have to rely on

expensive financial bonuses.

� Establish appropriate deadlines: Every porject should have a deadline.

� Be liberal with praise: It’s almost impossible to overpraise and easy to

underpraise.

� Be consistent in your own work and in your relations with others.

� Show a personal interest in the people who work for you: Relations are always

smoother between people who know each other on a personal basis than

between people who merely want something from each other.

� Admit mistakes: People will respect you for it and will be less likely to hide

their own mistakes.

� Don’t whitewash unpleasant assignments: Prepare subordinates for them well

in advance and offer what support you can.

Managerial Approaches for Improving Motivation

A number of approaches can help managers motivate workers to perform more

effectively. Two approaches, however, have been especially effective: linking pay to job

performance and quality of work-life programs.

The following steps promote intrinsic motivation:

� Workers Participation in Management (WPM)

� Management by Objectives (MBO)

� Organisation Behaviour Modification

� Job-Redesign

� Alternative Work Schedules.

Pay and Job Performance

Pay often can be used to motivate employee performance. But a pay plan also

must:

♦ Create the belief that good performance leads to high levels of pay;

♦ Minimise the negative consequences of good performance; and

♦ Created conditions in which rewards other than pay are seen to be related to

good performance.

Quality of Work Life Programs

Quality of Work Life (QWL) is defined as an attempt through a formal program to

integrate employee needs and well-being with the intention of improved productivity,

greater worker involvement and higher levels of job satisfaction.

Programs for QWL improvements range from those requiring minor changes in

the organisation to those requiring extensive modifications in structure, personnel and the

utilisation of resources. Three types of QWL programs are quality circles and the use of

alternative work schedules.

Quality Circles:

Quality circles are small groups of workers who meet regularly with their

supervisor as the circle leader to solve work-related problems. QCs give the employee

opportunity for involvement, social-need satisfaction, participation in work improvement,

challenge and opportunity for growth. They are, in essence, vehicles for providing

employees with opportunities to satisfy lower and upper-level needs as stated by Maslow,

through the motivators described in Herzberg’s theory.

Alternative Work Schedule :

Organisations also frequently use the modified work-week as a way to increase

employee motivation. A modified work-week can be any work schedule that does not

conform to a traditional 8 hours a day or 5 days a week format. The modified work-week

helps individuals satisfy higher-level needs by providing more personal control over

one’s work schedule. It also provides an opportunity to fulfill several needs

simultaneously.

Job-Redesign :

Job-Redesign or changing the nature of people’s job is also being used more as a

motivational technique. The idea here is that mangers can use any of the alternatives –

job rotation, job enlargement, job enrichment as part of motivational programme.

Expectancy theory helps explain the role of work design in motivation.

Review Questions:

1. Define motivation. Bring out its importance.

2. Compare and contrast Maslow’s hierarchy of needs and ERG theory of motivation.

3. Explain the Vroom’s Expectancy theory of motivation.

4. As a manager, how would you enhance employee motivation?

� � �

LESSON – 10

JOB SATISFACTION

Learning Objectives

After reading this lesson, you should be able to understand:

• The concept of job satisfaction

• The factors relating to job satisfaction

• The method of increasing job satisfaction

The term ‘job satisfaction’ refers to an employee’s general attitude toward his/her

job. Locke defines job satisfaction as a “pleasurable or positive emotional state resulting

from the appraisal of one’s job experiences”. For our purposes job satisfaction will be

defined as the amount of overall positive affect (or feelings) that individuals have toward

their jobs.

Job satisfaction is the result of various attitudes the employee holds towards his

job, towards related factors and towards life in general.

The importance of job satisfaction is that if the people are satisfied with their

work, then there is an improvement in both the quality and quantity of production. If

they are not satisfied, then both the quantity and quality of his output will be low, there

will be high absenteeism and turnover and increased unionism.

Caldur and Schurr (1981) suggested that in the field of job satisfaction there are

three different approaches. The first approach is that work attitudes such as job

satisfaction are dispositional in nature i.e. that they are stable positive or negative

disposition learned through experience. The second approach is the ‘social information

processing model’ which suggests that job satisfaction and other work place attitudes are

developed or constructed out of experiences and information provided by others at work

place. The third approach is the ‘information processing model’ which is based on the

accumulation of cognitive information about the work place and ones job. In a sense, this

is the most obvious approach - it argues that a person’s job satisfaction is influenced

directly by the characteristics of their job.

Factors Relating to Job Satisfaction

Some of the most important factors relating to job satisfaction are briefly stated

below:

1. Personal Factors:

These factors include the individual employee’s personality, age, sex, educational

level, intelligence etc.

Most of the evidence on the relation between age and satisfaction seems to

indicate that there is generally a positive relationship between the two variables upto the

preretirement years and then there is a sharp decrease in satisfaction.

There is no clear research evidence between educational level and job satisfaction.

As regards the relationship between the intelligence level and job satisfaction, it usually

depends upon the level and range of intelligence and the challenge of the job. There is as

yet no consistent evidence as to whether women are more satisfied with their jobs than

men.

2. Job Factors:

These factors include the type of work to be performed, skill required for work

performance, occupational status involved in the job etc.

The type of work is very important as a number of research studies have shown

that varied work generally brings about more satisfaction than routine work. Where skill

exists to a considerable degree it tends to become the main source of satisfaction to the

employee. As regards the relation of occupational status to job satisfaction, research

evidences indicate that employees are relatively more dissatisfied in those jobs which

have less social status or prestige.

3. Organisational Factors:

These factors include security, wages and salaries, fringe benefits, opportunities

for advancement, working conditions etc. Social and economic security to employees

increases job satisfaction, the wages and salaries and fringe benefits are definitely the

main factors that affect job satisfaction of employees. As regards the relation of

opportunity for advancement to job satisfaction, it has been found that this factor is most

important to skilled personnel and least important to unskilled. Desirable working

conditions are also important to job satisfaction. Besides, an effective downward flow of

communications in an organisation is also important to job satisfaction as employees are

keen to know more about the company - its plans, policies etc.

Basically, job satisfaction is determined by the discrepancy between what

individuals expect to get out of their jobs and what the job actually offers. A person will

be satisfied if there is no discrepancy between desired and actual conditions. If there is

discrepancy he will be dissatisfied.

Importance of Job Satisfaction

Obviously, job satisfaction significantly contributes to employee productivity and

morale. An organisation can be substantially benefited if it develops general attitudes of

its employees that can effectively contribute to job satisfaction. If employees are

satisfied employees turnover, and absenteeism will be less and productivity will be more.

Further, satisfaction of individual expectations results in group integration and

cohesiveness.

Measuring Job Satisfaction

There have been many measures of job satisfaction in the work place from the Job

Description index to Job Satisfaction Scales to the more recent job satisfaction scale of

the Occupational Stress Indicator (OSI). They all tend to involve scales which explore

pay, work activities, working conditions, career prospects, relationship with superiors and

relationship with colleagues. An example of a measure of job satisfaction from the OSI,

which contain all of the elements that usually make up a job satisfaction measure is given

in the Table.

TABLE

An example of a measure of job satisfaction from the OSI

——————————————————————————————

How You Feel About Your Job

Very much satisfaction 6

Much satisfaction 5

Some satisfaction 4

Some dissatisfaction 3

Much dissatisfaction 2

Very much dissatisfaction 1

1.Communication and the way information 6 5 4 3 2 1

flows around your organization

2. The relationships you have with other 6 5 4 3 2 1

people at work

3. The feeling you have about the way 6 5 4 3 2 1

you and your efforts are valued

4. The actual job itself 6 5 4 3 2 1

5. The degree to which you feel 6 5 4 3 2 1

“motivated” by your job

6. Current career opportunities 6 5 4 3 2 1

7. The level of job security in your 6 5 4 3 2 1

present job

8. The extent to which you may identify 6 5 4 3 2 1

with the public image or goals of

your organization

9. The style of supervision that your 6 5 4 3 2 1

superiors use

10. The way changes and innovations are 6 5 4 3 2 1

implemented

11. The kind of work or tasks that you 6 5 4 3 2 1

are required to perform

12. The degree to which you feel that you 6 5 4 3 2 1

can personally develop or grow in

your job

13. The way in which conflicts are 6 5 4 3 2 1

resolved in your company

14. The scope your job provides to help 6 5 4 3 2 1

you achieve your aspirations and

ambitions

15. The amount of participation which you 6 5 4 3 2 1

are given in important decision making

16. The degree to which your job taps the 6 5 4 3 2 1

range of skills which you feel you

possess

17. The amount of flexibility and freedom 6 5 4 3 2 1

you feel you have in your job

18. The psychological “feel” or climate 6 5 4 3 2 1

that dominates your organization

19. Your level of salary relative to 6 5 4 3 2 1

your experience

20. The design or shape of your 6 5 4 3 2 1

organization’s structure

21. The amount of work you are given to 6 5 4 3 2 1

do whether too much or too little

22. The degree to which you feel 6 5 4 3 2 1

extended in your job

——————————————————————————————

Source: Cooper et-al (1987)

Measures to Increase Job Satisfaction

Although, management cannot change the personal factors in job satisfaction, it

should appreciate the role of such factors and must take care to place the employees

where the personal factors of the individual will help him in achieving job satisfaction.

Similarly, management can use the factors inherent in the job to plan and

administer jobs more advantageously for its personnel. For example, the policy of job

rotation, job enrichment, and job enlargement may help increase job satisfaction.

Management should also take necessary steps to raise the occupational status of the

workers.

The management should carefully develop appropriate policies and practices for

promotions and transfers, working conditions, wages, grievance handling, fringe benefits,

satisfactory hours of work and adequate rest pausing. Management should also able to

recognize and appreciate the good work done by the employees and give respect for their

creative suggestion. Proper delegation of authority, freedom to do work will also help

increase job satisfaction. Above all, while keeping in view the factors related to job

satisfaction, the management must recognize the importance of the stability of employee

attitudes that may lead to high morale and production.

It is evident from the above description that there are many factors that influence

job satisfaction and the managements must be able to work out a broad strategies that

may help increase job satisfaction and must also able to identify the specific factors that

causes the individual differences and must evolve appropriate strategies that could raise

the job satisfaction of those particular segment.

Review Questions:

1. What do you understand by job satisfaction? What are the factors that influence job

satisfaction?

2. Bring out the importance of job satisfaction. What are the measures to improve job

satisfaction among employees?

� � �

LESSON - 11

GROUP DYNAMICS

Learning Objectives

After reading this lesson, you should be able to:

• Define the term group and describe types of groups

• Understand group formation and development

• Discuss group norms, group cohesiveness

Individuals form groups. They live in groups. They move in groups. They work

in groups. Groups are important. They influence work and work behaviour. They

cannot be ignored. They exert significant influence on the organisation. They are

inseparable from organisation. They are useful for the organisation. They form

foundation of human resources.

The study of group behaviour is important. Individual and group behaviour differs

from each other. Group behaviour affects productivity. The importance of group

behaviour has been realised from time to time. Elton Mayo and his associates way back

in1920 conducted the famous Hawthorne experiments and came to know that the group

behaviour have major impact on productivity.

Human behaviour comprise individuals and individuals move in groups. Every

manager must possess the knowledge of group behaviour along with individual

behaviour. He must understand group psychology. He should understand individual

behaviour in the context of group behaviour. Individual behaviour is influenced by the

group behaviour. Individual'’ work, job satisfaction and effective performance is

influenced by the group in which he moves.

Definition of a Group

A group is a two or more people who perceive themselves to be a group and who

interact regularly to accomplish a common purpose or goal. Marvin Shaw defined group,

‘as two or more persons who are interacting with one another in such a manner that each

person influences and is influenced by each other person’. The crucial parts of this

definition are the concepts of ‘interaction’ and ‘influence’, which also limit the size of the

group. When a group gets too large, it is difficult for members to interact sufficiently.

Groups are important to managers because groups or work teams are the primary

tools managers use to co-ordinate individual behaviour in order to reach the

organisation’s goals. Groups can make a manager’s job easier because instead of

explaining a task to many different individuals and trying to co-ordinate the individual’s

work, the manager can give a group a task and allow the group to co-ordinate member’s

efforts. However, a group will function effectively only if the interactions between its

members are productive. Therefore, managers must often pay attention not just to the

needs of individuals but to the dynamics among individuals in the group as well.

Reasons for Group

Following are the few reasons why group is essential:

(i) Management of modern organisations are making concerted efforts to

introduce industrial democracy at workplace. They are using task force,

project teams, work committees where workers get due representation. They

participate very often in decision-making. This takes place in groups.

(ii) The tasks in modern industries are becoming more complex, tedious and

monotonous. To change these conditions and make the environment at

workplace more lively, work committees and wok groups and teams are

formed to monitor the work and change.

(iii) To make participative management more effective

(iv) Groups of all kinds and types are used by inviting their cooperation in all

matters related to production as well as with human relations to make the

organisation effective.

(v) There are several works which an individual cannot perform. To complete

such tasks, group efforts are required for its completion. Example: building a

ship, making of a movie, construction of a fly-over, a complex etc. All these

require coordinated and unified efforts of many individuals, i.e. groups.

(vi) A group can make better judgement as compared to an individual.

(vii) While accomplishing tasks, group can use creative instinct and innovative

ideas than a single individual.

(viii) When group is working, all the benefits of division of labour will accrue.

(ix) Individuals in a group communicate with each other and discuss work

performance and suggestions to make it better and excellent.

(x) Group efforts substantially affect individual, his attitude and behaviour.

(xi) Group has the ability to satisfy the needs of its members.

Types of Groups

In general, there are three types of groups in organisations: Functional groups, task

groups and informal groups.

Functional or Formal Groups:

A functional group is a group created by the organisation to accomplish a different

organisational purposes. According to A.L. Stencombe, “a formal group is said to be any

social arrangement in which the activities of some persons are planned by others to

achieve a common purpose”. These groups are permanent. They are bound by

hierarchical authority in the organisation. They have to follow rules, regulations and

policy of the organisation. These groups are required by the system. Formal

organisational groups include departments such as the personnel department, the

advertising department, the quality control department and the public relations

department.

Task Group:

A task group is a group created by the organisation to accomplish a relatively

narrow range of purposes within a specified time. These groups usually temporary and

lasts until it develops a solution to a problem or completes its task. Adhoc committees,

task forces and work teams are all task groups. The organisation specifies group

membership and assigns a relatively narrow set of goals such as developing a new

product, evaluating a proposed grievance procedure, etc.

Informal Groups:

Informal groups are created by their members for purposes that may or may not be

relevant to the organisation’s goals. Informal groups tend to form when people are drawn

together by friendship, by mutual interests or both. These groups are spontaneous and

emotional. Keith Davis has defined informal group as, “the network of persons and

social relations which is not established or required for formal organisation”. These are

the groups formed by the employees themselves at the workplace while working together.

The organisation does not take any active interest in their formation.

Informal groups are very effective and powerful. Informal groups can be

important both as an informal communication network - part of the grapevine - to the

organisations, and a powerful force that organisations cannot ignore them. Some

managers view them harmful and disruptive to the interest of the organisation. They

suspect their integrity and consider as a virtual threat. Some managers seek their help in

getting the task completed quickly. They do not consider them as threat. The strength of

these informal groups can be utilised for accomplishment of organisational objectives.

Informal groups are of following types:

1. Interest Group: A group of employees coming together for attaining a common

purpose. Employees coming together for payment of bonus, increase in salary,

medical benefit and other facilities are the examples of interest groups. The people

with common interest come together.

2. Membership Group: A group of persons belonging to the same profession knowing

each other, e.g. teachers of the same faculty in the University.

3. Friendship Group: A group outside the plant or office, having similar views, tastes,

opinions, belonging to same age group. They form clubs and associations based on

the friendship.

4. Reference Group: It is a primary group where people shape their ideas, beliefs,

values etc. They want support from the group.

Group Formation and Development

Groups can form when people with similar goals and motives come together.

Groups are not static. Members join and leave, the relationships among them evolve and

their tasks change. Hence, understanding how groups form and develop is important for

managers.

Organisational Motives to Join Groups:

Organisations create functional and task groups, because the use of such groups

allows the organisation to structure and group organisational activities logically and

efficiently. People join functional groups simply by virtue of joining organisations.

People in existing functional groups volunteer or are asked to serve on adhoc committees,

task forces and teams.

Personal Motives to Join Groups:

People also choose to join informal or interest groups, often for subtle reasons. Since

joining these groups is voluntary, various personal motives affect membership. Some of

these are shown in the following figure:

Group

Information

Interpersonal Attraction:

One reason people come together to form informal or interest group is that they

are attracted to each other. The factors that contribute to interpersonal attraction are sex,

similar attitudes, personality or economic standing. The physical proximity of group

members may also be an important factor.

Interest in Group Activities:

Inter-personal

attraction

Support for

group goals

Interest in

group activities

Instrumental

benefits

Need for

affiliation

Individuals may also be motivated to join an informal or interest group because

the activities of the group appeal to them. Playing tennis, discussing current events or

contemporary literature - all these are group activities that people enjoy.

Support for Group Goals:

The goals of a group may also motivate people to join. For example, a club which

is dedicated to environmental conservation may motivate people to join. Individuals join

groups, such as these in order to donate their time and money to advance goals they

believe in and to meet other people with similar values.

Need for Affiliation:

Another reason for people to join groups is to satisfy their need for affiliation.

Retired/old age people often join groups to enjoy the companionship of people in similar

situation.

Instrumental Benefits:

Group membership is sometimes seen as instrumental in providing other benefits

to an individual. For instance, a manager might join a Rotary/ Lions Club because he

feels that being a member of this club will lead to important and useful business contacts.

Stages of Development

In the case of new group, members are unfamiliar with one another’s personalities

and intentions and are tentative in their interactions. For developing into a matured

phase, the new group must pass through certain stages of development, which are

depicted in the following figure.

The first stage of group development is called Mutual Acceptance. During this

stage, the members of the group get acquainted with one another and begin to test which

inter-personal behaviours are acceptable and which are unacceptable to the other

members of the group. If all the members know each other, the group may move to next

stage.

The second stage of group development is ‘Communication and Decision-

making’. During this stage, group members share their opinions and formulate the

group’s goals. Through communication and decision-making, the structure becomes

clear and the group moves to the third stage.

Mutual Acceptance

• Making acquintances

• Sharing information

• Discussing subjects

• Testing each other

• Being defensive

Slow evolution to

next stage

Communication and Decision Making

• Expressing attitudes

• Establishing norms

• Establishing goals

• Openly discussing tasks

Burst of activity to

next stage

Motivation and Productivity

• Cooperating

• Working actively on tasks

• Being creative Slow evolution and

next stage

Control and Organisation

• Working independantly

• Assigning tasks based on ability

• Being flexible

The third stage is Motivation and Productivity which is characterised by a shared

acceptance among members of what the group is trying to do. Each person begins to

recognise and accept his role and to accept and to understand the roles to others.

Members also become more comfortable with each other and develop a sense of group

identity and unity.

The fourth stage is ‘Control and Organisation’, in which the members enact the

roles they have accepted and direct their group efforts toward goal attainment.

In reality, this developmental sequence varies from group to group. For example,

time, personal characteristics of group members and frequency of interaction, can all

affect how the group matures.

Characteristics of Mature Groups

As groups pass through the stages of development to maturity, they begin to

exhibit four characteristics: a role structure, behavioural norms, cohesiveness and

informal leadership.

Role Structures:

A role is the part that a person plays in a group to reach its goals. Some people are

leaders, some focus on the group’s task, some interact with other groups and so on. Role

structure is the set of defined roles and interrelationships among those roles that the group

members define and accept. Each of them belong to many groups, classes, families and

social organisations.

The breakdown in role development result in role ambiguity, role conflict and role

overload. Managers have to take steps to avoid role ambiguity, role conflict and role

overload.

Group Norms:

Norms refer to group behaviour standard, beliefs, attitudes, traditions, expectations

shared by group members. According to Michael Argyle, “Group norms are rules or

guidelines of accepted behaviour which are established by a group and used to monitor

the behaviour of its members”. Group norms are framed to achieve objectives of the

group. Group norms can be social, ethical in nature. Group norms are the informal rules

of behaviour that provide some order to group activities. Norms define boundaries

between acceptable and unacceptable behaviour. They make the members to identify

themselves with the group. Norms play a significant role in disciplining the members of

a group, so that they work regularly and properly. This reduces absenteeism and

employee turnover. The members of the group are expected to stick up to norms strictly.

This will make the group more cohesive.

Types of Group Norms

Groups typically develop two types of norms: behaviour norms and performance

norms. Behaviour norms are rules that standardise how people act at work on a day-to-

day basis. Performance norms are rules that standardise employee output and number of

hours worked. Examples for some of the behavioural norms are, ‘do not come to

committee meetings unless you have read the reports to be discussed; greet every

customer with a smile etc. These norms tend to reflect motivation, commitment to the

organisation and high performance.

Reasons for Strong Enforcement of Norms

Groups don’t have the time or energy to regulate each and every action of group

members. Only those behaviours that are viewed as most important by group members

will be brought under control.

Groups, like individuals, try to operate in such a way that they maximise their

chances of task success and minimise their chances of task failure. Groups want to

facilitate their performance and overcome barriers to reach their goals. Moreover, groups

want to increase morale and prevent any embarrassment or interpersonal discomfort to

their members. Norms that will help groups meet these twin aims of performing

successfully and keeping morale high are likely to be strongly enforced.

Conditions where group norms will be strongly enforced are given below:

• Norms are likely to be strongly enforced if they facilitate group success or

ensure group survival;

• if they simplify or predictable, what behaviour is expected of from group

members;

• if they reinforce specific members role within a group; and

• if they help the group avoid embrassing inter-personal problems.

Uniqueness of Group Norms:

The norms of one group cannot be easily generalised to another group. Some

differences are primarily due to the composition of the groups. However, even very

similar work groups may develop different norms. The members of one group may be

friendly with their supervisor whereas those of another group may remain aloof.

Norm Variation:

Because norms prescribe different roles for different group members, norms may

dictate role structures. For instance, the senior member of a group may be expected to

perform a trivial tasks. At the other end, certain individuals, especially informal leaders

may be allowed to violate norms with impunity.

Norm Conformity:

Norms have the power to force a certain degree of conformity - accepting and

adhering to the behaviours defined by those norms - among group members.

Several factors contribute to norm conformity. Because of the personalities of key

members, some groups may simply exert more pressure for conformity than others. The

history of the group and its members also plays a part in conformity. For example, if the

group has always been successful by following certain behaviours, new group members

may be pressured to adopt those behaviours. If the group was not successful in the past, a

new group member may have greater freedom to exhibit other behaviours.

As individuals begin to recognise the norms of a group they have just joined, they

may respond in one of the several ways. They may simply accept the norms and

subsequently obey them. An alternative is to obey the ‘spirit’ of the norm while still

asserting individuality.

In some cases individuals may choose to ignore a norm. In such cases, the group

may try to bring back the deviant individual in line or exclude that individual from all its

activities. If the norm is especially powerful with emotional overtones, the group may

even resort to physical coercion.

Group Cohesiveness

Rensis Likert has defined cohesiveness as, “the attractiveness of the members to

the group or resistance of the members to leaving it”. It refers to the attachment of

members with the group. According to K. Aswathappa, “cohesiveness is understood as

the extent of liking each member has towards others and how far everyone wants to

remain as the member of the group”. Attractiveness is the key to cohesiveness.

Cohesiveness is the extent to which group members are loyal and committed to the group

and to each other. In a highly cohesive group, the members work well together, support

and trust one another and are generally effective at achieving their chosen goal.

A group that lacks cohesiveness will not be very much coordinated. Its members

will not support one another and they may face difficulty in reaching their goals.

Managers should develop an understanding of the factors that increase and reduce

group cohesiveness and accordingly manipulate the factors which could help achieve

group cohesiveness.

Advantages of Group Cohesiveness

1. The members of cohesive groups have high morale.

2. They don’t have conflicting views, hence decrease in conflicts among the group

members at the workplace or elsewhere.

3. People of cohesive groups have no anxiety at the workplace.

4. Members of cohesive groups are regular at their work.

5. Cohesiveness increases productivity.

6. Organisations gain from the members of cohesive group because they communicate

better, they share ideologies and respect opinions of fellow employees.

The following factors can increase group cohesiveness:

• Competitiveness with other groups

• Inter-personal attraction

• Favourable evaluation from outsiders

• Agreement on goals

• Frequent interaction

The following factors decrease cohesiveness:

• Large group size

• Disagreement on goals

• Competitiveness within group

• Domination by one or more members

• Unpleasant experiences

Group cohesiveness create an environment of cooperation resulting into benefits to

the organisation in the form of increased productivity, low employee turnover,

absenteeism etc.

Review Questions:

1. Define group. What are the different types of group?

2. What are group norms? Why group norms are needed?

3. What is group cohesiveness? How to increase group cohesiveness?

� � �

LESSON - 12

GROUP CONFLICT

Learning Objectives

After reading this lesson, you should be able to understand:

• Conceptual clarity about nature and levels of conflicts

• Sources and effects of conflicts

• Managing conflicts

Conflict arises from disagreements over the goals to attain or the methods used to

accomplish these goals. An organisation is an interlocking network of groups,

departments, sections or work teams. In organisations everywhere, conflict among

different interests is inevitable, and sometimes the amount of conflict is substantial. One

survey reported that mangers spend an estimated 20 percent of their time dealing with

conflict. The success of the organisation as a whole depends upon the harmonial relations

among all independent groups, even though some inter-group conflict in organisations is

inevitable. Managers may be either direct participants or mediators trying to resolve

conflict between two or more of their employees. In either case, knowledge and

understanding of conflict and the methods of resolving it are important.

Inter-group conflicts generally do not emerge out of irrationality, instead they

result from the ways in which organisations co-ordinate the work of different groups and

distribute rewards among those groups.

Levels of Conflict

1. Intrapersonal Conflict: Conflict can occur within an employee, between individuals

or groups, and across organisations due to competing roles taken.

2. Interpersonal Conflict: Interpersonal conflicts are a serious problem to many people

because they deeply affect a person’s emotions. There is a need to protect one’s self-

image and self-esteem from damage by others.

3. Intergroup Conflict: Intergroup Conflict occurs between different departments. The

conflict occurs when one party perceives that another party has frustrated, or is about

to frustrate, the accomplishment of a goal. Conflict is not limited to interacting

groups; it also occurs within groups, between individuals and between organisations.

One way to view conflict is to consider it as a sequence of episodes. The sequence

is as follows:

♦ Latent Conflict: This is the time when the conditions for conflict exist: two

groups competing for scarce resources, for example.

♦ Perceived Conflict: This is the time when group members realise that there is

conflict between groups.

♦ Felt Conflict: This occurs when members involved feel tense or anxious.

♦ Manifest Conflict: This exists when behaviours clearly demonstrate that one

group is attempting to frustrate another group.

♦ Conflict Aftermath: This is the situation after the conflict is minimised or

eliminated.

Since conflict can progress to the manifest stage, it can have dysfunctional

consequences for organisations and individuals. Conflict can arouse emotions and

anxiety, lower satisfaction and decrease performance. Managers much solve the conflict

and get groups once again working cooperatively toward the accomplishment of

organisational and individual goals. If the groups are working on interdependent tasks,

coordination of the groups and the effectiveness with which they work together are

crucial managerial issues. The relationships among groups can become so antagonistic

and disruptive and the entire flow of production is slowed or even stopped.

Reasons for Conflict

There are many reasons for conflict among groups. Some of the more important

ones relate to limited resources, communication problems, differences in interests and

goals, different perceptions and attitudes, and lack of clarity about responsibilities.

Communication Problems

Groups often become very involved with their own areas of responsibility. They

tend to develop their own unique vocabulary. Paying attention to an area of

responsibility is a worthy endeavour, but it can result in communication problems. The

receiver of information should be considered when a group communicates an idea, a

proposal, or a decision. Misinformed receivers often become irritated and then hostile.

Incompatible Goals

Inter-group conflict arises because of goal incompatibility, that is, goal attainment

by one group may prevent or reduce the level of goal attainment by one or more other

groups. Quite often this is due to horizontal differentiation and task specialisation. The

conflict between production and marketing departments, line and staff departments, union

and management are few examples of inter-group conflicts arise because of

incompatibility of goals.

Task Interdependence

Task interdependence means the amount of reliance a work group has to put on

other organisational units to complete its projects. In simple words, it refers to the

dependence of one group on another for resources or information. It can be said in

general that as interdependence increases, the potential for conflict increases.

J. Thompson has identified three types of interdependence among groups: pooled,

sequential and reciprocal.

Pooled interdependence occurs when departments have little interaction with each

other but are affected by each others actions. For example, a branch in Delhi does not

need to interact with a branch in Chennai. The only linkage between the two is that they

share financial resources from a common pool and the success of each branch contributes

to the success of the organisation.

In sequential task interdependence, the product (output) of one group becomes the

raw material (input) of another group. In such situations where one unit is unable to

commence its work until the other unit completes its job, the potential for conflict is

greater. Life and staff groups often have conflicts resulting from sequential task

interdependence.

In reciprocal interdependence, both the groups depending upon each other. The

relationship between production department and quality department is the best example

for reciprocal interdependence. Similarly between production and marketing

departments, production department provides the goods to the marketing department to

sell; and the orders and estimates provided by the sales force help determine the volume

to be produced by the production department. Inter-group conflict arises from reciprocal

task interdependence over difference in performance expectations. Each group is

dissatisfied with the quality or quantity of work received from the other group.

Task Ambiguity

Inter-group conflict is also likely to arise when it is not clear which group is

responsible for certain activities. This lack of clarity over job responsibilities is called

task ambiguity, and it frequently leads to hostility between work units.

A good example of task ambiguity leading to inter-group conflict occurs in the

recruitment of new employees - whether it is the personnel department or the specific

functional departments such as marketing or finance, and who is the final authority to

make and execute selection decisions. Task ambiguity often arises when the organisation

is growing quickly or the organisation’s environment is changing rapidly.

Resource Sharing

The relations between two groups can be affected by the degree to which the two

groups draw from a common pool of resources and the degree to which this common

pool of resources is adequate to meet the demands of both the groups. Thus, conflict of

this nature arises because of the difference between aggregate demand and available

resources. Each party to the conflict competes each other, getting a larger share. The

conflict between management and the labour union is the best example. Such conflicts

take place in the quantum of wages, amenities, working conditions and other related

matters.

Difference in Work Orientation:

The ways in which employees go about their work and deal with others vary

widely across functional areas of an organisation. First, functional groups differ in their

time perspectives. For example, R&D scientists have much longer-range goals than

manufacturing groups. Manufacturing is evaluated on how quickly it can turn out high-

quality products while R&D scientists can only be evaluated after a long period of

product development and testing. Second, the goals of different functional groups vary

greatly. The goals of a manufacturing unit are more specific and clear-cut than the goals

of an R&D unit. Third, the inter-personal orientations of people in different

departments also vary.

The greater the differences in goal, time and inter-personal orientation between

two work units, the more likely it is that conflict will arise between the groups when they

have to co-ordinate their work efforts. These differences in work-orientation lead groups

to be frustrated with and to misinterpret, the behaviour of other groups.

Conflicting Reward Systems

Sometimes the ways in which reward systems in organisations are designed create

a situation in which one group can only accomplish its goal at the expense of other

groups. For example, staff departments may be rewarded for cutting costs and personnel

while line departments are rewarded for increasing the amount of products sold or

services provided. To increase the amount of products sold, the line group may have to

depend even more heavily on staff groups such as advertising. However the staff groups

are being rewarded for cutting costs and personnel and providing the types of services

asked for by line groups can prevent them from meeting their own goals. Conflicting

reward systems inevitably result in poor inter-group relations.

Different Perceptions and Attitudes

The attitudes, values and perceptions of members of various group towards each

other can be a cause and a consequence of the nature of their relationship. If the group

relations begin with the attitudes of distrust, competitiveness, secrecy and closed

communications, there is a possibility of various factors of group relationship being

emphasised in a negative way, consequently leading to conflicts.

These causes of conflict are among the more common ones that need to be

managed. The management of inter-group conflict involves determining strategies to

minimise such causes.

Dynamics of Inter-Group Conflict

Changes within Each Group:

When there is inter-group conflict in an organisation, systematic changes occur in

the perceptions, attitudes and behaviours of the participants. They are outlined below:

1. In the face of an external threat, the group demands more loyalty from individual

members.

2. There is additional pressure for the group to perform at its best.

3. When intergroup conflict is present, it is especially important for a group to able to

respond quickly and in a unified manner to the activities of other groups.

4. The organisation and structure of the work group become more rigid. Co-

ordination of activities is increased, additional rules and procedures are outlined

and enforced and specific responsibilities are allocated to different group members.

5. In the face of an external threat, past differences and difficulties between group

members are forgotten and group cohesiveness increases.

Changes in Relation Between Groups:

The nature of the relationships between groups also changes markedly during inter-

group conflicts. The changes that occur are:

1. There are distortions of perception both about one’s own group and about the other

group.

2. Interaction and communication between groups decrease.

3. There is a shift from a problem-solving orientation toward other group to a win-

lose orientation.

4. There is increased hostility toward the rival group.

Union - Management relationships during contract negotiations illustrate some of

the above dynamics. At these times, it becomes difficult for each side to see anything

positive about the other side; each party emphasizes the good it is doing for its side and

under values the interests of the other side.

Strategies Groups Use to Gain Power

There are several strategies groups can use to gain power in an inter-group conflict

situation. Some of these strategies allow co-operation and sharing between groups; other

strategies are more competitive and increase the power of one group at the expense of

others.

Contracting:

Contracting refers to the negotiation of a quid-pro quo (this for that) agreement

between two groups. Each group makes some concessions to the other so that there can

be some predictability and stability in their relationships. For example, contracting

occurs between labour and management at the time of collective bargaining.

Co-opting:

Co-optation occurs when a group gives some of its leadership positions to

members of other groups or includes them in its policy-making committees. For

example, representatives from financial institutions are included in the Board of Directors

of a Company to blunt any criticism from them.

Forming Coalitions:

In forming a coalition, two or more groups co-operate or combine their resources

in order to increase their power over groups not in their coalition. It is an interesting mix

of co-operating and competition; member groups co-operate with each other in order to

compete more effectively with non-members.

Influencing Decision Criteria:

Groups can exert power to evolve rational criteria that are selected as the basis for

resource distribution.

Controlling Information:

Gaining access to sensitive information and then limiting other group’s access to it

increases the power of the information-rich group vis-a-vis other subunits.

Pressure Tactics:

Pressure tactics to force others to give in represent the most competitive or hostile

strategy a group can use to gain power. For instance, a union might threaten a strike to

give pressure to management; similarly might make non-negotiable, final offers to the

union.

Management reaction to disruptive intergroup conflict can take many different

forms. But management usually will first try to minimise the conflict indirectly, and if

this fails, become directly involved.

Managing Intergroup Conflict Indirectly

Initially, managers often avoid direct approaches to solving conflict among

groups. Unfortunately, avoidance does not always minimise the problem. Matters get

worse because nothing is being done, and the groups become more antagonistic and

hostile.

Another indirect strategy is to encourage the groups to meet and discuss their

differences and to work out a solution without management involvement. This strategy

can take the form of bargaining, persuasion, or working on a problem together.

Bargaining involves having the groups agree about what each will get and give to

the other. For example, one group may agree to give another group quick turn around

time on the repairs of needed equipment if the second group agrees to bring complaints

about the quality of repairs to it before going to management. Bargaining between two

groups is successful if both groups are better off after an agreement has been reached.

Persuasion involves having the groups find areas of common interest. The groups

attempt to find points of agreement and to show how these are important to each of the

groups in attaining organisational goals. Persuasion is possible if clashes between group

leaders do not exist.

A problem can be an obstacle to a goal. For groups to minimise their conflicts

through problem-solving, they must agree at least generally on the goal. If there is

agreement, then the groups can propose alternative solutions that satisfy all parties

involved.

Managing Inter-Group Conflict Directly

Ignoring the Conflict:

Ignoring the conflict is characterised by the absence of behaviour; the executive

avoids dealing with the dysfunctional aspects of the conflict. The executive simply

refuse to listen to attacks of one group on the other. Quiet often, executives who utilise

this strategy disregard the causes of the conflict and as a result, the conflict situation

frequently continues or gets worse over time.

In some circumstances, this strategy is a reasonable way of dealing with problems.

One such circumstance occurs when the conflict issue is trivial.

Domination by the Management:

To improve inter-group relations, greater integration or collaboration among

groups must occur. Various strategies can be used effectively to increase integration.

Management can use domination to minimise conflict by exercising its authority and

requiring that a problem be solved by a specific date.

Removing the Key Figures in the Conflict:

Another direct approach is to remove the key figures in the conflict. If a conflict

arises because of personality differences between two individuals, removing them is a

possible solution. This approach has three problems. First, the key figures who are to be

removed may be leaders of the groups and removing them could lead to greater conflict.

Second, it is difficult to pinpoint accurately whether the individuals in conflict are at odds

because they represent their groups. Third, removal may create martyrs.

Problem Solving:

Management also can establish a task force with representatives from groups in

conflict to work on problems. The task force will develop ideas and procedures for

improving group interaction to be presented to their groups.

Appealing to Super-ordinate Goals:

A final direct strategy to minimise conflict is to find superordinate goals. These

are goals desired by two or more groups that can only be accomplished through the

cooperation of the groups. When conflicting groups have to cooperate to accomplish a

goal, conflict can be minimised. For example, a company-wide profit-sharing plan may

encourage groups to work together. If company profits are distributed among employees

at the end of the year, conflict among groups can reduce the amount of profit that each

employee receives. Thus, the superordinate goal, generating profit, may take precedence

over group conflict.

The following are the cardinal principles for managers to manage the conflict in

organisations more effectively:

1. The assignment and co-ordination of work activities among groups should be clarified

so that daily frictions over minor issues can be avoided.

2. Managers should monitor reward systems to eliminate any win-lose conflicts they

might be inducing inadvertently among groups.

3. The use of co-operative strategies among groups in organisations often leads to more

positive results than does the use of competitive strategies.

4. The use of avoidance and defusion as conflict resolution strategies is generally

ineffective because neither strategy addresses the key sources of the conflict.

5. Managers can establish rules and standard procedures to regulate conflict in more

constructive ways.

6. When high-quality decisions and solutions are needed, top managers should sustain

constructive confrontation between the groups.

Review Questions:

1. What is meant by the term “inter-group conflict”?

2. What are the sources of inter-group conflict?

3. Explain any four types of inter-group conflict resolution strategies.

� � �

LESSON - 13

ORGANISATIONAL COMMUNICATIONS

Learning Objectives

After reading this lesson, you should be able to understand:

• The meaning, importance of communication

• Communication process

• Types organisational communication

• The barriers and method of overcoming barriers to effective communication

Communication is one of the most frequently discussed dynamics in the entire

field of organisational behaviour. In practice, effective communication is a basic

prerequisite for the attainment of organisational goals. Therefore, communication is

considered to be the most important and most effective ingredient of the management

process. Interpersonal communication is fundamental to all managerial activities. All

other management functions involve communication in some form of directions and

feedback. Thus effective management is a function of effective communication.

Definition of Communication

In modern society the term communication is frequently and freely used by

everyone, including members of the general public, organisational behaviour scholars,

and management practitioners.

Communication is the process of transmitting information from one person to

another. Broadly, it means who says what, to whom, through which channel and with

what effect. It is a way of reacting others with ideas, facts, thoughts, feelings and values.

Communications experts emphasises the behavioural implications of communication by

pointing out that “the only means by which one person can influence another is by the

behaviours he performs – that is, the communicative exchanges between people provide

the sole method by which influence or effects can be achieved”. In other words, the

behaviours that occur in an organisation are vital to the communication process. This

personal and behavioural exchange view of communication takes may forms.

The continuum in the following figure can be used to identify the major categories

of communication that are especially relevant to the study of organisational behaviour.

The Continuum of Communication in Organisational Behaviour

Communication Interpersonal Non-verbal

Technology Communication Communication

Objectives of Communication

Management depends upon communication to achieve organisational objectives.

Since managers work with and through other people, all their acts, policies, rules, orders

and procedures must pass through some kind of communication channel. Also there must

be channel of communication for feedback. Accordingly, some of the purposes of

communication are:

� To discourage the spread of misinformation, ambiguity and rumors which can

cause conflict and tension.

� To foster any attitude which is necessary for motivation, cooperation and job

satisfaction.

� To develop information and understanding among all workers and this is

necessary for group effort.

� To prepare workers for a change in methods of environment by giving them

necessary information in advance.

� To encourage subordinates to supply ideas and suggestions for improving upon

the product or work environment and taking these suggestions seriously.

� To improve labour-management relations by keeping the communications

channels open and accessible.

� To encourage social relations among workers by encouraging inter-

communication. This would satisfy the basic human need for a sense of

belonging and friendship.

Importance of Communication

Inter-personal roles require managers to interact with supervisors, sub-ordinates,

peers and others outside the organisation. Thus, for co-ordinated action, communication

is necessary. Communication transforms a group of unrelated individuals into a team that

knows what its goals are and how it will try to reach them.

Communication allows people to co-ordinate by providing them with a way to

share information. The first type of information that needs to be shared is what the goals

of the organisations are. People need to know where they are heading and why. They

also need directions for their specific tasks.

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

Decision-makers must share their views on what the problem is and what the alternatives

are. Once a decision has been made, communication is necessary to implement the

decision and to evaluate its results.

Changes in market or in customer preferences can lead to uncertainity about

whether a product or a marketing strategy needs to be updated or overhauled. The

uncertainity resulted from a lack of information, can be reduced by communicating that

information. Market researchers, for example, can communicate with other groups about

changes in market place. The greater the uncertainity about a task, the more important

the communication of information becomes.

Communication also allows people to express their emotions. Communication of

feelings can be very important to employee morale and productivity. Employees who

feel that they cannot vent their anger or express their joy on the job may feel frustrated

and repressed.

On any given day, a manager may communicate for all the purposes described

above. Communication goes up, down and across the levels of the organisation’s

hierarchy.

Communication Process

The following figure presents a general way to view the communication process -

as a loop between the source and the receiver. In the simplest kind of communication,

both the sender and the receiver perform the encoding and decoding functions

automatically.

Sending

Noise

Encoding Decoding

Transmission

(through channels)

Receiver Source/

Sender

Encoding Decoding Transmission

Feedback

Source/Sender:

The communication cycle begins when one person (called the sender) wants to

transmit meaning - a fact, idea, opinion or other information - to someone else. A

manager, for instance, might call the research department to send the latest information

on a particular market.

Encoding:

The second step is to encode the message into a form appropriate to the situation.

The encoding might take the form of words, facial expressions, gestures, and physical

actions and symbols like numbers, pictures, graphs etc. Indeed, most communication

involves a combination of these. The encoding process is influenced by the content of

the message, the familiarity of the sender and receiver and other situational factors.

Transmission:

After the message has been encoded, it is transmitted through the appropriate

channel or medium. Common channels or media in organisations include face-to-face

communication (using the media of sound waves, light etc.), letters, reports etc. (The

channel by which an encoded message is being transmitted to you at this moment is the

printed page).

Decoding:

The person to whom the message is sent (the receiver) interprets the meaning of

the message through the process of decoding. This process may be simple and automatic,

but it can also be quite complex. Even when you are just reading a letter, you may need

to use all your knowledge of the language, your experience with the letter-writer and so

on. If the intended message and the received message differ a great deal, communication

has broken down (communication gap) and misunderstanding is likely to follow.

Receiver:

The receiver can be an individual, a group, or an individual acting on behalf of a

group. The sender has generally little control over how the receiver will deal with the

message. The receiver may ignore it, decide not to try to decode or understand it or

respond immediately. The communication cycle continues when the receiver responds

by the same steps back to the original sender, which is called ‘feedback’.

Noise:

In the communication process, noise takes on a meaning slightly different from its

usual one. Noise refers to any type of disturbance that reduces the clearness of the

message being transmitted. Thus, it might be something that keeps the receiver from

paying close attention such as someone coughing. Other people talking closely, a car

driving by etc. It can be a disruption such as disturbance in a telephone line, weak signal

due to bad weather etc. It can also be internal to the receiver such as tiredness or hunger

or minor ailments which may affect the message.

Methods of Communication

There are mainly three primary methods of communicating in organisations, i.e.

written, oral, and non-verbal. Often the methods are combined. Considerations that

affect the choice of method include the audience (whether it is physically present), the

nature of the message (its urgency or secrecy), and the cost of transmission. The figure

given below shows various forms each method can take.

Methods of Communication in Organisations

Letters

Memos

Reports

Manuals Informal Conversations

Forms Task-related exchanges

Group Discussions

Formal Speeches

Human Elements:

Facial expressions

Body language

Environmental Elements:

Office design

Building architecture

Typically organisations produce a great deal of written communication of many

kinds. A letter is a formal means of communicating with an individual, generally

someone outside the organisation. Probably the most common form of written

Written

Oral

Non-Verbal

communication in organisations is the office memorandum, or memo. Memos usually

are addressed to a person or group inside the organisation. They tend to deal with a

single topic and are more impersonal, but less formal than letters. Other common forms

of written communication include reports, manuals and forms. Reports generally

summarise the progress or results of a project and often provide information to be used in

decision-making. Manuals have various functions in organisations. Instruction manuals

tell employees how to operate machines; policy and procedures manuals inform them of

organisational rules; operations manual describe how to perform tasks ad respond to

work-related problems. Forms are standardised documents on which to report

information. As such, they represent attempts to make communication more efficient

and information more accessible. A performance appraisal form is an example.

Oral Communication

Oral communication, also known as face-to-face communication is the most

prevalent form of organisational communication. It may be in the form of direct talk and

conversation between the speakers and listeners when they are physically present at one

place or through telephone or intercom system conversation. Where one-way

communication is required, then oral communication may include public address system.

Informal rumour mill or grapevine are also popular form of oral communication. It is

most effective for leaders to address the followers via public address system or audio-

visual media. Oral communication is particularly powerful because the receiver not only

hears the content of the message, but also observes the physical gestures associated with

it as well as changes in tone, pitch, speed and volume of the spoken word. The human

voice can impart the message much more forcefully and effectively than the written

words and is an effective way of changing attitudes, beliefs and feelings, since faith, trust

and sincerity can be much better judged in a face-to-face conversation rather than in

written words.

Advantages

Some of the advantages of oral communication are:

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

It allows for feedback and spontaneous thinking, so that if the receiver is

unsure of the message, rapid feedback allows for early detection by the sender

so that corrections can be immediately made, if necessary.

Because the message is conveyed instantaneously, it helps in avoiding delays;

red tape and other formalities.

It conveys a personal warmth and friendliness and it develops a sense of

belonging because of these personalised contacts.

Disadvantages

� There is no formal record of communication so that any misunderstood

message cannot be referred back to what was actually said.

� If the verbal message is passed on long the hierarchical chain of command,

then some distortions can occur during the process. The more people the

message must pass through, the greater the potential distortion.

� Lengthy and distant communication cannot be effectively conveyed verbally.

� The receiver may receive the message in his own perception and thus

misunderstand the intent of the message.

� Spontaneous responses may not be carefully thought about.

� The spirit of authority cannot be transmitted effectively in verbal transactions.

� More or less or a different meaning might be conveyed by manner of speaking,

tone of voice and facial expressions.

Written Communication

A written communication is put in writing and is generally in the form of

instructions, letters, memos, formal reports, rules and regulations, policy manuals,

information bulletins and so on. These areas have to be covered in writing for efficient

functioning of the organisation. It is most effective when it is required to communicate

information that requires action in the future and also in situations where communication

is that of general informational nature. It also ensures that every one has the same

information.

Advantages

It serves as evidence of events and proceedings.

It provides a permanency of record for future references. The message can be

stored for an indefinite period of time.

It reduces the likelihood of misunderstanding and misinterpretation. The

written communications are more likely to be well considered, logical and

clear. And the message can be checked for accuracy before it is transmitted.

It can save time when many persons must be contacted at the same time.

It is more reliable for transmitting lengthy statistical data.

It appears formal and authoritative for action.

Disadvantages

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

� There is no immediate feedback opportunity to be sure that the receiver has

understood the message.

� Confidential written material may leak out before time, causing disruption in

its effectiveness.

� It leads to excessive formality in personal relations.

Non-verbal Communication

Some of the meaningful communication is conveyed through non-verbal ways.

Even some of the verbal messages are strengthened or diluted by non-verbal expressions.

These non-verbal expressions include facial expressions and physical movement. In

addition, some of the environmental elements such as building and office space can

convey a message about the authority of the person. According to Tipkins and McCarter,

facial expressions can be categorised as:

• Interest-excitement

• Enjoyment-joy

• Surprise-startle

• Distress-anguish

• Fear-terror

• Shame-humiliation

• Contempt-disgust; and

• Anger-rage

Physical movements or body language is known as “kinesics”. A handshake is

probably the most common form of body language and tells a lot about a person’s

disposition. Other examples of body language are tilting of head, folding of arms or

sitting position in a chair.

Our facial expressions can show anger, frustration, arrogance, shyness, fear and

other characteristics that can never be adequately communicated through written word or

through oral communication itself. Some of the other body language symptoms are

shrugging our shoulders for indifference, wink an eye for mischief or intimacy, tap our

fingers on the table for impatience and we slap our forehead for forgetfulness. As far as

environmental elements are concerned, a large office with plush carpeting and expensive

furniture conveys a message of status, power and prestige such as that of a chief

operating officer. On the other hand, a small metal desk on a corner communicates the

status of a low ranking officer in the organisational setting. Accordingly non-verbal

actions have considerable impact on the quality of communication.

Communication Networks:

A communication network is the pattern of information exchange used by the

members of a group.

When the members of a group communicate mostly with the group leader, a wheel

network develops. When the members of a group are on different levels of the

organisation’s hierarchy, a chain network is likely. Members of a task-force or

committee often develop a circle network of communication with each person

communicating directly to the other members of the task-force. Informal groups that lack

a formal leader often form an all-channel network - that everyone communicates with

everyone else.

Figure: Communication Networks

WHEEL

CHAIN

CIRCLE

ALL-CHANNEL

Senior

Manager

Subordinate

Manager Subordinate Subordinate Manager

Assistant

Manager

Subordinate

Management

Trainee

Task Force

Member

Task Force

Member

Task Force

Member

Task Force

Member

Informal Group

Member

Informal Group

Member

Informal Group

Member

Informal Group

Member

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

among members. The distance between members describes how far a message must

travel to reach the receiver. The ease with which members can communicate with others

is measured by members’ relative freedom to use different paths to communicate.

Members’ commitment to the group’s work is defined by the centrality of the position of

the members. All these provide insight into possible communication problems. For

instance, a group with high density and distance can expect a lot of noise distortion in its

communication, as messages travel a long distance to their receivers.

The following factors influence the formation of communication patterns within small

groups:

1) Type of Task: If the task of the group is simple - a chain or wheel network will

probably arise. For hard tasks, all channel network will arise.

2) The Environment: The environment including the group’s seating arrangement

and meeting place also affects communication patterns. For instance, if members

always sit around a table, then circle network will arise.

3) Group Performance Factors: The group performance factors like group’s size,

composition, norms and cohesiveness also affect the formation of communication

networks. For instance, it is much easier to have an all-channel network in a

group of eight than in a group of eighty.

Managers must make use of all these characteristics and tendencies to help groups

communicate and work most efficiently. A manager who sees that a wheel network is

forming around an experienced, trusted employee may not interfere with the process. If

an assertive but irresponsible employee becomes the hub of such a wheel, the manager

may need to take action. If the manager relies on a group to help make decisions, the

manager may encourage silent group members to speak in order to get the desired

decisions.

Forms of Organisational Communication

Although interpersonal and group forms of communication pertains even at the

broadest organisational levels, they do not sufficiently describe the paths of all messages

transmitted in organisations. Individuals can send and receive messages across whole

organisational levels and departments by means of vertical communication or the

informal communication network. Non-verbal communication is also important and can

be a part of interpersonal, group and organisational communication.

Vertical Communication:

Vertical communication is communication that flows both up and down the

organisational hierarchy. This communication typically takes place between managers

and their superiors and sub-ordinates.

Upward Communication:

Upward Communication consists of messages moving up the hierarchy from sub-

ordinates to superiors. The content of upward communication usually includes requests,

suggestions or complaints and information the sub-ordinate thinks is of importance to the

superior.

Downward Communication:

Downward Communication consists of messages moving down the hierarchy from

superiors to sub-ordinates. The content of downward communication often includes

directives, assignments, performance feedback and information that the superior thinks is

of value to the sub-ordinate.

Transactional Communication:

Wenburg and Wilmont suggest that instead of communication being “upward” or

“downward” which is inter-communication, it should be “transactional” communication

which is mutual and reciprocal because, “all persons are engaged in sending

(encoding)and receiving (decoding) messages simultaneously. Each person is constantly

sharing in the encoding and decoding process and each person is affecting the other”. In

the transactional process, the communication is not simply the flow of information, but it

develops a personal linkage between the superior and the subordinate.

Informal Communication

Another term for informal communication network is the grapevine. Informal

networks are found in all organisations. It is in the form of gossip in which a person

spreads a message to as many others as possible who may either keep the information to

themselves or pass it on to others. The content of gossip is likely to be personal

information or the information about the organisation itself.

Managers should have some control over the informal network. For example, the

grapevine in an organisation may be carrying harmful information, false information or

politically motivated information. When these kinds of rumours are being spread,

managers may need to intervene. They can hold open meetings and objectively discuss

the issues that are being informally discussed already. They may also issue a clearly

worded memo or report stating the facts and thereby help minimise the damage that the

informal network can do.

Managers can also obtain valuable information from the grapevine and use it for

decision-making.

Other Forms of Communication

One that has become especially popular of late is rather colloquially labelled

“management by wandering around”. The basic idea is that some managers keep in

touch with what’s going on by wandering around and talking with people - sub-ordinates,

customers, dealers and any one else involved with the company in any way. This will

give managers new ideas and a better feel for the entire company.

Barriers to Communication

The communication must be interpreted and understoodinthe same manner as it

was meant to be sent by the sender, otherwise it will not achieve the desired result and a

communication break-down will occur. There are certain external road blocks to

effective communication. In addition, there are personal factors which affect

communication.

Some of the organisational barriers and some of the interpersonal barriers to

effective communication are discussed below:

Noise Barriers

Noise is any external factor which interferes with the effectiveness of

communication. The term is derived from noise or static effects in telephone

conversation or radio wave transmission. It may cause interference in the process of

communication by distraction or by blocking a part of the message or by diluting the

strength of the communication. Some of the sources contributing towards noise factor

are:

(1) Poor Timing

A message sent on poor timing acts as a barrier. For instance, a last minute

communication with a deadline may put too much pressure on the receiver and may result

in resentment. A message must be sent at an appropriate time to avoid these problems.

Hence the manager must know when to communicate.

(2) Inappropriate Channel :

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

misunderstanding of the message. The manager must decide whether the communication

would be most effective if it is in writing or by a telephone call or a face-to-face

conversation or a combination of these modes.

(3) Improper or Inadequate Information :

The information must be meaningful to the employee. It must be precise and to

the point. Too little or too much information endangers effective communication.

Ambiguity in use of words will lead to different interpretations.

(4) Physical Distractions :

Any physical distractions such as telephone interruptions or walk-in visitors can

interfere with the effective face-to-face communication process.

(5) Organisational Structure :

Communication may be blocked, chaotic or distorted if the channels are not clear

or if there are bottlenecks or deadends. Hence the organisation structure should be such

that the chain of command and channels of communication are clearly established and the

responsibility and authority are clearly assigned and are traceable.

(6) Information Overhead :

Overload occurs when individuals receive more information than they are capable

of processing. The result could be confusion or some important information may be laid

aside for the purpose of convenience.

(7) Network Breakdown :

Network breakdown may be intentional or due to information overload and time

pressures under which a communication has to be acted upon. Some factors contributing

to such disruptions are:

� Important negative information may be withheld by the managers.

� The secretary may forget to forward a memo.

� There may be professional jealousy resulting in closed channels.

Interpersonal Barriers

There are many interpersonal barriers that disrupt the effectiveness of the

communication process and generally involve such characteristics of either the sender or

the receiver that cause communication problems. Some of these are:

(1) Filtering :

Filtering refers to intentionally withholding or deliberate manipulation of

information by the sender, either because the sender believes that the receiver does not

need all the information or that the receiver is better off not knowing all aspects of a

given situation. It could also be that the receiver is simply told what he wants to hear.

(2) Semantic Barriers :

These barriers occur due to differences in individual interpretations of words and

symbols. The words and paragraphs must be interpreted with the same meaning as was

intended. The choice of a wrong word or a comma at a wrong place in a sentence can

sometimes alter the meaning of the intended message. For example, a night club

advertisement sign, “clean and decent dancing every night except Sunday”, could lead to

two interpretations. First, that there is no dancing on Sundays and second, that there is

dancing on Sundays, but it not clean and decent.

(3) Perception :

Perception relates to the process through which we receive and interpret

information from our environment and create a meaningful word out of it. Different

people may perceive the same situation differently. Hearing what we want to hear and

ignoring information that conflicts with what we know can totally distort the intent or the

content of the message. Some of the perceptual situations that may distort a manager’s

assessment of people resulting in reduced effectiveness of the communication are:

� A manager may perceive people to belong to one category or another as

stereotypes, rather than unique and distinct individuals. For example, he may

perceive women to be less efficient managers.

� A manager may make total assessment of a person based on a single trait. A

pleasant smile may make a positive first impression.

� A manager may assume that his subordinate’s perception about things and

situations are similar to his own.

This perception limits the manager’s ability to effectively respond to and deal with

individual differences and differing views of work situations.

(4) Cultural Barriers :

The cultural differences can adversely affect the communication effectiveness,

specially for multi-national companies and enterprises.

(5) Sender Credibility :

When the sender of the communication has high credibility in the eyes of the

receiver, the message is taken much more seriously and accepted at face value. If the

receiver has confidence, trust and respect for the sender, then the decoding and the

interpretations of the message will lead to a meaning of sender. Conversely, if the sender

is not trusted, then the receiver will scrutinise the message heavily and deliberately look

for hidden meanings or tricks and may end up distorting the entire message. Similarly, if

the source is believed to be an expert in a particular field then the listener may pay close

attention to the message, and believe it specially if the message is related to the field of

expertise.

(6) Emotions :

The interpretation of a communication also depends upon the state of the receiver

at the time when message is received. The same message received when the receiver is

angry, frustrated or depressed may be interpreted differently than when he is happy.

Extreme emotions are most likely to hinder effective communication because rational

judgements are replaced by emotional judgements.

(7) Multi-meaning Words :

Many words in English language have different meanings when used in different

situations. Accordingly, a manager must not assume that a particular word means the

same thing to all people who use it. Hence, the managers must make sure that they use

the word in the same manner as the receiver is expected to understand it, otherwise it will

create a barrier to proper understanding of the message.

(8) Feedback Barriers :

The final source of communication barrier is the feedback or lack of it. Feedback

is the only way to ascertain as to how the message was interpreted.

Overcoming Communication Barriers

It is very important for the management to recognise and overcome barriers to

effective communication for operational optimisation and this would involve diagnosing

and analysing situations, designing proper messages, selecting appropriate channels for

communicating these messages, assisting receivers of messages in correct decoding and

interpretation and providing an efficient and effective feedback system. Some of the

steps that can be taken in this respect are as follows:

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

transferred more accurately when the receiver is given the opportunity to ask for

clarifications and answer to any questions about the message. Two-way

communication, even though more time-consuming, avoids distrust and leads to trust

and openness which builds a healthy relationship contributing to communication

effectiveness.

2. Improve Listening Skills: Good listening habits lead to better understanding and

good relationships with each other. Some guidelines for effective listening are:

• Listening requires full attention to the speaker. Do not let your mind wander

or be preoccupied with something else, otherwise you would not be able to

grasp the meaning of the message in its entirety.

• The language used, tone of the voice and emotions should receive proper

attention. Listen for feelings in the message content and respond positively to

these feelings.

• Ask questions to clarify any points that you do not understand clearly and

reflect back to the speaker your understanding of what has been said.

• Make sure that there are no outside interruptions and interference during the

course of conversation.

• Do not prejudice or value the importance of the message due to your previous

dealings and experiences with the sender or your perceptions about him,

positive or negative.

• Don’t jump to conclusions before the message is over and is clearly

understood.

• Summarise and restate the message after it is over to make sure about the

content and the intent of the message.

3. Develop Writing Skills: Clearly written messages can help avoid semantic and

perception barriers. A well written communication eliminates the possibility of

misunderstanding and misinterpretation. When writing message it is necessary to be

precise thus making the meaning as clear as possible so that it accomplishes the

desired purpose. Some helpful hints in written communication are suggested by

Robert Degise as follows:

� Keep words simple: This will reduce your thoughts to essentials and the

message will be easier to understand by the receiver. The message will be lost

if the words are complex and do not lend to a clear single meaning.

� Do not be bogged down by rules of composition. While the rules of grammar

and composition must be respected, they should not take priority over the

ultimate purpose of the communication.

� Write concisely: Use a few words as possible. Do not be brief at the cost of

completeness, but express your thoughts, opinions and ideas in the fewest

number of words possible.

� In specific: Vagueness destroys accuracy which leads to misunderstanding of

the meaning or intent of the message. Accordingly, be specific and to the

point.

4. Avoid Credibility Gaps: Communication is a continuing process and the goal of the

communication is complete understanding of the message as well as the creation of

trust among all members of the organisation. Accordingly, the management must be

sincere and should earn the trust of the subordinates. Management should not only be

sensitive to the needs and feelings of workers but also its promises should be

supported by actions. According to studies conducted by J. Luft, openness and an

atmosphere of trust builds healthy relationship and closes credibility gaps, thus

contributing to communication effectiveness.

Guidelines for Effective Communication

These guidelines are designed to help management improve their skills in

communicating so as not only avoid any barriers to effective communication, but also to

strengthen the basis for optimum results which depend upon the clear understanding of

the desired communication.

1. The Ideas and Messages should be Clear, Brief and Precise

The ideas to be communicated must be well planned and clearly identified. This

will eliminate ambiguity so that the message will not be subject to more than one

interpretation. The message must be clear, precise and to the point and free from

distortions and noise. It should also be clear, precise and to the point and free from

distortions and noise. It should also be brief so that it is just necessary and sufficient and

should avoid loose ends or meaningless and unnecessary words.

2. Sense of Timing

The message should not only be timely so that the decisions and actions can be

taken in tie and when necessary, but also the timing of the message and the

environmental setting in which the message is delivered and received is equally

important.

3. Integrity

The communication must pass through the proper channels to reach the intended

receiver. The communication flow and its spread must avoid bypassing levels or people.

When these concerned levels are omitted or bypassed, it creates bickering, distrust,

confusion and conflict. Accordingly, the established channels must be used as required.

4. Consult with others who are involved in Planning the Communication

If people have participated in the planning process, they would be highly

motivated to give active support to such communication and would carry it through. The

people who are concerned must know exactly what they need and when they need the

communication.

5. Consider the Receiver’s Interest

Take the receivers interests into account, then the receiver will be more responsive

to the communication. The management must clarify any part of the communication that

may be necessary and must encourage comments, questions, and feedback. The

management must always be helpful in carrying out the intended message of the

communication.

6. Mode of Delivery

While delivering the communication, avoid negative statements like, “I am not

sure it will work”, but be confident and definitive. The success of the communication

also depends upon the tone of the voice if the communication is verbal, expressions and

emotions exhibited, attentiveness to the receiver and so on. The written communication

should be polite and unambiguous.

7. Use proper Follow-up

All communications need a follow-up to ensure that these were properly

understood and carried out. The response and feedback to the communication should

determine whether the action to the communication has been prompt, appropriate and

accurate.

8. Communication should be Comprehensive

Communication should be complete so as not only to meet the demands of today

but, should also be based on future needs of the organisation as well as individuals.

Recently, the nature of managerial and organisational communication has changed

dramatically, mainly because of break through the electronic technology and advent of

computers. Now cellular phones, E-Mail and Internet have made the communication

quick and convenient. It is now even possible for managers from different cities to

‘meet’ by teleconferencing method without leaving their offices. At the sametime,

psychologists are beginning to discover some problems associates with these new

advances in communication.

Review Questions

1. Define communication and bring out the importance of organisational

communications.

2. What are the steps in communication process?

3. What are the different types of communication?

4. Identify the barriers to effective communication and discuss how they can be

overcome?

� � �

LESSON - 14

LEADERSHIP IN ORGANISATIONS

Learning Objectives

After reading this lesson, you should be able to understand:

• The meaning and importance of leadership

• The various styles and theories of leadership

• The importance of leadership in work organisations

Leadership provides direction, guidance, restores confidence and makes the way

easy for achieving the objectives. In business and industrial organisation managers play

the role of leader and acquire leadership of subordinates, their efforts towards the

achievement of organisational goals. Leadership is an integral part of management and

plays a vital role in managerial operations. Leader activates the people. He makes them

work. Leadership influences behaviour of the people. Leadership has the ability to

attract others and cause them to follow. It is a role individual plays in a group at a given

time. Leadership acquires dominance and the followers accept his directives and control.

Leadership provides direction and vision for future.

Definition

Leadership may be defined as the art of influencing and inspiring subordinates to

perform their duties willingly, competently and enthusiastically for achievement of

groups objectives.

Wendell French has defined leadership as, “the process of influencing the

behaviour of others in the direction of a goal or set of goals or, more broadly, toward a

vision of the future”.

According to Keith Davis, “Leadership is the process of encouraging and helping

others to work enthusiastically towards objectives”.

Koontz and O’Donnell defined leadership as, “influence, the art or process of

influencing people so that they will strive willingly towards the achievement of group

goals”.

Peter Drucker defined leadership as, “the lifting of man’s visions to higher sights,

the raising of man’s performance to higher standard, the building of man’s personality

beyond its normal limitations”.

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

process, it is use of non-coercive influence to shape the goals of a group or organisation,

to motivate behaviour toward the achievement of those goals and to help define group or

organisation culture. As a property, leadership is the set of characteristics attributed to

those who are perceived to be leaders”. Thus, leaders are people who are able to

influence the behaviour of others without having to rely on threats or other forms of

force. Importantly, leaders are people whom others accept as leaders.

Thus the essence of leadership are:

1. Leadership is the process of influencing behaviour of others.

2. Leadership uses non-coercive method to direct and coordinate the activities of

the members.

3. Leadership directs the people to attain some goal.

4. Leadership occupies a role for a given time and for a group.

5. A leader possesses qualities to influence others.

6. Leadership gives people a vision for future.

7. It is a group activity. Leader influences his followers and followers also

exercise influence over his leader. Leadership interacts.

8. Leadership is meant for a given situation.

9. Leadership is continuous process of influencing behaviour. It instills

dynamism in the group.

10. It is a psychological process and multi-dimensional in character.

Importance of Leadership

An effective leadership must perform the following functions:

A leader should act as a friend, philosopher and guide to the people whom he is

leading.

He must have the capacity to recognise their potentialities and transform them

into realities.

A leader should win the confidence of his people.

He must be able to unite the people as a team and build up team spirit.

He maintains discipline among his group and develops a sense of

responsibility.

He must build up a high morale among his people.

He should motivate his people to achieve goals.

He should try to raise high moral and ethical standards among his people.

He should act as a link between the work groups and the forces outside the

organisation.

Differences between Leadership and Management

Leading and managing go together but some differences exist between the two.

The following are the difference between the two:

1. Management takes rational decisions, while leadership takes decision on

moods and expectations of the followers. Leadership has an emotional appeal,

while management acts on rationality.

2. Management establishes relationship through legitimate authority, while

leadership establishes relationship through power.

3. Managers have formal authority, but leaders have no such authority.

4. All leaders are not managers and all managers are not leaders.

5. Management is a process of planning, organising, directing and controlling the

activities of others to attain organisational objectives. Leadership on the other

hand, is a process of influencing the behaviour of the people to attain their

shared goals.

A successful manager must possess both the managerial and leadership qualities.

Styles of Leadership

The following are the main leadership styles:

1. Autocratic or Authoritarian Style :

Under this style of leadership there is complete centralisation of authority in the

leader, i.e. authority is centered in the leader himself. He has all the powers to make

decisions. He uses coercive measures. He adopts negative method of motivation. He

wants immediate obedience of his orders and instructions. Any breach on the part of

subordinates invites punishment. There is no participation from the subordinates in

decision-making. Leader thinks that he is the only competent person. He gets tasks

completed on time.

Edwin B. Flippo has divided autocratic style of leadership into following three

sub-heads:

(a) Hard Boiled or Strict Autocrat: This type of leader uses negative influence and

expects that his orders should be obeyed by the employees immediately. Non-

compliance of his orders invites punishment. He makes all decisions and does not

reveal anything to anyone. He is quite rigid on performance.

(b) Benevolent Autocrat: Benevolent Autocrat leader uses positive influences and

develops effective human relations. He is known as paternalistic leader. He showers

praise on his employees if they followed his orders and invites them to get the

solutions of the problems from him. He assumes the status of a parent. He feels

happy in controlling all the actions of his subordinates. He takes all the decisions and

does not want any interference from anyone.

(c) Manipulate Autocrat: This leader is manipulative by nature and creates a feeling in

the minds of his subordinates and workers that they are participating in decision-

making process. But he only makes all decisions by himself. Non-compliance of his

orders invites punishment.

2. Democratic or Participative Style

Democratic or Participative style of leadership is also known as group centered or

consultative leadership. Under this style leaders consult the group and solicit their

opinion and participation from the following in decision-making process. Leaders under

this style encourage discussion by the group members on the problem under

consideration and arrive at a decision by consensus. Two-way communication channel is

used. Participation or involvement in decision-making process is rewarded. Under this

style positive motivation techniques are used. Exchange of ideas among subordinates

and with the leader is given encouragement. Human values get their due recognition.

Leaders give more freedom to their subordinates.

Under this style subordinates feel that their opinions are honoured and they are

given importance. It develops a sense of confidence among subordinates and they derive

job satisfaction. It improves quality of decision as it is taken after due consideration to

valued opinions of the talented subordinates.

The demerits of this style of leadership is that it takes more time to arrive at a

decision. Leader has to waste lot of time in pursuing subordinates. If employees refuse

to work as a team with other members of the group renders the style of leadership

ineffective.

3. Laissez-faire or Free Rein Style

There is virtual absence of direct leadership under this style of leadership. It is,

therefore, known as “no leadership at all”. There is complete delegation of authority to

subordinates so that they can make decisions by themselves. Absence of leadership may

have positive and sometimes negative effects. Free rein leadership may be effective if

members of the group are highly committed. The negative aspect creates blemishes on

the leader himself because of his incompetency in leading his people. It casts aspersions

on the leader. Members feel insecure and develop frustration for lack of specific

decision-making authority.

4. Bureaucratic Style

This style of leadership centres round the rules. The behaviour of leader is

determined by rules, regulations and procedure under his leadership. These rules and

regulations are followed by the leader and the subordinates both. No one can escape.

Hence, the management and administration has become a routine matter. This is

apathetic to the employees because they know that they cannot do anything in this regard.

It is the rules that determine their minimum performance.

5. Manipulative Style

This leader style manipulates the employees to attain his objectives. Manipulative

leader is quite selfish and exploits the aspirations of the employees for his gains. He

knows very well the needs and desires of the employees but he does very little to fulfil

them. He views these needs and desires as a tool to fulfil his aims. He had to face the

resentment of the employees at times.

6. Paternalistic Style

The paternalistic style of leadership believes in the concept that the happy

employees work better and harder and maintains that the fatherly attitude is the right one

for better relationship between the manager and the employees. All are working together

like a family.

7. Expert Leadership Style

The expert leadership style emerged as a result of complex structure of modern

organisations. The leadership is based on the ability, knowledge and competence of the

leader. He handles the situation skillfully with his talent. The employees feel relieved as

they are working under a person who is expert and can handle the situation ably without

any problem.

In modern organisations not one kind and type of people are employed but a

human resources with different varieties of skill, knowledge and competences are

acquired. They differ in quality, determination and their attitude towards the

organisation. They exhibit different behaviours as they differ in attitude and outlook

also. The leader must understand their behaviour and accordingly can make use of the

various styles of leadership. The manager should assess the situation and adopt that style

of leadership which suits the most at that time. He should remember that leadership is

situational. If situation changes, the style of leadership should also change. The

successful manager leader is one who assess the situation, studies the psychology of the

subordinates and adopts the most useful style of leadership to lead the people at work to

accomplish the organisational goals.

Theories of Leadership

A number of theories and approaches to study leadership have been developed.

There are broadly three theories of leadership.

1. Trait Theory

2. Behaviour Theory

3. Contingency Theory

1. Trait Theory

This approach to studying leadership attempted to analyse the personal,

psychological and physical traits of strong leaders. The underlying assumption was that

some basic trait or set of traits differentiates leaders from non-leaders. For example, the

leadership traits might include intelligence, assertiveness, above-average height, self-

confidence, initiative and understanding of interpersonal human relations. The existence

of these traits became a measure of leadership. It holds that possession of these traits

permits certain individuals to gain possession of leadership. Since all individuals do not

have these qualities, only those who have them would be considered potential leaders.

Some of the weakness of this theory are:

all the traits are not identical with regard to essential characteristics of a leader;

some traits can be acquired by training and may not be inherited;

it does not identify the traits that are most important and that are least important in

identifying a successful leader;

it fails to explain the many leadership failures in spite of the required traits;

it has been found that many traits exhibited by leaders are also found among

followers without explaining as to why followers could not become leaders;

it is difficult to define traits in absolute terms.

Thus, the trait theory has been criticised for lack of conclusiveness, predictability

and over simplification.

2. Behaviour Theory

The behavioural theory assumed that effective leaders behaved differently from

ineffective leaders. It also attempted to identify the consistent patterns of behaviour of

good leaders.

The Michigan Studies:

Researchers at the University of Michigan, led by Rensis Likert, began studying

leadership in the late 1940s. Based on extensive interviews with both managers and sub-

ordinates, the Michigan studies identified two forms of leader behaviour. The first was

called job-centered leader behaviour which focuses on performance and efficient

completion of the task. A job-centered leader is likely to interact with group members

only to explain task procedures and oversee their work. The second behaviour was

identified as employee centered leader behaviour which focuses on high performance

standards which are accomplished by developing a cohesive work group and ensuring

that employees are satisfied with their jobs. Thus, the leader’s primary concern is the

welfare of the sub-ordinates. The Michagan researchers thought a leader could exhibit

one kind of behaviour, but not both. The two styles of leadership were presumed to lie at

opposite ends of a single continuum.

The Ohio State Studies:

At about the same time, a group of researchers at Ohio State also began studying

leadership. The Ohio State leadership studies also identified two major kinds of

leadership behaviours or styles: initiating-structure behaviour and consideration

behaviour.

In initiating-structure behaviour, the leader clearly defines the leader-subordinate

role so that everyone knows what is expected; the leader also establishes formal lines of

communication and determines how tasks will be performed.

In consideration-behaviour, the leader shows concern for sub-ordinates feeling’s

and ideas and attempts to establish a warm, friendly and supportive climate. Two-way

communication, trust and respect characterise relationship between considerate leaders

and their sub-ordinates.

The most obvious difference between Michigan and Ohio State studies is that the

Ohio State researchers did not position their two forms of leader behaviour at opposite

ends of a single continuum. Rather, they assumed the behaviours to be independent

variables which means that a leader could exhibit varying degrees of initiating structure

and consideration at the same time i.e. a particular leader could have higher ratings on

both measures, low ratings on both or high ratings on one and low on the other.

The Ohio State researchers found that a particular leader’s behaviour stayed fairly

consistent overtime, so long as the situation remained relatively constant. But the

researchers could not come up with a single best combination of initiating-structure and

consideration behaviour suitable to all the situations. At first the researchers believed

that leaders high in both types of behaviours would be most effective. However, their

studies at International Harvester found that leaders rated highly on initiating-structure

behaviour tended to have productive but dissatisfied sub-ordinates whereas leaders rated

highly on consideration had lower-performing sub-ordinates who showed some signs of

higher satisfaction.

Although most experts now agree that no single set of traits or behaviours appears

to be common to all good leaders, the universal approaches to leadership can help

managers examine their own leadership characteristics and match them against the traits

most commonly identified with good leaders. In order to understand the full complexity

of leadership, we have to turn to contingency approaches.

3. Contingency Theory

The main assumption of all contingency approaches is that appropriate leader

behaviour varies from one situation to another. The goal of a contingency theory is to

identify key situational factors and to specify how they interact to determine appropriate

leader behaviour.

The three most important and most widely accepted contingency theories of

leadership are

• the LPC Model;

• the Path-Goal Model; and

• the Vroom-Yetton-Jago Model

The LPC Model

Fred Fielder’s Least Preferred Co-worker (LPC) Model of leadership was the first

contingency theory of leadership. Fielder identified two styles of leadership: task-

oriented and relationship-oriented. Fielder believes that a leader’s tendency to be task-

oriented or relationship oriented is basically constant. In otherwords, a leader is

presented to be task-oriented or relationship-oriented all of the time.

Fielder used the Least Preferred Co-worker (LPC) scale to measure leader style.

A manager or leader is asked to describe characteristics of the type of person with whom

he or she is able to work least well - the LPC - by marking a set of sixteen scales

anchored at each end by a positive or negative adjective. For example, three of the scales

Fielder uses in the LPC are:

Helpful - - - - - - - - - - Frustrating

8 7 6 5 4 3 2 1

Tense - - - - - - - - - - Relaxed

1 2 3 4 5 6 7 8

Boring - - - - - - - - - - Interesting

1 2 3 4 5 6 7 8

The manager’s LPC score is then calculated by adding up the numbers below the

line checked on each scale. A high total score is assumed to reflect a relationship

orientation and a low score a task orientation on the part of the leader. The LPC measure

is controversial because researchers disagree about its validity. Some of them question

what LPC measure reflects - whether the score is an index of behaviour, personality or

some other unknown factor.

As already noted, the underlying assumption of contingency model of leadership is

that appropriate leader behaviour varies from one situation to another. According to

Fielder, the contingency factor is the favourableness of the situation from the leader’s

point of view. This factor is determined by leader-member relations, task-structure and

position power.

Leader-member relations refers to the nature of relationship between the leader

and his work group. If the leader and the group enjoy mutual trust, respect and

confidence and they like one another, relations are assumed to be good. If there is little

trust, respect or confidence and if they do not like one another, relations are assumed to

be bad. Good relations are assumed to be favourable and bad relations unfavourable.

Task-structure is the degree to which the group’s task is well defined. When the

task is routine, easily understood and unambiguous and when the group has standard

procedures and precedents to rely on, structure is assumed to be high. When the task is

non-routine, ambiguous, complex, with no standard procedures and precedents, structure

is assumed to be low. High structure is more favourable for the leader and low structure

is more unfavourable. If the task structure is low, the leader will have to play a major

role in guiding and directing the group’s activities. If the task structure is high, the leader

will not have to get so involved.

Position power is the power vested in the leader’s position. If the leader has the

power to assign work, administer rewards and punishment, and recommend employees

for promotion or demotion, position power is assumed to be strong. If the leader does not

have required powers, the position power is weak. From the leader’s point of view,

strong position power is favourable and weak position power is unfavourable.

Fielder and his associates conducted numerous studies linking the favourableness

of various situations to leader style and group effectiveness.

When the situation includes good relations, high structure and strong power,

Fielder has found that a task-oriented leader is most effective. However, when relations

are good but task structure is low and position-power is weak, a relationship-oriented

leader is predicted to be most effective.

A final point about LPC theory is that, Fielder argues that a leader’s style, as

measured by the LPC is essentially inflexible and cannot be changed i.e. a leader cannot

change his behaviour to fit a particular situation. When a leader’s style and the situation

do not match, Fielder argues, the situation should be changed to fit the leader’s style.

Fielder’s contingency theory has been criticised on the ground that LPC measure

lacks validity and that the assumption about the inflexibility of the leader behaviour are

unrealistic.

The Path-Goal Model

The path-goal model of leadership was associated with Martin Evans and Robert

House. Path-goal theory asserts that a leader can motivate sub-ordinates by influencing

their expectancies. Leaders can motivate sub-ordinates by making clear what they have

to do (the path) to get the rewards they desire (the goal). The path-goal model assumes

that leaders can change their style or behaviour to meet the demands of a particular

situation. This model identifies four kinds of leader behaviour - directive, supportive,

participative and achievement oriented. According to this model managers can adjust

their behaviour to include any four kinds of leadership behaviour mentioned above. For

instance, when encountering new group of sub-ordinates/ project, the manager may be

‘directive’ in giving guidance and instructions to sub-ordinates. Next he may adopt

‘supportive’ behaviour to foster group cohesiveness, to look after their needs and

ensuring that they get the rewards and benefits. As the group becomes more familiar

with the task and as new problems are encountered, the leader may exhibit ‘participative’

behaviour by which he can participate with employees in making decisions, and take their

suggestions etc. Finally, the leader may use ‘achievement-oriented’ behaviour to

encourage continued high performance of sub-ordinates.

Environmental characteristics are factors outside the sub-ordinate’s control, which

include task structure, the primary work group and the formal authority system. For

instance, when structure is high, directive leadership is less effective than when structure

is low. Sub-ordinates do not usually need their boss to continually tell them how to do an

extremely routine job. According to the path-goal theory, these environmental factors

can create uncertainity for employees. A leader who helps employees reduce such

uncertainity can motivate them.

Path-Goal Model of Leadership

Ofcourse, leaders do not always have control over environmental factors, but the

theory asserts that leaders can use the control they have to adjust the environment to

motivate sub-ordinates.

Sub-ordinates Personal

Characteristics

� Perceived ability

� Locus of control

Leader Behaviour

� Directive

� Supportive

� Participative

� Achievement

oriented

Sub-ordinates

Motivation to

perform

Environmental

Characteristics

� Task structure

� Authority system

� Work group

The Vroom-Yetton-Jago Model (VYJ Model)

The Vroom-Yetton-Jago model was first proposed by Vroom and Yetton in 1973

and was revised by Vroom and Jago in 1988. This model has a much narrower focus

than the path-goal model and it attempts only to help a leader determine the extent to

which employees should participate in the decision-making process.

The VYJ model argues that decision-effectiveness is best gauged by the quality of

decision and by employee acceptance of that decision. Decision quality is the objective

effect of the decision on performance. Decision acceptance is the extent to which

employees accept and are committed to decisions. To maximise decision effectiveness,

the VYJ model suggests that managers adopt one of five decision-making styles. The

appropriate style, in turn, depends on the situation. As summarised in the following

table, there are two autocratic styles (AI and AII), two consultative styles (CI and CII)

and one group style (GII).

Decision-Making Styles in the VYJ Model

Decision Style Description

A I Manager makes the decision alone.

A II Manager asks for information from subordinates but makes the

decision alone. Sub-ordinates may or may not be informed

about what the situation is.

C I Manager shares the situation with individual sub-ordinates and

asks for information and evaluation. Subordinates do not meet

as a group and the manager alone makes the decision.

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

situation but the manager makes the decision.

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

situation and the group makes the decision.

A = Autocratic; C = Consultative; G = Group

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

attributes of the problem under consideration. To address the questions, the manager

uses one of the four decision-trees. Two of the trees for use when the problem affects the

entire group (For example, a decision about new office facilities for the entire group) and

the other two are appropriate when the decision affects a single individual (for example, a

new office for that individual).

Moreover, one of each is to be used when the decision has to be made quickly

(because of some urgency in the situation) and the others are to be used when the

decision can be made more slowly and the manager wants to use the opportunity to

develop sub-ordinates decision-making abilities.

The VYJ model was criticized because of its complexity. Computer software has

been developed to aid managers in defining the situation, answering the questions about

the problem attributes and developing a strategy for decision-making participation.

Although the VYJ model is too new to have been thoroughly tested, evidence so far

indicates that this model can help managers choose the most effective way to involve

sub-ordinates in decision-making.

Other Contingency Approaches

In addition to these three major theories, other contingency models developed in

recent years are vertical-dyad linkage model and the life cycle model.

Vertical Dyad Linkage Model:

This model stresses the fact that leaders actually have different kinds of working

relationship with different subordinates. Each manager-subordinate relationship

represents one vertical dyad. The Vertical Dyad Linkage model suggests that leaders

establish special working relationships with a handful of sub-ordinates based on some

combination of respect, trust and liking. These people constitute the ‘in-group’. Other

subordinates remain in the ‘out-group’, who receive less of manager’s time and attention.

Those in the ‘in-group’ receive more the manager’s time and attention and also tend to be

better performers. Research shows that people in the ‘in-group’ tend to be more

productive and more satisfied with their work than ‘out-group’ members. It is not yet

certain, however, whether in-group status leads employees to be happier and work harder

or whether managers simply choose confident and industrious people for the in-group.

Life Cycle Model:

The life cycle model suggests that appropriate leader behaviour depends on the

maturity of the followers. In this context, maturity includes motivation, competence and

experience. The model suggests that as followers become more mature, the leader needs

to move gradually from high to low task orientation. Simultaneously, the leader’s

employee-oriented behaviour should start low, increase at a moderate rate and then

decline again.

Many managers are familiar with the life cycle theory because it is both simple

and logical. However, it has received little scientific support from researchers.

Emerging Perspectives on Leadership in Organisations

The new perspectives that have attracted attention are the concept of substitutes

for leadership and transformational leadership.

Substitutes for Leadership:

The existing leadership theories and models try to specify what kind of leader

behaviour is appropriate for different situations. They do not account for situations in

which leadership is not needed. The substitute concepts identify situations in which

characteristics of the sub-ordinate, the task and the organisation neutralise or replace

leader behaviours. For example, when a patient is delivered to hospital emergency room,

nurses, doctors and attendants all go into action instantly without waiting directive or

supportive leader behaviour from the leader of the emergency ward.

Several characteristics of the sub-ordinate may serve to neutralise leader

behaviour. For example, employees with much ability and experience may not need to be

told what to do. Similarly, a strong need for independence by the sub-ordinate may

render leader behaviour ineffective. A strong adherence to professional norms may also

neutralise leader behaviour.

Characteristics of the task that may substitute for leadership include routineness,

the availability of feedback and intrinsic satisfaction. When the job is routine and simple,

for example, the subordinate may not need direction. When the task is challenging and

otherwise intrinsically satisfying, the subordinate may not need or want support.

Organisational characteristics that may substitute for leadership include

formalisation, group cohesion, inflexibility and a rigid reward structure. When policies

and practices are formal and rigid, for example, leadership may not be needed.

Transformational Leadership

Another new concept of leadership goes by a number of labels - charismatic

leadership, inspirational leadership, symbolic leadership and transformational leadership.

This is a leadership that transmits a sense of mission, stimulates learning experiences and

inspires new ways of thinking.

Charisma is a form of interpersonal attraction. Charismatic people attract

followers and supporters naturally and this type of leader has great power over his/her

followers. Charismatic leaders tend to be self-confident, sure of their beliefs and ideals

and eager to influence others. The followers of a charismatic leader identify with the

leader’s beliefs, accept, trust and obey the leader without question and become

emotionally involved in contributing to the success of the group’s goals.

Leadership Skills

There is now recognition in both leadership theory and practice of the importance

of skills, how leaders behave and perform effectively. Although there are many skills,

such as cultural flexibility, communication, HRD, creativity, and self-management of

learning, the more research-based skills identified by Whetten and Cameron seem most

valuable. Their personal skills model, involving developing self-awareness, managing

stress, and solving problems creatively, and the interpersonal skills model, involving

communicating supportively, gaining power and influence, motivating others, and

managing conflict, are especially comprehensive and useful. Finally, the ore widely

recognised organisational behaviour techniques such as, training, job design and

behavioural management can also be effectively used by leaders.

Review Questions:

1. Explain trait theory of leadership.

2. Discuss Path-Goal model of leadership.

3. Do you think that you are flexible and able to change your style depending on the

situation?

4. What is transformational leadership?

5. State the skills required for an effective leader.

� � �

LESSON - 15

STRESS MANAGEMENT

Learning objectives:

After reading this lesson you should understand:

• Meaning of stress

• Sources of stress

• Consequences of stress

• Methods of managing stress

The nature of the job stress has been studied by scholars in a wide range of

academic disciplines. Physicians, psychiatrists, and researchers in management have all

studied its causes and its symptoms, and have defined the term in a variety of different

ways. For our purposes, stress is defined as “the reactions of individuals to new or

threatening factors in their work environments”.

Stress can be either positive or negative. Some new work situations can bring us

positive challenges and excitement, while others are very threatening and anxiety-

arousing. For example, the depression in the economy can create negative stress for sales

personnel, because they will be much more anxious about making sales commissions and

sales quotas. On the other hand, promotions to new jobs present employees with positive

stress. While employees may feel anxious about their new work assignments, they also

anticipate them eagerly and look forward to the additional challenges, rewards, and

excitement. In these cases, the new and uncertain job situations create positive stress

(also called eustress).

For every individual there is a optimum level of stress under which he or she will

perform to full capacity. If the stress experienced is below this optimum level, then the

individual gets bored, the motivational level to work reaches a low point, and apathy sets

in. If one operates in a very low stress environment and constantly experiences boredom,

the person is likely to psychologically or physically withdraw from work. Psychological

withdrawal will result in careless mistakes being frequently made, forgetting to do things,

and thinking of things other than work during work hours. Physical withdrawal will

manifest itself in increased rates of tardiness and absenteeism which may ultimately lead

to turnover. Though the optimum stress level is different for different individuals, each

individual can sense and determine how much stress is functional for him or her to

operate in a productive manner.

Research indicates that those who seem to effectively handle a high level of stress

possess one or more of the personality predispositions of high tolerance of ambiguity,

internal locus of control and self-esteem. A high tolerance for ambiguity allows

individuals to experience very little anguish while operating under conditions of

insufficient information or in an uncertain environment. People with an internal locus of

control also handle stress well since they feel they are in control of the situation, rather

than feeling controlled by the situation they are in. This makes it possible for them to

manage their environmental stress without experiencing its noxious effects. Those with

high self-esteem also handle stress with ease since a high self-concept and confidence in

their abilities allow them to develop positive attitudes towards the management of stress

and enables them to deal with stressful situations with calmness and clear thinking. The

more successfully one handles a stressful situation without panicking or getting

overwhelmed by it, the more confidently will the individual face further stressful

situations. Thus, it is possible to raise one’s capacity to handle stress with successive

situations.

Sources of Stress

Stress is a reality of our everyday life. There are both eustresses and distresses that

come from our work and non-work lives. As pointed out by Near, Rice, and Hunt (1980)

and Sekaran (1986), among others, the work and non-work domains of one’s life are

closely intertwined. The stresses and strains experienced in one domain are carried over

to the other. Thus, if one experienced much distress at work, that stress will be carried

over to the home, which will heighten the sense of awareness of even small distresses

experienced in the family sphere.

One major source of job stress is the job itself. The way the job is designed, the

amount of time pressure an individual faces, and the amount of expectations others have

of a person at work can all lead to job stress. Interpersonal relationships are a second

source of job stress. How much contact an individual has with coworkers and bosses,

how much time he or she deals with clients or consumers, and how pleasant those

interactions are all influence how much stress an individual experiences at work. Third,

problems in personal lives can spill over into the work environment, adding further

tension to an already stressful work situation.

Sources of Job Stress

� Job Characteristics

• Role ambiguity

• Role conflict

• Role overload

• Role underload

• Ethical Dilemmas

� Interpersonal Relationships

• Amount of contact with others

• Dealing with people in other departments

• Organizational climate

� Organisational Factors

� Personal Factors

• Career concerns

• Geographical mobility

• Rate of life change

Job Characteristics :

A major source of job stress is a person’s role in the organisation. A role is simply

the set of expectations that other people in the organisation have an individual in his or

her job. Supervisors, coworkers, customers and suppliers – all of these people expect an

individual to behave in certain predictable ways. Often, the expectations others have of

an employee are unclear, in conflict, or too high for the employee to meet within the time

allotted, and he or she experiences stress.

Role Ambiguity :

When there is a lot of uncertainty surrounding job definitions or job expectations,

people experience role ambiguity. With the recent increase in mergers and acquisitions

among major corporations, for instance, more and more employees are experiencing job

stress as a result of role ambiguity. Role ambiguity is anxiety-arousing to employees,

and they consequently experience job stress.

Role Conflict :

Often employees discover that different groups of people in an organisation have

widely varying expectations of them, and that they cannot meet all these expectations.

This inconsistency of expectations associated with a role is called role conflict, which

results in stress.

Role Overload :

Role Overload is a situation in which employees feel they are being asked to do

more than time or ability permits. Working under time pressure is especially stressful.

Role Underload :

Role Underload is the condition in which employees have too little work to do or

too little variety in their work. Salespeople in a store with no customer, standing around

all day with nothing to do, could be said to experience role underload.

Ironically, role underload lead to many of the same problems as role overload: low

self-esteem; increased frequency of nervous symptoms and complaints; increased health

problems.

Ethical Dilemmas :

Ethical dilemmas such as whether or not one should report the observed unethical

behaviours of another person can cause extreme levels of stress in individuals. This will

be especially true for those who have strong moral values of right and wrong and a deep

sense of personal and corporate social responsibility. Tensions arise because one might

have to contend with whistle blowing against one’s own colleagues who might be close

friends, and may fear reprisal and other undesirable consequences which have to be pitted

against one’s sense of duty and loyalty to the organisation.

Interpersonal Relationships

A second major source of stress in organisations is poor interpersonal relationships

with others, be they supervisors, subordinates, coworkers, or clients. When interpersonal

relationships at work are unpleasant, employees develop a generalised anxiety, a diffuse

feeling of dread about upcoming meetings and interactions. Three aspects of

interpersonal relationships at work, in particular, have a negative impact on job stress:

1. Amount of contact with others: Jobs vary in terms of how much interpersonal

contact is built into them. Too much prolonged contact with other people can cause

stress.

2. Amount of contact with people in other departments: Having contacts with people

outside one’s own department creates a special sort of stress. People in other

departments do not always have an adequate understanding of jobs outside their own

areas. This causes stress.

3. Organisational climate: The overall psychological climate of the organisation can

create stress. When day-to-day life in an organisation is marked by unfriendly,

distant, or hostile exchanges, employees are continually tense and this causes stress.

Organisational Structural Factors

Work environment factors such as noise, heat, poor lighting, radiation and smoke

are stress-inducing agents. Insufficient resources such as time, budget, raw materials,

space or manpower are additional stressors in the work environment. When one has to

produce and perform with inadequate resources on a long-term basis, this naturally

imposes stresses and strains on the individuals who are responsible for getting the job

done. In addition, other structural factors in the organisational setting such as staff rules

and regulations and reward systems which are not platable to individuals may act as

stressors. The lack of career promotion in organiations may be additional organisational

stressors.

Certain types of interactions with significant forces in the external environment of

the organisation can also be sources of stress. These stresses may arise out of the

unreasonable expectations of external agents in the form of unrecorded money or gifts

before they would be willing to cooperate. Other environmental stressors include sudden

and unanticipated changes in the market place, technology, the financial market and so

on.

Personal Factors

Frequently, employees’ personal lives have a marked effect on their lives at work.

If things are going well personally, they are more likely to be upbeat and optimistic.

They have more energy and patience for dealing with problems at work. On the other

hand, if employees are having some personal problems, they might be more tense or

distracted when they go to work.

Three factors, in particular, influence how much stress people bring from their

personal lives to the work setting:

1. Career Concerns: One major career concern that can cause stress is lack of job

security. A second career concern that can cause employees stress is status

incongruity, i.e., having jobs with less status (power, prestige) than they think they

deserve.

2. Geographical Mobility: Geographical moves create stress because they disrupt the

routines of daily life. When geographical moves are undertaken as part of a job

transfer, the moves can be even more stressful. The transferred employees are likely

to feel out of control at work, too, and experience their new work environments as

unpredictable.

Consequences of Job Stress

Distress experienced by individuals has negative consequences for them, their

families and for the organisations they serve.

Consequences for the Individual

The impact of distress on individuals has subjective, cognitive, physiological,

behavioural and health facets to it.

The subjective or intrapersonal effects of stress are feelings of anxiety, boredom,

apathy, nervousness, depression, fatigue, anger, irritability and sometimes aggressive

behaviours on the part of the individual experiencing the stress.

The cognitive effects include poor concentration, short attention span, mental

blocks and inability to make decisions.

The physiological effects can be seen in increased heart and pulse rate, high blood

pressure, drynessof throat, and excessive sweating.

The behavioural consequences are manifest in such things as accident proneness,

drinking; excessive eating, smoking, impulsive behaviours, depression, and withdrawal

behaviours.

The manifest health effects could be stomach disorders, asthma, ecsema, and other

psychosomatic disorders. In addition, the mental health, i.e. the ability to function

effectively in one’s daily life, will also decline as excessive stress is experienced.

Consequences for the Family

Distress which is handled by individuals in dysfunctional ways, such as reasoning

to drinking or withdrawal behaviours, will have an adverse effect on their home life.

Spouse abuse, child abuse, alienation from family members, and even divorce could

result from dysfunctional coping mechanisms.

Consequences to Organisations

The organisational effects of employee stress are many. The adverse

consequences include low performance and productivity, high rates of absenteeism and

turnover, poor decision-making, lost customers because of poor worker attitudes,

increased alienation of the worker from the job, and even destructive and aggressive

behaviours resulting in strikes and sabotage. The stresses experienced by employees who

take on critical roles and are responsible for safety can sometimes be detrimental to the

public. For instance, the stresses experienced by a train driver or railway guard, or that of

an airline pilot, navigator, or air traffic controller may result in serious accidents.

Needless to say that the costs of employee stress to the organisation in terms of lost

profits, poor image and loss of future business are enormous.

STRESS MANAGEMENT

Stress is a factor that everybody has to contend with on a daily basis both in the

work and non-work spheres of life. Since the body has only a limited capacity to respond

to stress, it is important for individuals to optimally “manage” their stress to operate as

fully functioning human beings.

There are several ways in which stress can be handled so that the dysfunctional

consequences of stress are dissipated. Some of them are:

Role Analysis Technique (RAT)

The Role Analysis Technique as it is referred to helps both the manager and the

employee to analyse what the job entails and what the expectations are. Breaking down

the job to its various components clarifies the role of the job incumbent for the entire

system. This helps to eliminate imposing overload can thus be considerably reduced

through this technique and stress levels lowered for the individual.

Job Relocation

Job relocation assistance is offered to employees who are transferred, by finding

alternative employment for the spouses of the transferred employees and getting

admissions in schools for their children in the new place. These arrangements help to

reduce the anxiety and stress for the moving family.

Recreational Programme

Providing recreational facilities, arranging group meditation programmes, help to

reduce the stress levels of the employees.

Employee Assistance Programme

Another widely used strategy is the employee assistance programmes which offer

a variety of assistance to employees. These include counselling employees who seek

assistance on how to deal with alcohol and drug abuse, handling conflicts at the work

place, dealing with marital and other family problems, dealing with other kinds of

stresses and coping with health problems.

Career Counselling

Career Counselling helps the employee to obtain professional advice regarding

career paths that would help the individual to achieve personal goals. It also makes the

employees aware of what additional educational qualifications or specialised technical

training, if any, that they should acquire. By becoming knowledgeable about the possible

avenues for advancement, the employees who consider their careers to be important, can

reduce their stress levels by becoming more realistic about their options and can start

preparing themselves for it.

Time Management

Another way of coping with stress is to manage time more effectively. People can

learn to get better organised so that they can do their work more efficiently and fritter

away less time needlessly.

Delegation

Another way of coping with job stress is to delegate some responsibilities to

others. Delegation can directly decrease work demands put upon the manager and helps

to reduce the stress.

Getting more Information and Help

Some new employees work three times longer on a job than necessary rather than

admit they are not sure what they are doing. It is much more efficient, effective, and

anxiety-reducing to get some help before doing the work.

Health Maintenance

Probably the most frequently used organisational stress management program is

health maintenance. Many companies invest large sums of money in gym and sport

facilities for maintaining the health of the employees.

Supervisor Training

Another type of stress management programme that organisations are

experimenting with is supervisor training. The emphasis on supervisory training

programme is how to prevent job stress. Managers are trained to give better performance

appraisals, to listen to employees’ problems more effectively, and to communicate job

assignments and instructions more clearly.

Individual Stress Reduction Workshops

Some organisations have also sponsored individual stress reduction workshops for

their employees. These programs have run the gamut from bio-feedback, sensitivity

groups and transcendental meditation to career counselling, time management and

interpersonal skills workshops. In lectures and seminars, participants are given a basic

understanding of the causes of stress and its consequences for their well-being. Then,

participants are given materials to help them identify the major sources of stress in their

own lives, and some strategies for dealing with that stress more effectively.

In the final analysis, then, the management of stress lies by necessity with the

individual. Even if organisations continue to remain active in stress management

programmes, ultimately it is the individual who has to be responsible for his or her own

well-being.

Review Questions:

1. What is job stress? Can stress be positive? What are some factors in your life that are

stressful in a positive sense?

2. What are the causes of stress?

3. What are the consequences of job stress?

4. What are the most frequently used organisational programs to manage stress?

� � �

LESSON – 16

POWER AND POLITICS

Learning Objectives After reading this lesson, you should be able to:

• Know the meaning and sources of power

• Understand how people use power

• Discuss how people use political behaviour in organisations

• Understand the techniques of political behaviour

Power is easy to feel but difficult to define. It is the potential ability of a person or

group to influence another person or group. It is the ability to get things done the

way one wants them to be done. Both formal and informal groups and individuals

may have power; it does not need an official position or the backing of an

institution to have power. Influence can take many forms. One person has

influenced another if the second person’s opinions, behaviour or perspectives have

changed as a result of their interaction. Power is a factor at all levels of most

organisations. It can be a factor in almost any organisational decision.

Power and Authority Sometimes power and authority are used synonymously because of their objective

of influencing the behaviour of others. However, there is difference between the

two. Power does not have any legal sancity while authority has such a sanctity.

Authority is institutional and is legitimate. Power, on the other hand, is personal

and does not have any legitimacy. But still, power is a crucial factor in influencing

the behaviour in organisational situation.

Sources of Power John R.P. French and Bertram Raven identified five bases or sources of power:

legitimate, reward, coercive, expert and referent power.

Figure:

Legitimate Power: A person’s position within organisation provides him with legitimate power. The

organisation gives managers the power to direct the activities of their subordinates.

Legitimate power is similar to formal authority and hence it can be created,

granted, changed or withdrawn by the formal organisation. The structure of the

organisation also identifies the strength of the legitimate authority by position

location. For instance, higher-level positions exercise more power than lower-

level positions in a classical hierarchial organisational structure. Organisations

vary in how much legitimate power they grant to individuals. In such

organisations, everyone knows who has the most power and few people challenge

the power structure.

Reward Power: This type of power is the extent to which one person has control over rewards that

are valued by another. The greater the perceived values of such rewards, the

greater the power. Organisational rewards include pay, promotions and valued

office assignments. A manager who has complete control over such rewards has a

good deal of power. Manager who uses praise and recognition has also a good

deal of power.

Coercive Power: People have coercive power if they have control over some form of punishment

such as threat of dismissal, suspension, demotion or other method of

embarrassment for the people. Perhaps, a manager can cause psychological harm

also to an employee. A manager’s coercive power increases with the number and

severity of the sanctions over which the manager has control. Although the use of

coercive power is often successful in the short run, it tends to create resentment

and hostility and therefore is usually deterimental to the organisation in the long

run.

Expert Power: It is more of personal power than organisational power. Expert power is that

influence which one wields as a result of one’s experience, special skill or

knowledge. This power occurs when the expert threatens to withhold his

knowledge or skill. Since any person who is not easily replaceable has more

power as compared to those who are easily replaceable. If the sub-ordinates view

their superior as competent, and knowledgeable, naturally they will obey and

respect the superior. To the extent, that a low-ranking worker has important

knowledge not available to a superior, he is likely to have more power.

Referent Power:

A person who is respected by certain others for whatever reason has referent power

over those people. A person with referent power may have charisma and people

who respect that person are likely to get emotionally involved with the respected

person and identify with, accept and be willing to follow him or her. People with

referent power are often imitated by others with the star’s actions, attitudes and

dress. This imitation reflects the rising star’s power over the imitations.

How People Use Power An individual manager may have power derived from any or all of the five bases of

power and the manager may use that power in different ways. Therefore, good

managers must try to analyse the sources of their power and be careful how they

use that power.

The work of Gary Yukl provides both a way to predict the consequences of certain

uses of power and guidelines for using power. The following table lists the five

sources of a leader’s power and some of the variables that are likely to lead to three

general types of employee responses or outcomes - commitment, compliance and

resistance - when the leader uses the power. For instance, the table shows that a

leader’s use of referent power will lead employees to be committed to the leader’s

project if they see that the project is important to the leader. However, a leader

who relies on coercive power is very unlikely to have committed employees.

Using Legitimate Power The use of legitimate power is seldom challenged in an organisation; when a

superior asks a sub-ordinate to do something, the sub-ordinate usually complies

without resistance. However, the way the superior makes the request and follows

it up are very important for ensuring the sub-ordinate’s future compliance and the

growth of the superior’s referent power. Though the secretary does what the boss

asks, still the boss could be cordial and polite when making requests and should

whenever possible explain why a particular task needs to be done. The secretary

who understands the importance of a task will be more likely to work

enthusiastically on it.

The boss must follow normal procedures and make sure the request is appropriate.

For instance, a vice-president whose secretary is busy should not assume that he or

she can just ask a supervisor’s secretary to drop all other work and type a letter.

Such by passing of the normal chain of command can cause hard feelings among

all the people involved.

Most of these suggestions imply that managers must be sensitive to employees

concerns. Managers who are insensitive to their employees may find that their

legitimate power dwindles and that they must resort to coercive power.

Using Reward Power

The manager, before giving a reward, must be sure that the employee has actually

done the job and done it well. Employees must know that they get rewarded for

good work.

Using Coercive Power

For some people, using coercive power is a natural response when something goes

wrong. But often employees resist coercive power, resent it and losing respect for

people using that type of power. Hence, coercion is now generally recognised to

be the most difficult form of punishment to use successfully in an organisation.

Managers who wish to maintain their credibility should make threats only when

they intend to carry through on them and should never threaten a punishment that

they cannot bring about. A good manager will be such that the punishment fit the

crime. For instance, warning an individual who uses copying machine to make

personal copies but firing someone who steals equipment from the organisation.

Public punishment makes everyone uneasy and humiliating and hence should be

done private.

Using Expert Power To gain power from their expertise, managers must make people aware of how

much they know. Manager can use his expert power most effectively to address

employee concerns. If a particular sales person faces any difficulty in selling a

particular product and turns to manager for his help, the manager must be able to

identify the defect and must be able to help and educate him.

Using Referent Power Leaders have traditionally strengthened their referent power by hiring employees

with backgrounds similar to their own. One of the most positive and subtle uses of

referent power is the process of role modelling. A respected manager who wants

her employees to be punctual, considerate and creative can simply demonstrate

those behaviours herself and her employees will likely imitate her actions.

Political Behaviour and Organisational Politics

Power and politics are inextricably interwoven with the fabric of an organisation’s

life. In any organisation, at any given moment, a number of people are seeking to

gain and use power to achieve their own ends. This pursuit of power is political

behaviour. Organisational politics refers to the activities carried out by people to

acquire, enhance and use power and other resources to obtain their preferred

outcomes in a situation where there is uncertainity or disagreement. One great

organisational scholar, Tushman defined politics, ‘as the structure and process of

the use of authority and power to affect definition of goals, directions and the other

major parameters of the organisation. Decisions are not made in rational or formal

way but rather through compromise accommodation and bargaining.

Managing Political Behaviour

The very nature of political behaviour makes it difficult to manage or even

approach in a rational and systematic manner. However a manager who

understands why people use political behaviour and the techniques people usually

employ has the best chance to manage political behaviour successfully.

People use political behaviour in organisations in response to the five main factors:

� Ambiguous goals

� Scarce resources

� Technology and the environment

� Non-programmed decisions

� Organisational change

Factors Influencing Political Behaviour

Ambiguous Goals: When the goals of a department or the entire organisation are ambiguous then there

is more room available for playing politics. Some people may use the ambiguity to

manipulate the situation for their benefit.

Scarce Resources: When resources are scarce, people have the tendency to use political behaviour to

make sure that they get the biggest possible share of the resource.

Changes in Technology and Environment: Organisational effectiveness is largely a function of the organisation’s ability to

appropriately respond to external environment which is highly dynamic and

generally unpredictable as well as adequately adopt to complex technological

developments. Thus, political behaviour is increased when the internal technology

is complex and when external environment is highly volatile.

Non-Programmed Decisions: Sometimes, the companies have to make a lot of non-programmed decisions on

certain issues. These decisions are not based on clear standards and precedents,

because such issues involve many factors and variables that are complex in nature.

Hence decisions are taken on intuition, hunches and guesses and all these

subjective feelings can be affected by political behaviour.

Organisational Change: Whenever there are changes in the organisational structure and policies, peoples in

powerful positions have the opportunity to play politics. These changes may

include restructuring of a division or creating a division, personnel changes,

introducing a new product line and all these changes influence political behaviour

when various individuals and groups try to control the given situation.

It is widely accepted that managers have to be politicians in order to maintain their

positions in the organisational hierarchy as well as serve the interests of their units.

Pfeffer, who has done extensive research on the subject of power in organisations,

states as follows:

“If there is one concluding message, it is that it is probably effective and it is

certainly normal that these managers do behave as politicians. It is even better that

some of them are quiet effective at it. In situations in which technologies are

uncertain, preferences are conflicting, perceptions are selective and biased and

information processing capacities are constrained, the model of an effective

politician may be an appropriate one for both the individual and for the

organisation in the long-run”.

Techniques of Political Behaviour The most commonly used techniques of political behaviour are:

• Controlling information

• Controlling lines of communication

• Controlling agenda

• Using outside experts

• Game playing

• Image building

• Building coalitions

One technique of political behaviour is to control the dissemination of critical

information to others. The more critical the information and fewer the people who

have it, the stronger is political power base of those who possess these information.

Controlling lines of communication is another political technique related to the

flow of information. People who have some control over lines of communication

can yield considerable political power. For example, the secretary may have

considerable power in deciding who sees the boss and who does not at a given

time. She may use this power in favouring those whom she likes and frustrating

those against whom she may have a grudge.

Controlling the agenda also gives a person power over information. The person

who controls a meeting’s agenda, for instance, may consistently put a particular

item last on the list and then take up time so that meeting adjourns before

considering the item.

The opinions of outside experts and consultants often carry much weight in

organisations and many consultants can be swayed by political interests.

Consultants know who is paying them and even honest consultants are likely to

give opinions consistent with those of their employer. Hence, hiring an outside

consultant can be a clever political move.

Game playing can range from fairly innocent to very manipulative. It involves

people doing something insincere, but not outright illegal or unethical to gain

political ends. For instance, a manager who does not want to answer a

committee’s tough questions may, for instance, avoid meeting by going out of the

town on the day of meeting.

Image building is creating positive impression reflected by the personality,

appearance and style. Some of the factors that enhance a preferred image consist

of being well dressed, having a pleasant smile, being attractive, honest, sociable

and loyal to the organisational interests. In addition, always project an image of

competence and self-assurance.

Building coalitions or alliance is another technique of gaining political power. It is

necessary to have the alliance with the right people. Coalition building can

become simply a matter of quid pro quo: I will support you if you will support me.

Managing Political Behaviour Thought it is virtually impossible to eliminate political behaviour in organisations,

it is possible to reduce it, if a manager understands the reasons for and the

techniques of political behaviour. Politics when carried to the extreme can damage

morale, create enemies, destroy loyalty, damper co-operative spirit and much time

and energy is spent planning attacks and counter attacks which are detrimental to

organisational health. Accordingly, combating politics must be undertaken by the

top management and some of the steps that can be undertaken are: open

communication, reduction of uncertainty and creating awareness.

Open communication can reduce the political activity if all employees know how

and why an organisation allocates resources, the employees will be likely to put

their energy into meeting the stated criteria for getting resources rather than into

political activity. If the organisation is open about why it made particular decision,

then employees will be less likely to think that the decisions were political and less

likely to use political techniques to try to influence the next decision.

Uncertainty in the form of ambiguous goals and changes that affect the

organisation tends to increase the use of political activity. Reducing such

uncertainty can, therefore, reduce the political behaviour. Open communication is

one of the ways an organisation can reduce uncertainty. For instance, laying down

clear criteria and making it transparent to the employees who will be laid off, in

case of lay off, the organisation can reduce political behaviour.

Finally, managers who develop an ability to recognise and predict political activity

are in the best position to limit its effects. Managers with this awareness will

expect an increase in political activity during times of organisational change and

will learn how to handle it.

Review Questions : 1. What are the sources of power?

2. How people use power?

3. Identify the basic reasons for using political behaviour.

4. How to manage political behaviour?

� � �

LESSON - 17

ORGANISATIONAL DESIGN

Learning Objectives

After reading this lesson, you should be able to:

• Identify the determinants of organisational design

• Discuss the forms of organisational design

Organisational design is the overall configuration of structural components that

defines jobs, groupings of jobs, the hierarchy, patterns of authority, approaches to co-

ordination and line-staff differentiation into a single, unified organisational system.

Consider, for example, the differences in organisational design that might exist between a

computer manufacturer and a University. Because the computer manufacturer has to

respond to frequent technological breakthroughs and changes in its competitive

environment, it is likely to have a relatively flat, decentralised design. The university, in

contrast, has a somewhat more stable environment and is less affected by technology.

Thus it may have a taller, more centralised structure with numerous rules and regulations.

Determinants of Organisational Design

The key situational determinants of organisational design are technology, the

organisational environment and organisation size and life cycle.

Technology:

Technology is the set of processes that an organisation uses to transform various

resources such as materials and labour into products or services. One of the first people

to see the link between technology and organisational design was Joan Woodward. In

particular, Woodward defined three basic types of technology.

1. In unit or small-batch technology, products are either made to customer specifications

or produced in small quantities. Examples are printing press, studios etc.

2. In large batch or mass-production technology, products are manufactured in

assembly-line fashion by combining component parts to create finished goods.

Examples are home-appliance, automobile and computer manufacturers.

3. In continuous-process technology, products are transformed from raw materials into

finished goods through a series of machine transformations that change the

composition of the materials themselves. Examples are petroleum refineries, food

processors and chemical manufacturers.

Woodward viewed unit or small-batch technology as the least complex and

continuous process as the most complex. She found that organisations within each set

had similar designs but the designs varied somewhat from set to set.

Burns and Stalker argued that managers should examine the rate of change in

technology to determine the best organisational structure. They recommended a

bureaucratic or mechanistic structure for organisations with slowly changing technology

and an organic, flexible structure for organisations with rapidly changing technology.

Charles Perrow concluded that the key question concerning an organisation’s

technology is whether it is routine or non-routine. In his view, a highly formalised

centralised structure is appropriate for an organisation that uses the same routine

technology while a more flexible structure is necessary for an organisation that uses new

technology often.

An organisation that uses continuous process, non-routine or intensive technology

needs to ensure that its structure can adapt to changes in the technologies. Technology

can affect all aspects of an organisation, not just production, and the same technological

change can have very different effects on different organisations.

Environment:

The environment also influences the type of design an organisation is likely to

adopt. The environment of an organisation consists of all the factors and conditions

outside the organisation that might affect it, which include people (customers,

shareholders, inspectors), other organisations (competitors, legislatures and regulatory

agencies), economic factors (interest rates, unemployment rate, finance), objects

(buildings, machines etc.) and events (elections, war, floods etc).

If the managers are good at analysing and predicting changes in the environment,

they can help the organisation adjust to take advantage of any changes. Environmental

factors can affect the structure of an organisation as the organisation’s leaders try to adapt

to changes in competition or technology. Because the environment affects organisations

both directly and indirectly, managers must keep an eye on it and be ready to modify the

organisation’s design to respond to environmental changes. For instance, the more

unstable and dynamic the environment, the organisation should establish more sub-units

or departments. If the organisations environment is relatively stable and predictable less

differentiation is appropriate.

Organisational Size and Life Cycle

Organisation size refers to how large the organisation is, usually, in terms of the

number of its full-time employees. Life cycle is the organisation’s maturity relative to

that of other organisations.

Size can affect organisation design in many different ways. A group of

researchers in England found that large organisations tend to have more job

specialisation, more standard operating procedures, more rules and regulations, and more

decentralisation than small organisations. Thus, as organisations grow in size, they

should be prepared to adapt their design accordingly.

An organisation’s life cycle is related to its size. Organisations tend to follow a

fairly predictable pattern of growth. After they are created, they grow for some period of

time and then eventually stabilise as a mature organisation.

To summarise, the organisation design needed by a small but rapidly growing

business is different from the organisation design needed by an established and

entrenched industry giant growing at a stable and predictable rate. An organisation’s life

cycle and growth rates are directly linked to the strategy that the organisation is pursuing.

Contemporary Forms of Organisational Design

Every organisation has its own unique design. As discussed above, depending on

the technology it uses, the limits and potentials of its environment and the life cycle stage

it occupies, each organisation creates varying configurations of specialisation,

departmentalisation and co-ordination that best fit its circumstances. In the midst of all

its uniqueness, however, one can discern five basic structural arrangements that generally

describe the designs adopted by many organisations.

The U-Form Organisation

The U-form organisation (the U stands for Unity), also called ‘functional design’

relies almost exclusively on the functional approach to departmentalisation. Members of

the organisation who perform the same functions are grouped together into departments.

Such organisation to operate smoothly, perfect co-ordination is essential among the

departments, since each department is highly dependent on another.

The U-form design has several advantages. It allows the organisation to staff each

department with experts. It also facilitates wide spans of management and allows the

Managing Director to maintain centralised authority.

However, the U-form design slows decision-making and employees within each

department may concentrate on their own function forgetting overall organisational goals.

It tends to make it hard for organisation to monitor the performance of individual

managers within each functional area.

When the organisations grow, organisations often find that the disadvantages of

the U-form tend to become more significant and adopt different designs as they evolve

through their life cycles.

Manager

Production

Manager

Finance

Manager

Marketing

Manager

Human Resources

Manager

R & D

Managing Director

The H-Form Organisation

The H-form organisation (the H stands for Hybrid) is sometimes called a

conglomerate. The design relies on product departmentalisation with the various

products actually constituting different businesses. This design usually results from the

corporate strategy of unrelated diversification of the products.

This design has two advantages. First such an organisation can protect itself from

cyclical fluctuations in a single industry. The loss in one product may be compensated by

a profit in another. A second advantage is that the organisation can buy and sell its

individual businesses with little or no disruption to the others.

The main drawback is that this form of organisation is so complex and diverse that

top managers have difficulty in knowing the knowledge of all products.

The M-Form Organisation

The M-form organisation, also called the divisional design, is similar to the H-

form design but has one notable distinction. Most or all of its businesses are in the same

or related industries. For example, an organisation with an M-form design might own

one business that makes automobile batteries, another that makes tires and still another

that makes car polish. Each is distinct from others but also related in that each makes

products of value to automobile owners. Thus, the M-form design is used to implement a

corporate strategy of related diversification.

A primary advantage of the M-form organisation is that it can achieve a great deal

of synergy in its operations. A consumer familiar with a firm’s batteries, for example,

may be inclined to buy its tires and car polish. Moreover, because the various units are

in the same or related industries, it is easy for top managers to understand, co-ordinate

and control them. However, if the businesses are too closely related, the organisation

cannot escape from the effect of cyclical fluctuations.

Manager

Cosmetics

Manager

Steel Furnitures

Manager

Office Equipments

Manager

Household Appliances

Managing Director

The Matrix Organisation

A matrix organisation is created by overlaying product based departmentalisation

on to a functional structure. A matrix design is seldom used for an entire organisation, it

is often used for a portion of it.

Design of a Matrix Organisation

A matrix design allows an organisation to capitalise on the advantages of both

functional and product departmentalisation. It has also some drawbacks. Since such an

organisation lacks a clear chain on command, confusion may result about which manager

has authority over a given employee. The organisation also has to devote more resources

to co-ordination because of high levels of interdependence that result from a matrix.

Manager

Production

Manager

Finance

Manager

Marketing

Managing Director

Product ‘B’

Product ‘C’

Product ‘A’

Global Organisation

A multinational organisation must modify and adapt its design to allow it to

function effectively. Nestle, for example, is a big multinational company and highly

decentralised. Its organisational design is like an umbrella. Each of Nestle’s companies

scattered around the world is operated by its own general managers who is empowered

with a great deal of autonomy and authority to make decisions. In effect, Nestle is really

almost a confederation of independent operating companies. Its design is similar to the

M-form but because the operating units are so far apart there is little synergy.

It is to be remembered that there is no one best form of design that all

organisations should adopt. Each organisation has to carefully assess its own strategy, its

strengths and weaknesses, its history, its technology, environment, life cycle and size. It

must then choose a design that fit these elements most effectively. But that design will

also need to be further tailored.

Review Questions:

1. What is organisational design? What are the determinants of organisational design?

2. Briefly explain different forms of organisational design.

� � �

LESSON - 18

ORGANISATIONAL CULTURE AND CLIMATE

Learning Objectives

After reading this lesson, you should be able to:

• Define organisational culture and explain its importance

• Identify the factors affecting organisational climate

Organisational culture is the set of values that defines for members what the

organisation stands for, how it operates and what it considers important. According to

Deal and Kennedy, a strong culture is, “a system of informal rules that spells out how

people are to have most of the time”. Schein defines organisational culture as the pattern

of basic assumptions that a given group has invented, discovered or developed in learning

to cope with its problems of external adaptation and internal integration.

All of the above definitions involve the firm’s values, its sense of what is right and

wrong, acceptable and unacceptable. For instance, one company might value solidarity

and loyalty to the company above all else, while another company might stress that good

relations with customers are most important. Such values are part of an organisation’s

culture instead of its rules and regulations because they are not written down. They do

not usually appear in the organisations training programme and in fact many

organisations have difficulty articulating their cultural values. As the unwritten code, an

organisation’s values enter into every employee’s own values and actions. Newcomers

learn in subtle ways what they should and should not do. Organisational culture may

have such a profound influence on individual employees precisely because it is an

implicit, generally accepted sets of values, rather than an explicit, written set of rules with

which employees might argue.

Importance of Culture

Culture plays a very significant role in any organisation by communicating

information about acceptable and unacceptable behaviour. Culture can communicate

whether the organisation expects its managers to be aggressive or conservative in making

decisions, to provide generous, or modest support to social causes or to be ruthless or

amiable in their competitive dealings.

Some organisations have clear, strong and well defined culture. Others have

ambiguous, weak and poorly defined cultures. Most managers agree that a strong and

clear culture is preferable because it helps provide a common frame of reference for

managerial decision-making and a wide variety of other organisational activities.

An organisation’s culture generally takes shape over time and is often deeply

influenced by the values of the company’s founders. As organisational culture evolves,

various symbols, stories, heroes, slogans and ceremonies also come into being. These,

then, serve to maintain and perpetuate the culture through subsequent generations of

employees.

Changing Organisational Culture

Of course, it is sometimes necessary to change culture. Change is most often

needed when the organisation has lost its effectiveness and is struggling either to carry

out its strategic goals or perhaps to change them altogether. The manager trying to

change an organisational culture faces a very difficult task. Organisational cultures are

by definition difficult to change. Because they embody the organisation’s values, they

are in effect the organisation’s soul, the part of the organisation that stays stable through

changes in leadership and environment.

It is, however, possible to change organisational culture, to make it performance

enhancing. Managers must change employee’s ideas about what is and what is not

appropriate behaviour. They must create new role model heroes and new stories to help

employees understand the meaning of what is happening around them. One way to bring

about such changes is to manage the symbols that are important to the organisation. A

company’s suggestion box is a symbol of the company’s openness to employee’s ideas

and some companies try to emphasise the importance of those ideas by rewarding

employees for their suggestions. But if the suggestion box remains just a symbol and the

company never translates the suggestions into actions, the box will have little effect on

company morale and employee’s sense of their importance. Cultural changes can be

brought about by creating new organisational heroes, by promoting or rewarding

employees who have the best quality record or the best relationships with customers.

Once successfully made, changes in the organisational culture will be as stable as

the old culture was. But any organisation wanting to change its culture must realise that

such a change is never easy and will not be brought about simply by putting out

directives to employees.

Organisational Climate

Even though organisational culture and organisational climate are sometimes used

interchangeably, there are certain differences between the two. According to Bowditch

and Buono, ‘Organisational culture is concerned with the nature of beliefs and

expectations about organisational life, while climate is an indicator of whether those

beliefs and expectations are being fulfilled’. Organisational climate is a relatively

enduring quality of the internal environment that is experienced by its members,

influences their behaviour, and can be described in terms of the values of a particular set

of characteristics.

It is a set of characteristics and factors that are perceived by the employees about

their organisations which serve as a major force in influencing their behaviour. These

factors may include job descriptions, organisational structural format, performance and

evaluation standards, leadership style, challenges and innovations, organisational values,

culture and so on.

Factors Affecting Organisational Climate

In every organisation there exist certain elements that exert profound influence on

the climate. Schneider and Bartlett describes six items that have influence on

organisational climate such as managerial support, inter-agency conflict, agent

dependence and general satisfaction. Lawrence James and Allan Jones have identified

five factors influencing climate which include management philosophy, organisational

structure, process which include communication, motivation and leadership, physical

environment and values and norms. Similarly Kahn has identified five factors such as

rules orientation, the nurturance of subordinates, closeness of supervision, universalism

and promotional achievement orientation. Thus, it is very difficult to generalise exactly

the factors affecting the climate.

Organisational climate has a major influence on human performance through its

impact on the motivation, job satisfaction and attitudes of people.

Review Questions:

1. What is organisational culture? How does it affects the behaviour of the employees?

2. What is organisational climate? What are the factors affecting organisational climate?

� � �

LESSON - 19

ORGANISATIONAL EFFECTIVENESS

Learning Objectives After reading this lesson, you should be able to:

• Understand the concept of organisational effectiveness

• Identify the factors contributing organisational effectiveness

Organisational effectiveness is the central theme of organisation theory. It is defined and

conceptualised in different ways. For instance, effectiveness could be defined “as the

degree to which organisation realises its goals”. “It is the extent to which an

organisation, given certain resources and means, achieves its objectives without placing

undue strain on its members”. Though a large volume of literature is available on the

concept of organisational effectiveness, there is often contradiction in the various

approaches.

The distinction between the concepts of effectiveness and efficiency is very important to

explain why some organisations are effective but not efficient or efficient but not

effective. Effectiveness is a broad concept and takes into account a conglomeration of

factors both inside and outside the organisation. It is commonly referred to as the degree

to which predetermined goals are achieved. On the other hand, efficiency is a limited

concept that pertains to the internal working of the organisation. It refers to the amount

of resources used to produce a particular unit of output. It is generally measured as the

ratio of inputs to outputs.

Further, effectiveness centres more on human side of organisational values and activities

whereas efficiency concentrates on the technological side. However, the concept of

effectiveness is not simple because there are many approaches in conceptualising this

term. Such approaches can be grouped into three: goal approach, functional approach

and system resource approach.

1. Goal Approach Goal attainment is the most widely used criterion of organisational effectiveness. Goal

approach defines effectiveness as “profit maximisation `providing an efficient service’,

`high productivity’, or `good employee morale’. Campbell has suggested several

variables which can be used in measuring organisational effectiveness. He includes in his

list such items as quality, productivity, efficiency, profit, turnover, accidents, morale,

motivation, satisfaction etc. However, none of the single criteria has proved to be

entirely satisfactory.

The main limitations of this approach is the problem of identifying the real goals rather

than ideal and its realistic assessment.

2. Functional Approach This approach solves the problem of identification of organisational goals. Parson states

that since it has been assumed that an organisation is defined by the primacy of a type of

goal, the focus of its value system must be the legitimation of this goal in terms of the

‘functional significance’ of its attainment for the super-ordinate system i.e. to satisfy the

needs of the society. Thus the vital question in determining effectiveness is how well the

organisation is doing for the super-ordinate system.

The limitation of this approach is that when the organisations have autonomy to follow its

independent courses of action, it is difficult to accept that ultimate goal of organisation

must always be functional significance of larger system. As such it cannot be applied for

measuring organisational effectiveness in terms of its contributions to social system.

Both the goal and functional approach do not give adequate consideration to the

conceptual problem of the relations between the organisation and its environment.

3. System Resource Approach System-resource approach of organisational effectiveness is derived from the open

system model as it is applied to formal social organisations. It emphasises the

interdependency of processes that relate the organisation to its environment. The

interdependence takes the form of input-output transactions and include scarce and

valued resources such as physical, economic and human for which every organisations

compete. Organisational effectiveness, as such, is defined in terms of bargaining

position, as reflected in the ability of the organisation, in either absolute or relative terms,

to exploit its environment in the acquisition of scarce and valid resources.

The limitation of this model is that the acquisition of resources from the environment is

again relating to the goal of the organisation. As such this model is not different from the

goal model.

Thus, discussion of organisational effectiveness leads to the conclusion that there is no

single indicator of effectiveness, that can be used across organisations. Instead, the

approach must be that operative goals serve as the bases for assessment of effectiveness.

Managerial effectiveness is a causal variable in organisational effectiveness. It has been

usually defined in terms of organisational goal-achieving behaviour, i.e. the manager’s

own behaviour contributes to the achievement of organisational goals.

Factors in Organisational Effectiveness

The factors contributing organisational effectiveness have been classified by Likert into

three groups - causal, intervening and end result.

Causal Variables are those independent variables that determine the course of

developments within an organisation and the results achieved by the organisation. These

causal variables include only those independent variables which can be altered or

changed by the organisation and its management. Causal variables include the structure

of the organisation and management’s policies, decisions, business and leadership

strategies, skills and behaviour.

Intervening Variables: Likert states that the intervening variables reflect the internal

state and health of the organisation. E.g. the loyalties, attitudes, motivations, performance

goals and perceptions of all members and their collective capacity for effective

interaction, communication and decision-making.

End-Result Variables are the dependent variables which reflect the achievements of the

organisation such as its productivity, costs, loss and earnings.

Inter-Relationship Among Variables

The three variables - causal, intervening and end-result - are interrelated. The inter-

relationship may be visualised as psychological process where stimuli (causal variables)

acting upon the organism (intervening variables) and creating certain responses (end-

result variables). The causal, intervening and end-result variables comprise a complex

network with many interdependent relationships. The causal variables are key to

organisational improvement and hence to make organisation effective, attempt should be

made to improve the causal variables, while other variables will be corrected or improved

automatically because of causal variables.

The above model is quiet simple. The effectiveness model can be presented in a more

complex way i.e. at three different levels - the individual, group and organisational levels

in order to make the organisation more effective.

Casual Variables End Result Variables

Individual

Level

Group

Level

Intervening

Variable

� Commitment to

objective

� Motivation and

morale of

members

� Communication,

leadership skills

� Conflict

resolution

� Decision making

End Result

Variable

• Production

• Costs

• Sales

• Earnings

• Turnover

• Mangement-

Union

relationship

etc.

Casual Variable

• Leadership

styles

• Management

decisions

• Organisational

philosophies,

objectives and

policies

• Technology

etc.

Individual

effectiveness

Loyalty,

commitment

Personal

development

Physical attributes

Psychological

attributes

Technical factors

Intervening

variables

Group

effectiveness

Group

productivity

Group morale

factors

Structural task

environment

Intervening

variables

Organisa-

tional Level

The effective organisation is built of effective individuals who work collectively in

groups.

The extent to which individual and organisational goals are integrated, affects the degree

of organisational effectiveness, because each individual tries to satisfy his needs by

working in the organisation and simultaneously satisfying organisational needs. He may

see need satisfaction in satisfying organisational needs. If there is no perfect integration

of individual and organisational goals, organisational effectiveness is affected adversely.

It should, however, be noted that organisational effectiveness is not the result of

integration of individual and organisational goals only and there are other causal

variables affecting it. But human factor is one of the most important factor integrating

other factors in the organisation.

Effectiveness Through Adaptive-Coping Cycle

The organisation must develop a system through which it can adapt or cope with the

environmental requirements. Schein has suggested that an organisation can do this

through the adaptive coping cycle which consists of various activities which enable the

organisation to cope with the dynamics of environment.

Adaptive-Coping cycle is a continuous process. There are six sages in the adaptive-

coping cycle.

1.Sensing of Change:

The first stage is the sensing of change in some part of internal or external environment.

Most of the organisations have adaptive sub-system such as marketing research, research

and development and other similar devices for effective coping with the environment.

2.Importing the Relevant Information:

The organisations must be able to take the relevant information from the environment

which constitutes the input.

3.Changing Conversion Process:

The organisation takes the inputs from the environment for further processing, normally

known as conversion process.

4.Stabilising Internal Changes:

The fourth stage of the cycle is to stabilise the internal sub-system of the organisation is

dependent upon others and change in one may affect others also but this effect may be

positive or negative.

5.Exploring New Outputs:

Organisational

effectiveness,

productivity,

morale factors

Structural task

environment

Intervening

variables

When the internal change is stabilised, the organisation can export new outputs which are

in accordance with the environmental requirements.

6.Obtaining Feedback:

The last stage in the cycle is the obtaining of feedback on the outcome of the changes for

further sensing of the state of the external environment and the degree of integration of

the internal environment. This is like a first stage.

A successful coping suggests that all of the stages must be successfully negotiated and

failure at any of these stages may result into ineffectiveness.

Following are the major organisational conditions for effective coping:

There should be an effective communication system through which reliable and valid

information may be passed.

There should be enough internal flexibility so that changes can be brought and

absorbed by the organisation.

Successful coping requires integration and commitment to the organisational goals

which provides willingness for change.

There should be supportive internal climate which can support good communication,

reduction in inflexibility and stimulation of self-protection.

Maintaining organisational effectiveness requires additional efforts, especially when the

major organisational changes take place.

Review Questions: 1. What do you understand by organisational effectiveness? Discuss the approaches to

organisational effectiveness.

2. Specify the factors contributing organisational effectiveness.

LESSON - 20

MANAGEMENT OF CHANGE

Learning Objectives

After reading this lesson, you should be able to understand:

• The concept of change in the organisation

• Forces affecting the change

• Model and dynamics of planned change

• The reasons for resistance to change

• The method of overcoming resistance to change

Change simply means the alteration of status-quo. Even in most stable

organisations change is necessary, just to keep the level of given stability. The economic

and social environment is so dynamic that, without the change that would be adaptive to

the changed environment, even the most successful organisations will be left behind;

unable to survive in the new environment. Accordingly, management must continuously

monitor the outside environment, and be sufficiently innovative and creative to find new

and better utilisation of organisational resources so that the customer needs are

competitively met.

Organisation encounter many different forces for change. These forces come from

external sources outside the organisation and from internal sources.

External Forces

External forces for change originate outside the organisation. There are four key

external forces for change:

1. Demographic Characteristics : These include – age, education, skill level and

gender. Organisations need to effectively manage these diversity if they are to receive

maximum contribution and commitment from the employees.

2. Technological Advancements : Both manufacturing and service organisations are

increasingly using technology as a means to improve productivity and market

competitiveness.

3. Market Changes : The emergence of a global economy is forcing Indian companies

to change the way they do business. Companies are having to forge new partnerships

with their suppliers in order to deliver higher quality products at lower prices.

4. Social and Political Pressures : These forces are created by social and political

events. Personal values affect employees needs, priorities and motivation; managers

thus may need to adjust their managerial style or approach to fit changing employee

values. Political events can create substantial change. Although it is difficult for

organisations to predict changes in political forces, many organisations hire lobbyists

and consultants to help them detect and respond to social and political changes.

Internal Forces

Internal forces for change come from inside the organisation. This may come

from both human resource problems and managerial behaviour/decisions.

Human Resource Problems/ Prospects

These problems stem from employee perceptions about how they are treated at

work and the match between individual and organisation needs and desires.

Organisations might respond to these problems by using the various approaches to job

design by implementing realistic job previews, by reducing employees’ role conflict,

overload and ambiguity, and by removing the different stresses. Prospects for positive

change stem from employee participation and suggestions.

Managerial Behaviour/ Decisions

Excessive interpersonal conflict between managers and their subordinates is a sign

that change is needed. Inappropriate leader behaviours, such as inadequate direction or

support, may potential solution for this problem.

Nature of Change

Organisations introduce changes through people. Unless the people are willing to

accept the need and responsibility for organisational change, intended changes can never

be translated into reality. In addition, individuals have to learn to adapt their attitudes

and behavioural patterns to constantly changing environments.

Management of change involves both individual change and organisational

change. Individual change is behavioural - determined by individual characteristics of

members such as their knowledge, attitudes, beliefs, needs, expectations, skills, etc. It is

possible to bring about a total change in an organisation by changing behaviours of

individual members through participative - educative strategies. Of course, the degree of

difficulty involved in the change and the time taken to change will be primarily depend

upon what exactly is your target of change.

Changing attitude is usually considered more difficult and time-consuming. The

“attitudes towards change” are largely dependent on the context of the situation, the

nature and the extent of change and the manner in which changes are initiated and

executed.

Changing individual behaviour is a still more time consuming and difficult task.

The linkage between attitude and behaviour is not so straight forward and for this reason

changing behaviour is more difficult than changing knowledge or attitudes. One’s

attitude does not necessarily get reflected in one’s behaviour. For example, we know that

honesty is the best policy and we have favourable attitudes towards people who are

honest but in certain situations we may still act in a less honest way.

Changing group behaviour is usually a more prolonged and harder task. Every

group has its own dynamics of push and pull which attempts to neutralise the change that

may have taken place in an individual as continuous efforts are expected to maintain

‘norm’. Due to this group dynamics, individual member’s ‘changed behaviour’ may

revert to earlier normative behaviour in order to maintain the ‘status quo’. However due

to the same reasons of a group’s over-riding influence on individual members, sometimes

it may be easier to tackle the group as a whole rather than trying to change the behaviour

of members one by one.

Bringing total behavioural change in all the groups and members of an

organisation/institution usually entails a very difficult long-range effort. More often than

not, it is a slow painful process to usher in a total cultural change in an organisation.

It is possible to influence and change total institution without focusing at the level

of individual’s change of knowledge, attitude and behaviour. Total institutional change

can be brought about by modifying the organisations structures, policies, procedures,

techniques, etc. These types of changes alter prescribed relationships and roles assigned

to members and eventually modify the individual members’ behaviour and attitudes. As

these two kinds of changes are interdependent, the complexity of managing change

increases manifold.

Approaches to Organisation Change

As organisation change is a complex process, managers must approach it

systematically and logically in order to being it to fruition. Some organisation change is

planned well in advance; other changes come about as a reaction to unexpected events.

Planned change is designed and implemented in an orderly and timely fashion in

anticipation of future by internal forces as a way of preparing for anticipated

environmental change. Thus, a head of the educational institution who envisions a future

environmental change and decides how to best address it, is engaging in planned change

or proactive change.

Reactive change, in contrast, is a piece-meal response to circumstances as they

develop. Reactive change is almost always induced by external forces that the

organisation either failed to anticipate or misinterpreted. Since reactive change may have

to be carried out hastily, it increases the likelihood of a poorly conceived and poorly

executed programme.

Planned change is almost always preferable to reactive change. Managers who sit

back and respond to change only when they can no longer avoid it are likely to waste a

lot of time and money trying to patch together a last-minute solution. The more effective

approach is to anticipate the significant forces for change working on an organisation and

plan ways to address them. To accomplish this, managers must understand the steps

needed for effective change.

A Comprehensive Model of Change

The model of change shown in the following figure outlines seven steps that can

lead to effective change. This model is useful for both planned and reactive change.

Comprehensive Model of Change

The first step in this model is recognising need for change. For marketing

managers who anticipate needed change, recognition is likely to come much earlier, as

the result forecasts indicating new market potential, expert indications about impending

socio-economic change or a perceived opportunity to capitalise on a key technological

breakthrough. These managers tend to ‘initiate change because they expect it to be

necessary in the near future in any case’.

The manager must then set goals for the proposed change. It is important for the

manager to specify what the change is supposed to accomplish. To maintain or increase

the market standing, to enter new markets, to restore employee morale, to reduce

turnover, to settle a strike, to identify good investment opportunities - all these are

possible goals.

An important next step is diagnosing what organisational variables have brought

about the need for change. Turnover, for example, may be caused by a variety of factors

including low pay, poor working conditions, poor supervision, better alternatives in the

job market or employee job dissatisfaction etc. Thus, if turnover is the recognised

stimulus for change, the manager must understand what has caused it in this particular

situation in order to make the right changes. To carry out this diagnosis, the manager

Recognise need for change

Establish goals for change

Diagnose relevant variables

Select change intervention

Plan implementation of change

Implement change

Evaluate implementation

may discuss the situation with employees and other managers, compare pay offered in

other institutions.

After the manager has developed an understanding of the problem and its causes,

he must select a change intervention that will accomplish the intended goal; to reduce

turnover. An intervention is a specific change induced in an organisation with the

intention of solving a particular problem or accomplishing a specific objective. If turn

over is being caused by low pay, a new reward system may be needed. If the cause is

poor supervision, interpersonal skills training for supervisors may be needed.

The manager must then carefully plan the implementation of change. Issues to

consider include the costs of the change, how the change will affect other areas of the

organisation and the degree to which employees should participate in bringing about

change. Hastily implemented change can result in more harm than good. For example, if

the change involves the use of new equipment, the manager should not make any changes

that rely on the use of that equipment until it has arrived and been installed and workers

know how to use it. Moreover, if change is thrust upon them too quickly, their resistance

may stiffen. A systematically implemented change is more likely to proceed smoothly

and to encounter fewer obstacles than is a change that is implemented too quickly and

without adequate preparation.

Finally, after the change has been implemented, the manager should verify that it

has accomplished its intended goals. A change may fail to bring about the intended

results. This may be due to inappropriate original goals, inaccurate diagnosis of the

situation or wrong selection of intervention.

Models and Dynamics of Planned Change

Managers are criticised for emphasising short-term, quick-fix solutions to

organisational problems. When applied to organisational change, this approach is

doomed from the start. Quick-fix solutions do not really solve underlying problems, and

they have little staying power. Researchers and managers alike have thus tried to identify

effective ways to manage the change process.

Lewin’s Change Model

Most theories of organisational change originated from the landmark work of

social psychologist Kurt Lewin. Lewin developed a three-stage model of planned change

which explained how to initiate, manage and stabilise the change process. The three

stages are unfreezing, changing and refreezing. Before reviewing each stage, it is

important to highlight the assumptions that underlie this model:

1. The change process involves learning something new, as well as discontinuing

current attitudes, behaviours, or organisational practices.

2. Change will not occur unless there is motivation to change. This is often the

most difficult part of the change process.

3. People are the hub of all organisational changes. Any change, whether in

terms of structure, group process, reward systems, or job design, requires

individuals to change.

4. Resistance to change is found even when the goals of change are highly

desirable.

5. Effective change requires reinforcing new behaviours, attitudes and

organisational practices.

Let us now consider the three stages of change:

Unfreezing :

The focus of this stage is to create the motivation to change. In so doing,

individuals are encouraged to replace old behaviours and attitudes with those desired by

management. Managers can begin the unfreezing process by disconfirming the

usefulness or appropriateness o employees’ present behaviuors or attitudes. Managers

also need to devise ways to reduce the barriers to change during this stage.

Changing :

Because change involves learning, this stage entails providing employees with

new information, new behavioural models, or new ways of looking at things. The purpose

is to help employees learn new concepts or pints of view. Role models, mentors, experts,

benchmarking the company against world-class organisations, and training are useful

mechanisms to facilitate change.

Refreezing :

Change is stabilized during refreezing by helping employees integrate the changed

behaviour or attitude into their normal way of doing things. This is accomplished by first

giving employees the chance to exhibit the new behaviours or attitudes. Once exhibited,

positive reinforcement is used to reinforce the desired change. Additional coaching and

modelling are also used at this point to reinforce the stability of the change.

Expanded Process Model

Lewin’s model is very simple and straight forward, virtually all models of

organisational change use his approach, however, it does not deal with several important

issues. A more complex, and more helpful, approach is illustrated in the following

figure. This approach looks at planned change from the perspective of top management.

The model incorporates Lewin’s concept as part of the implementation phase.

Figure: An Expanded Model of the Organisation Change Process

Top management in this approach perceives that certain forces or trends call for

change, and the issue is subjected to the organisation’s usual problem-solving and

decision-making processes. Usually, the top management defines its goals in terms of

what the organisation or certain processes, or outputs will be like after the change.

Alternatives for change are generated and ealuated, and an acceptable one is selected.

Resistance to Change

Although organisations initiate changes in order to adjust to the changes in their

environments, people sometimes resist change. Managers need to learn to recognise the

manifestations of resistance both in themselves and in others, if they want to be more

effective in supporting change. For example, managers can use the list in figure below to

prepare answers and tactics to combat the various forms of resistance.

The Continuum of Resistance to Change

Acceptance

• Enthusiasm

• Cooperation

• Cooperation under pressure from management

• Acceptance

• Passive resignation

• Indifference

Indifference

� Apathy; loss of interest in the job

� Doing only what is ordered

1. Forces of

Change

2. Recognition and

Define Problems

3. Problem-solving

Process

4. Implement the

Change

5. Measures, Evaluate,

Control

Change Agent

Transition

Management

� Regressive behaviour

Passive Resistance

• Non-learning

• Protests

• Working to rule

• Doing as little as possible

Active Resistance

� Slowing down

� Personal withdrawal (increased time off the job)

� Committing "errors"

� Spoilage

� Deliberate sabotage

The sources of resistance to change within organisations may be divided into

organisational sources of resistance and individual sources of resistance.

Organisational Sources of Resistance

According to Daniel Kantz and Robert L Khan, organisational sources of

resistance can be divided into six general groups.

� Over determination or structural inertia refers to the tendency of an organisation’s

rules, policies and structure to maintain the status quo and therefore resist change

even when change would benefit the organisation more than stability.

� When an organisation tries to change one of its elements - one division or job

category - without recognising the interdependence of the element with every other

part of the organisation, it is said to have a narrow focus of change. Often a part

cannot be changed without changing the whole.

� Group inertia may undermine an individual’s attempt to bring about change.

� Resistance may also take the form of threatened expertise if the change tends to

undermine special expertise built after years of experience. Organisational

restructuring, that involves reducing the number of job categories often meets this

kind of resistance.

� Any change that may alter the power relationships within an organisation may meet

the form of resistance known as ‘threatened power’.

� Resistance may occur when a change threatens quantum of resource allocation from

one part of the organisation to another.

Individual Sources of Resistance

According to researchers, individuals have the following reasons for resisting

change:

Simple habits creates a lot of resistance. Most people prefer to do their work the way

they did it last week rather than learn a new approach.

Perhaps the biggest cause of employee resistance to change is uncertainty. In the face

of impending change, employees are likely to become anxious and nervous. They

may worry about their ability to meet the new job demands; they may think their job

security is threatened.

Some people resist change to avoid feelings of loss. For example, many organisations

change interventions alter work arrangements and thus disrupt existing social

networks. Social relationships are important to most people, so they resist any change

that might adversely affect those relationships. Change may also threaten people’s

feelings of familiarity and self-confidence.

People may resist change because their perceptions of underlying circumstances differ

from the perceptions of those who are promoting the change.

Valerie Stewart (1983), a British Psychologist and business consultant, has listed

the following characteristics of people who are good at managing changes.

1. They know clearly what they want to achieve.

2. They can translate desires into practical action.

3. They can propose changes not only from their own view point but also from that

of others.

4. They show reverence for tradition and respect for experience.

5. They are not discouraged by set backs.

6. They harness circumstances to enable changes to be implemented.

7. They clearly explain change.

8. They involve their staff in the management of change and protect their security.

9. They don’t pile one change on another, but await assimilation.

10. They present changes as a relational decision.

11. They make change personally rewarding for people, wherever possible.

12. They share maximum information about possible outcomes.

13. They show that change is ‘related to business/job’.

14. They have a history of successful change.

Overcoming Resistance to Change

Managers need not abandon planned change in the face of resistance. Before

recommending specific approaches to overcome resistance, there are three key

conclusions that should be kept in mind. First, an organisation must be ready for change.

Second, the top management should keep informed the employees about the process of

change. Third, the employees’ perceptions or interpretations of a change significantly

affect resistance.

Some of the methods of overcoming resistance to change are discussed below:

Participation:

Participation is generally considered the most effective technique for overcoming

resistance to change. Employees who take part in planning and implementing change are

better able to understand the reasons for the change than those who are not involved.

They become committed to the change and making it work. Employees who have the

opportunity to express their own ideas and to understand the perspectives of others are

likely to accept change gracefully. It is a time consuming process.

Education and Communication:

Educating employees about the need for and the expected results of an impending

change help reduce their resistance. Managers should maintain an open channel of

communication while planning and implementing change. But it is also a time

consuming process.

Facilitation of Change:

Knowing ahead of time that employees are likely to resist change; the managers

should do as much as possible to help them cope with uncertainty and feeling of loss.

Introducing change gradually, making only necessary changes, announcing changes in

advance and allowing time for people to adjust to new ways of doing things can help

reduce resistance.

Force-Field Analysis:

In almost any situation where a change is being planned, there are forces acting for

and forces acting against the change. In force-field analysis, the managers list each set of

forces and then try to remove or atleast minimise some of the forces acting against the

change.

Negotiation:

Where someone or some group will clearly lose out in a change and where that

group has considerable power to resist. Sometimes it is a relatively easy way to avoid

major resistance. But it can be too expensive in many cases, if it alerts others to negotiate

for compliance.

Manipulation and Cooperation:

This is followed when other tactics will not work or are too expensive. It can be

quick and inexpensive. But it can lead to further problems if people feel manipulated.

Explicit and Implicit Coercion:

This is adopted where speed is essential and where the change initiators possess

considerable power. It is speedy and can overcome resistance.

Each of the above methods has its advantages and drawbacks. There is no

universal strategy for overcoming resistance to change. Hence the institution which plans

to introduce certain changes must also be prepared to face resistance, if any from its

employees and should have a planned approach to overcome such resistances.

ORGANISATIONAL DEVELOPMENT

The term organisational development (OD) refers to a broad range of behavioural

science-based strategies used to diagnose the need for change in organisations and to

implement changes when necessary. Organisation development can be defined as a

technique for bringing change in the entire aspect of the organisation, rather than

focusing attention on individuals, so that change is easily absorbed.

Nature of Organisation Development

Organisation development is a general strategy or approach to organisational

change that can be employed to analyse and diagnose the sources of organisational

problems and to develop and implement action plans for their solution. According to

Bennis, OD has the following characteristics:

♦ It is an educational strategy for bringing planned change.

♦ It is related to real problems of the organisation.

♦ Laboratory training methods based on experienced behaviour are primarily

used to bring change.

♦ Change agent applying OD technique for change is external to the forms of

consultants.

♦ There is a close working relationship between change agents and the people

who are being changed. The relationships involve mutual trust, joint goals and

means, and mutual influence.

♦ The change agents share asocial philosophy about human value. They are

humanists seeking to get a humanistic philosophy in organisation.

OD Interventions

OD interventions refer to various activities which consultant and client

organisation perform for improving organisational functioning through enabling

organisation members better manger their team and organisation cultures. French and

Well have defined OD interventions as ‘sets of structured activities in which selected

organisational units (target groups or individuals) engage with a task or a sequence of

tasks where the task goals are related directly or indirectly to organisational

improvement. Interventions constitute the action thrust of organisation development;

they make things happen and are what is happening.

Intervention Techniques:

1. Sensitivity Training

2. Process Consultation

3. Team Development

4. Grid Organisation Development

1. Sensitivity Training

Sensitivity training is a small-group interaction under stress in an unstructured

encounter group which requires people to become sensitive to one another’s feelings in

order to develop reasonable group activity. In sensitivity training the actual technique

employed is T-group. T group has several characteristic features:

(i) the T-group is generally small, from ten to twenty members

(ii) the group begins its activity with no formal agenda

(iii) the role of trainer is primarily to call attention from time to time to the ongoing

process within the group

(iv) the procedure tends to develop introspection and self-examination, with

emotional levels of involvement and behaviour and the possibility of

colleagues and some breakdown of established insulation and self-defence on

the part of individuals.

The objectives of such training are increased openness with others, more concern

for others, increased tolerance for individual differences, less ethnic prejudice,

understanding of a group process, enhanced listening skills, and increased trust and

support.

3. Process Consultation

Process consultation (P-C) represents a method of intervening in an ongoing

system. The basic content of P-C is that the consultant works with individuals and

groups to help them learn about human and social processes and learn to solve problems

that stem from process events. P-C consists of many interventions and activities which

affect the various organisational processes, such as, communication, roles and functions

of group members, group problem-solving and decision-making, group norms, authority

and leadership, and intergroup cooperation and conflicts.

4. Team Development

The underlying aim of team development is to increase trust among team members

because people work better together when there is open and honest sharing about the

problems and difficulties that they have with one another. As such, at the initial level, the

attempt should be to develop such an environment where such trust can be developed

among the team members.

5. Grid Organisation Development

Grid organisation development, developed by Blake and Mounton, is a

comprehensive and systematic OD programme. The programme aims at individuals,

groups and the organisation as a whole. It utilises a considerable number of instruments,

enabling individuals and groups to assess their own strength and weaknesses; focuses on

skills, knowledge and processes necessary for effectiveness at the individual, group,

intergroup and total organisation levels.

In addition to these people focused interventions, there may be other types of

interventions too. For example, structural and job interventions – job enlargement, job

enrichment, management by objectives, rules, procedures, authority structure etc.

Organisation development offers some very attractive methodologies and

philosophies to practicing managers and academicians alike. William Halal is right when

he says “OD in future includes any method for modifying the behaviour in the

organisation, hereby, encompassing the entire spectrum of applied behavioural science”.

There has also been experiences of failure, and these are also being recorded and

collected to learn from them. In general, OD shows a promising future, since there are no

rigid set procedures in OD work, and different strategies have to be evolved for different

types of organisations.

Review Questions:

1. What are the external and internal forces affecting change?

2. Describe Lewin’s Model of change.

3. Why do people resist change? As a manager, how would you overcome such

resistance to change?

4. What is meant by organisation development? What are its characteristics?

5. What are OD interventions? Discuss the major OD interventions.

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CASE ANALYSIS

A case is a description of a situation involving problems to be solved. However,

the case may not have as complete information about the problem as a reader wishes.

The amount of detail required would make the case too long to read and too detailed to

analyse. A case may be presented either in structured form or in unstructured form. In a

highly structured case, there are leading questions at the end that indicate a focus and

predetermine the direction in which the discussion will go.

The case method of learning has the following objectives:

� The description of real business situation to acquaint the learner with the

principles and practices obtained in work setting;

� Introduction of realism into formal instruction;

� Demonstration of various types of goals, problems, facts, conditions, conflicts

and personalities obtained in organisational settings;

� Development of decision-making ability; and

� Development of independent thinking but cooperative approach to work in

team situations.

Guidelines for Case Analysis

The basic approach in a case analysis should be to get on the problem and provide

its solution. However, this can be achieved only when the participants go through a

number of sequential activities. For example, a case analyst can put following questions

in sequence to find the problem and its likely solutions:

(i) What are the actual problems involved in the case?

(ii) What are the relevant facts?

(iii) What are the crucial unknown aspects of the scene?

(iv) What are the major critical questions related to each specific event?

(v) In what ways, can logic and reasoning be used to determine crucial inference,

connections and relationships?

(vi) In what manners contradictory facts and arguments can be weighted in making

decisions?

(vii) In what ways can the decisions be implemented?

The answers of these questions will lead to define the problem, identify the

alternatives for problem solution, analysis of those alternatives, and finally to choose the

suitable alternative.

Leadership

1. CHOICE OF A LEADER

Mr. Ranjan Kumar is the Managing Director of a Soaps Manufacturing Company.

To increase sales, the Board of Directors wanted to start a full-fledged marketing

department.Mr. Kumar is entrusted with the task of finding a suitable candidate to head

the proposed marketing department. After considering a number of candidates, he has

narrowed down his choice to two persons: Viswanath Dutt and Rajnarain.

Mr.Viswanath Dutt has an excellent track-record in the company. During his

fruitful association with the company, to be precise ten years, he has always shown a high

degree of enthusiasm and initiative in his work. He is still young (35 years) dynamic and

aggressive. He is result-oriented and is, naturally, more interested in ends rather than

means. One of the workers, testifying his leadership qualities, remarked thus: “Tough he

is harsh at times, you w’ll know where you stand when you work with him. When you

have done a good job, he lets you know it”. Mr. Dutt is willing to shoulder additional

responsibilities. He decides things quickly and when action is required, he is ‘always on

his toes’.

During his 15 years tenure in the Company, Mr. Rajnarain has endeared himself to

all his colleagues by his superior workmanship and pleasing manners. He always

believes in the principle of employee participation in the decision-making process.

Unlike Mr. Dutt, he encourages his subordinates to come out with innovative ideas and

useful suggestions. Before arriving at a decision he always make it a point to consult his

subordinates. Not surprisingly, all his subordinates are very pleased to work under him

and praise his leadership qualities. They readily admit that the participative climate has

encouraged them to use their talents fully in the service of the organisation. Company

records also bear evidence for the increase in the production soon after Rajnarain became

the head of his department.

Questions :

1. Analyse the leadership qualities and styles of Mr. Dutt and Mr.Rajnarain.

2. Between the two people, who would you recommend for the position of a marketing

manager?

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OB Modification

2. IMPROVING ATTENDANCE WITH OB MOD

Absenteeism at SJR Foods plant had been getting steadily worse for many

years.Radha El-Barky, the production manager, felt that it would be worth investing

some money in solving the problem. In consultation with the company unions, she

developed and installed a lottery scheme which involved the issuing of free tickets to

employees who attended work. Each full day’s attendance entitled the employee to one

free lottery ticket; Full attendance for a week produced a bonus of two extra tickets. The

lottery was drawn every Friday evening and prizes were available for collection on the

spot. Within 2 weeks of its introduction, the scheme was more than paying for itself in

improved attendance.

At the same time, as she introduced the lottery system, Radha had agreed a goal

with the employee representatives of 90% attendance. At the end of each week, a chart in

the canteen was completed, which showed the attendance rate for that week.

Questions:

1. Using the terminology and concepts of OB modification, explain what had been done

at SJR Foods.

2. Discuss the extent to which this intervention adopted a pure behaviourist approach.

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Conflict Management

3. IT’S THE SAME STORY EVERYWHERE

Prakash hails from a hard-working, immigrant family. Right from his childhood

he wanted to achieve something and acquire power for himself. Unfortunately, he could

secure only a low-paid job in the assembly line in a large manufacturing firm. It is a

harmless job having no promotional opportunities. Since has to support a large family,

he needed a well-paid job and all his efforts in this direction had gone waste. To blow off

his steam and to relieve himself from worldly woes, he started living in a “fool’s

paradise” and spent most of his days in day-dreaming. Not surprisingly, he fell a prey to

drinking and other vices. After exhausting his meager financial resources, he would get

depressed and start worrying about his family.

It has been a vicious circle and he wants to come out of it. Unable to bear with this

miserable situation, one fine morning, he wanted to seek advice and counsel from his

supervisor. But since his relationship with his supervisor is not too-intimate, he sought

help from his union leader. The union leader has listened to Prakash’s woes patiently. He

told Prakash in a sympathetic tone: “There is no use working in this company. We have

innumerable problems, and not a single problem is solved by management so far. The

working conditions are pathetic. Our salary is too low. And let’s unite together and

fight with management for better salary and working conditions”.

Questions:

1. Analyse the nature of role conflict experienced by Prakash in this case.

2. What type of conflict resolution strategy is the union leader suggesting in this case?

3. How do you advice Mr. Prakash?

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Perception

4. BOMBAY PRINTERS

Bombay Printers is a large printing firm located in Mumbai. It has specialised in

printing calendars and greeting cards. Right from inception, this concentration brought

rich dividends and over the years sales have increased considerably, much to the envy of

competitors. Slowly but steadily, it has captured a major share of the market. Since

Bombay Printers is a family held company, exact figures are not readily available.

Despite this statistical deficiency, competitors knew very well that Ramakant Patil and

his children who own the company are extremely wealthy. The fact that the Patil

Foundation grants several lakhs of rupees every year to Charitable Institutions apeaks

volumes. Over the years the company has been investing its surplus in real estate and

equity capital in a calculated manner. Supported by a vast reservoir of funds, it is small

wonder, the company has achieved a stupendous growth rate leaving everyone behind in

the race.

Currently, Bombay Printers is the dominant employer in the printing industry.

Though there is no union, employees are well-paid. The demand for calendars and

greetings has increased considerably, in the recent past, and most of the employees

receive a fat overtime allowance. In an interview, given to a local magazine, Ramkant

Patil proudly declared, “Workers in Bombay Printers are highly motivated. They are

currently the highest-paid employees in the country. The future is rosy. Within a few

days we are going to introduce a new productivity incentive plan under which employees

are likely to get annual bonus based on a novel productivity formula devised by our

Accounting Staff. We always want our employees to grow along with us”.

To his surprise and dismay, Ramkant Patil received a nasty letter, containing a

long list of demands, from a group of anonymous employees – after the publication of the

interview in the magazine. Among their complaints were the following:

“We’re sick of all this overtime. You and other officers in the company may

like working day and night. We prefer the company of our families and friends

to machines and tools during holidays”.

“The new bonus plan is a hoax. None of us can understand how it operates.

As usual, it will be those people who lick the boots of management that’ll

benefit. Stop playing these dirty tricks. We hate working harder for something

we don’t have any chance of getting”.

“You are talking as if we’re one big happy family, thus yet trying to throw us

all on roads at the same time. Stop manipulating us. We know pretty well that

the company has bought land in Delhi and you’re going to settle there only

throwing us all out of work. Why should we care for a company that is

abandoning us on stress?”

Questions:

1. From the standpoint of employee perceptions, what is going on here?

2. How can the company avoid these negative reactions?

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