UNIT 1

1. FOCUS AND PURPOSE

1.1. DEFINITION, NEED AND IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR

1.2. NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOUR

1.3. FRAME WORK OF ORGANIZATIONAL BEHAVIOUR

1.4. ORGANIZATIONAL BEHAVIOUR MODELS

1.1. DEFINITION, NEED AND IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR

INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR
Managers make a lot of mistakes. Some come from inexperience. Others reflect lack of knowledge and some are
just dumb. But few mistakes could be considered as stupid as what managers did. However, managers commonly
make other mistakes due to their lack of knowledge. This is where the organizational behavior comes into play.
THE IMPORTANCE OF INTERPERSONAL SKILLS
Recognition of the importance of developing managers’ interpersonal skills is closely tied to the need for
organizations to get and keep high – performing employees. Regardless of labour market conditions, outstanding
employees are always in short supply. We have come to understand that technical skills are necessary, but they are
not enough to succeed in management. In today’s increasingly competitive and demanding workplace, managers
can’t succeed on their technical skills alone. They also have to have good people skills.
WHAT MANAGERS DO?
Managers [Administrators] are individuals who achieve goals through other people. They make decisions, allocate
resources and direct the activities of others to attain goals.
WHERE MANAGERS WORK?
Managers do their work in an organization, which is a consciously coordinated social unit, composed of two or
more people that functions on a relatively continuous basis to achieve a common goal or set of goals.
FUNCTIONS OF MANAGEMENT
Figure1a: Functions of management

 Planning
Planning is a process that includes defining goals,
establishing strategy, and developing plans to
coordinate activities.
 Organizing
It is a process of determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who
reports to whom, and where decisions to be made.
 Staffing
The managerial function of staffing involves manning the organization structure through proper and effective
selection, appraisal and development of the personnel’s to fill the roles assigned to the workforce.
 Directing
It is a function that includes motivating employees, directing others, selecting the most effective communication
channels and resolving conflicts.
 Controlling
It is a process which includes monitoring activities to ensure that things are accomplished as planned and
correcting any significant deviations.
MANAGEMENT ROLES
In the late 1960s, Henry Mintzberg, a graduate student at MIT [Massachusetts Institute of Technology, Cambridge],
undertook a careful study of 5 executives to determine what those managers did on their jobs. On the basis of his
observations, Mintzberg concluded that managers perform 10 different, highly interrelated roles or sets of
behaviours, attributable to their jobs. These 10 roles can be grouped as being primarily:
1. Interpersonal roles
2. Informational roles and
3. Decisional roles
MANAGEMENT SKILLS
Still another way of considering what managers do is to look at the skills or competencies they need to achieve
their goals.
Robert Katz
has
identified 3
essential
management
skills viz.
technical,
human and
conceptual.
 Tech
nical
skills
The ability to apply specialized knowledge or expertise.
 Human skills
The ability to work with, understand and motivate other people, both individually and in groups.
 Conceptual skills
The mental ability to analyze and diagnose complex situations.
EFFECTIVE VERSUS SUCCESSFUL MANAGERIAL ACTIVITIES
Fred Luthans and his associates studied more than 450 managers. What they found was that these managers all
engaged in 4 managerial activities and they are as follows.
1. Traditional management
Decision making, planning and controlling
2. Communication
Exchanging routine information and processing paper work
3. Human resource management
Motivating, disciplining, managing conflict, staffing and training
4. Networking
Socializing, politicking
Figure 1b: Allocation of managerial activities by time

DEFINITIONS OF ORGANIZATIONAL BEHAVIOUR

 Organizational behavior is defined as actions and attitudes of individuals and groups toward one another and
toward the organization as a whole, and its effect on the organization's functioning and performance.
 Organizational behavior is defined as the study which deals with all aspects of human behavior that occur within
the context of an organization. It entails the study of how individuals behave as individuals and in groups within
an organization.
 Organizational behavior is the study of human behavior, attitudes and performance in organizations.
 Organizations are social inventions for accomplishing common goals through group effort. Organizational
behavior is concerned with the attitudes and behaviours of individuals and groups in organizations and can be
understood in terms of three levels of analysis: the individual, the group, and the organization.
 A field of study that investigates the impact that individuals, groups and structure have on behavior within
organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
ELEMENTS OF ORGANIZATIONAL BEHAVIOUR
The key elements in the organizational behaviour are people, structure, technology and the environment in which
the organization operates.
 People
People make up the internal and social system of the organization. They consist of individuals and groups. The
groups may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the
organization to achieve their objectives.
 Structure
Structure defines the formal relationships of the people in organizations. Different people in the organization are
performing different type of jobs and they need to be related in some structural way so that their work can be
effectively coordinated.
 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 work better but it also restricts' people in various ways.
 Environment
All organizations operate within an external environment. It is the part of a larger system that contains many other
elements such as government, family and other organizations. All of these mutually influence each other in a
complex system that creates a context for a group of people.
NEED AND IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR
1. The study of OB has proved beneficial in many ways. The benefits of studying OB are as follows:

It builds better relationship by achieving peoples’ organizational, and social objectives.

2. It covers a wide array of human resource like behaviour, training and development, change management,
leadership, teams etc.
3. It brings coordination which is the essence of management.
4. It improves goodwill of the organization.
5. It helps to achieve objectives quickly.
6. It makes optimum utilization of resources.
7. It facilitates motivation.
8. It leads to higher efficiency.
9. It improves relations in the organization.
10. It is multidisciplinary, in the sense that applies different techniques, methods, and theories to evaluate
the performances.
As a manager, the teachings of OB can significantly increase one’s personal sensibilities and outlook on these
attributes:

The study of OB has been considered to most valuable contribution in enhancing managerial skills. These are the
following skills that are developed through OB in the mangers of the organisation. They are as follows:

1. Self development
2. Personality development

3. Development of human values and ethical perspective

4. Managing stress and achieving mental hygiene

5. Creative use of emotions

6. Creating learning individual and learning organisation

7. Managing creativity and innovation

8. Motivation and morale

9. Job satisfaction

10. Effective communication

11. Interpersonal effectiveness including persuasion, coaching, counselling, mentoring, goal setting, decision
making, politicking, negotiation, conflict handling

12. Team building

13. Leadership

14. Creating effective organisational culture

15. Managing change

16. Continuous development through behavioural interventions.

1.2. NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOUR

Organizational behaviour is an applied behavioral science that is built on contributions from a number of
behavioral disciplines such as psychology, sociology, social psychology, anthropology and economics.
So now let us see how these disciplines are related to organizational behavior.
 Psychology
Psychology is the study of human behavior which tries to identify the characteristics of individuals and provides an
understanding why an individual behaves in a particular way. This thus provides us with useful insight into areas
such as human motivation, perceptual processes or personality characteristics.
 Sociology
Sociology is the study of social behavior, relationships among social groups and societies, and the maintenance of
social order. The main focus of attention is on the social system. This helps us to appreciate the functioning of
individuals within the organization which is essentially a socio-technical entity.
 Social psychology
Social psychology is the study of human behaviour in the context of social situations. This essentially addresses the
problem of understanding the typical behavioral patterns to be expected from an individual when he takes part in a
group.
 Anthropology
Anthropology is the science of mankind and the study of human behaviour as a whole. The main focus of attention
is on the cultural system, beliefs, customs, ideas and values within a group or society and the comparison of
behaviour among different cultures. In the context of today's organizational scenario, it is very important to
appreciate the differences that
exist among people coming from different cultural backgrounds as people are often found to work with others from
the other side of the globe.
 Economics
Any organization to survive and sustain must be aware of the economic viability of their effort. This applies even
to the non-profit and voluntary organizations as well.
1.3. ORGANIZATIONAL BAHAVIOUR MODELS
Keith Davis recognizes four different models of OB. These models show evolution of the thinking and behaviour
on the part of management and managers alike. The four major models or frameworks that organizations operate
out of:
 Autocratic
The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented
towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance
result is minimal.
 Custodial
The basis of this model is economic resources with a managerial orientation of money. The employees in turn are
oriented towards security and benefits and dependence on the organization. The employee need that is met is
security. The performance result is passive cooperation.
 Supportive
The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented
towards job performance and participation. The employee need that is met is status and recognition. The
performance result is awakened drives.
 Collegial
The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are
oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The
performance result is moderate enthusiasm.
Although there are four separate models, almost no organization operates exclusively in one. There will usually be
a predominate one, with one or more areas over-lapping in the other models.
 Figure 1e: Four models of organizational behaviour

Autocratic Custodial Supportive Collegial

Model depends on Power Economic resources Leadership Partnership

Managerial
Authority Money Support Teamwork
orientation
Employee
Obedience Security and benefits Job performance Responsibility
orientation
Employee Dependence on Dependence on
Participation Self-discipline
psychological result boss organization
Employees needs Higher-order
Subsistence Maintenance [Status and Self-actualization
met recognition]
Moderate
Performance result Minimum Passive cooperation Awakened drives
enthusiasm
CHALLENGES AND OPPORTUNITIES OF ORGANIZATIONAL BEHAVIOUR
CHALLENGES AND CAREER DEVELOPMENT FOR OB
Modern organisations are deeply affected by the external environment. These need to maintain a good fit with
their external environment by continuously monitoring and adjusting to the changes over the past decade and
decades to come are more profound than others. Some critical OB issues confronting the managers today are
as follows:-
1. Managerial challenges
2. Work place issues and challenges
3. Organisational challenges
4. Global challenges
5. Environmental challenges

1. Managerial challenges
Managers of modern organisation faces the following managerial challenges:-
a. Workforce diversity.-Organisations are becoming more heterogeneous in terms of gender, race and
ethnicity. There can be employees who are physically handicapped, lesbians, gays, elderly or others who are
different in some way or others. The managers must learn to respect the diversity. They have to shift their
philosophy from treating everyone alike to recognising differences and responding to those differences in a way
that will ensure employee retention and greater productivity while at the same time not discriminating. An
increasingly diverse workforce presents both opportunities and challenges for the organisations. If diversity is not
properly managed, it can lead to higher employee turnover, more difficult communications and more interpersonal
conflicts.
b. Changing demographics of workforce- it includes dual career couples, where both partners are actively
pursuing professional careers. They limit the individual flexibility in accepting important assignments and this
hinders the organisational flexibility in acquiring and developing talent.
c. Growing number of youngsters- these employees are fresh, ambitious, enthusiastic and
innovative. These people do not “Live to work but work to Live” choosing a life that they want to
have as opposed to just bringing home a pay check.
d. Gender factor- women gradually moved into professions previously dominated by male
and in the same way men also moved to professions previously dominated by females. These
developments have their own implications for human resource managers in organisations.
1. Workplace issues and challenges
These issues also have behavioural implications. Major issues under these are:-
a. Employee Privacy- employers have stated to intrude and encroach into the personal
lives of the employees. Managers need to be very sensitive to this issue since this trend creates
resentment among employees.
b. Employee rights- it involve controversies involve issues associated with job
ownership and individual rights while at work.
c. Unionism- recently union membership has been steadily declining. As a result
organisations carry the burden of providing services to the employees which were previously
provided by the union. Organisations need to take extra precautions to ensure that workers are
treated fairly, otherwise, union membership will start increasing once again.
d. Changed Employee expectations- Traditional motivators like job security, attractive
pay, additional perks etc do not attract present day employees and they demand empowerment, and
expect quality of status with the management. Participative management instead of authoritative
leadership, flexi-timings, opportunities to work from home, leading by example are the more recent
trends.
3. Organisational challenges
a. Improving quality and productivity – Due to the changed circumstances [LPG] managers have
to think seriously about improving the quality and productivity measures like Total Quality
Management [TQM] and Reengineering Programme.
TQM is a philosophy of management for attainment of customer satisfaction through the continous
improvement of all organisational processes.Reengineering means radically thinking and
redesigning those processes by which they create value for customers and do their work.
b. Managing technology and innovations- success will come only to those
organisations that maintain their flexibility continually improve their quality and outbeat their
competitots with innovative roducts ad services.The challenge for managers is to stimulate employee
creativity and tolerance for change

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c. Coping with temporariness – the concept of continuous improvement means constant change.
Managers face a stage of permanent temporariness. The actual job that workers perform are in a state
of flux they have to continuously update their knowledge and skills to perform new job
requirements.
d. Ethical behaviour- it is the duty of managers to create an ethically healthy climate for their
employees, where they can do their work productively and with clean conscience. Social
responsibility is the organisational, obligation to protect and contribute to social environment with
which they functions
4. Global Challenges
a. Managing global environment- Internationalism of business has transformed the world into a
global village. Managers have to cope with this internationalism and must change to acquire a global
perspective
b. Managing cultural diversity- Managers in Ghana as well as abroad have to work with people
from other countries having different cultures. They have to work effectively with these people and
understand their culture and learn to adapt management styles to these different cultures.

5. Environment Challenges
Organisations exist within an external environment. It must adapt itself with the continuously
changing and dynamic environment. Managers of an organisation must be responsive to a large
number of environmental challenges like:-
a. Ecology- it is concerned with the relationship of living things with their environment. Every
organisations must face the challenge to maintain and even create ecological standards
b. Air, Water and soil Pollution- the general concept recommended nowadays is that development
should be sustainable in the long run and every project should cater to maintain if not mend the
direct harm to the environment resulting from the development measures
c. Personnel Policies- It must not be discriminatory towards any particular caste, creed, religion, sex
or nationality. There should be equal pay for equal work.
d. Consumerism- It call for a revised marketing concept. Marketing concept has to be broadened to
include societal marketing concept, where the long run consumer welfare is important.
e. Research and development- To keep pace with global challenges, the organisations must take
technical and scientific research.
f. International and National Economic Policies – The organisations must keep in mind the
International as well as National Legislations as well as the rising inflationary trends.

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 UNIT 2
2. INDIVIDUAL BEHAVIOUR
2.1. PERSONALITY
- TYPES
- FACTORS INFLUENCING PERSONALITY
- THEORIES
2.2. LEARNING
- TYPES OF LEARNERS
- THE LEARNING PROCESS
- LEARNING THEORIES
2.3. ORGANIZATIONAL BEHAVIOUR MODIFICATION
2.4. MISBEHAVIOUR
- TYPES
- MANAGEMENT INTERVENTION
2.5. EMOTIONS
- EMOTIONAL LABOUR
- EMOTIONAL INTELLIGENCE
- THEORIES
2.6. ATTITUDES

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 - CHARACTERISTICS
- COMPONENTS
- FORMATION
- MEASUREMENT
2.7. VALUES
2.8. PERCEPTIONS
- IMPORTANCE

- FACTORS INFLUENCING PERCEPTION

- INTERPERSONAL PERCEPTION

2.9. IMPRESSION MANAGEMENT

2.10. MOTIVATION

- IMPORTANCE

- TYPES

- EFFECTS ON WORK BEHAVIOUR

2.1. PERSONALITY
DEFINITION AND MEANING OR PERSONALITY
Personality, a characteristic way of thinking, feeling, and behaving. Personality embraces moods,
attitudes, and opinions and is most clearly expressed in interactions with other people. It includes
behavioral characteristics, both inherent and acquired, that distinguish one person from another and
that can be observed in people’s relations to the environment and to the social group.

The term personality has been defined in many ways, but as a psychological concept two main
meanings have evolved. The first pertains to the consistent differences that exist between people: in
this sense, the study of personality focuses on classifying and explaining relatively stable human
psychological characteristics. The second meaning emphasizes those qualities that make all people
alike and that distinguish psychological man from other species.

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 commonalities and differences in the psychological behavior and that may not be
easily understood as the sole result of the social and biological pressures of the moment". Gordon
Allport nearly 70 years ago said personality is “the dynamic organization within the individual of
those psychological systems that determine his unique adjustments to his environment.” For our

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purposes, we should think of personality as the sum total of ways in which an individual reacts to
and interacts with others. We most often describe it in terms of the measurable traits a person
exhibits. From the above definitions, we can infer that all individuals have some universally common
characteristics. Yet they differ in some other specific attributes. This makes it difficult for the
managers to assume that they can apply same reward types or motivation techniques to modify
different individual behaviors. The definition, however, does not mean that people never change. In
simple terms, it asserts that individuals do not change all at once. Their thoughts, feelings, values and
actions remain relatively stable over time. Changes in individual's personality can, however, occur
gradually over a period of time. The managers should, therefore, attempt to understand certain
dimensions of personality. This can enable them to predict the behavior of their employees on a daily
basis. Some personality theorists stress the need of identifying person-situation as interaction. This is
equivalent to recognizing the social learning aspects related to personality. Such a social learning
analysis is one of the most comprehensive and meaningful ways included in the overall study of
organizational behavior. From this perspective, personality means the way people affect others. It
also involves people's understanding themselves, as well as their pattern of inner and outer
measurable traits, and the person and situation interaction. People affect others depending primarily
upon their external appearance such as height, weight, facial features, color and other physical
aspects and traits.
PERSONALITY TRAITS
Enduring characteristics that describe an individual’s behavior. Popular characteristics include shy,
aggressive, submissive, lazy, ambitious, loyal, and timid. When someone exhibits these
characteristics in a large number of situations, we call them personality traits.
SIXTEEN PRIMARY PERSONALITY TRAITS

MEASURING PERSONALITY
There are three main ways in which personality is measured.
1. Self – report surveys [By the individual]
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2. Observer ratings surveys [By the co-worker]
3. Projective measures
- Inkblot Test [What inkblots seem to resemble]
- Thematic Apperception Test [TAT] – [Writes a story about each picture]
Figure2a: Inkblot test

Figure2b: Thematic Apperception Test [TAT]

USE OF ASSESSMENTS OF INDIVIDUAL DIFFERENCES

IN ORGANIZATIONS
In organizations, assessments of individual differences are carried out at the
time of selection and during other times in an employee’s career. Personality tests can help in the
following ways in an organization.
1. Screening
2. Selection
3. Succession planning
4. Career planning
5. Team building
6. Management development
TYPES OF PERSONALITY
THE MYERS – BRIGGS TYPE INDICATOR [MBTI]
The MBTI is the most widely used personality assessment instrument in the world. It’s a 100
question personality test that asks people how they usually feel or act in particular situations. On the
basis of their answers, individuals are classified as:
1. Extraverted vs. Introverted
Extraverted individuals are outgoing, sociable and assertive. Introverts are quiet and shy.
2. Sensing vs. Intuitive
Sensing types are practical and prefer routine and order. They focus on details. Intuitives rely on
unconscious processes and look at the big picture.
3. Thinking vs. Feeling
Thinking types use reason and logic to handle problems. Feeling types rely on their personal values
and emotions.
4. Judging vs. Perceiving
Judging types want control and prefer their world to be ordered and structured. Perceiving types are
flexible and spontaneous.
Figure2c: MBTI
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THE BIG FIVE PERSONALITY MODEL
/ FIVE FACTOR MODEL [FFM]
The MBTI may lack for strong supporting evidence,
but the same cannot be said for the five – factor model of personality typically called the Big Five
Model, of the Big Five. The Big Five factors are as follows:
1. Openness to experience
Openness is a general appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity,
and variety of experience. The trait distinguishes imaginative people from down-to-earth,
conventional people. People who are open to experience are intellectually curious, appreciative of
art, and sensitive to beauty. They tend to be, compared to closed people, more creative and more
aware of their feelings. They are more likely to hold unconventional beliefs. People with low scores
on openness tend to have more conventional, traditional interests. They prefer the plain,
straightforward, and obvious over the complex, ambiguous, and subtle. They may regard the arts and
sciences with suspicion or even view these endeavors as uninteresting.
Sample openness statements
 I have a rich vocabulary.
 I have a vivid imagination.
 I have excellent ideas.
 I am quick to understand things.
 I use difficult words.
 I spend time reflecting on things.
 I am full of ideas.
 I am not interested in abstractions. (reversed)
 I do not have a good imagination. (reversed)
 I have difficulty understanding abstract ideas. (reversed)

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2. Conscientiousness
Conscientiousness is a tendency to show self-discipline, act dutifully, and aim for achievement
against measures or outside expectations. The trait shows a preference for planned rather than
spontaneous behavior. It influences the way in which we control, regulate, and direct our impulses.
Sample conscientiousness statements
 I am always prepared.
 I pay attention to details.
 I get chores done right away.
 I like order.
 I follow a schedule.
 I am exacting in my work.
 I leave my belongings around. (reversed)
 I make a mess of things. (reversed)
 I often forget to put things back in their proper place. (reversed)
 I shirk my duties. (reversed)
3. Extraversion
Extraversion is characterized by positive emotions and the tendency to seek out stimulation and the
company of others. The trait is marked by pronounced engagement with the external world.
Extraverts enjoy being with people, and are often perceived as full of energy. They tend to be
enthusiastic, action-oriented individuals who are likely to say "Yes!" or "Let's go!" to opportunities
for excitement. In groups they like to talk, assert themselves, and draw attention to themselves.
Introverts lack the social exuberance and activity levels of extraverts. They tend to seem quiet, low-
key, deliberate, and less involved in the social world. Their lack of social involvement should not be
interpreted as shyness or depression. Introverts simply need less stimulation than extraverts and more
time alone. They may be very active and energetic, simply not socially.
Sample extraversion statements
 I am the life of the party.
 I don't mind being the center of attention.
 I feel comfortable around people.
 I start conversations.
 I talk to a lot of different people at parties.
 I don't talk a lot. (reversed)
 I keep in the background. (reversed)
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 I have little to say. (reversed)
 I don't like to draw attention to myself. (reversed)
 I am quiet around strangers. (reversed)
4. Agreeableness
Agreeableness is a tendency to be compassionate and cooperative rather than suspicious and
antagonistic towards others. The trait reflects individual differences in general concern for social
harmony. Agreeable individuals value getting along with others. They are generally considerate,
friendly, generous, helpful, and willing to compromise their interests with others. Agreeable people
also have an optimistic view of human nature. They believe people are basically honest, decent, and
trustworthy. Disagreeable individuals place self-interest above getting along with others. They are
generally unconcerned with others’ well-being, and are less likely to extend themselves for other
people. Sometimes their skepticism about others’ motives causes them to be suspicious, unfriendly,
and uncooperative.
Sample agreeableness statements
 I am interested in people.
 I sympathize with others' feelings.
 I have a soft heart.
 I take time out for others.
 I feel others' emotions.
 I make people feel at ease.
 I am not really interested in others. (reversed)
 I insult people. (reversed)
 I am not interested in other people's problems. (reversed)
 I feel little concern for others. (reversed)
5. Neuroticism / Emotional stability
Neuroticism is the tendency to experience negative emotions, such as anger, anxiety, or depression. It
is sometimes called emotional instability. Those who score high in neuroticism are emotionally
reactive and vulnerable to stress. They are more likely to interpret ordinary situations as threatening,
and minor frustrations as hopelessly difficult. Their negative emotional reactions tend to persist for
unusually long periods of time, which means they are often in a bad mood. These problems in
emotional regulation can diminish the ability of a person scoring high on neuroticism to think clearly,
make decisions, and cope effectively with stress. At the other end of the scale, individuals who score
low in neuroticism are less easily upset and are less emotionally reactive. They tend to be calm,

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emotionally stable, and free from persistent negative feelings. Freedom from negative feelings does
not mean that low scorers experience a lot of positive feelings.
Sample neuroticism items
 I am easily disturbed.
 I change my mood a lot.
 I get irritated easily.
 I get stressed out easily.
 I get upset easily.
 I have frequent mood swings.
 I often feel blue.
 I worry about things.
 I am relaxed most of the time. (reversed)
Common acronyms for this model are OCEAN, NEOAC or CANOE.
Figure2d: Big Five personality traits
OTHER

PERSONALITY TRAITS RELEVANT TO OB

Although the Big Five traits have proven to be highly relevant to OB, they don’t exhaust the range of
traits we can use to describe someone’s personality. Now we will look at other, more specific,
personality attributes that have been found to be powerful predictors of behavior in organizations.
 Core self – evaluation
People differ in the degree to which they like or dislike themselves and whether they see themselves
as capable and effective. This self – perspective is the concept of core self – evaluation. People who
have positive core self – evaluations like themselves and see themselves as effective, capable and in

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control of their environment. Those with negative core self – evaluations tend to dislike themselves,
question their capabilities, and view themselves as powerless over their environment.
 Machiavellianism
Machiavellianism is manipulating or influencing other people as a primary way of achieving one's
goal. An individual tends to be Machiavellian, if he tends to be logical in assessing the system
around, 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.

 Narcissism
Narcissism is the tendency to be arrogant, have a grandiose sense of self – importance, require
excessive admiration, and have a sense of entitlement.
 Self – monitoring
Self – monitoring is a personality trait that measures an individual’s ability to adjust his or her
behavior to external, situational factors.
 Risk taking
People differ in their willingness to take chances. This propensity to assume or avoid risk has been
shown to have an impact on how long it takes managers to make a decision and how much
information they require before making a choice. Studies showed that high risk taking managers
made more rapid decisions and used less information in making their choices than did the low risk
taking managers. Interestingly, decision accuracy was the same for both groups.
 Locus of Control
Locus of control is the degree to which an individual believes that his or her behavior has direct
impact on the consequences of that behavior. Some people, for example, believe that if they work
hard they will certainly succeed. They strongly believe that each individual is in control of his or 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 behavior of other people, rather than the lack
of skills or poor performance on their part. Because- these individuals think that forces beyond their
control dictate the happenings around them, they are said to have an external locus of control. As a
personality attribute, locus of control has clear implications for organizations. For example, certain
individuals have an internal locus of control, which means they have a relatively strong desire to
participate in the management of their organizations and have a' freedom to do their jobs. Thus, they
may prefer a decentralized organization where they have a right of decision-making and work with a
leader who provides them freedom and autonomy. They may like a reward system that recognizes

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individual performance and contributions. Conversely, people with an external locus of control, are
likely to prefer a more centralized organization where they need not take any decisions. They may
incline to structured jobs where standard procedures are defined for them. They may prefer a leader
who makes most of the decisions and a reward system that considers seniority rather than merit.
 Introversion and Extroversion
Introversion is the tendency of individuals, which directs them to be inward and process feelings,
thoughts and ideas within themselves. Extroversion, on the contrary, refers to the tendency in
individuals to look outside 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 and gregarious and seek
outward stimuli or external exchanges. Such individuals are likely to be most successful while
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 in and
out of the organization and influence people to achieve the organization's goals, it is believed that
extroverts are likely to be more successful as managers.
 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 organization. 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, which, in turn,
reinforces high self-esteem. Thus, the two are mutually reinforcing. Individuals with a high self-
esteem will try to take on more challenging assignments and be successful. Thus, they will be
enhancing their self-concept i.e., they would tend to define themselves as highly valued individuals
in the organizational system. The higher the self-concept and self-esteem, the greater will be their
contributions to the goals of the organization, especially when the system rewards them for their
contributions.
 Authoritarianism and Dogmatism
Authoritarianism is the extent to which an individual believes that power and status differences are
important within' hierarchical social systems like organizations. For example, an employee who is

21
highly authoritarian may accept directives or orders from his superior without much questioning. A
person who is not highly authoritarian might agree to carry out appropriate and reasonable directives
from his boss. But he may also raise questions, express disagreement and even refuse to carry out
requests if they arc for some reason objectionable. Dogmatism is the rigidity of a person's beliefs and
his or her openness to other viewpoints. The popular terms 'close-minded' and 'open-minded'
describe people who are more and less .dogmatic in their beliefs respectively. For example, a
manager may be unwilling to listen to a new idea related to doing something more efficiently. He is
said to be a person who is close-minded or highly dogmatic. A manager who is very receptive to
hearing about and trying out new ideas in the same circumstances might be seen as more open-
minded or less dogmatic. Dogmatism can be either beneficial or detrimental to organizations, but
given the degree of change in the nature of organizations and their environments, individuals who
are, not dogmatic are most likely to be useful and productive organizational members.
 Type 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 feel 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 organization 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
organization in the long run.
 Work-Ethic Orientation
Some individuals are highly work-oriented while others try to do the minimum Work that is
necessary to get by without being fired on-the-job. The extremely work oriented person gets greatly
involved in the job. Extreme work ethic values could lead to traits of "workahollism" where work is
considered as the only primary motive for living with very little outside interests. For a workaholic
turning to work can sometimes become a viable alternative to facing non-work related problems. A
high level of work ethic orientation of members is good for the organization to achieve its goals. Too
much "workahollism", however, might lead to premature physical and mental exhaustion and health
problems, which is dysfunctional for both organization and the workaholic members.
FACTORS / DETERMINANTS INFLUENCING PERSONALITY
Personality does not evolved by a single factor. It is a mixture of a lot of things. Some of those
factors are psychological, some are physical, some are biological and some are even hereditary.

22
1. Brain
Brain is one of the most important factors of personality determinant. It is generally believed that the
father and the child adopt almost the same type of brain stimulation and the later differences are the
result of the environment in which the child has been grown up.
2. Physical Factors
One of the most important factors in determining personality is the ‘Physical Characteristics’ of an
individual. It is believed that this factor plays a vital role in determining one’s behavior in any
organization. Physical features may involve the height of a person (short or tall), his color (white or
black), his health status (fat or skinny) and his beauty (handsome or ugly). These factors are involved
when interacting with any other person and thus contribute in the personality development in many
ways.
3. Social Factors
Social factors also play a vital role in determining one’s personality. The things that revolve and
evolve around us on a regular basis determine our personality. The society that we live in, the
cultural environment that we face daily, the community we get interacted to, all are included in this
factor. Relationships, co-ordination, co-operation, interaction, environment in the family,
organizations, workplaces, communities, societies all contribute in way or another as personality
determinants.
4. Cultural and Religious Factors
The culture in which one lives in that may involve traditional practices, norms, customs, procedures,
rules and regulations, precedents and values, all are important determinants of personality. Moreover,
the creed, religion and believes are also very important factors of personality determinants.
5. Heredity Factor
Heredity refers to factors determined at conception. Physical stature, facial attractiveness, gender,
temperament, muscle composition and reflexes, energy level, and biological rhythms are generally
considered to be either completely physiological or inherent psychological makeup. The heredity
approach argues that the ultimate explanation of an individual’s personality is the molecular structure
of the genes, located in the chromosomes.
THEORIES OF PERSONALITY
Psychologists and other human behavior theorists developed personality theories based on research
studies. These personality theories are grouped into:
1. Psychoanalytical theories
Various psychologists contributed to the development of psychoanalytic theory. These psychologists
include Sigmund Freud, Carl Jung, Alfred Adler, Karen Horney and Eric Fromm. Sigmund Freud
23
made significant contributions to the theory compared to other psychologists. Sigmund Freud, based
on his research, concluded that unconscious framework motivates the man costly. There are three
aspects in the unconscious framework viz.,
Figure2e: Freud’s theory of the personality

 The Id
The Id is the primary principle of all human life. It is the mental agency containing everything
inherited. It seeks gratification for biological needs. It is the unconsciousness part of human
personality. The biological needs include hunger, thirst and sexual needs. These needs would be the
driving force for thinking and behaving throughout the life. According to the Id, the man removes the
tension of unsatisfied biological needs by forming a mental image of the object would satisfy the
needs. Thus, the Id concept is related to the imaginary and illusionary world.
 The Ego
The ego is related to the reality principle. It is the conscious and logical part of human personality.
Ego is based on the realities of the external environment through intellect and reason. The Id wants
immediate pleasure through imagination while the ego wants a real pleasure.
 The Super Ego
Super ego represents a system of personal and societal values, norms, ethics and attitudes. It acts as
an ethical constraint on behavior. This can be treated as conscience. Super ego acts as a norm to the
ego in order to determine which behavior is right and which behavior is wrong. Thus, the super ego
judges whether the behavior / action is correct or incorrect based on the culture, norms and values of
the society concerned.
These three aspects are interrelated with each other.
Example
 The Id

24
A fresh management graduate develops a mental image of a General Manager’s position in a
multinational company.
 The Ego
The job market, competition from other candidates like CAs, ICWAs, MHRM, CFAs etc. and
recession in the industry make him to realize the reality and aspire for a junior management position.
 The Super Ego
The fresh management graduate aspiring for a General Manager’s position and forced to accept a
junior management’s position by the environment.
2. Socio – psychological theories
The society’s needs and psychological factors of the individual shape the personality. The individual
and the society cannot live in isolation. These two interact with and are interdependent on each other.
The individual contributes to the achievement of society’s needs. Similarly, society assists the
individual in fulfilling his needs. The psychological factors of the individual and the sociological
factors of the society interact with each other. Thus, this theory is inclusive of social factors and
psychological factors. Contributors to this theory include Alder, Fromni, Horney and Sullivan. The
contributions of the socio – psychologists are as follows:
 Fomm stressed on the importance of social context. These contributions include building social
relations, making the work more social relevance, making the employee to have the feel of social
sets in his work and output.
 Sullivan and Horney stressed on interpersonal behaviour. These contributions include developing
transactional abilities, viewing the people positively, developing positive attitude etc.
 Alder emphasized on different variables. These contributions include career networking, religious
beliefs, balancing family and work requirements etc.
 Horney stressed on predominant interpersonal behaviours like being compliant, aggressive and
detached. Compliant people are dependent on others, aggressive people are motivated by the need
of power and detached people are self – sufficient.
3. Trait theories
Catell developed set of traits such as:
 Surface traits
Surface traits include wise – foolish, affectionate – cold, sociable – seclusive, honest – dishonest etc.
Individuals keep their actual feelings inside and exhibit the traits desirable by the situation.
Individuals would like to be good to others at their own cost. Similarly, individuals maintain social
relations, develop friendship and networks.

 Source traits
Source traits include Maturity – realism, good nature and trustworthiness, critical – suspicious etc.
Individuals with source traits possess characteristics like maturity of mind, judgmental, analyzing
and understanding people and situations more accurately.
25
4. Holistic / Self theories
Self theory emphasizes on the totality of the human behaviour. This theory is also known as
Organismic theory. This theory treats the organism as a whole. Carl Rogers contributed four factors
viz.,
 Self – image
Self –image is the way one sees himself / herself. Self – image is the set of beliefs of oneself who or
what he is.
 Ideal self
The ideal self denotes the way one would like to be. The self – image is the realities of a person
while the ideal self is the ideal position as expected / perceived by him. The ideal self motivates the
person.
 Looking glass- self
The looking glass – self is the perception of an individual about how others perceive his / her
characteristics and qualities. Looking glass – self is perception of others’ perception and is the
outcome of face – to – face interaction with others from the very beginning of life.
 Real life
The real life is what one actually is. In other words, real life is the real characteristics, values and
attitudes of one self. The person adjusts and readjusts himself based on the responses of others and
the environmental influences.
2.2. LEARNING
DEFINITION OF LEARNING
Learning can be defined as any relatively permanent change in behavior that occurs as a result of
experience.
CHARACTERISITCS OF LEARNING
 Learning involves change
Learning involves a change in behavior, though this change is not necessarily an improvement over
previous behavior. Learning generally has the connotation of improved behavior, but bad habits,
prejudices, stereotypes, and work restrictions are also learned.

 Change must be relatively permanent

The behavioral change must be relatively permanent. Any temporary change in behavior is not a part
of learning.
 Behavioral issues
The change in the knowledge and wisdom should produce different attitudes and values. These new
attitudes and values should change the behavior. Then only it is called learning. In other words, the
new attitudes and values not accompanied by change in behavior are not called learning.
 Experience - based

26
 Learning is based on experience. Experience may be direct or indirect, personal or through
observation or through reading.
IMPORTANCE OF LEARNING
The fast growing information and knowledge make learning as the order of the day not only for
individual but also for the organizations. People learn not only information but the behavior.
Therefore, we should understand the concept of learning in order to understand the behavior of the
individuals, groups and the organization.
TYPES OF LEARNERS
Learners are categorized into three types. They are as follows:

VISUAL LEARNERS AUDITORY LEARNERS KINESTHETIC LEARNERS

WRITE IT SAY IT DEMONSTRATE IT
Provide written materials and
State the information Demonstrate how a principle works
exercises
Write key words on board or flip
Ask audience to describe specific info
Ask them to practice the technique
chart
Encourage underlining and
Ask them to write a response Provide discussion periods
highlighting key words
Use visuals or graphics Encourage questions Provide real-life simulations
Ask them to be recorder in a group Foster small group participation Offer hands-on activities
Involve them through Utilize audiovisuals and audio
Involve them physically
visual/spatial sense cassettes

THE LEARNING PROCESS

The learning process is a mental and habit formation process. Attention is paid to certain stimuli used
for learning which are recognized and translated into reinforcement and behavior.

STEPS IN LEARNING PROCESS

1. Stimuli
Stimuli are any objects and language which draw the attention of people. Employees get stimuli from
the actions of their superiors.
2. Attention
The degree of attention depends upon the nature of stimuli. All stimuli are not paid attention to
technical and interesting stimuli are highly attended. Career oriented stimuli are generally accepted
by employee.
3. Recognition
Attention paid – stimuli are recognized as acceptable factors of improvement and new life styles.
Employees paying attention to stimuli are recognizing the stimuli for learning process.
4. Translation
Recognized stimuli are evaluated at the mental level to eliminate the irrelevant points for accepting a
part of the stimulus for changing behavior.

27
5. Reinforcement
Reinforced perception is learning. The perception process includes stimuli, attention, recognition,
translation and behavior. Perception leads to learning, but perception itself is not learning unless it is
reinforced.
Figure 2f: Learning process

Stimuli Attention Recognition Translation

Reinforcement

Behaviour

Efforts Motives Habit Reward

6. Behaviour
Learning changes behavior through reinforcement of perceived knowledge. It makes permanent
change in behavior. A temporary change in behavior is not learning. Positive behavior gives rewards
to employees.
7. Reward
Employees expects rewards for learning. If the translated behavior provides a reward, it is accepted,
otherwise it is not accepted.
8. Habits
A permanent change in behavior becomes a habit which helps continuous improvement in behavior
and performance. Employees develop the habit of self – appraisal and development.
9. Motives
Motives depend on the level of satisfaction. Employees getting more satisfaction through learning
develop high motives. Less satisfied learners have low motives. Learning is complete only when
motives are fully realized and translated into efforts.
10. Efforts
Habits help achieve good efforts and performance. This is a continuous process. Efforts are the
automatic outcome of good habits which are acquired through the learning process.
LEARNING THEORIES
There are three theories of learning viz.,
1. Behaviouralistic theories
 Classical conditioning
Ivan Pavlov conducted classical conditioning experiment using dogs as subjects. Classical
conditioning came out of experiments to teach dogs to salivate in response to the ringing of a bell.
Pavlov measured the amount of saliva secreted by a dog. Pavlov presented meat powder to the dog
28
[unconditioned stimulus], and then he noticed a great deal of salivation [unconditioned response].
When he merely rand a bell [neutral stimulus] the dog had no salivation. Next, Pavlog presented the
meat powder along with ringing the bell. After doing this several times, he rang the bell without
presenting the meat. This time the dog salivated to do the bell alone. The dog had become classically
conditioned to salivate [conditioned response] to the sound of the bell [conditioned stimulus]. Thus,
the classical conditioning reveals that the stimulus elicits response i.e., Stimulus  Response.
 Operant conditioning
Skinner felt that classical conditioning cannot explain the more complex human behaviors. He felt
that human behavior affects or is affected by the environment. This behavior is explained by operant
conditioning. Operant conditioning emphasis that learning occurs as a consequences of behavior i.e.,
Response  Stimulus. Employees work for more hours to get more salary or not to be fired. If the
management pays more salary to those employees who work for more hours, then the employees
repeat their behavior of working for more hours. Paying more salary is called reinforcement.
Reinforcement strengthens a behavior and increases the likelihood of repeating that behavior.
2. Cognitive theories
Cognitive theories emphasis on the cognitive process. Cognitive learning theories establish the
relationship between cognitive environmental cues and expectations. Edward Tolman conducted an
experiment using white rats as subjects. He found that a rat could learn to run through a complex
maze with purpose and direction toward a goal [food]. The rat learned to expect that certain cognitive
cues associated with the choice point might eventually led to food. Tolman’s approach is depicted as
Stimulus  Stimulus. In other words, learning is the association between the cue and expectancy.
Employees expect higher salaries, promotions, and high quality of work life. Employees learn that
they can achieve their expectations by working productively. The realization of working productively
is the result of cognitive environmental cues.
3. Social learning theories
People learn through different means like observation of others, direct experiences and indirect
experiences. Learning through various means is called social learning. People learn from various
models like parents, teachers, peers, leaders etc. The influence of model is significant in social
learning theory. There are four processes through which the model influences the individuals. These
four processes include:
1. Attention processes
People learn from the critical features of the models like leadership skills, attractiveness, timely
decision – making etc.
2. Retention process
The level of influence of the model depends on the level to what extent the individual remembers the
model.
3. Motor reproduction processes
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People may times imitate the models. Children imitate their parents and teachers. This is because,
observation is covered into action.
4. Reinforcement processes
Individuals prefer to exhibit the behavior of the model, if such behavior results in rewards. People
may more attention to and learn the positively reinforced behaviors from the models.

SHAPING: A MANAGERIAL TOOL

Shaping behavior is a systematic reinforcing each successive step that moves an individual closer to
the desired response.
METHODS OF SHAPING BEHAVIOUR
There are four ways to shape behavior. They are as follows:
1. Positive reinforcement
Following a response with something pleasant is called positive reinforcement.
2. Negative reinforcement
Following a response by the termination or withdrawal of something unpleasant is called negative
reinforcement.
3. Punishment
Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable behavior.
4. Extinction
Eliminating any reinforcement that is maintaining a behavior is called extinction.
SCHEDULES OF REINFORCEMENT
The two major types of reinforcement schedules are:
1. Continuous reinforcement schedule
Reinforcing a desired behavior each time it is demonstrated.
2. Intermittent reinforcement schedule
Reinforcing a desired behavior often enough to make the behavior worth repeating but not every
time it is demonstrated.
The intermittent reinforcement schedule can be of two types. They are:
1. Ratio schedules
Ratio schedules depend on how many response the subject makes. The individual is reinforced
after giving a certain number of specific types of behavior.
The ratio schedules can be of two types. They are:
1. Fixed – ratio schedule
Initiating rewards after a fixed or constant number of responses.
2. Variable – ratio schedule
Varying the reward relative to the behavior of the individual.
2. Interval schedules
Interval schedules depend on how much time has passed since the previous reinforcement. With
interview schedules, the individual is reinforced on the first appropriate behavior after a particular
time has elapsed.
The interval schedules can be of two types. They are:
1. Fixed – interval schedule
Spacing rewards at uniform time intervals
2. Variable – interval schedule
Distributing rewards in time so that reinforcements are unpredictable.
2.3. ORGANIZATIONAL BEHAVIOUR MODIFICATION [OB – Mod]
30
Emery Air Freight [now part of FedEx] illustrates the use of behavior modification, or what has
become more popularly called OB Mod. It represents the application of reinforcement concepts to
individual in the work setting. The typical OB Mod program follows a five – step problem solving
model. The five steps are as follows:
1. Identify critical behaviors
The first step in the OB Mod, therefore, is to identify the critical behaviors that make a significant
impact on the employee’s job performance.
2. Develop baseline data
The second step requires the manager to develop some baseline performance data. This is obtained
by determining the number of times the identified behavior is occurring under present conditions.
3. Identify behavioral consequences
The third step is to perform a functional analysis to identify the behavioral contingencies or
consequences of performance. This tells the manager the antecedent cues that emit the behavior and
the consequences that are currently maintaining it.
4. Develop and implement an intervention strategy
Once the functional analysis is complete, the manager is ready to develop and implement an
intervention strategy to strengthen desirable performance behaviors and weaker undesirable
behaviors.
5. Evaluate performance improvement
The final step in the OB – Mod is to evaluate performance improvement. That is to evaluate whether
employees underwent a relatively permanent change in behavior.
2.4. MISBEHAVIOR
DEFINITION OF ORGANIZATIONAL MISBEHAVIOUR [OMB]
Organizational Misbehavior can be defined as “any intentional action by members of organizations
that violate core organizational and / or societal norms. A crucial element in the definition is the
intention underlying the misbehavior.

TYPES OF ORGANIZATIONAL MISBEHAVIOUR

Intention serves as the basis for the distinction among three types of organizational misbehavior.
They are as follows:
1. OMB Type S
Misbehavior that intends to benefit the self.
2. OMB Type O
Misbehaviour that intends to benefit the organization.
3. OMB Type D
Misbehaviour that intends to inflict damage.
CAUSES OF OMB INTENTIONS
1. OMB Type S
Mostly instrumental and calculative forces [gain or loss, reward or punishment]
2. OMB Type O
Mostly affective forces of commitment and loyalty [identification]
3. OMB Type D
31
Could be either or both.
GENERAL MODEL OF OMB
Figure 2g: General model of OMB

 Intra – person OMB

Improper behaviours of individuals [workers,
managers] directed at themselves.
 Inter – person OMB
Improper behavior directed at others [colleagues, employees, supervisors, customers, clients]
 Work processes OMB
Behaviours that may harm job performance and work processes in the organization.
 Property OMB
Misbehaviour which intentionally abuses the organization’s resources and assets.
 Political OMB
Misbehavior aimed at gaining control over resources, and territory, by means of aggressive influence,
and subversive means and tactics.
MANAGEMENT INTERVENTIONS IN ORGANIZATIONAL MISBEHAVIOUR
Figure2h: Management interventions in Organizational Misbehavior

32
Management interventions are the actions taken by managers [representing the organization] to
prevent, control, or respond to harmful misbehavior. Figure 2h displays three specific points for
management intervention viz., A, B & C. At ‘A’, management can carefully screen and refuse to hire
“risky” individuals. Management also can intervene at the other antecedent points [job, group and
organizational]. The problem with interventions at these points is that the person is already
employed. The most efficient intervention point is during the pre-employment phase. Management
intervention ‘B’ requires affecting the normative force, as well as the instrumental force. The goal of
this intervention point is to reduce the possibility of a job, group, or organizational antecedent
triggering misbehavior. The attention of an intervention at ‘C’ shifts from prevention to deterrence.
The manager works to reduce the possibility of the intention to misbehave. A member of a team that
values being a part of the unit may learn that misbehavior could mean being transferred to another
unit. He / She may decide that staying with the preferred unit is important and elect to behave
properly. The threat of a transfer may be powerful enough to evoke a change in behavior plans.
These intervention points offer managers different opportunities and challenges. If properly
executed, that can possibly reduce the consequences or costs or misbehavior.
2.5. EMOTIONS
DEFINITION AND MEANING OF EMOTIONS
Emotions can be defined as intense feelings that are directed at someone or something.
 Caused by specific event
 Very brief in duration [seconds or minutes]
 Specific and numerous in nature [ many specific emotions such as anger, fear, sadness, happiness,
disgust, surprise]
 Usually accompanied by distinct facial expressions
 Action oriented in nature
SOURCES OF EMOTIONS
 Personality
Personality predisposes us to certain emotions. Some people feel anger and guilt more readily than
others. Others feel calm and relaxed no matter what the situation.
 Time of day and week
Negative emotions are highest at the beginning of the week. [Sundays and Mondays] Positive
emotions are highest at the end of the week [Thursday to Saturday]. People are generally in lower
spirits in the morning. During the day, our emotions improve and then decline in the evening.
 The weather
There is a belief that people have more positive emotions on bright sunny days than rainy ones.
 Stress
Stressful daily events negatively affect employee’s emotions. The effects of stress are cumulative
even if the stress is not severe. Constant, prolonged exposure to stress leads to depression and
negative feelings.

33
 Social interaction
Social activities increase positive emotions and have little effect on negative emotions.

 Sleep
Sleep quality affects emotions. Sleep deprived workers are tend to have greater feelings of fatigue,
anger and hostility.
 Exercise
Exercise modestly enhances people’s positive emotions.
 Age
Young people do not experience more positive emotions than older people. Negative emotions seem
to occur less as people get older. Emotional experience tends to improve with age. As we age, we
feel fewer negative emotions.
 Gender
Contrasted with men, women are more in touch with their emotions, show greater emotional
expression, experience emotions more intensely, more likely to display positive
EMOTIONAL LABOUR
DEFINITION
Emotional Labour is defined as an employee’s expression of organizationally desired emotions
during interpersonal transactions at work.
EMOTIONAL DISSONANCE
DEFINITION
Emotional Dissonance is defined as inconsistencies between the emotions people feel and the
emotions they project.
FELT Vs. DISPLAYED EMOTIONS
 Felt emotions
An individual’s actual emotions
 Displayed emotions
Emotions that are organizationally required and considered appropriate in a given job.
SURFACE Vs. DEEP ACTING
 Surface acting
Hiding one’s inner feelings and forgoing emotional expressions in response to display rules.
 Deep acting
Trying to modify one’s true inner feelings based on display rules.
AFFECTIVE EVENTS THEORY [AET]
Understanding emotions at work has been significantly helped by a model called affective events
theory (AET). AET demonstrates that employees react emotionally to things that happen to them at
work and that this influences their job performance and satisfaction. The theory begins by
recognizing that emotions are a response to an event in the individual work environment. The work
environment includes everything surrounding the job — characteristics of the job such as the variety
of tasks and degree of autonomy, job demands, and requirements for expressing emotional labor.
This environment created work events that can be hassles, uplifts, or both. Examples of events that
employees frequently see as hassles are colleagues who refuse to carry their share of work,
34
conflicting directions by different by different mangers, and excessive time pressures. Examples of
uplifting events include meeting a goal, getting support from a colleague and receiving recognition
for an accomplishment. These work events trigger positive or negative emotional reactions. But the
events-reaction relationship is moderated by the employee’s personality and mood. Personality pre-
disposes people to respond with greater or lesser intensity to the event. For instance, people who
score low on emotional stability are more likely to react strongly to negative events. And the
individual’s mood introduces the reality that general affect cycle creates fluctuations. So a person’s
emotional response to a given event can change depending on his or her mood. Emotions influence a
number of performance and satisfaction variables such as organizational citizenship behavior,
organizational commitment, intentions to quit, and level of effort.
In addition, tests of the theory suggest that,
(1) An emotional episode is actually a series of emotional experiences precipitated by a single event.
It reflects elements of both emotions and mood cycles
(2) Job satisfaction is influenced by current emotions at any given time along with the history of
emotions surrounding the event
(3) Since moods and emotions fluctuate over time, their effect on performances also fluctuates
(4) Emotion driven behaviors are typically short in duration and of high variability
(5) Because emotions tend to be incompatible with behaviors required to do a job, they typically
have a negative influence on job performance (even for positive emotions like happiness and joy).
Figure2i:

Affective Events
Theory [AET]

An example
might help
better explain
AET. Mr. Y works
as an aero-
nautical engineer
for Boeing.
Because of the downturn in the demand for commercial jets, he has just learnt that the company is
considering retrenching 10,000 employees. This could include Y. This event is likely to elicit a

35
negative emotional reaction. Y has now a fear that he might lose his job and primary source of
income. And because Y is prone to worry a lot and obsess about problems, his feelings of insecurity
are increased. This event also puts into place a series of sub-events that create an episode. Y talks
with his boss and he is assured that his job is safe. But Y hears rumors that his department is high on
the list to be eliminated; he then runs into a former colleague who was laid six months ago and still
has not found work. This in turn creates emotional ups and downs. One day Y is feeling more upbeat
and that he survive the cuts. The next day, he is depressed and anxious, convinced that his
department will be eliminated. These swings in emotions take his attention away from work and
result in reduced job performance and satisfaction. His response is also magnified because this is the
fourth large layoff that Boeing has initiated in the past three years. In summary, AET offers two
important messages. First, emotions provide valuable insights into understanding employee behavior.
The model demonstrates how daily hassles and uplifts influence employee performance and
satisfaction. Second, emotions in organizations and the events that cause them should not be ignored,
even when they appear to be minor. This is because they accumulate. It’s not the intensity of hassles
and uplifts that lead to emotional reactions, but more the frequency with which they occur.
EMOTIONAL INTELLIGENCE [EI]
DEFINITION
Emotional Intelligence is defined as the ability to detect and to manage emotional cues and
information.
THE CASE FOR EI
 Intuitive appeal
 EI predicts criteria that matter
 EI is biologically based
THE CASE AGAINST EI
 EI is too vague concept
 EI cannot be measured
 The validity of EI is suspect
OB APPLICATIONS OF EMOTIONS
 Selection
 Decision Making
 Creativity
 Motivation
 Leadership
 Negotiation
 Customer Service
 Job Attitudes

THEORIES / MODELS OF EI
There are three main models of EI. They are as follows:
1. Ability based EI model [Peter Salovey and John D.Mayer’s]
The model proposes that EI includes four types of abilities and they are:
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 Perceiving emotions
The ability to detect and interpret emotions in faces, pictures, voices, and cultural artifacts –
including the ability to identify one’s own emotions. Perceiving emotions represents a basic aspect of
EI, as it makes all other processing of emotional information possible.
 Using emotions
The ability to harness emotions to facilitate various cognitive activities, such as thinking and
problem solving. The emotionally intelligent person can capitalize fully upon his or her changing
moods in order to best fit the task at hand.
 Understanding emotions
The ability of comprehend emotional language and ability to appreciate complicated relationships
among emotions. For example, understanding emotions encompasses the ability to be sensitive to
slight variations between emotions, and the ability to recognize and describe how emotions evolve
over time.
 Managing emotions
The ability to regulate emotions in both ourselves and in other. Therefore, the emotionally intelligent
person can harness emotions, even negative ones, and manage them to achieve intended goals.
2. Mixed model of EI
 Emotional competencies [Daniel Goleman]
This model outlines four main EI constructs. They are as follows:
1. Self – awareness
The ability to read one’s emotions and recognize their impact while using gut feelings to guide
decisions.
2. Self – management
Involves controlling one’s emotions and impulses and adapting to changing circumstances.
3. Social awareness
The ability to sense, understands, and reacts to other’s emotions while comprehending social
networks.
4. Relationship for management
The ability to inspire, influence, and develop others while managing conflict.
 Bar – on model of Emotional Social Intelligence [ESI] – [Reuven Bar – on]
Reuven defines EI as being concerned with effectively understanding oneself and others, relating
well to people, and adapting to and coping with the immediate surroundings to be more successful in
dealing with environmental demands. Bar – on posits that EI develops over time and that it can be
improved through training, programming, and therapy. Bar – on hypothesizes that those individuals
with higher than average EQ are in general more successful in meeting environmental demands and
pressures. He also notes that a deficiency in EI can mean a lack of success and the existence of
emotional problems. Problems in coping with one’s environment are thought, by Bar – on, to be
especially common among these individuals lacking in the subscales of reality testing, problem
solving, stress tolerance, and impulse control. In general, Bar – on considers emotional intelligence

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and cognitive intelligence to contribute equally to a person’s general intelligence, which then offers
an indication of one’s potential to success in life.
3. Trait EI model [Petrides, et al.,]
This model proposed a conceptual distinction between the ability based model and a trait based
model of EI. Trait EI refers to a collection of behavioural dispositions and self – perceptions
concerning one’s ability to recognize, process, and utilize emotion – laden information. This
definition of EI encompasses bahavioural dispositions and self perceived abilities and is measured by
self report, as opposed to the ability based model which refers to actual abilities as they express
themselves in performance based measures. Trait EI should be investigated within a personality
framework. The conceptualization of EI as a personality trait leads to a construct that lies outside the
taxonomy of human cognitive ability. This is an important distinction as much as it bears directly on
the operationalization of the construct and the theories and hypothesis that are formulated about it.
2.6. ATTITUDES
DEFINITION
Attitudes are evaluative statements – either favorable or unfavorable about objects, people, or events.
They reflect how one feels about something.
CHARACTERISTICS OF ATTITUDE
 Difficult to measure
 May create inflexibility and stereotypes
 Demonstrated by behavior
 Formed largely from the continuous process of socialization
 Can be a positive or negative attitude
 Once formed not easily changed
COMPONENTS OF ATTITUDE
There are three main components of attitude and they are as follows:
1. Cognitive component
The opinion or belief segment of an attitude.
Figure 2h: The components of an Attitude
Cognition, affection and behavior are closely related

Negative attitude
toward Supervisor

Cognitive = Evaluation Affective = Feeling Behavioral = Action

My supervisor gave a I dislike my supervisor I am looking for other

promotion to a work; I have
coworker who complained about my
deserved it less than supervisor to anyone
me. My supervisor is who would listen.
unfair.

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2. Affective component
The emotional or feeling segment of an attitude.
3. Behavioural component
An intention to behave in a certain way toward someone or something
ATTITUDE FORMATION
Individual attitude are formed over time as a result of repeated personal experiences with
ideas, situations or people. One of the very important ways to understand individual behaviour in an
organization is that of studying attitude, which is situationally specific and learned.
Attitudes are acquired through:
 Social learning
 Classical conditioning
Classical conditioning theory shows that when initially neutral social stimuli are paired repeatedly
with positive or negative stimuli, subjects will develop positive or negative attitudes towards the
previously neutral stimuli.
 Operant / Instrumental conditioning
As per this theory, persons are rewarded for expressing the “correct” attitudes / punished for
“incorrect”.
 Observational learning or Modeling
Persons form attitudes by observing and imitating models they like and admire.
 Social comparison
Social comparison is our tendency to compare ourselves with others to judge whether our view of
social reality is correct or not.

 Genetic factors
Genetic factors may influence general dispositions [e.g. tendency to positive effect] and
conditionability that may influence formation of more specific attitudes.
MEASUREMENT OF ATTITUDES
There are several ways to measure attitudes. They are as follows:
1. Ranking
Rank order preference.
Ranking tasks require that the respondent rank order a small number of objects in overall
performance on the basis of some characteristic or stimulus.
2. Rating
Estimates magnitude of a characteristic.

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Rating asks the respondent to estimate the magnitude of a characteristic, or quality, that an object
possesses. The respondent’s position on a scale[s] is where he or she would rate an object.
Different types of scaling techniques for measuring attitudes are as follows:
 Simple attitude scaling
It is the most basic form of attitude scaling and it requires that an individual agree with a statement
or respond to a single question. This type of self – rating scale merely classifies respondents into one
of two categories.
Example: The president should run for re – election. – Agree / Disagree
 Category scaling
A category scale is a more sensitive measure than a scale having only two response categories and it
provides more information. Questions working are an extremely important factor in the usefulness of
these scales.
Example:

 Method of Summated rating: The Likert scale

An extremely popular means for measuring attitudes. Respondents indicate their own attitudes by
checking how strongly they agree or disagree with statements.
Example:

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 Semantic differential scaling
A series of seven - point bipolar rating scales. Bipolar adjectives, such as good and bad, anchor both
ends [or poles] of the scale. A weight is assigned to each position on the rating scale. Traditionally,
scores are 7,6,5,4,3,2,1 or +3, +2, +1, 0,
-1,-2,-3.
Example:

 Graphic rating scale

A graphic rating scale presents respondents with a graphic continuum.
Example:

3. Sorting
Arrange or classify concepts.
Sorting might present the respondent with several concepts typed on cards and require that the
respondent arrange the cards into a number of piles or otherwise classify the concepts.
4. Choice
Selection of preferred alternative.

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Choice between two or more alternatives is another type of attitude measurement. It is assumed that
the chosen object is preferred over the other.
2.7. VALUES
DEFINITION
Values are constellation of likes, dislikes, viewpoints, inner inclinations, rational and irrational
judgments, prejudices, and association pattern that determine a person’s view of the world.
- Edwards Spranger
Values are global beliefs that guide actions and judgments across a variety of situations.
- Milton Rokeach
CHARACTERISTICS OF VALUES
 Part of culture
 Learned responses
 Inculcated
 Social phenomenon
 Gratifying responses
 Adaptive process
IMPORTANCE OF VALUES
 Values lay the foundations for the understanding of attitudes and motivation.
 Personal value system influences the perception of individuals.
 Value system influences the manager’s perception of individuals.
 Personal value system influences the way in which a manager views the other individuals and the
groups of individuals in the organization.
 Value system also influences a manager’s decisions and his solutions to the various problems.
 Values influence the attitudes and behaviours. An individual will get more job satisfaction if his
values align with the organization’s policies. If the organization’s policies are different from his
views and values, he will be disappointed; the disappointment will lead to job dissatisfaction and
decline in performance.
 The challenge and re – examination of established work values constitute important cornerstones of
the current management revolution all over the world. Hence, an understanding of the values
becomes a necessity.
CONSTRAINTS IN PRACTICING VALUES IN ORGANIZATIONS
 Lack of awareness about one’s own values and practice.

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 Choices and decisions based on habits, fears, and expectations of others rather than own values.
 Differing standards for self and others.
 Tendency to avoid pain / loss rather than actively seek meaning and well being.
 People making choices based on values different from others feeling they are alone.
 Blindness to group processes and larger entities.
 People holding incompatible values, often with materialistic and self – serving values taking
priority.
 End values not supported by process values and skills.
2.8. PERCEPTIONS
DEFINITION
Perception may be defined as a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment.
- Stephen P Robbins
NATURE / FEATURES OF PERCEPTION
 Perception is an intellectual process.
 Perception is a cognitive or psychological process
 Perception is a subjective process
IMPORTANCE OF PERCEPTION
 Facilitates understanding of human behavior
 Helps in behavior prediction
 Determination of needs
 Effective subordinate dealing
FACTORS INFLUENCING PERCEPTION
1. Characteristics of the perceiver [Internal factors]
 Needs and motives
People’s perception is determined by their inner needs. A need is a feeling of tension or discomfort
when one thinks he is missing something or requires something. People with different needs usually
experience different stimuli. Similarly people with different needs select different items to remember
or respond to.
 Self – concept
The way a person views the world depends a great deal on the self – concept or image he has about
himself. The self – concept plays an important role in perceptual selectivity. It can be thought of as

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an internal form of attention – getting and is largely based on the individual’s complex psychological
make – up.

 Beliefs
A person’s beliefs have profound influence on his perception. Thus, a fact is conceived not on what is
but what a person believes it to be. The individual normally censors stimulus inputs to avoid
disturbance of his existing beliefs.
 Past experience
A person’s past experience mould the way he perceives the current situation. If a person has been
betrayed by a couple of friends in the past, he would tend to distrust any new friendship that he might
be in the process of developing.
 Current psychological state
The emotional and psychological states of an individual are likely to influence how things are
perceived. If a person is depressed, he is likely to perceive the same situation differently than if he is
elated.
 Expectations
Expectations affect what a person perceives. Expectations are related with the state of anticipation of
particular behavior from a person. In the organizational setting, expectations affect people’s
perception. Thus, a technical manager may expect ignorance about the technical feature of a product
from the non – technical people.
2. Characteristics of the target or perceived [External factors]
 Size
The bigger the size of the perceived stimulus, the higher is the probability that is perceived. Size
attracts the attention of an individual. It establishes dominance and enhances perceptual selection.
 Intensity
High intensity increases the chances of selection. If the message is bright, if sentences are
underlined, it gets more attention than in normal case. The greater the intensity of stimulus, the more
likely it will be noticed.
 Frequency
Repeated external stimulus is more attention – attracting than a single time. Repetition increases our
sensitivity and alertness to the stimulus. Thus, greater the frequency with which a sensory stimulus is
presented, the greater the chances we select it for attention.
 Status
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Perception is also influenced by the status of the perceiver. High status people can exert greater
influence on perception of an employee than low status people.
 Contrast
Stimuli that contrast with the surrounding environment are more likely to be attention catching than
the stimuli that blend in. A contrasting effect can be caused by colour / size or any other factor that is
unusual. The contrast principle states that external stimuli that stand out against the background or
which are not what are expected will receive better attention.
3. Characteristics of the situation
The context in which objects or events is seen, is important. Elements in the surrounding
environment influence our perception. The time at which an object or event is seen can influence
attention, as can location, light, heat, or any number of situational factors.
INTERPERSONAL PERCEPTION
Interpersonal perception is an area of research in social psychology which examines the beliefs that
interacting people has about each other. This area differs from social cognition and person perception
by being interpersonal rather than intrapersonal, and thus requiring the interaction of at least two
actual people. People all have beliefs about the other people that they know. A woman might believe
that her parents are harsh, that her lover is kind and her friend is intelligent. These beliefs guide
people in various ways. They help people to predict and explain the behavior of others. A man may
believe that because his girl friend is intelligent, she can do complicated crossword puzzles. Beliefs
about others are also useful when one person has to describe another person to a third party.
However, their primary utility lies in helping people to guide their interactions with others. Beliefs
about other tell people whom they should avoid, with whom they should leave their car when they go
on as long trip and whom they should ask for advice when they have a personal problem. So people’s
beliefs about others have important consequences in their everyday lives.
2.9. IMPRESSION MANAGEMENT
Impression management is a process people use to control the perceptions or impressions about
themselves, a bit like personal branding. Individuals may believe they are being judged or perceived
based on their outward appearance, personality or other subjective opinions by other people.
Impression management attempts to control these perceptions from other people through the
development of self presentation methods and techniques used to control outward perceptions or
impressions. Common self presentation methods include authentic, ideal or tactical styles of
impression management. An authentic self presentation is used when an individual wants to present
himself to other people the same way he perceives himself. This authenticity allows individuals to

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behave in a manner consistent with their daily image and personality. This presentation often
involves disclosing information about oneself to solidify the authentic brand. The ideal impression
management presentation is the attempt to present one’s self how he desires to behave or be viewed,
rather than presenting himself in an authentic manner. Closely tied to the ideal brand is the tactical
presentation. A tactical brand is used by individuals who wish to present a public image that reflects
positively on them. This technique is used to create a behavior or personality that is consistent with
outside perceptions of how an individual should act or behave.
PURPOSE OF IMPRESSION MANAGEMENT
There are two main motives that govern self – presentation and they are as follows:
1. Instrumental
We want to influence others and gain rewards. There are three instrumental goals.
 Ingratiation
When we try to be happy and display our good qualities so that others will like us.

 Intimidation
Intimidation is aggressively showing anger to get others to hear and obey us.
 Supplication
When we try to be vulnerable and sad so people will help us and feel bad for us.
2. Expressive
We construct an image of ourselves to claim personal identity, and present ourselves in a manner that
is consistent with that image. If we feel like this is restricted, we exhibit reactance / be defiant. We
try to assert our freedom against those who would seek to curtail our self – presentation
expressiveness. A classic example is the idea of the “preacher’s daughter”, the notion that her
suppressed personal identity and emotions cause an eventual backlash at her family and community.
Concerning the strategies followed to establish a certain impression, the main distinction is between
defensive and assertive strategies. Whereas defensive strategies include behaviors like avoidance of
threatening situations or means of self – handicapping, assertive strategies refer to more active
behavior like the verbal idealization of the self, the use of status symbols or similar practices.
2.10. MOTIVATION
DEFINITION
Motivation refers to the way in which urges, drives, desires, aspirations, and strivings or needs direct,
control or explain the behavior of human beings”.
- Dalton E. McFarland

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Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned
by the effort and ability to satisfy some individual need”.
- Stephen P Robbins
CHARACTERISTICS OF MOTIVATION
 Motivation is a psychological phenomenon
 Motivation is dynamic and situational
 Motivation is not easily observed phenomenon
 Motivation is a goal oriented process
 Motivation is influenced by social and cultural norms
 Motivation is a continuous process
IMPORTANCE OF MOTIVATION
 Motivation sets in motion the action of people
 Motivation improves the efficiency of work performance
 Ensures achievement of organizational goals
 Motivation creates friendly and supportive relationships
 Motivation leads to the stability in the work place
 Acceptance of organizational changes

PROCESS OF MOTIVATION
Figure 2i: Motivation process

In the initiation
a person starts
feeling lack
nesses. There is an arousal of need so urgent, that the bearer has to venture in search to satisfy it.
This leads to creation of tension, which urges the person to forget everything else and cater to the
aroused need first. This tension also creates drives and attitudes regarding the type of satisfaction that
is desired. This leads a person to venture into the search of information. This ultimately leads to
evaluation of alternatives where the best alternative is chosen. After choosing the alternative, an
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action is taken. Because of the performance of the activity satisfaction is achieved which than
relieves the tension in the individual.
TYPES OF MOTIVATION
 Positive versus Negative motivation
Positive motivation
Positive motivation is a response which includes enjoyment and optimism about the tasks that you
are involved in.
Negative motivation
Negative motivation involves undertaking tasks because there will be undesirable outcome.
Example: Failing a subject, if tasks are not completed.
 Rational versus Emotional Motivation
Rational motivation
The term rationality is associated with persons who carefully weigh the pros and cons of all the
alternatives and then choose the one that gives them the greatest utility. In the marketing context we
can say that consumers who are rational will select the goals after ascertaining various objective
criteria such as size, weight, price, etc.,

Emotional motivation
As against this emotional motive are those goals, which are selected on the basis of emotion’s
involvement. Usually such goals are selected purely on personal or subjective criteria such as desire
for recognition of status, fear, esteem, love, etc.
 Primary versus secondary motivation
Primary motivation
This mainly pertains to motives involved with our need for self-preservation. This includes needs
such as hunger and thirst, warmth, avoidance of pain and other primary motives which influence a
person's behaviour at a very basic level.
Secondary motivation
More known in psychology as "learned" motivation, this type of "drives" differ from one person to
another. In many ways they involve a person's own sense of values and priorities in life. Many of the
behaviour derived from secondary motivation are conscious ones. That is, a person consciously
desires a particular goal or result, and behaves in a way that brings them closer to that particular goal.
What drives them to do something or to act in a particular way is the longing for something which
they currently do not have or possess.
 Financial and Non – financial motivation
Financial motivation
These are monetary in natures as they involve flow of money from the organization to its staff. The
examples financial benefits are wages, salaries, allowances, bonus, fringe benefits, etc.

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Non – financial motivation
Non – financial motivation do not involve much financial commitments on the part of the
organization. They do not add to the money income of those who receive them. They take the form
of job enrichment, participative management, praise, opportunity for growth, etc.
 Intrinsic versus Extrinsic motivation
Intrinsic motivation
It refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within
the individual rather than relying on any external pressure.
Extrinsic motivation
Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are
rewards like money and grades, coercion and threat of punishment. Competition is in general
extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic
rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives.
EFFECT OF MOTIVATION ON WORK BEHAVIOUR
Motivation is a term in organizational behavior which leads the employee inside the organization to
attain the specific goals and objectives. The goal oriented behavior come when only a kind of
intrinsic or extrinsic motivational force is there, enforcing the employees to fill the gap between the
tension recognition and the goal attainment. When a motivated employee attains its specific goal, a
positive reinforcement is brought along the work performance. According to the instrumental theory
of work motivation and learning, if this positive reinforcement is compensated through any intrinsic
or extrinsic reward, the situation / stimulus becomes instrumental into the habit of employees and
they feel more satisfied inside the organization. Thus, it can be overlooked that motivation, job
satisfaction and their outcomes are closely bound with each other. Increase in one factor
automatically gives an increment in another factor. Motivation is termed as a major factor behind the
job satisfaction. The overall effects of job satisfaction through motivation are as follows:
 Job satisfaction through motivation and job performance
Happy workers are more likely to be productive workers, although it is hard to tell which way the
causality runs. However, some researchers used to believe that the relationship between job
satisfaction and job performance was a management myth. But a review of 300 studies suggested
that the correlation is pretty strong. As we move from the individual level to that of the organization,
we also find support for the satisfaction – performance relationship. When satisfaction and
productivity data are gathered for the organization as a whole, we find that organizations with more
satisfied employees tend to be more effective then organizations with fewer satisfied employees.

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 Job satisfaction through motivation and OCB
It seems logical to assume that job satisfaction should be a major determinant of an employee’s
Organizational Citizenship Behaviour [OCB]. Satisfied employees would seem more likely to talk
positively about the organization, help others, and go beyond the normal expectation in their job.
Moreover, satisfied employees might be more prone to go beyond the call of duty because they want
to reciprocate their positive experiences. Consistent with this thinking, early discussion of OCB
assumed that it was closely linked with satisfaction. More recent evidence, however, suggests that
satisfaction influences OCB, but through perceptions of fairness.
 Job satisfaction through motivation and customer satisfaction
Employees in service jobs often interact with customers. Since the management in service
organizations should be concerned with pleasing those customers, it is reasonable to ask: Is employee
satisfaction related to positive customer outcomes? For front line employees who have regular
contact with customers, the answer is “Yes”. The evidence indicates that satisfied employees increase
customer satisfaction and loyalty. Why? In service organizations, customer retention and defection
are highly dependent on how front – line employees deal with customers. Satisfied employees are
more likely to be friendly, upbeat, and responsive – which customers appreciate. And because
satisfied employees are less prone to turnover, customers are more likely to encounter familiar faces
and receive experienced service. These qualities build customer satisfaction and loyalty. In addition,
the relationship seems to apply in reverse. Dissatisfied customers can increase an employee’s job
dissatisfaction. Employees who have regular contact with customers report that rude, thoughtless, or
unreasonably demanding customers adversely affect the employees’ job satisfaction.
 Job satisfaction through motivation and absenteeism
A consistent negative relationship is found between satisfaction and absenteeism, but the correlation
is moderate to weak. While it certainly makes sense that dissatisfied employees are more likely to
miss work, other factors have an impact on the relationship and reduce the correlation coefficient.
For example, organizations that provide liberal sick leave benefits are encouraging all their
employees – including those who are highly satisfied – to take days off. Assuming that you have a
reasonable number of varied interests, you can find work satisfying and yet still take off work to
enjoy a 3 day weekend or tan yourself on a warm summer day if those days come free with no
penalties.
 Job satisfaction through motivation and turnover
Satisfaction is also negatively related to turnover, but the correlation is stronger than what we found
for absenteeism. Yet, again, other factors such as labour market conditions, expectations about

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alternative job opportunities, and length of tenure with the organization are important constraints on
the actual decision to leave one’s current job. Evidence indicates that an important moderator of the
satisfaction – turnover relationship is the employee’s level of performance
 Job satisfaction through motivation and workplace deviance
Job dissatisfaction predicts a lot of specific behaviours, including unionization attempts, substance
abuse, stealing at work, undue socializing, and tardiness. Researchers argue that these behaviours are
indicators of a broader syndrome that we would term deviant behavior in the workplace [or
employees’ withdrawal]. The key is that if employees do not like their work environment, they will
respond somehow. It is not always easy to forecast exactly how they will respond. One worker’s
response might be to quit. But another may respond by taking work time to surf the internet, taking
work supplies home for personal use and so on. If employers want to control the undesirable
consequences of job dissatisfaction, they had best attack the source of the problem – the
dissatisfaction – rather than trying to control the different responses.
THEORIES OF MOTIVATION
1) Abraham Maslow’s “Need Hierarchy Theory”
One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth
by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending
from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of
need ceases to be a motivator.
As per his theory these needs are:
(i) Physiological needs
These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,
medicine and education are the basic physiological needs which fall in the primary list of need
satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to maintain
life, no other motivating factors can work.
(ii) Security or Safety needs
These are the needs to be free of physical danger and of the fear of losing a job, property, food or
shelter. It also includes protection against any emotional harm.
(iii) Social needs
Since people are social beings, they need to belong and be accepted by others. People try to satisfy
their need for affection, acceptance and friendship.
(iv) Esteem needs

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According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held
in esteem both by themselves and by others. This kind of need produces such satisfaction as power,
prestige status and self-confidence. It includes both internal esteem factors like self-respect,
autonomy and achievements and external esteem factors such as states, recognition and attention.
(v) Need for self-actualization
Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is
capable of becoming; it includes growth, achieving one’s potential and self-fulfillment. It is to
maximize one’s potential and to accomplish something.
Figure 2j: Maslow’s Need Hierarchy Theory

As each of these needs is substantially

satisfied, the next need becomes
dominant. From the standpoint of
motivation, the theory would say that
although no need is ever fully gratified, a
substantially satisfied need no longer
motivates. So if you want to motivate
someone, you need to understand what level
of the hierarchy that person is on and focus on satisfying those needs or needs above that level.
Maslow’s need theory has received wide recognition, particularly among practicing managers. This
can be attributed to the theory’s intuitive logic and ease of understanding. However, research does
not validate this theory. Maslow provided no empirical evidence and other several studies that sought
to validate the theory found no support for it.
2) “Theory X and Theory Y” of Douglas McGregor
McGregor, in his book “The Human side of Enterprise” states that people inside the organization can
be managed in two ways. The first is basically negative, which falls under the category X and the
other is basically positive, which falls under the category Y. After viewing the way in which the
manager dealt with employees, McGregor concluded that a manager’s view of the nature of human
beings is based on a certain grouping of assumptions and that he or she tends to mold his or her
behavior towards subordinates according to these assumptions.
Under the assumptions of theory X
 Employees inherently do not like work and whenever possible, will attempt to avoid it.

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 Because employees dislike work, they have to be forced, coerced or threatened with punishment
to achieve goals.
 Employees avoid responsibilities and do not work fill formal directions are issued.
 Most workers place a greater importance on security over all other factors and display little
ambition.
In contrast under the assumptions of theory Y
 Physical and mental effort at work is as natural as rest or play.
 People do exercise self-control and self-direction and if they are committed to those goals.
 Average human beings are willing to take responsibility and exercise imagination, ingenuity and
creativity in solving the problems of the organization.
 That the way the things are organized, the average human being’s brainpower is only partly used.
On analysis of the assumptions it can be detected that theory X assumes that lower-order needs
dominate individuals and theory Y assumes that higher-order needs dominate individuals. An
organization that is run on Theory X lines tends to be authoritarian in nature, the word
“authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to command.”
In contrast Theory Y organizations can be described as “participative”, where the aims of the
organization and of the individuals in it are integrated; individuals can achieve their own goals best
by directing their efforts towards the success of the organization. However, this theory has been
criticized widely for generalization of work and human behavior.
3) Frederick Herzberg’s motivation-hygiene theory
Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known as two-
factor theory or Hygiene theory. He stated that there are certain satisfiers and dis-satisfiers for
employees at work. Intrinsic factors are related to job satisfaction, while extrinsic factors are
associated with dissatisfaction. He devised his theory on the question: “What do people want from
their jobs?” He asked people to describe in detail, such situations when they felt exceptionally good
or exceptionally bad. From the responses that he received, he concluded that opposite of satisfaction
is not dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make
the job satisfying. He states that presence of certain factors in the organization is natural and the
presence of the same does not lead to motivation. However, their non-presence leads to de-
motivation. In similar manner there are certain factors, the absence of which causes no
dissatisfaction, but their presence has motivational impact.

53
 Figure2k: Frederick Herzberg’s motivation-hygiene theory

Examples of Hygiene factors

Security, status, relationship with subordinates, personal life, salary, work conditions, relationship
with supervisor and company policy and administration.
Examples of Motivational factors
1. Growth prospectus.
2. Job advancement.
3. Responsibility.
4. Challenges.
5. Recognition.
6. Achievements.
4) Vroom’s Valence x Expectancy theory
The most widely accepted explanations of motivation have been propounded by Victor Vroom. His
theory is commonly known as expectancy theory. The theory argues that the strength of a tendency to
act in a specific way depends on the strength of an expectation that the act will be followed by a
given outcome and on the attractiveness of that outcome to the individual to make this simple,
expectancy theory says that an employee can be motivated to perform better when there is a belief
that the better performance will lead to good performance appraisal and that this shall result into
realization of personal goal in form of some reward. Therefore Motivation = Valence x Expectancy.
The theory focuses on three things:
 Efforts and performance relationship
 Performance and reward relationship
 Rewards and personal goal relationship

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This leads us to a conclusion that:

5) The Porter and Lawler Model

Lyman W. Porter and Edward E. Lawler developed a more complete version of motivation depending
upon expectancy theory.

Figure 2l: The Porter and Lawler Model

Actual performance in a job is primarily determined by the effort spent. But it is also affected by the
person’s ability to do the job and also by individual’s perception of what the required task is. So
performance is the responsible factor that leads to intrinsic as well as extrinsic rewards. These

55
rewards along with the equity of individual lead to satisfaction. Hence, satisfaction of the individual
depends upon the fairness of the reward.
6) Clayton Alderfer’s ERG Theory
Alderfer has tried to rebuild the hierarchy of needs of Maslow into another model named ERG i.e.
Existence – Relatedness – Growth. According to him there are 3 groups of core needs as mentioned
above. The existence group is concerned mainly with providing basic material existence. The second
group is the individuals need to maintain interpersonal relationship with other members in the group.
The final group is the intrinsic desire to grow and develop personally. The major conclusions of this
theory are:
1. In an individual, more than one need may be operative at the same time.
2. If a higher need goes unsatisfied than the desire to satisfy a lower need intensifies.
3. It also contains the frustration-regression dimension.
7) McClelland’s Theory of Needs
David McClelland has developed a theory on three types of motivating needs:
1. Need for Power
2. Need for Affiliation
3. Need for Achievement
Basically people for high need for power are inclined towards influence and control. They like to be
at the center and are good orators. They are demanding in nature, forceful in manners and ambitious
in life. They can be motivated to perform if they are given key positions or power positions. In the
second category are the people who are social in nature. They try to affiliate themselves with
individuals and groups. They are driven by love and faith. They like to build a friendly environment
around themselves. Social recognition and affiliation with others provides them motivation. People
in the third area are driven by the challenge of success and the fear of failure. Their need for
achievement is moderate and they set for themselves moderately difficult tasks. They are analytical
in nature and take calculated risks. Such people are motivated to perform when they see at least some
chances of success. McClelland observed that with the advancement in hierarchy the need for power
and achievement increased rather than Affiliation. He also observed that people who were at the top,
later ceased to be motivated by this drives.
8) Equity Theory
As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the reward
structure as being fair or unfair, relative to the inputs. People have a tendency to use subjective
judgment to balance the outcomes and inputs in the relationship for comparisons between different

56
individuals. If people feel that they are not equally rewarded they either reduce the quantity or
quality of work or migrate to some other organization. However, if people perceive that they are
rewarded higher, they may be motivated to work harder.

Figure 2m: Equity Theory

9) Reinforcement Theory
B.F. Skinner, who propounded the reinforcement theory, holds that by designing the environment
properly, individuals can be motivated. Instead of considering internal factors like impressions,
feelings, attitudes and other cognitive behavior, individuals are directed by what happens in the
environment external to them. Skinner states that work environment should be made suitable to the
individuals and that punishment actually leads to frustration and de-motivation. Hence, the only way
to motivate is to keep on making positive changes in the external environment of the organization.

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 UNIT 3
3. GROUP BEHAVIOUR
3.1. ORGANIZATION STRUCTURE
- FORMATION
3.2. GROUPS IN ORGANIZATION
- INFLUENCE OF INFORMAL GROUPS IN ORGANIZATION
- GROUP DYNAMICS
- EMERGENCE OF INFORMAL LEADERS AND WORKING NORMS
- GROUP DECISION MAKING TECHNIQUES
- INTERPERSONAL RELATIONS IN GROUPS
- COMMUNICATION WITHIN GROUPS
- CONTROL IN GROUPS
3.3. TEAM BUILDING
3.1. ORGANIZATION STRUCTURE
MEANING
Organizational structure refers to the hierarchical arrangement of various positions in an enterprise. It
also defines the relationship between various positions, departments and persons. It helps in
allocating authority and responsibility formally and decides who is to report to whom and who is to
direct to whom. It defines the position of persons in the organization, i.e., who is superior to whom
and who are his subordinates. Organizational structure defines the formal relationship into
managerial hierarchy. The organizational structure looks like a pyramid with a narrow top and broad
bottom below.
Figure3a: Organization Structure

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FEATURES OF GOOD ORGANIZATION STRUCTURE
 Simplicity
An organizational structure should be basically simple. The concept of simplicity implies that
various organizational relations should be kept minimum possible.
 Flexibility
An organization structure should be flexible enough so that changes can be incorporated whenever
needs arise. The structure is design do not only for a time period but a distant future also. As such
continuity must be maintained in the organizational structure over the period of time.
 Clear line of authority
Whatever the form of structure is adopted, there should be clear lines of authority running from top
to bottom or in horizontal directions.
 Application of ultimate responsibility
The concept of ultimate responsibility suggests that although a superior manager assigns some of the
work to his subordinates, he is ultimately responsible for performance of total work.
 Proper delegation of authority
The concept of ultimate responsibility can work only when there is proper delegation of authority at
various levels of the organization. Delegation of authority refers to authorizing a manager to make
certain decisions.
 Minimum possible managerial levels

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As far as possible, there should be minimum managerial levels. Greater the number of managerial
levels, longer is the line of communication in the chain of command and the communication has to
travel along the line creating problems of delay and distortion.
 Principles of unity of direction and command
Principles of unity of direction and unity of command should be followed that is an employee should
receive orders from only one superior.
 Proper emphasis on staff
Line functions should be separated from staff functions and adequate emphasis should be placed on
important staff activities.
 Provision for top management
In corporate form of organization, it is imperative to provide some means by which shareholder and
members of the board of directors participate in management process. Normally shareholders are
indifferent so far as day – to – day management affairs of the company are concerned.
ELEMENTS OF ORGANIZATIONAL STRUCTURE
 Work specialization
 Departmentalization
 Chain of command
 Unity of command
 Span of management’
 Centralization and Decentralization
 Formalization
FORMATION OF ORGANIZATIONAL STRUCTURE
The following are the steps in the formation of organizational structure:
 Determination of organizational goals and identification of related activities
Organization goals must be well and clearly spelt – out. Based on the goals, all activities that are
required should be identified and broken down into smallest sub – activities that may be assigned as
a task or a job to the worker. This is applicable to both managerial and operational functions in the
organization.
 Grouping of activities
All identical activities should be grouped, keeping in mind formation of various departments or
divisions, A set of activities could be further sub – divided and assigned to a particular section of a
department.

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 Delegation of authority
A person cannot perform his duties unless he has been given adequate authority to accomplish the
assigned task, He cannot be made responsible and accountable if requisite authority has not been
given. Authority, responsibility, and accountability are tied together. An individual employee cannot
be held responsible without authority. When jobs, activities are classified, divided, and grouped
under executives at various levels, it would give birth to a rough skeleton on which an organization
structure is established. Formulating an organization structure on the basis of the content of the job
and subsequently making placements or various people is generally carried out. However, first
assigning a job and later shaping an organization structure can also happen. Some thinkers are of the
opinion that beginning to allot the task should be made at the top level coming down to the bottom
level. While others feel that the bottom level tasks should be allotted at the beginning and gradually
moving up the ladder and making allocation. It is not important as to which approach is taken in
making an organization structure, what is important is grouping or jobs and activities, delegation of
authority and utilization or resources to its full capacity. It is also important to keep in mind that each
job is confirmed to a single person, and adequate care is taken for narrow specialization within the
structure of the organization.
TYPES OF ORGANIZATION STRUCTURE
There are different types of organizational structures and a company should choose the one that best
suits their needs.
Traditional Structures
These are the structures that are based on functional division and departments. These are the kind of
structures that follow the organization's rules and procedures. They are characterized by having
precise authority lines for all levels in the management. Under types of structures under traditional
structures are:
 Line Structure
This is the kind of structure that has a very specific line of command. The approvals and orders in
this kind of structure come from top to bottom in a line. Hence the name line structure. This kind of
structure is suitable for smaller organizations like small accounting firms and law offices. This is the
sort of structure that allows for easy decision-making, and also very informal in nature. They have
fewer departments, which makes the entire organization a much decentralized one.
 Line and Staff Structure
Though line structure is suitable for most organizations, especially small ones, it is not effective for
larger companies. This is where the line and staff organizational structure comes into play. Line and

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structure combines the line structure where information and approvals come from top to bottom, with
staff departments for support and specialization. Line and staff organizational structures are more
centralized. Managers of line and staff have authority over their subordinates, but staff managers
have no authority over line managers and their subordinates. The decision-making process becomes
slower in this type of organizational structure because of the layers and guidelines that are typical to
it, and let’s not forget the formality involved.
Figure3b: Line structure

Figure3c: Line and Staff structure

 Functional structure
This kind of organizational structure classifies people according to the function they perform in their
professional life or according to the functions performed by them in the organization. The

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organization chart for a functional based organization consists of Vice President, Sales department,
Customer Service Department, Engineering or production department, accounting department and
Administrative department.
Figure3d: Functional structure

Divisional Structures
This is the kind of structure that is based on the different divisions in the organization. These
structures can be further divided into:
 Product structure
A product structure is based on organizing employees and work on the basis of the different types of
products. If the company produces three different types of products, they will have three different
divisions for these products.
Figure3e: Product structure

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 Market Structure
Market structure is used to group employees on the basis of specific market the company sells in. A
company could have 3 different markets they use and according to this structure, each would be a
separate division in the structure.
Figure3f: Market structure

 Geographic structure
Large organizations have offices at different place, for example there could be a north zone, south
zone, west and east zone. The organizational structure would then follow a zonal region structure.
Figure3g: Geographic structure

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 Matrix Structures
This is a structure, which is a combination of function, and product structures. This combines both
the best of both worlds to make an efficient organizational structure. This structure is the most
complex organizational structure.
It is important to find an organizational structure that works best for the organization, as the wrong
set up could hamper proper functioning in the organization.
Figure3h: Matrix structure

The new organization structure or management style

The new organization structure has no clearly defined boundary separating management from
employees. It is a more flat and open structure known as the "humanistic" or "organic" style of
management whereby employees and managers are seen as equal partners working towards a
common goal. It is a more humane and "long-term thinking" style of management that permits the
decision-making process to be distributed throughout the organization as a way of tapping onto the
creativity and experience of its staff.
Among the more common aspects of this new style of management are as follows:
1. Self-managing individuals and work teams.
2. People become more multi - skilled so there are fewer job classifications.

65
3. Greater investment in learning and training for everyone.
4. Few status distinctions.
5. More goal-oriented and less emphasis on how people do the work.
6. Incentives for employees to perform work are less financially-based (eg. salary).
7. Greater employment security.
8. A policy that decisions will be made by consensus.
9. Flexible outsourcing arrangements.
10. A flexible (yet stable) management structure. Flexible to the point of learning from its
employees and stable in the sense that it is developing long-term quality solutions for the
organization.
The only potential problem with this management style is what happens if the organization suddenly
finds itself in a survival situation. Would the staff be too complacent and happy achieving the goals
of the organization without finding ways of being able to quickly respond to the emergency? Perhaps
they may expect other people to have the skills to handle the problem?
Figure3i Flat / Organic structure

3.2.

GROUPS IN ORGANIZATION
DEFINITION
A group is a set of two or more individuals who are jointly characterized by a network of relevant
communications, a shared sense of collective identity and one or more shared dispositions with
associated normative strength.
- David H Smith
A group may de defined as a social phenomenon in which two or more persons decide to interact
with one another, share common ideology and perceive themselves as a group.
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 - Edgar H Schien
CHARACTERISITICS OF A GROUP
 Social interaction
One of the most obvious characteristics of group is that they are composed of two or more people in
social interaction. In other words, the members of group must have influence on each other. The
interaction between parties may either verbal or non - verbal, but the parties must have some impact
on.
 Stable structure
Group also must posses a stable structure. Although groups can change, and often do, there must be
some stable relationships that keep group members together and functioning as an unit.
 Common Interest
Another characteristic of groups is that their members share common interests or goals.
 Perceive themselves as part of group
Finally, to be a group, the individuals involved must perceive themselves as a group. Group is
composed of people who recognize each other as a member of their group and can distinguish these
individuals from non - members.
TYPES OF GROUPS
In an organization, there are three types of groups, which are as follows:
 Functional or formal groups
Functional groups are the groups formed by the organization to accomplish different organizational
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 in nature. They have to follow rules, regulations and policy of the
organization. A formal organizational group includes departments such as the personnel department,
the advertising department, the quality control department and the public relations department.
 Task group
Tasks groups are the groups formed by an organization to accomplish a narrow range of purposes
within a specified time. These groups are temporary in nature. They also develop a solution to a
problem or complete its purpose. Informal committees, task forces and work teams are included in
task groups. The organization after specifying a group membership, assigns a narrow set of purposes
such as developing a new product, evaluating a proposed grievance procedure, etc.
 Informal group
Informal groups are the groups formed for the purposes other than the organizational goals. Informal
groups form when individuals are drawn together by friendship, by mutual interests or both. These
groups are spontaneous. According to Keith David, "the network of persons and social relations
which is not established or required form an informal organization". These are the groups formed by

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the employees themselves at the workplace while working together. The organization does not take
any active interest in their formation. Informal groups are very effective and powerful. These groups
work as an informal communication network forming a part of the grapevine to the organizations.
They are also like a powerful force, which an organization cannot avoid. Some managers consider
them to be harmful to the interest of an organization. They suspect their integrity and consider as a
virtual threat. Some managers do not consider them as threat and seek the help of group members in
getting the organizational task accomplished. Informal groups are of following types:
 Interest group
Interest groups are the groups formed to attain a common purpose. Employees coming together for
payment of bonus, increase in salary, medical benefit and other facilities are the examples of interest
groups.
 Membership group
Membership groups are the groups of individuals' belonging to the same profession and knowing
each other. For example, teachers of the same faculty in a university.
 Friendship group
Friendship groups are the groups of individuals belonging to same age group, having similar views,
tastes and opinions. These groups can also be formed outside the plant or office and can be in the
form of clubs and associations.
 Reference group
Reference groups are the group where individuals shape their ideas, beliefs, values etc. They want
support from the group.
INFLUENCE OF INFORMAL GROUPS IN ORGANIZATION
Influence is defined as the ability to effect the perceptions, attitudes, or behaviors of others. Informal
groups are important not only from the view point of their members; they have a great utility from
organization's point of view also. They help the organization in better administration by performing
the following functions:
 Filling in gaps in manager's abilities
Informal organization may act to fill in gaps in a manager's abilities. For example, if a manager is
weak in planning, one of his subordinates may help him informally in such a situation.
 Solving work problems
Informal organization helps in solving the work problems of members. It allows them sharing job
knowledge and taking decisions which affect a number of jobs.

 Better coordination

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Informal groups evolve short - cuts and eliminate red tapism. They facilitate smooth flow of
information and quick decision - making. All these ensure better coordination among various
individuals and departments.
 Channel of communication
Informal groups act to fill up the communication gaps, which arise in the organization. Informal
communication cuts across the hierarchical and departmental boundaries and transmits information
with greater speed.
 Restraint on managers
Informal groups do not allow the managers to cross their limits. They restrict them from acquiring
unlimited power and from using their power injudiciously.
 Better relations
A manager can build better relations with subordinates through informal contacts. He can consult the
informal leaders and seek their cooperation in getting the things done from the workers.

 Norms of behaviour
Informal groups develop certain norms of behaviour, which differentiate between good and bad
conduct and between legitimate and illegitimate activities. These bring discipline and order among
the employees.
 Satisfied workforce
Cohesive informal groups provide satisfaction to the workers. As a result, labour turnover and
absenteeism are reduced and organization's productivity is increased.
 Developing future executives
Informal groups recognize talented workers as their leaders. Such leaders can be picked by the
management to fill vacancies at the junior executive level in the future.
GROUP DYNAMICS
MEANING
The term "Group Dynamics" contains two terms : Group and Dynamics. Group is basically a
collectively of two or more persons. Dynamics comes from Greek word and meaning is force. Group
dynamics is a social process by which people interact face - to - face in small groups. It encompasses
the dynamic of interaction patterns within the group, the subtle and the non - subtle pressures exerted
by group members, the manner in which decisions are made in the group, how work gets done and
how member needs are satisfied. Kurt Levin popularized the term Group Dynamics in 1930's.
FEATURES OF GROUP DYNAMICS
 Perception
Every member of the group have face - to - face meetings. They develop some impression or
perception about each other and give their reactions to each other. Each member perceives the group
differently, which he reveals at some situations.
 Motivation

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Members join groups because they expect that the group will solve their problems. They want
progress and promotion which are achieved through group performance. Employees join groups to
get their pay and working problems redressed.
 Group goals
Group goals are targets towards which input, process and output are directed. If people of a group
accept responsibility, group activities are evolved and workers perform successfully.
 Group organization
Group is an organization which is composed of different organs to attain certain objectives. A group
has the structural elements of an effective organization. Similarly, it has a set of norms that regulate
the functions of the group. A number of individuals in the group have definite status, role
relationship, set of values and own regulating behaviour.
 Interdependency
The main feature of a group is the members' interdependence. If the individuals start supporting each
other and interact with each other, they form a group. If they develop it as a permanent system, it
becomes an organization. Interdependence must be dynamic.
 Interaction
Members of a group must interact with each other. If they are interdependent but do not interact, the
group's goals are not achieved. If any problem arises, the interaction of all the members is needed to
solve the problem.
 Entity
A group has its own identity. It has similarity and proximity. It is felt and realized but cannot be seen.
The collection of individual experiences becomes the guidelines for the members. Vicinity and
proximity have given birth to the group.
IMPORTANCE OF GROUP DYNAMICS
 Group dynamics is increasingly important in an organization due to changes in an organization.
 Managers can bring out higher performance by weighing the characteristics of members who
assigned with particular job / task.
 Group members have task - relevant expertise and appropriate interpersonal skills for
accomplishment of tasks.
 The size of the group has also plays significant role in improving the group's performance.
 In the case of mid - sized groups, it consists of five to seven members that seem to be an
optimum size in an organization.
 In the case of smaller groups, it can often intensify individual differences in team work.
 In the case of large groups which tend to be when working in groups than when working alone.
 Provide free riding is particularly likely when members exhibit individualism rather than
collectivism.
EMERGENCE OF INFORMAL LEADERS
Groups are unique and evolving entities. The individuals within the group help determine the way
the group will operate by selecting their leaders from those who the special skills or abilities have
needed by their group. An informal leader is someone within an organization or work unit who, by
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virtue of how he or she is perceived by his peers is seen as worthy of paying attention to, or
following. The major thing that distinguishes an informal leader from a formal one is that the
informal leader does not hold a position of power or formal authority over those that choose to
follow him or her. The ability for an informal leader to influence or lead others rests on the ability of
that person to evoke respect, confidence, and trust in others, and it is not uncommon for an informal
leader to not intentionally try to lead. Informal leaders can be exceedingly valuable to organizations,
and to the success of formal leaders, or, if informal leaders do not support the formal leaders and
their agendas and vision, they can function as barriers in the organization. However, a successful
leader of one group will not necessarily be the acknowledged leader in another. Although elected to
an office, a person may not have the required capabilities or be seen by others as directing the group
activities. This is especially true when other group members are more clearly expressing leadership
qualities. In this situation, the other individuals can be helpful or disruptive to the established
leadership.
WORKING NORMS OF GROUPS
Group norms are the informal rules that groups adopt to regulate members' behavior. Norms are
characterized by their evaluative nature; that is, they refer to what should be done. Norms represent
value judgments about appropriate behavior in social situations. Although they are infrequently
written down or even discussed, norms have powerful influence on group behavior. If each
individual in a group decided how to behave in each interaction, no one would be able to predict the
behavior of any group member; chaos would reign. Norms guide behavior and reduce ambiguity in
groups.
Groups do not establish norms about every conceivable situation but only with respect to things that
are significant to the group. Norms might apply to every member of the group or to only some
members. Norms that apply to particular group members usually specify the role of those
individuals. Norms vary in the degree to which they are accepted by all members of the group: some
are accepted by almost everyone, others by some members and not others. For example, university
faculty and students accept the faculty norm of teaching, but students infrequently accept the norm of
faculty research. Finally, norms vary in terms of the range of permissible deviation; sanctions, either
mild or extreme, are usually applied to people for breaking norms. Norms also differ with respect to
the amount of deviation that is tolerable. Some norms require strict adherence, but others do not.
Understanding how group norms develop and why they are enforced is important to managers.
Group norms are important determinants of whether a group will be productive. A work group with
the norm that its proper role is to help management will be far more productive than one whose norm
is to be antagonistic to management. Managers can play a part in setting and changing norms by
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helping to set norms that facilitate tasks, assessing whether a group's norms are functional, and
addressing counterproductive norms with subordinates.
Norms usually develop slowly as groups learn those behaviors that will facilitate their activities.
However, this slow development can be short-circuited by critical events or by a group's decision to
change norms. Most norms develop in one or more of four ways:
(1) explicit statements by supervisors or coworkers
(2) critical events in the group's history
(3) primacy, or by virtue of their introduction early in the group's history
(4) carryover behaviors from past situations
Why are group norms enforced? The most important reason is to ensure group survival. They are
also enforced to simplify or make predictable the expected behavior of group members. That is, they
are enforced to help groups avoid embarrassing interpersonal problems, to express the central values
of the group, and to clarify what is distinctive about it.
GROUP DECISION MAKING
MEANING
Group decision making is a type of participatory process in which multiple individuals acting
collectively, analyze problems or situations, consider and evaluate alternative courses of action, and
select from among the alternatives a solution or solutions. The number of people involved in group
decision-making varies greatly, but often ranges from two to seven. The individuals in a group may
be demographically similar or quite diverse. Decision-making groups may be relatively informal in
nature, or formally designated and charged with a specific goal. The process used to arrive at
decisions may be unstructured or structured. The nature and composition of groups, their size,
demographic makeup, structure, and purpose, all affect their functioning to some degree. The
external contingencies faced by groups (time pressure and conflicting goals) impact the development
and effectiveness of decision-making groups as well. In organizations many decisions of
consequence are made after some form of group decision-making process is undertaken. However,
groups are not the only form of collective work arrangement. Group decision-making should be
distinguished from the concepts of teams, teamwork, and self managed teams. Although the words
teams and groups are often used interchangeably, scholars increasingly differentiate between the two.
The basis for the distinction seems to be that teams act more collectively and achieve greater synergy
of effort. Katzenback and Smith spell out specific differences between decision making groups and
teams:
 The group has a definite leader, but the team has shared leadership roles
 Members of a group have individual accountability; the team has both individual and collective
accountability.

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 The group measures effectiveness indirectly, but the team measures performance directly through
their collective work product.
 The group discusses, decides, and delegates, but the team discusses, decides, and does real work.
GROUP DECISION MAKING TECHNIQUES
There are many methods or procedures that can be used by groups. Each is designed to improve the
decision-making process in some way. Some of the more common group decision-making methods
are brainstorming, dialetical inquiry, nominal group technique, and the Delphi technique.
Brainstorming
Brainstorming involves group members verbally suggesting ideas or alternative courses of action.
The "brainstorming session" is usually relatively unstructured. The situation at hand is described in
as much detail as necessary so that group members have a complete understanding of the issue or
problem. The group leader or facilitator then solicits ideas from all members of the group. Usually,
the group leader or facilitator will record the ideas presented on a flip chart or marker board. The
"generation of alternatives" stage is clearly differentiated from the "alternative evaluation" stage, as
group members are not allowed to evaluate suggestions until all ideas have been presented. Once the
ideas of the group members have been exhausted, the group members then begin the process of
evaluating the utility of the different suggestions presented. Brainstorming is a useful means by
which to generate alternatives, but does not offer much in the way of process for the evaluation of
alternatives or the selection of a proposed course of action. One of the difficulties with brainstorming
is that despite the prohibition against judging ideas until all group members have had their say, some
individuals are hesitant to propose ideas because they fear the judgment or ridicule of other group
members. In recent years, some decision-making groups have utilized electronic brainstorming,
which allows group members to propose alternatives by means of e-mail or another electronic
means, such as an online posting board or discussion room. Members could conceivably offer their
ideas anonymously, which should increase the likelihood that individuals will offer unique and
creative ideas without fear of the harsh judgment of others.
Dialetical inquiry
Dialetical inquiry is a group decision-making technique that focuses on ensuring full consideration of
alternatives. Essentially, it involves dividing the group into opposing sides, which debate the
advantages and disadvantages of proposed solutions or decisions. A similar group decision-making
method, devil's advocacy, requires that one member of the group highlight the potential problems
with a proposed decision. Both of these techniques are designed to try and make sure that the group
considers all possible ramifications of its decision.

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Nominal group technique
The nominal group technique is a structured decision making process in which group members are
required to compose a comprehensive list of their ideas or proposed alternatives in writing. The
group members usually record their ideas privately. Once finished, each group member is asked, in
turn, to provide one item from their list until all ideas or alternatives have been publicly recorded on
a flip chart or marker board. Usually, at this stage of the process verbal exchanges are limited to
requests for clarification—no evaluation or criticism of listed ideas is permitted. Once all proposals
are listed publicly, the group engages in a discussion of the listed alternatives, which ends in some
form of ranking or rating in order of preference. As with brainstorming, the prohibition against
criticizing proposals as they are presented is designed to overcome individuals' reluctance to share
their ideas. Empirical research conducted on group decision making offers some evidence that the
nominal group technique succeeds in generating a greater number of decision alternatives that are of
relatively high quality.
Delphi technique
The Delphi technique is a group decision-making process that can be used by decision-making
groups when the individual members are in different physical locations. The technique was
developed at the Rand Corporation. The individuals in the Delphi "group" are usually selected
because of the specific knowledge or expertise of the problem they possess. In the Delphi technique,
each group member is asked to independently provide ideas, input, and/or alternative solutions to the
decision problem in successive stages. These inputs may be provided in a variety of ways, such as e-
mail, fax, or online in a discussion room or electronic bulletin board. After each stage in the process,
other group members ask questions and alternatives are ranked or rated in some fashion. After an
indefinite number of rounds, the group eventually arrives at a consensus decision on the best course
of action.

Advantages:

1. More information:

2. Diversity of views:

3. Greater acceptability:

4. Expert opinions:

5. Degree of involvement:

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6. Encourages people’s participation:

Disadvantages:

1. Time-consuming:

2. Lack of onus:

3. Individual domination:

4. Compromise decisions:

5. Expensive:

6. Groupism (group within a group)

INTERPERSONAL RELATIONSHIP
MEANING
An interpersonal relationship is an association between two or more people that may range from
fleeting to enduring. This association may be based on love, solidarity, regular business interactions,
or some other type of social commitment. Interpersonal relationships are formed in the context of
social, cultural and other influences. The context can vary from family or kinship relations,
friendship, marriage, relations with associates, work, clubs, neighborhoods, and places of worship.
They may be regulated by law, custom, or mutual agreement, and are the basis of social groups and
society as a whole.

WORKING ON INTERPERSONAL RELATIONSHIPS IN GROUPS

1. Allow time for introductions.
2. Acknowledge that all members have needs and sensitive feelings.
3. Understand and respect the background and cultural norms of group members; this is especially
important if they differ from your own.
4. Make accommodations for differences [e.g., language interpreters for multi - cultural groups or
logistical support to meet needs of people with disabilities]
5. Listen actively and non - judgmentally to what each person is saying.
6. Accept that there may be more uncertainty and perhaps anxiety in the meeting process when many
types of people are involved.
7. Beware of your own biases; do not stereotype people.
8. Be honest.

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9. Be humble.
10. Show enthusiasm
COMMUNICATION WITHIN GROUPS
Group communication is the messages that are sent and received within any group larger than two
through verbal and non - verbal communication. Verbal communication is any message that is
communicated with oral words while non-verbal communication is every other aspect that sends a
message. For example, when the leader of the group makes an announcement, she / he will verbally
communicate the instructions and then may walk by later to check - up on the group. The walking by
is non - verbal communication saying, " I 'm watching."
Some of the points to be considered while communicating within groups. They are as follows.
1. Group communication is significant because it has the ability to either build the group or tear it
down.
2. A misconception in group communication is that it is primarily verbal. In actuality, the non -
verbal messages sent within the group can have a greater affect on the morale of the group.
3. It is important to consider delegation in group communication. Using delegation in the
communication process helps to get the message out faster and more efficiently.
4. The function of group communication is to empower and inform the group with one vision and
common goal which increases motivation and productivity.
CONTROL IN GROUPS
Controlling group performance is a close companion of the competency setting the example. The
coordination of individual efforts for collective purpose is externally and internally controlled - by
the leader and each individual herself. Setting the example is a personal, internal manner of control
that we hope others will model [when it's positive and appropriate].
The leader sets the example by doing what he expects other to do:
1. Doing his own job well.
2. Following instructions with little or no supervision.
3. Trying his hardest.
4. Behaving maturely.
5. Showing a positive attitude.
3.3. TEAM BUILDING
DEFINITION OF TEAM
Team is defined as a small number of people with complementary skills who are committed to a
common purpose, performance goals, and approach for which they hold themselves mutually

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accountable. -
Katzenbach and Smith
FEATURES OF A TEAM
Members of a team:
 Are committed to goals they have defined.
 Support one another willingly.
 Trust and support others.
 Offer suggestions and give feedback to other members.
 May disagree but work to resolve differences and reach consensus.
NEED AND SIGNIFICANCE OF TEAMS AT WORK PLACE
 Increased employee satisfaction
 Improved communication
 Organizational flexibility
 Increased employee motivation
 Common commitment to goals
 Expanded job skills
 Higher level of productivity
TEAM BUILDING
MEANING
A team is a group of people working towards a common goal. 'Team Building' is the process of
enabling that group of people to reach their goal.
TEAM BUILDING PROCESS
The following are the steps to be followed in the process of team building.
1. Problem - sensing
At this stage generally most of the members come forward with their arguments as to what the real
problems are. The view may be quite different ranging from the organizational problem, group
problems to even personal problems. In problem identification, the emphasis should be on consensus.
2. Examining differences
The perception of people on an issue differs because of their differing backgrounds, such as their
value systems, personality and attitudes. The perception may be brought to conformity through the
process of exercise on perception which involves a number of psychological exercises particularly on
perpetual differences.

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3. Giving and receiving feedback
The step of perceiving things and listening to each other may be relayed back to the members as
there is a possibility that such processes may create tense situation in the group often, members
report about the painful feelings that they have at the time of evaluation of their feelings. The
discussion should continue until all members of the team have commented. The feedback should be
given to the members about their feelings, about the issue, the way people talk about the issue, etc.
Such feedback generally provides members to evaluate the values but at the same time, also provides
opportunity to understand themselves.
4. Developing interactive skills
The basic objective of this process is to increase the ability among the people as to how they should
interact with others and engage in constructive and negative behaviours.
1. Constructive bahviour
- Building: Developing and expanding the ideas of others.
- Bringing in: Harmonizing, encouraging others to participate.
- Clarifying: Resting, ensuring, understanding, seeking relevant information.
- Innovating: Bringing in new relevant ideas, information, feelings, etc.
2. Negative behaviour
- Over talk: Interrupting, talking together with speaker
- Attacking: Deriding, criticizing person
At the time of discussion of feedback, people themselves take assignments to increase specific
constructive behaviours and decrease negative behaviours. If this process is adopted several times,
there is a strong possibility that members may learn constructive behaviours and leave negative
behaviours. This is quite helpful in developing teamwork.
5. Follow - up action
This is the final stage in team building. At this stage, the total team is convened to review what has
been learned and to identify what the next step should be. Follow - up action also helps in
overcoming the drawback grouped at the initial stages of team building. It involves deciding who
will take care of each area of the teams responsibilities and who will be responsible for team projects
in a group that has not developed a satisfactory division of responsibility; clarifying and settling
differences in perception concerning responsibility and authority in the team, with complex division
of responsibility and authority among members.

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 Figure3j: Process of Team Building
T
h e
s e

attempts bring co-operative and supportive feelings among people involved in the team functioning.
When this exercise is undertaken at the initial stage, it contributes positively towards the feelings of
the people. However, to encourage and sustain such feelings, management should take such actions
at regular intervals so that members feel reinforced and sustain their positive behaviour. Such actions
will go a long way in shopping the organizational climate quite conducive to members for their
efficient working.
GUIDELINES FOR TEAM BUILDING
1. Emphasize common interest and values
2. Use ceremonies and Rituals
3. Use symbols to develop identification with the group
4. Encourage and facilitate social interaction
5. Tell people about group activities and achievements
6. Conduct process analysis sessions
7. Conduct alignment sessions
8. Increase incentives for mutual cooperation

UNIT 4
4. LEADERSHIP AND POWER
4.1. LEADERSHIP
- MEANING
- IMPORTANCE
- LEADERSHIP STYLES
- THEORIES
- LEADERS Vs. MANAGERS
4.2. POWER
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 - SOURCES OF POWER
- POWER CENTERS
- POLITICS
4.1. LEADERSHIP
MEANING
Leadership is the process of influencing the behaviour of others to work willingly and
enthusiastically for achieving predetermined goals. It is the ability of a leader to induce subordinates
to work with confidence and zeal. Leadership changes potential into reality. It is the final act that
brings to success or the potential, i.e., in an organization and its people. Thus, leadership is the ability
to influence a group toward the achievement of goals.
DEFINITION
Leadership is ultimately about creating a way for people to contribute to making something
extraordinary happen.
- Alan Keith
CHARACTERISTICS OF LEADERSHIP
1. Leadership is a process of influence
2. Leadership is related to a situation
3. Leadership is the function of simulation
4. Leadership gives an experience of helping attain the common objectives
5. Employees must be satisfied with the type of leadership provided
6. There must be followers
7. Working relationship between leader and followers
8. Community of interests

IMPORTANCE OF LEADERSHIP
Leadership is an important function of management which helps to maximize efficiency and to
achieve organizational goals.
The following points justify the importance of leadership in a concern.
1. Initiates action
Leader is a person who starts the work by communicating the policies and plans to the subordinates
from where the work actually starts.
2. Motivation

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A leader proves to be playing an incentive role in the concern’s working. He motivates the
employees with economic and non-economic rewards and thereby gets the work from the
subordinates.
3. Providing guidance
A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here
means instructing the subordinates the way they have to perform their work effectively and
efficiently.
4. Creating confidence
Confidence is an important factor which can be achieved through expressing the work efforts to the
subordinates, explaining them clearly their role and giving them guidelines to achieve the goals
effectively. It is also important to hear the employees with regards to their complaints and problems.
5. Building morale
Morale denotes willing co-operation of the employees towards their work and getting them into
confidence and winning their trust. A leader can be a morale booster by achieving full co-operation
so that they perform with best of their abilities as they work to achieve goals.
6. Builds work environment
Management is getting things done from people. An efficient work environment helps in sound and
stable growth. Therefore, human relations should be kept into mind by a leader. He should have
personal contacts with employees and should listen to their problems and solve them. He should treat
employees on humanitarian terms.
7. Co-ordination
Co-ordination can be achieved through reconciling personal interests with organizational goals. This
synchronization can be achieved through proper and effective co-ordination which should be primary
motive of a leader.

LEADERSHIP STYLES
Leadership style refers to a leader's behavior. It is the result of the philosophy, personality, and
experience of the leader.
There are 3 major types of leadership style. They are as follows:
1. Authoritarian / Autocratic Leader
Under the autocratic leadership style, all decision-making powers are centralized in the leader, as
with dictators. Leaders do not entertain any suggestions or initiatives from subordinates. The

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autocratic management has been successful as it provides strong motivation to the manager. It
permits quick decision-making, as only one person decides for the whole group and keeps each
decision to him/herself until he/she feels it needs to be shared with the rest of the group.
2. Participative / Democratic Leader
The democratic leadership style favors decision-making by the group. Such a leader gives
instructions after consulting the group. They can win the cooperation of their group and can motivate
them effectively and positively. The decisions of the democratic leader are not unilateral as with the
autocrat because they arise from consultation with the group members and participation by them.

3. Delegate / Free Rein / Laissez Faire Leader

A free-rein leader does not lead, but leaves the group entirely to itself. Such a leader allows
maximum freedom to subordinates; they are given a free hand in deciding their own policies and
methods. Different situations call for different leadership styles. In an emergency when there is little
time to converge on an agreement and where a designated authority has significantly more
experience or expertise than the rest of the team, an autocratic leadership style may be most
effective; however, in a highly motivated and aligned team with a homogeneous level of expertise, a
more democratic or laissez-faire style may be more effective. The style adopted should be the one
that most effectively achieves the objectives of the group while balancing the interests of its
individual members.
Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to
stick with one style.
LEADERSHIP THEORIES
Many leadership theories have been suggested since time immemorial. Early leadership theories
focused on the behaviour and qualities of successful leaders where as later theories gave more
importance to the role of associates and followers.
Some of the leadership theories are as follows:

Great Man Theory

According to Great Man theory, a leader is born and cannot be made. This theory believed that
leaders are people who have inborn exceptional qualities and are destined to lead. Here the term
“Man” is used since leadership was considered as a concept that would be primarily dominated by
males. Great leaders would arise only when there is an urgent need of it. It also suggests that
leadership qualities are inherent.

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Trait Theory
According to Trait theory, few people are born with qualities that are suited to leaderships. People
who transform into good leaders posses right combination of leadership qualities. Through this
approach, people with such leadership qualities could be separated and then people with such
qualities could be recruited or selected into leadership positions. This approach was commonly used
in military and is even today used to recruit candidates for commission.
Contingency Theory
This theory focuses on variables that are related to environment and that would determine which
style of leadership is suitable for a particular situation. It says that it is impossible to determine which
leadership style will suit best for any situation. Success depends on qualities of followers and other
variables.
Situational Theories
This theory suggests that on the basis of situational variable, leaders should choose the course of
action. Diverse styles of leadership will me more suitable to make certain types of decisions
Behavioral Theories
This theory believes that great leaders are not born but are made. The prime focus of this theory is on
actions of leaders. The focus is not on internal states or mental qualities. This theory believes that
people can become leaders through the process of teaching, learning and observation.
Participative Theory
This theory defines ideal leadership style. An ideal leadership style takes into consideration the input
of its associates. Such leaders encourage contribution and participation from group members. The
leader also has the right to say no to any suggestion of other team member.
Management Theories
This theory gives more importance to the role of organization, supervision and most importantly the
group performance. This theory is based on the system of punishment and reward. Managerial theory
is often used in many companies. When employee’s performance is very good, he or she is given a
reward. If the employee’s performance decreases below a certain level, he or she is punished.

Relationship Theory
This theory also called Transformational theory focuses on the connections that are formed between
followers and leaders. These leaders inspire and motivate people. They also help group members in

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case of any difficulty. Such leaders focus on performance of members of group. These leaders have
high moral values.
Path Goal Theory
This theory focuses on what leaders should do to motivate and inspire people so that the employees
can perform well.
LEADERS Vs. MANAGERS
“Leadership and managership are two synonymous terms” is an incorrect statement. Leadership
doesn’t require any managerial position to act as a leader. On the other hand, a manager can be a true
manager only if he has got the traits of leader in him. By virtue of his position, manager has to
provide leadership to his group. A manager has to perform all five functions to achieve goals, i.e.,
Planning, Organizing, Staffing, Directing, and Controlling. Leadership is a part of these functions.
Leadership as a general term is not related to managership. A person can be a leader by virtue of
qualities in him. For example: leader of a club, class, welfare association, social organization, etc.
Therefore, it is true to say that, “All managers are leaders, but all leaders are not managers.” A leader
is one who influences the behavior and work of others in group efforts towards achievement of
specified goals in a given situation. On the other hand, manager can be a true manager only if he has
got traits of leader in him. Manager at all levels are expected to be the leaders of work groups so that
subordinates willingly carry instructions and accept their guidance. A person can be a leader by
virtue of all qualities in him.
Leaders and Managers can be compared as follows:
 The manager administers; the leader innovates.
 The manager is a copy; the leader is an original.
 The manager maintains; the leader develops.
 The manager focuses on systems and structure; the leader focuses on people.
 The manager relies on control; the leader inspires trust.
 The manager accepts reality; the leader investigates it.
 The manager has a short-range view; the leader has a long-range perspective.
 The manager asks how and when; the leader asks what and why.
 The manager has his or her eye always on the bottom line; the leader has his or her eye on the
horizon.
 The manager imitates; the leader originates.
 The manager accepts the status quo; the leader challenges it.
 The manager is the classic good soldier; the leader is his or her own person.

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 The manager does things right; the leader does the right thing.
4.2. POWER
MEANING
The term 'Power' may be defined as the capacity to exert in influence over others. If a person has
power, it means that he is able to influence the behaviour of other individuals. The essence of power
is control over the behaviour of others. "In one's role as a supervisor, a manager's power may be seen
as the ability to cause subordinates to do what the manager wishes him to do". A manager's power
may be measured in terms of the ability to:
1] Give rewards
2] Promise rewards
3] Threaten to withdraw current rewards
4] Withdraw current rewards
5] Threaten punishment, and
6] Punish.
Power is the degree of influence an individual or group has in decision making, without being
authorized by the organization to do so. Power is used not only in getting a certain result achieved
but it includes impact on negative decisions, or the action of not deciding also. Therefore, power is
not only one's influence over the decision - making, but also one's capability of limiting the scope of
actual decision - making.
DEFINITION
Power is defined as the ability to influence and control anything that is of value of others.
- Stephen P. Robbins
NATURE OF POWER
1. Power can be potential or enacted.
2. Power represents the capacity, ability or potential to influence the behaviour of other people to
achieve a certain goal.
3. Leaders exercise power to accomplish goals of an organization.
4. Leaders have only as much power as others allow them to have.
5. Some times appearing to be powerful is just as important as being powerful.
6. Power is neither completely formal nor informal. It is rather a judicious mixture of two.
IMPORTANCE OF POWER
1. Necessary for coordinated activities
2. Basis for authority and responsibility.

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SOURCES OF POWER
Power is a force of influence and authority. Most leaders wield power, but how power is manifested
and used often differs between leaders. Where does a leader get power from? Or do a leader’s
followers give it to them? Well it’s both. In this , we’ll be looking at the five different sources of
power a leader can use, with some advice on when these powers should be used, and perhaps when
not.
The five sources of a leader’s power come from distinctly different sources. Here’s an overview:
1. Expert Power
When a leader has significant domain knowledge/skills. E.g. an expert accountant influences how
junior accountants go about their tasks
Use expert power when:
 You have a genuine expertise in a subject
 You have access to resources within your control who do
Don’t use expert power when:
 You’re unsure of your competence in a subject
2. Positional Power
Comes when a leader has a legitimately held position of authority. E.g. typically, the CEO of an
organization has the highest positional power
Use positional power when:
 You need something done quickly when you don't have time to explain why
 If a political situation has grown that needs stemming
 Your accountabilities are in serious jeopardy
Don't use positional power when:
 You are feeling impatient or frustrated
 You have purely personal reasons to influence an outcome
 Your values are at odds with someone else's
 You have recently entered a new post with an unfamiliar team
3. Reward Power
Is evident when a leader can give, or take away, a reward. E.g. a leader can influence a follower’s
behavior by awarding a bonus, or taking away perks
Use reward power when:
 You need something done quickly
 Your team needs a motivation boost

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 You are asking your followers to go above and beyond their duty
 You want to create friendly competition
Don't use reward power when:
 Resources are scare, so that someone wins, someone loses
 You have doubts about your ability to provide the reward
 They are targeted towards individuals in situations where there are petty jealousies exhibited in
your team
4. Coercive Power
This is felt when a leader creates the perception of a threat. E.g. a leader has coercive power if her
followers believe that she will initiate disciplinary action
Use coercive power when:
 You need to ensure standards and policies are adhered to
 There is a significant risk in a situation
 You have no other opinion
Don't use coercive power when:
 You have the ability to apply other power. Rather, use positional power if you must.
 You won't be around to put things right, afterwards
 You are feeling frustrated and emotional
5. Personal Power
Influence gained by persuasion. E.g. a manager may have to rely on nothing more than a friendly
please and thank you for an employee to perform a task
Use personal power when:
 There is a strong relationship between you and your followers
 Your desired outcomes does not conflict with your followers values, or the values of your
organization
 Your desired outcome is flexible
Don't use personal power when:
 There is not a strong relationship between you and your followers
It is perhaps only personal power that can be used singularly, but this comes at a cost in terms of the
time and resources it takes for you to build relationships. All other forms of power should be used in
conjunction with each other. It is unlikely that you can use the same mix of power for every situation.
The skill of leadership is knowing when to use these powers and when not too. Judgment is key. Like

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any other skill, using power must be practiced, and we will make mistakes. Don’t be afraid! Let us
learn from these mistakes.
POWER CENTERS
Power Center is a person who is in close vicinity of higher management and whom management
trusts and takes feedback from. It is very important to understand the actual people who are powerful
in the company. These people may not be on very important designations but may be the source of
information to the boss. These people may not be necessarily being the part of your department.
They must be other department heads, relatives or friends of the boss. Make a list of such people.
You must not be astonished that this list may consists of the people like driver of your boss, the head
guard of the company, if it is a small company or medium size company. It is very likely that these
people are open to higher power centers and may give a favourable opinion about you are whenever
your reference comes - or whenever your boss asks an opinion about you.
Power centers, are often defined by organizational charters or by laws. In case of schools, position
status, authority structures, and rules and regulations prescribe the power centers. These could be
central executive, regional office, district office, principal, head teachers, class coordinators, and
classrooms teachers. Each of these individuals makes decisions that guide the decisions of others.
Moreover, because of the positions they hold, others accept the fact that they have a right to do so.
For example, teachers expect the principals to assign them to classrooms, and students expect
teachers to make the best out of classroom time, rather than giving homework assignments. When
individuals act in such ways and their directions are followed, we can say they are exercising
authority. Authority relationships are essential guides to behaviour in schools as they are in other
organizations. The concept of authority involves not only giving orders or directions but also the
acceptance of such orders, by those within the organization as legitimate and binding.
HOW TO USE POWER CENTERS?
There are two ways to use these people.
1. You should use to advertise your achievements and your plan to these people in a very discrete
manner, which does not disclose the full plan but gives only hints. Discuss what you are doing and
what you will do in future with these people. Never ever criticize the company or your boss in front
of these people.
2. Pass on the negative information about your competitors to these people and thus defame your
competitors. Tell them how others are giving loss to company.

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THINGS TO REMEMBER WHILE TALKING WITH THESE PEOPLE
 Identify and select more than one power center
 Selectively disclose the things
 Make them feel important
 Never criticize the company or your boss
 Develop deeper relations with these people
POLITICS
MEANING
Politics relates to the way a person is able to get power over others and the way in which he uses
power over others. In other words, it is the process whereby power is acquired and exercised upon
others to influence their behaviour or to get things done. Thus, it is a method of operating in order to
influence the behaviour of others.
DEFINITION
Politics in organization are those activities that are not required as part of one's formal role in the
organization, but that influence, or attempt to influence, the distribution of advantages and
disadvantages within the organization.
Stephen P Robbins
FEATURES OF POLITICS
 Political behaviour involves some kind of power either directly or indirectly. Power can be
exercised by those who are in formal positions and enjoy authority. It can also be influenced by
other persons close to those who hold formal authority.
 Politics involves behaviour that is self - serving. It suggests that either organizational resources
are used for personal benefits or benefits to be given to one person are given to another. In both
the cases, the decision is not rational from organization's point of view.
 Politics takes place when an individual recognises that achievement of his goals is influenced by
the behaviour of others. In such a case, politicking involves the elimination of adversaries by the
influential manueuvers of a member of the organization.
 All self - serving behaviours which do not involve use of power or threat of use of power cannot
be termed as politics. For example, an employee's asking for a rise in pay is not political
behaviour, but the use of threat to unionize to obtain a pay rise amounts to political behaviour.
FACTORS INFLUENCING POLITICAL BEHAVIOUR

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A number of factors are responsible for political behaviour. These factors are grouped into individual
factors and organizational factors.
1. Individual factors
 High self - monitors
Skilled in political behaviour
 High Machiavellian personality
Proactive and prone to manipulate situation in their favour
 Investment in organization
Investment in terms of expectations forces the individual to use illegitimate means.
 Perceived job alternatives
2. Organizational factors
 Reallocation of resources
The reallocation or resources is necessary when the resources available either increase or decrease.
These situations force the individuals to resort to politics.
 Promotion opportunities
Normally, the opportunities for promotion or advancement are lesser than the candidates expecting
promotion. This situation leads to competition and thereby political behaviour by the competing
candidates.
 Low trust
Low trust in organization leads to tight control which in turn makes the subordinates to behave
illegitimately.
 Role ambiguity
The unclear expectation from the employee makes him to act politically.
 Unclear performance appraisal system
Employee does not know what to do? And to what level of perfection he has to do? etc., under the
unclear performance appraisal system. This situation creates ambiguity and leads to political
behaviour.
 Zero - sum reward system
The win - lose approach in reward allocation is called zero - sum approach. People perceive that they
won double if others lose. Therefore, this situation makes people take the chance, even through
illegitimate means.
 Democratic decision making

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The traditionally autocratic managers cannot make the decisions democratically in its true sense.
Therefore, they refer the issues to committees and commissions to offer recommendations, and
finally they make the decisions as they desire.
 High performance pressures
High performance pressures make the people to find short-cuts and politics to show superfluously
high performance or through window - dressing.
 Self - serving senior managers
The political behaviour by the top management with rewards encourages the people at the lower
level to resort to politics.
TACTICS USED TO GAIN POLITICAL POWER
 Bargaining or Trade - off
It refers to negotiation of a quid pro quo [this for that] agreement between two groups. Each party to
the conflict offers some benefits to the other so that there can be some stability in their relationship.
 Competition
The resources at the command of the organization are limited. Various groups compete with each
other to have a greater share of such resources. For this, they try to influence the criteria used as the
basis for resource distribution in the form of funds, space, support staff, etc.
 Co-optation
Co-optation occurs when a group gives some of its important positions to members of other groups
or includes them in its policy - making committees.
 Coalition
It is a temporary alliance of a number of individuals or groups who combine their efforts and energy
for their common goals. For example, National Democratic Government was formed in India on the
basis of coalition arrangement between a numbers of political parties. By forming a coalition, the
members are able to increase their power or area of influence.
 Pressure
It is a hostile method of gaining power. For example, a trade union might threaten a strike or slow
down if the management does not accept its demands. In a similar vein, the management might
threaten a lock - out in the factory if the trade union does not accept its terms.
 Control over information
It is very much a part of political behaviour to control the dissemination of critical information to
others. Releasing good or bad news when it is likely to have its fullest impact can promote someone's
self interest and may ruin the hopes of others.
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 Control over communication channels
People who are in lower level positions but have some control over the channels of communication
can acquire considerable political power. For example, the secretary may have considerable power in
deciding who sees the boss and who doesn't at a given time.
LEVELS OF POLITCAL ACTION IN ORGANIZATIONS
Figure4b: Levels of political action in organizations

UNIT 5
5. GROUP BEHAVIOUR
5.1. ORGANIZATIONAL CULTURE AND CLIMATE
- FACTORS AFFECTING ORGANIZATIONAL CLIMATE
- IMPORTANCE
5.2. JOB SATISFACTION
- DETERMINANTS
- MEASUREMENT
- INFLUENCE ON BEHAVIOUR

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5.3. ORGANIZATIONAL CHANGE
- IMPORTANCE
- STABILITY Vs. CHANGE
- PROACTIVE Vs. REACTION CHANGE
- THE CHANGE PROCESS
- RESISTANCE TO CHANGE
- MANAGING CHANGE
5.4. STRESS
- WORK STRESSORS
- PREVENTION AND MANAGEMENT OF STRESS
- BALANCING WORK AND LIFE
5.5. ORGANIZATIONAL DEVELOPMENT
- CHARACTERISTICS
- OBJECTIVES
5.6. ORGANIZATIONAL EFFECTIVENESS

5.1. ORGANIZATIONAL CULTURE AND CLIMATE

DEFINITION OF ORGANIZATIONAL CULTURE
Organization culture is the basic pattern of shared assumptions, values and beliefs considered to be
the correct way of thinking about and acting on problems and opportunities facing the organization.
SOURCES OF ORGANIZATIONAL CULTURE
 General influence from outside the area
Covers the factors that can not be controlled or only a few can be controlled by the organization.
 The influence of the values that exist in society
Beliefs and values are dominant from the wider community such as decent compensation and
cleanliness.

 Factors specific to the organization

Organizations are always interacting with their environment. In addressing both external and internal
problems the organization will get a successful completion. The success of overcoming these
problems is the basis for the growth of organizational culture.
COMPONENTS OF ORGANIZATIONAL CULTURE

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 Figure 5a: Components of Organizational Culture

FUNCTIONS OF ORGANIZATIONAL CULTURE

 Culture creates a clear distinction between one organization and another.
 Culture brings a sense of identity to members of the organization.
 Cultural facilitate the emergence of a commitment to something larger than one’s individual self
interest.
 Culture is the social glue that helps unite the organization by providing the proper standards to be
done by employees.
 Culture as meaning-making and control mechanisms that guide and shape employee attitudes and
behavior.
CHARACTERISTICS OF ORGANIZATIONAL CULTURE
 Innovation and risk aversion
The extent to which employees are supported to be innovative and take risks.
 Attention to detail
The extent to which employees are expected to demonstrate their accuracy, analysis and attention to
detail.
 Orientation results
The extent to which management focuses on results rather than on the techniques and processes used
to achieve these results.

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 Orientation people
The extent to which management decisions take into account the effects on people within the
organization.
 Orientation team
The extent to which work activities are organized around teams rather than individuals.
 Aggressiveness
In connection with the aggressiveness of employees.
 Stability
The organization emphasizes the maintenance of organizational culture that is good.
IMPORTANCE OF ORGANIZATIONAL CULTURE
 It provides consistency for an organization and its people.
 It provides order and structure for activity within an organization.
 It establishes an internal way of life for people.
 It determines the conditions for internal effectiveness.
 It strongly influences how an organization is structured.
 It sets the patterns for internal relationships among people.
 It defines effective and ineffective performance.
 It fixes an organization's approach to management.
 It limits strategy.
 It is fundamental to an organization's productivity.
 It parallels individual character.
DEFINITION OF ORGANIZATIONAL CLIMATE
Organizational climate [sometimes known as Corporate Climate] is the process of quantifying the
“culture” of an organization. It is a set of properties of the work environment, perceived directly or
indirectly by the employees, that is assumed to be a major force in influencing employee behavior.
FACTORS AFFECTING ORGANIZATIONAL CLIMATE

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96
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IMPORTANCE OF ORGANIZATIONAL CLIMATE

The modern work environment is vastly different from the work environment in the previous three

decades. The reasons for this difference is the overwhelming challenges organizations have to face.

These challenges include increased competition, high degrees of technological innovation, changes

in the nature and structure of organizations and the challenges facing employees such as redefining

the employment contract, getting to grips with new business processes, flexible work patterns and

work life balance. These challenges are compounded by the implementation of legislation impacting

on the employer - employee relationship. Organizational restructures [downsizing and mergers] in

order to stay competitive in a global market, diversity and transformation practices and the

outsourcing of non - core departments. All of the above changes can affect the climate in an

organization and impact on employees' motivation levels, which in turn, influences the organization's

profitability. One of the primary challenges facing managers today is to manage work teams in these

ever - changing environments and to create a work environment or climate in which employees can

thrive and apply their expertise. Hence an organization's ability to develop and maintain conditions

conducive to the creation of a high - performing climate is or critical importance.

DIFFERENCE BETWEEN ORGANIZATIONAL CULTURE AND CLIMATE

It is always difficult to distinguish between organization culture and climate, without getting drawn

into heavy theoretical or abstract analysis; they are intangible features of organization life and as

such can be hard to put into simple terms. However, they are vital concepts for all of us to understand

so it is important that you have some handle one each of them

Culture might be described as the foundation upon which any organization is built. It develops over

the longer term and consists of the values – stated and implicit- beliefs, norms and traditions which

guide how the organization does its business and in turn how people behave. In simple terms, culture

could be described as the personality of the organization and, often, the culture of a particular

enterprise can be traced back to those personal values held by the founder, or it is a reflection of the

senior management in the business. Although, it is somewhat intangible, culture has a significant role
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in influencing all aspects of life within the organization and indeed how it interacts with the outside

world; think how different the culture might be in a brokerage firm on Wall Street from that

pervading within a charitable organization. Consider too the various places you may have worked in

your career; they all likely had a uniqueness about them and this is a manifestation of its culture. In

certain jobs you probably felt very comfortable working there, in others you might not have felt the

same affinity with the organization.

Climate, on the other hand, could be described as something more surface level and relates to the
here and now; it is about what it feels like to work in the organization. If culture is the personality,
then climate has more to do with the mood or prevailing atmosphere within the business. The climate
is prone to more short term fluctuations and is determined by many factors which include leadership,
structure, rewards and recognition.
5.2. JOB SATISFACTION
DEFINITION
Job satisfaction is defined as "the extent to which people like [satisfaction] or dislike [dissatisfaction]
their jobs”. This definition suggests job satisfaction is a general or global affective reaction that
individuals hold about their job. While researchers and practitioners most often measure global job
satisfaction, there is also interest in measuring different "facets" or "dimensions" of satisfaction.
Examination of these facet conditions is often useful for a more careful examination of employee
satisfaction with critical job factors. Traditional job satisfaction facets include: co-workers, pay, job
conditions, supervision, nature of the work and benefits."
DETERMINANTS OF JOB SATISFACTION
Job satisfaction is a multi-variable and indescribable concept. There are number of factors that
influence job satisfaction of employees. These factors can be classified into two categories viz.
organizational and personal variables.
a) Organizational variables
i) Wages
Wage can be described as the amount of reward that a worker expects from the job. Wages are an
instrument of fulfilling the needs as every worker expects to get an appropriate reward. The wages
are supposed to be fair, reasonable and equitable. A feeling of job satisfaction is felt by attaining fair
and equitable rewards.
ii) Nature of Work

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Job satisfaction is highly influenced by the nature of work. Employees are satisfied with job that
involves intelligence, skills, abilities, challenges and scope for greater freedom. Job dissatisfaction
arises with a feeling of boredom, poor variety of tasks, frustration and failures.
iii) Working Conditions
Employees are highly motivated with good working conditions as they provide a feeling of safety,
comfort and motivation. On contrary, poor working conditions brings out a fear of bad health in
employees.
iv) Job Content
Factors like recognition, responsibility, advancement, achievement etc can be referred to as job
content. A job that involves variety of tasks and less monotonous results delivers greater job
satisfaction. A job that involves poor content produces job dissatisfaction.
v) Organizational Level
The jobs that are at higher levels are viewed as prestigious, esteemed and opportunity for self-
control. The employees that are working at higher level jobs express greater job satisfaction than the
ones working at lower level jobs.

vi) Opportunities for Promotion

Promotion can be reciprocated as a significant achievement in the life. It promises and delivers more
pay, responsibility, authority, independence and status. So, the opportunities for promotion determine
the degree of satisfaction to the employees.
vii) Work Group
There is a natural desire of human beings to interact with others and so existence of groups in
organizations is a common observable fact. This characteristic results in formation of work groups at
the work place. Isolated workers dislike their jobs. The work groups make use of a remarkable
influence on the satisfaction of employees. The satisfaction of an individual is dependent on largely
on the relationship with the group members, group dynamics, group cohesiveness and his own need
for affiliation.
viii) Leadership Styles
The satisfaction level on the job can be determined by the leadership styles. Job satisfaction is
greatly enhanced by democratic style of leadership. It is because democratic leaders promote
friendship, respect and warmth relationships among the employees. On contrary, employees working
under authoritarian and dictatorial leaders express low level of job satisfaction.
b) Personal variables

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i) Personality
The personality of an individual can be determined by observing his individual psychological
conditions. The factors that determine the satisfaction of individuals and his psychological conditions
is perception, attitudes and learning.
ii) Age
Age can be described as a noteworthy determinant of job satisfaction. It is because younger age
employees possessing higher energy levels are likely to be having more job satisfaction. In older age,
the aspiration levels in employees increase. They feel completely dissatisfied in a state where they
are unable to find their aspiration fulfilled,
iii) Education
Education plays a significant determinant of job satisfaction as it provides an opportunity for
developing one’s personality. Education develops and improvises individual wisdom and evaluation
process. The highly educated employees can understand the situation and asses it positively as they
possess persistence, rationality and thinking power.
iv) Gender Differences
The gender and race of the employees plays important determinants of Job satisfaction. Women, the
fairer sex, are more likely to be satisfied than their male counterpart even if they are employed in
small jobs.
The job satisfaction can also be determined by other factors like learning, skill autonomy, job
characteristics, unbiased attitude of management, social status etc. It is important for managers to
consider all these factors in assessing the satisfaction of the employees and increasing their level of
job satisfaction.
MEASUREMENT OF JOB SATISFACTION
The commonly applied techniques employed to measure job satisfaction are discussed below:
i) Rating Scales
Rating scales are the commonly adopted method that is used for the measuring job satisfaction. It
comprises of certain statements describing the attitude of the employees with respect to the job,
organization and personal factors. For each declaration or statement, the employee is invited to
express his opinion on a scale consisting of different expressions.
ii) Personal Interviews
The experts conduct these personal interviews where employees express their opinions on job
satisfaction. The responses delivered through these interviews are analyzed to find their level of job

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satisfaction. It is believed that this method is likely to have personal biased views of the interviewer
also.
iii) Tendencies
The employees are asked to express their tendency or inclination on several aspects and this reveals
their satisfaction or dissatisfaction.
iv) Critical Incidents
Herzberg made developed approach to measure job satisfaction. In this particular method, the
employees were asked to describe incidents on their job when they were particularly satisfied or
dissatisfied. These set of incidents were then analyzed to determine their positive and negative
attitudes.
INFLUENCE OF JOB SATISFACTION ON BEHAVIOUR
Job satisfaction has a variety of effects. Here are the 10 most important reasons why happiness at
work is the number 1 productivity booster.
1. Happy people work better with others
Happy people are a lot more fun to be around and consequently have better relations at work. This
translates into:
 Better teamwork with your colleagues
 Better employee relations if you’re a manager
 More satisfied customers if you’re in a service job
 Improved sales if you’re a sales person
2. Happy people are more creative
If people are in a good mood on a given day, they’re more likely to have creative ideas that day, as
well as the next day, even if we take into account their mood that next day.
There seems to be a cognitive process that gets set up when people are feeling good that leads to
more flexible, fluent, and original thinking, and there’s actually a carryover, an incubation effect, to
the next day.
3. Happy people fix problems instead of complaining about them
When you don’t like your job, every molehill looks like a mountain. It becomes difficult to fix any
problem without agonizing over it or complaining about it first. When you’re happy at work and you
run into a snafu – you just fix it.
4. Happy people have more energy
Happy people have more energy and are therefore more efficient at everything they do.

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5. Happy people are more optimistic
Happy people have a more positive, optimistic outlook, and as research shows, optimists are way
more successful and productive. It’s the old saying “Whether you believe you can or believe you
can’t, you’re probably right” all over again.
6: Happy people are way more motivated
Low motivation means low productivity, and the only sustainable, reliable way to be motivated at
work is to be happy and like what you do.
7. Happy people get sick less often
Getting sick is a productivity killer and if you don’t like your job you’re more prone to contract a
long list of diseases including ulcers, cancer and diabetes. You’re also more prone to workplace
stress and burnout.
One study assessed the impact of job strain on the health of 21,290 female nurses in the US and
found that the women most at risk of ill health were those who didn’t like their jobs. The impact on
their health was a great as that associated with smoking and sedentary lifestyles.
8. Happy people learn faster
When you’re happy and relaxed, you’re much more open to learning new things at work and thereby
increasing your productivity.
9. Happy people worry less about making mistakes – and consequently make fewer mistakes
When you’re happy at work the occasional mistake doesn’t bother you much. You pick yourself up,
learn from it and move on. You also don’t mind admitting to others that you screwed up – you simply
take responsibility, apologize and fix it. This relaxed attitude means that less mistakes are made, and
that you’re more likely to learn from them.
10. Happy people make better decisions
Unhappy people operate in permanent crisis mode. Their focus narrows, they lose sight of the big
picture, their survival instincts kick in and they’re more likely to make short-term, here-and-now
choices. Conversely, happy people make better, more informed decisions and are better able to
prioritize their work.
5.3. ORGANIZATIONAL CHANGE
MEANING
Organizational changes are the changes of attitude, natures and interest of employees, technological
and environmental changes related to an organization and changes in rules and regulations affecting
the organization.
NATURE / CHARACTERISTICS OF ORGANIZATIONAL CHANGE

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 Change disturbs the old equilibrium
 Change affects the whole organization
 Change is a continuous process
 Change may be reactive or proactive
 Change is perceptual and behavioural
 Change affects individuals in the multiple roles
 Change is natural, as is death
 Change may be planned or unplanned
 Change may be incremental or transformational
 Change may originate in response to internal needs
IMPORTANCE OF ORGANIZATIONAL CHANGE
Organizational change is important because of the following reasons.
 Changes in environment
- Economic and market changes
- Technological changes
- Legal / political changes
- Resource availability changes
 Changes in managerial level
- Retirement of managers at different levels
- Promotion of junior level managers to higher level
- Demotion / transfer / long leave
- Dismissal / lay - off from the job of the managers
- Resignation or turnover of managers from company service
 Deficiency in present organization
- Shortcomings, defects, duplication of work, resource time and efforts
- Deficiencies in the organizational structure, working procedure, management process
- Lack of cooperation, increasing conflict, decreasing productivity, increasing cost and scrap
losses, barriers in communication process
 Check the growth of Inflexibility
Each organization desires to advance, grow and develop. Hence the organization should achieve
flexibility to meet the growth and development needs. Leaders / managers constantly work for
making the organization dynamic and flexible to achieve growth and development. So whenever

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experiences or foresees inflexibility, organizational changes are to be carried - out. Changes under
such circumstances benefit the organization as a whole.
Because of above causes, organizational changes can take place in all, some or any of the following
internal changes:
- Employee goal changes
- Work / job technology changes
- Organizational structure changes
- Organizational climate changes
- Organizational goal changes
STABILITY Vs. CHANGE
While some individuals are open to change [risk - takers],other individuals have a high need for
stability [risk - averse]. The same is true for organizations. Risk - taking organizations are said to be
innovative with a push for constant, continuous improvement. Risk - averse organizations focus on
not rocking the boat. Hence, an important aspect of an organization's security culture is its tolerance
for change and innovation. Organizations that have a high requirement for security often favour
stability over change. Change is often seen as bad for security, as it can result in the introduction of
new risks or in the invalidation or bypass of controls to existing risks. However, when change is
carefully managed, such organizations will need to ensure that their security posture is not static.
Security is never 100% and in today's complex environment tight centralized control over decision -
making can result in a lack of flexibility. Organizations and individual employees increasingly are
pursuing change in how work is organized, how it is managed, and in who is carrying - it - out.
Organizations seek flexibility so that they can quickly adapt to environmental changes, explore new
ideas of processes, reduce fixed costs, and thereby realize an advantage over their competitors.
Individuals seek simulation and variety in their work in order to fulfill self - development needs and
maintain interest in, and satisfaction with, their jobs. At the same time, that organizations and
individuals are pursuing change, there are numerous individual, organizational, and societal forces
promoting stability in work and employment relations. Individuals wish to reduce uncertainty and
maintain a stable self - concept propelled by consistency in their actions. They also are better able to
manage relationships at work that are predictable and stable. Similarly, organizations can reduce the
costs of transactions with employees when there is stability in these relationships. A stable, skilled
workforce also can provide a firm with a competitive advantage that is not easily imitated. Some
level of tension between stability and change is an inevitable part of organizational life - a part that
poses both opportunities and challenges for participants.

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PROACTIVE Vs. REACTION CHANGE
Proactive change takes place when some forces to change lead an organization to conclude that a
particular change is desirable. Reactive change occurs when these forces to change make it necessary
for a change to be implemented. For example, introduction of a new employee - benefit scheme is
proactive as the management strongly believes that it enhances satisfaction and motivation to
employees. The change [introduction of scheme] would be reactive if the benefit plan was introduced
because of demands made by an organization, because it is identified as desirable [i.e. it is not forced
on the organization]. On the other hand, reactive change is the change implemented in an
organization because it is made necessary by outside forces.
Proactive and Reactive changes can be differentiated as follows:
 Proactive change involves creation whereas reactive change involves correction.
 Proactive change involves improvement whereas reactive change involves variation.
 Proactive change involves migration whereas reactive change involves expansion.
 Proactive change involves modification whereas reactive change involves re - configuration.
FORCES OF CHANGE
Internal forces
 Changes in managerial personnel
 Changes in operative personnel
 Deficiencies in existing structure
External forces
 Technology
 Marketing conditions
 Social changes
 Political forces
THE CHANGE PROCESS
According to Kurt Lewin's Force Field model, effective change occurs by unfreezing the current
situation, moving to a desired condition, and then refreezing the system so that it remains in this
desired state and this model is popularly called, three - stage model of change system.
Figure 5b: Lewin's Change Model

Unfreezing

Reducing the forces for status quo

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 Moving

Developing new attitudes, values, and

behaviours

Refreezing

Reinforcing new values, attitudes and

behaviours

1. Unfreezing
Unfreezing calls for loosening or emotional link with the status quo, i.e., old work methods and
practices, it leads to unlearning of old things to learn new ones. The individuals are made to feel that
they have to give up the old work - habits, for learning new types of behaviour. The forces which
drive change should be strengthened and the forces which discourage change should be weakened.
Rewards may be offered to those who accept the change. The workers who resist change should be
persuaded to accept the change.

2. Introducing change or moving to the new level

Change is presented through role models from whom individuals can learn new behaviour patterns
by identifying them and trying to become like them. In other words, individuals are educated about
the nature and implications of change and motivated to develop favourable attitude about the change.
They are persuaded to learn new work methods and patterns of behaviour by observing their
superiors or role models.
3. Refreezing at the new level
It is the phase of stabilization, assimilation and institutionalization of the changes which are
successfully implemented. The changes which are accomplished should remain as a stable and
permanent characteristic of the system until need arises for another change. The new roles,
relationships and behavioural patterns must take on the characteristics of habits. If this is not done,

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the individuals may revert back to the old patterns after some time. Change becomes stabilized only
if enough reinforcements [rewards] are provided for desired behaviour. The individuals should get a
genuine feeling that the benefits generated by the change are worthwhile.
RESISTANCE TO CHANGE
Resistance to change involves employees' behaviour designed to discredit, delay or prevent the
changes introduced for the development of an organization.
DEFINITIONS
Resistance is an incomplete transition in response to change.
-
Bridges
Resistance is any conduct that serves to maintain the status quo in the face of pressure to alter the
status quo.
Zaltman and Duncan
TOP TEN REASONS FOR CHANGE RESISTANCE
1. The risk of change is seen as greater than the risk of standing still
2. People feel connected to other people who are identified with the old way
3. People have no role models for the new activity
4. People fear they lack the competence to change
5. People feel overloaded and overwhelmed
6. People have a healthy skepticism and want to be sure new ideas are sound
7. People fear hidden agendas among would - be reformers
8. People feel the proposed change threatens their notions of themselves
9. People anticipate a loss of status or quality of life
10. People genuinely believe that the proposed change is a bad idea
MANAGING CHANGE
The key phases for managing employees during change are as follows:
1. Awareness of the need to change
2. Desire to participate and support the change
3. Knowledge of how to change
4. Ability to implement the change on day - to - day basis
5. Reinforcement to keep the change in place
5.4. STRESS
MEANING

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Stress is the body's reaction to a change that requires a physical, mental or emotional adjustment or
response. Stress can come from any situation or thought that makes you feel frustrated, angry,
nervous, or anxious. Stress is caused by an existing stress-causing factor or "stressor."
DEFINITION
Stress is an adaptive response to an external situation that results in physical, psychological and / or
behavioural deviations for organizational participants.
Fred Luthans

WORK STRESSORS
 Excessively high workloads, with unrealistic deadlines making people feel rushed, under
pressure and overwhelmed.
 Insufficient workloads, making people feel that their skills are being underused.
 A lack of control over work activities.
 A lack of interpersonal support or poor working relationships leading to a sense of isolation.
 People being asked to do a job for which they have insufficient experience or training.
 Difficulty settling into a new promotion, both in terms of meeting the new role's requirements
and adapting to possible changes in relationships with colleagues.
 Concerns about job security, lack of career opportunities, or level of pay.
 Bullying or harassment.
 A blame culture within your business where people are afraid to get things wrong or to admit to
making mistakes.
 Weak or ineffective management which leaves employees feeling they don't have a sense of
direction, or over-management, which can leave employees feeling undervalued and affect their
self-esteem.
 Multiple reporting lines for employees, with each manager asking for their work to be
prioritized.
 Failure to keep employees informed about significant changes to the business, causing them
uncertainty about their future.
 A poor physical working environment, e.g., excessive heat, cold or noise, inadequate lighting,
uncomfortable seating, malfunctioning equipment, etc.
PREVENTION AND MANAGEMENT OF STRESS
COPING STRATEGIES AT THE ORGANIZATIONAL LEVEL
 Organizational role clarity

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 Job redesign
 Stress reduction and stress management programs
 Collateral programs [Personal wellness]
 Supportive organizational climate
 Counseling
COPING STRATEGIES BY INDIVIDUAL
Stress management strategy
1: Avoid unnecessary stress
 Learn how to say "no"
 Avoid people who stress you out
 Take control of your environment
 Avoid hot - button topics
 Pare down your to - do list
Stress management strategy
2: Alter the situation
 Express your feelings instead of bottling them up
 Be willing to compromise
 Be more assertive
 Manage your time better
Stress management strategy
3: Adapt to the stressor
 Reframe problems
 Look at the big picture
 Adjust your standards
 Focus on the positive
Stress management strategy
4: Accept the things you can't change
 Don't try to control the uncontrollable
 Look for the upside
 Share your feelings
 Learn to forgive
Stress management strategy
5: Make time for fun and relaxation
 Set aside relaxation time
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 Connect with others
 Do something you enjoy everyday
 Keep your sense of humour
Stress management strategy
6: Adopt a healthy lifestyle
 Exercise regularly
 Eat a healthy diet
 Reduce caffeine and sugar
 Avoid alcohols, cigarettes, and drugs
 Get enough sleep
BALANCING WORK AND LIFE
DEFINITION
Work - life balance or home - work balance has been defined as a "balance between an individual's
work and his life outside work".
IMPORTANCE OF WORK - LIFE BALANCE
Balance is the key to lead a successful and beautiful life which includes everything but in balance. It
is important in everyone’s life be it in the life of an entrepreneur, student or a housewife to maintain
a balance between various aspects of their daily routine. A student must know how to balance
between his studies and curricular activities; otherwise he will fail in one or the other thing. It is
equally important that we maintain our balance between materialistic and spiritual or religious life as
well. Our life has so many things to deal with, like our relationships, work, health, entertainment ,
responsibilities for family and country etc and to be successful in all these aspects, we must know
how maintain balance between all of them. In our everyday life, it is the work which occupies the
major part of our life and many people get so occupied with their work that they end up neglecting
other important things of their life. In corporate world where there is huge pressure on employees to
meet their deadlines and long working hours, people really have lost balance in their lives. There is
no denial that one can not survive without work because this is what ultimately gives you the money
which is the source of everyone’s survival but along with work other things are also necessary.
Sometimes some goal or target grabs so much of our attention that we forget everything else and
devote all our energy in accomplishing that goal. Achieving goals or targets is not bad but leaving
everything else behind for that one particular goal or target can be harmful for an individual. Time
management is the solution to most of our problems. Everybody is provided with twenty four hours
only but it depends upon us how we utilize them. And within these limited hours only we have to

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accomplish all our tasks along with giving rest to our bodies and minds. And to manage the time, it is
very important that we set our priorities for our life. When we set our priorities, then it becomes easy
to divide our attention according them. For some people it’s their work which is a priority, so they
spend more time with their work. When we divide our time according to our priorities, then there are
very few chances that we will not be leading a balanced life. In the end what matters is that we live a
life in which we are happy and does not hold any regret that we are missing out something because
we don’t have enough time. When we will manage our time wisely according to our priorities, then it
will never be so difficult for us to maintain balance in our life.

TIPS FOR BETTER WORK - LIFE BALANCE

AT WORK
 Schedule brief breaks for yourself throughout the day
Your productivity and effectiveness will increase if you take even a ten-minute break every two
hours and overall, you will get more accomplished.
 At the end of each day, set your priorities for the following day
Be realistic about what you can achieve in the time you have available.
 Only respond to email once or twice a day
Then, shut off your email program to avoid being distracted as messages come in.
 Make a distinction between work and the rest of your life
Protect your private time by turning off electronic communications. Don’t be available 24/7.
 Address concerns about deadlines and deliverables early
As soon as you see that a deadline is unrealistic, communicate your concern to your employer - don’t
wait until the deadline passes.
 Take all of your allotted vacation time
Taking vacation allows you to come back to work refreshed and more productive.
AT HOME
 Create a buffer between work and home
After work, take a brief walk, do a crossword puzzle, or listen to some music before beginning the
evening’s routine.
 Decide what chores can be shared or let go

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Determine which household chores are critical and which can be done by someone else. Let the rest
go.
 Exercise
Even if it’s only for 15 minutes at a time, you’ll feel more energized and refreshed.
 Create and implement a household budget
Start by setting aside some money from each pay cheque for the future.
 Make healthy food choices
Healthy eating will gives you and your family more energy.
 Pursue a hobby
Either with friends or family or for some quality time on your own.
IN YOUR COMMUNITY
 Make choices
Social, community and volunteer obligations pull us in many directions. Choose the ones that are
most fulfilling and learn to say ‘no’ to the rest.
 Manage expectations
Be clear at the outset about how much time or support you can contribute to community organizations or
your children’s school events.

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