College Of Business and Economics

Management Program
THAME TWO HUMAN RESOURCE AND ORGANIZATION BEHAVIORS

1. Human Resource Management (HRM) Course Guidebook

Part One: Introduction to Human Resource Management

1.1. Nature and Scope of Human Resource Management

1.1.1. The Concept of Management

• Management involves setting goals and allocating scarce(limited) resources to

achieve them.

• Management is the process of efficiently achieving the objectives of the organization

with and through people.

• Primary Functions of Management

– Planning – establishing goals

– Organizing – determining what activities need to be done

– Leading – assuring the right people are on the job and motivated

– Controlling – monitoring activities to be sure goals are met

1.1.2. HRM-Defined

• Human resource management is designing management systems to ensure that

human talent is used effectively and efficiently to accomplish organizational goals.

– ―HRM is concerned with the most effective use of people to achieve

organizational and individual goals. It is the way of managing people at work,
so that they give their best to the organization‖. - Invancevich and Glueck

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 – ―Policies and practices involved in carrying out the ―people‖ or human
resource aspects of a management position, including recruiting, screening,
training, rewarding, and appraising comprises of HRM.‖- Dessler

• Generally, HRM refers to the management of people in organizations.

– The goal of HRM is to maximize employees‘ contributions in order to achieve

optimal productivity and effectiveness, while simultaneously attaining
individual objectives ( such as having a challenging job and obtaining
recognition), and societal objectives (such as legal compliance and
demonstrating social responsibility).

– It is valid-and perhaps more honest- to refer to HRM as ‗people management‘

– Human beings in an organization:

• Represent a greater assets

• Perceived as major generators of cost

– HRM is combination three concepts:

• Human - people (i.e. employees and managers)

• Resource - assets/costs for organizations

• Management - co-ordination and control to achieve set goals but

• humans, unlike other resources in the context of work and

management, cause problems.

– Importance of HR

• People is the key factor of production.

• Productivity is the key to measure a nation‘s economic growth

potential, and labor quality is the key to improving productivity.

• Competition today is the competition for talents.

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Differences between HRM and Personnel Management

Dimensions PM HRM

Rules Importance of devising clear Can do outlook, impatience with

rules rule

Speed of decision Slow Fast

Management role Transactional Transformational leadership

Communication Indirect Direct

Selection Separate ,marginal task Integrated, key task

Labour management Collective barraging contracts Individual contracts

Job categories and Many Few

grade

Job design Division of labor Team work

Conflict handling Reach temporary truce Manage climate and culture

Shared interest Interest of organizations are Mutuality of interest

uppermost

Organization principles Mechanistic Organic

Top down centralized Bottom-up Decentralized

Pay Job evaluation Performance related

Training and Controlled accessed to courses Learning companies

development

1.1.2. HRM- Nature, Scope and Functions

• Nature of HRM

– Inherent Part of Management: It is inherent in the process of management

performed by all the managers throughout the organization.

– Pervasive Function: It is performed by all managers at various levels in the

organization; not left to someone else.

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 – Basic to all Functional Areas : permeates all the functional area of
management such as production, financial, and marketing management.

– People Centered: It is concerned with all categories of personnel from top to

the bottom of the organization.

– Personnel Activities or Functions: It involves in planning, employment,

placement, training, appraisal and compensation.

– Continuous Process: It must be performed continuously.

- Based on Human Relations: Human Resource Management is concerned

with the motivation of human resources in the organization
Scope of HRM

• Functions of HRM: Managerial and Operative

– Managerial Functions

• Planning : The planning function involves in determining in advance

personnel requirements, personnel programs, policies etc.

• Organization : (a) preparation of task force; (b) allocation of work to

individuals; (c) integration of the efforts of the task force; (d)
coordination of work of individual with that of the department.

• Directing : Directing is concerned with initiation of organized action

and stimulating the people to work. A HR manager guides and

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 motivates the staff of the organization to follow the path laid down in
advance

• Controlling : It provides basic data for establishing standards, makes

job analysis and performance appraisal, etc. All these techniques assist
in effective control of the qualities, time and efforts of workers
• Functions of HRM: Managerial and Operative

– Operative Functions

1. Procurement of HR : deals with obtaining of the proper kind and

number of people necessary to accomplish organization goals.

2. Development of HR: Development has to do with the increase

through training, skill that is necessary for proper job performance.

3. Compensation to HR: determination of adequate and equitable

remuneration in the organization.

4. Maintaining Good Industrial Relation: reducing strife, and

promoting industrial peace

5. Record Keeping: collecting and maintaining information concerned

with the staff that serves in decision making.

6. HR Planning and Evaluation: such as evaluation of performance,

personnel policy of an organization and its practices, personnel audit,
morale, survey and performance appraisal, etc.

• HRM- Activities

– Human Resource Planning.

– HR procurement: recruitment, selection and placement of personnel, i.e.

employment function.

– Training and development of employees for their efficient performance and

growth.

– Appraisal of performance of employees and taking corrective steps such as

transfer from one job to another.

– Motivation of workforce by providing financial incentives and avenues of

promotion.

– Remuneration of employees

– Social security and welfare of employees.

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HRM-Objectives

– To help the organization reach its goals.

– To ensure effective utilization and maximum development of HR.

– To ensure respect for human beings.

– To identify and satisfy the needs of individuals.

– To ensure reconciliation of individual and organizational goals.

– To provide the organization with well-trained and well-motivated employees.

– To increase employee's job satisfaction, motivation and self-actualization.

– To develop and maintain a quality of work life.

– To be ethically and socially responsive to the needs of society.

– To enhance employee's capabilities to perform the present job.

HRM-Challenges

– Increasing size of workforce

– Increased educational level

– Technological advances

– Change in political environment

– Increasing aspirations of employees

– Changing psychosocial system

– Computerized information system

– Mobility of professional workforces

– Change in legal environment

- Management of human relations

1.1.3. 3.Objectives of HRM

• To create and utilize an able and motivated workforce, to accomplish the basic
organizational goals.

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 • To establish and maintain sound organizational structure and desirable working
relationships among all the members of the organization.

• To secure the integration of individual or groups within the organization by co-

ordination of the individual and group goals with those of the organization.

• To create facilities and opportunities for individual or group development so as to

match it with the growth of the organization.
• To attain an effective utilization of human resources in the achievement of
organizational goals.

• To identify and satisfy individual and group needs by providing adequate and
equitable wages, incentives, employee benefits and social security and measures for
challenging work, prestige, recognition, security, status.

• To maintain high employee morale and sound human relations by sustaining and
improving the various conditions and facilities.

• To strengthen and appreciate the human assets continuously by providing training and
development programs.

1.1.4. Desired Outcomes of HRM

• Attraction, Retention. Job Performance, Productivity, Employee Safety and Health

• Attendance, Job Satisfaction, Competitive Advantage , Company Performance

1.1.5. Impact of Human Resource Management

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1.1.6. Why is HRM Important to an Organization?

• The role of human resource managers has changed. HRM jobs today require a new
level of sophistication.
– Employment legislation has placed new requirements on employers.
– Jobs have become more technical and skilled.
– Traditional job boundaries have become blurred with the advent of such things
as project teams and telecommuting.
– Global competition has increased demands for productivity.
• The Strategic Nature – HRM must be

– a strategic business partner and represent employees.

– forward-thinking, support the business strategy, and assist the organization in
maintaining competitive advantage.
– concerned with the total cost of its function and for determining value added
to the organization.
• HRM is the part of the organization concerned with the ―people‖ dimension.

• HRM is both a staff, or support function that assists line employees, and a function of
every manager‘s job.

• HRM Certification

– Colleges and universities offer HR programs.

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1.2. Organizing the Human Resource Function

• Structure of HR
– Structure of organization depend on whether organization is small or large
– In small organization there is no need to have separate department to deals
with activities relating to people
– Many small organizations even do not have personnel managers
– Outsourcing to firms specializing in managing accounts, pensions, funds and
health & care
• Issues in HR Organizations
– Earlier, in personnel department employee with little knowledge and
competencies were placed
– The responsibility was to arrange tours, picnics, and retirement/farewell
parties
– Now focus has changed, HR department has key place in overall organizations
– Contrary to small-sized company, in large scale organization there is big
department heading by Manager/Director
• Outsourcing or Subcontracting: Transfer activities to specialist organizations
– Reasons: restructuring, downsizing, growth in business, and decline in
business
– Benefits: Cost efficiency and Access to expertise

1.3. Strategic Human Resource Management

• Strategic HRM is an approach that defines how the organization‘s goals will be
achieved through people by means of HR strategies and integrated HR policies and
practices. (Armstrong)

– ‗The pattern of planned human resource deployments and activities intended

to enable an organization to achieve its goals‘ (Wright and McMahan, 1992).

– ‗Strategic HRM focuses on actions that differentiate the firm from its
competitors‘ (Purcell, 1999).

– ‗The central premise of strategic human resource management theory is that

successful organizational performance depends on a close fit or alignment
between business and human resource strategy‘ (Batt, 2007).

• Strategic Human Resource Management

– Involves the development of a consistent, aligned collection of practices,

programs, and policies to facilitate the achievement of the organization‘s
strategic objectives.

– Requires abandoning the mindset and practices of ―personnel management‖

and focusing on strategic issues than operational issues.

– Integration of all HR programs within a larger framework, facilitating the

organization‘s mission and its objectives.

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 • SHRM provides the foundation for strategic reviews in which analysis of the
organizational context and existing HR practices leads to choices on strategic plans
for the development of overall or specific HR strategies

• Strategic HRM is underpinned by three concepts

– The resource-based view: it assumes that the range of resources in an

organization, including HR produces competitive advantage

– Strategic fit: fit refers to the two dimensions that distinguish strategic HRM:
vertically (strategic practice) and horizontally (coordination with other
functions)

– Strategic flexibility: is defined as the ability of the firm to respond and adapt
to changes in its competitive environment.

• SHRM approaches

– The Best-Practice Approach: assumes adopting best practice lead to success

or superior organizational performance.

The Best-Fit Approach: HR strategies should be contingent on the context, circumstances of

the organization and its type

Specific HR Strategies

• High performance management: include rigorous recruitment and selection

procedures, extensive and relevant training and management development activities,
incentive pay systems and performance management processes

• High-involvement management: systems based on commitment and involvement, as

opposed to the old bureaucratic model based on control.

• High-commitment management: A form of management which is aimed at eliciting a

commitment so that behavior is primarily self regulated rather than controlled by
sanctions and pressures external to the individual, and relations within the
organization are based on high levels of trust.‘

• Human capital management - obtaining, analyzing and reporting on data, which

inform the direction of value-adding people management strategic, investment and
operational decisions;

• High-performance management - developing and implementing high performance

work systems;

• Corporate social responsibility - a commitment to managing the business ethically in

order to make a positive impact on society and the environment;

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 • Organization development – the planning and implementation of programs designed
to enhance the effectiveness with which an organization functions and responds to
change.

Competitive Advantage through People

• Human Capital
– An organization‘s employees, described in terms of their training, experience,
judgment, intelligence, relationships, and insight
• Core Competencies
– Integrated knowledge sets within an organization that distinguish it from its
competitors and deliver value to customers.
• Sustained competitive advantage through people is achieved if these human resources:
– Have value.
– Are rare and unavailable to competitors.
– Are difficult to imitate.
– Are organized for synergy
Developing Human Capital

• Human Capital

– The knowledge, skills, and capabilities of individuals that have economic

value to an organization.

– Valuable because capital:

• Is based on company-specific skills.

• Is gained through long-term experience.

Can be expanded through development

1.4. Human Resource Policies and Procedures

• A policy provides generalized guidance on how HR issues should be dealt with; a

procedure spells out precisely what steps should be taken to deal with major
employment issues such as grievances, discipline, capability and redundancy.

• HR policies are continuing guidelines on how people should be managed in the

organization.

• HR policies provide guidelines on how key aspects of people management should be

handled.

– The aim is to ensure that any HR issues are dealt with consistently in
accordance with the values of the organization in line with certain defined
principles.

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The most common areas in which specific HR policies exist are:

– Age and employment – Grievances

– AIDS, – Health and safety
– Bullying – Managing diversity
– Discipline – Promotion and demotion
– E-mails and the internet – Reward
- Employee training and – Sexual harassment
development – Substance abuse
– Employee relations – Work–life balance.
– Employment
– Equal opportunity

1.5. Human Resource Policies and Procedures

• HR procedures set out the ways in which certain actions concerning people should be
carried out by the management or individual managers.
• It is desirable to have the key HR procedures written down to ensure that HR policies
are applied consistently and in accordance with both legal requirements and ethical
considerations.
• The introduction or development of HR procedures should be carried out in
consultation with employees and, where appropriate, their representatives.
• Some HR procedures:
– Disciplinary procedures
– Grievance handling procedures

Part Two: Acquiring Human Resources

2.1. Human Resource Planning
What is HRP?

– HRP is ‗the process for ensuring that the human resource requirements of an
organization are identified and plans are made for satisfying those
requirements‘ (Bulla and Scott ).

– Human resource planning is a process by which an organization ensures that

it has the right number and kinds of people at the right place and at the right
time capable of effectively and efficiently completing those tasks that will
help the organization achieve its.

• HRP Methods?
• Future human resource needs can be determined by some methods. Forecasts are
mathematical or judgmental
• judgmental methods
– Managerial estimates:-future staffing needs forecasted by management based
on past experience.
– Delphi technique: estimate by panel of experts

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 – Benchmarking: Deeply examines the company‘s internal practices and
processes and measures them against successful company practices
• Mathematical methods
– Time series analysis
– Regression analysis
• HRP Issues
– Human Resource Information Systems (HRIS) are increasingly popular
computerized databases that contain important information about employees.
– Succession planning: includes the development of replacement charts portray
middle-to-upper level management positions that may become vacant in the
near future
– A human resource inventory can be developed to project year-by-year
estimates of future HRM needs for every significant job level and type.
• Factors Affecting HRP
– Type and strategy of organization,
– Organizational growth cycles and planning,
– Environmental uncertainties,
– Time horizons,
– Type and quality of forecasting information,
– Nature of jobs being filled, and
– Off-loading the work.

2.2. Job Analysis and Job Design

Job Analysis-Defined:
– Job Analysis is a systematic exploration of the activities within a job. It defines and
documents the duties, responsibilities and accountabilities of a job and the
conditions under which a job is performed.
– Job Analysis is the process of studying and collecting information relating to the
operations and responsibilities of a specific job. The immediate products of this
analysis are job descriptions and job specifications.
– Job Analysis is a systematic exploration of the activities within a job. It is a basic
technical procedure, one that is used to define the duties, responsibilities and
accountabilities of a job?

2.2.1. Job Analysis

• Purposes and Uses of Job Analysis
– Organization and Manpower Planning: It is helpful in planning for it defines
labor needs, duties and responsibilities.
– Recruitment and Selection : by indicating the specific requirements of each
job (i.e., the skills and knowledge
– Wage and Salary Administration
– Job Re-engineering

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 – Employee Training and Management Development: It helps it to determine the
content and subject matter of in-training and development courses.
– Performance Appraisal: It helps in establishing clear-cut standards that may be
compared with the actual contribution of each individual.
– Health and Safety : It provides an opportunity for identifying hazardous
conditions and unhealthy environmental factors
• Job Analysis Methods
– Observation method – job analyst watches employees directly or reviews film
of workers on the job.
– Individual interview method – a team of job incumbents is selected and
extensively interviewed.
– Group interview method – a number of job incumbents are interviewed
simultaneously.
– Structured questionnaire method – workers complete a specifically designed
questionnaire.
– Technical conference method – uses supervisors with an extensive knowledge
of the job.
– Diary method – job incumbents record their daily activities.

Job analysis outcomes:

– Job Description : is a statement of what a job holder does, how it is done and
why it is done – covers job content, environment and conditions of
employment.
– Job Specification: A statement of minimum acceptable qualifications needed
to perform a job successfully – also referred to as person specification i.e.
identifies the knowledge, skills and abilities needed to do the job effectively.
– Job Evaluation: is about specifying the relative value of each job in the
organization used to design equitable compensation program
Job Design

– Job design is an attempt to create a match between job requirements and

human attributes. It involves both organizing the components of the job and
the interaction patterns among the members of a work group.
– The main objective of job design is to integrate the needs of the individual and
the requirements of the organization. Needs of employees include job
satisfaction in terms of interest, challenge and achievement.
– Job design specifies the contents, methods and relationships of jobs in order to
satisfy work requirements for productivity, efficiency and quality, meet the
personal needs of the jobholder and thus increase levels of employee
engagement.
Approaches of Job Design
1. Job rotation-This is the movement of employees from one task to another to
reduce monotony by increasing variety.

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 2. Job enlargement-This means combining previously fragmented tasks into one
job, again to increase the variety and meaning of repetitive work.
3. Job enrichment-This goes beyond job enlargement to add greater autonomy
and responsibility to a job and is based on the job characteristics approach.
4. Self-managing teams (autonomous work groups)-These are self-regulating
teams who work largely without direct supervision.
2.3. Recruitment and Selection

2.3.1. Recruitment
– Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.
– Sources of Recruitment : The various sources of recruitment are generally
classified as internal source and external source.
2.3.2. Selection
• Purpose of Selection
1. The purpose of selection is to pick up the most suitable persons who would
match the requirements of the job and the organization. The emphasis in
selection is, therefore, on the optimal match between the person and the job.
• Selection Process involves in:
1. Criteria development. individuals involving in selection process should be
properly trained. This step may mean determining which sources of
information will be used and how those sources will be scored during the
interview.
2. Application and résumé review.
3. Interviewing.
4. Test administration.
• Metal ability test
• Personality teat
• Works sample test
• Assessment centers
5. Making the offer.

2.4. Placement Induction and Socialization

2.4.1. Placement
• Placement is the assignment or reassignment of an employee to a new job. Most
placement decisions are made by line managers.
• There are three types of Placement decisions: promotions, transfers and demotions.
2.4.2. Induction or Orientation
• Purposes of Orientation
• Develops realistic job expectations:
• Psychological development
• Sociological development
• Improves productivity:

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 • Quick start, “up to speed”, higher quality levels
• Cost saving, cost effective
• Saves time and effort
• Improves employment stability
• Reduces conflict and ensures smooth integration
2.4.3. Socialization
• Socialization is the process by which human beings as material organisms living with
other material organisms must learn to pattern their behavior, and adapt it to the
ways of acting that are considered appropriate to that society in which they live.
Basically, it's how you learn how to act.
• Socialization goes hand in hand with enculturation, which is the process by which
human beings as intelligent, reflexive creatures living together with other similar
organisms must pattern their way of thinking and feeling and adapt it to the ways of
thinking and feeling considered appropriate in their society.
• Socialization is the process by which Employees learn to adopt the norms, values,
attitudes and behaviors accepted and practiced by the ongoing System.

Part Three: Developing Human Resources

3.1. Employee Training
• Differences between Training, Education & Development
– Training is short term, task oriented and targeted on achieving a change of
attitude, skills and knowledge in a specific area. It is usually job related.
– Education is a lifetime investment. It tends to be initiated by a person in the
area of his/her interest
– Development is a long term investment in human resources.
• Training Process
– Conducting needs assessment: gap identification
– Planning and carrying out the training
– Evaluating the training
• Training Approaches
– On-the-Job Techniques and Off-the-Job Techniques
3.2. Human Resources Development
• HR Development
– Development: Development means those learning opportunities designed to
help employees to grow. Development is not primarily skills oriented. Instead,
it provides the general knowledge and attitudes, which will be helpful to
employers in higher positions.
3.3. Career Planning and Development
• A career is a pattern of work-related experiences that span the course of a person‘s
life
• Career Path: lines of advancement in an occupational field within an organization.

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 • Career development involves two distinct processes: career planning and career
management
3.4. Employee Empowerment

• Empowerment - giving employees authority and responsibility to make decisions

about their work without traditional managerial approval and control

Part IV: Managing Performance and Compensation

4.1. Performance Appraisal

• Performance Appraisal is the specific and formal evaluation of an employee

conducted to determine the degree to which the employee is performing his or her job
effectively.

– A critical point in the definition is the word formal, because in actuality,

managers should be reviewing an individual‘s performance on a continuing
basis.

• Performance management is the general set of activities carried out by the

organization to change (improve) employee performance.

Appraisal Methods (some)

– Rating Scales

• Graphic Scale: Performance appraisal whereby each employee is rated

according to a scale of pre-defined characteristics that are job
performance related.

• Behaviorally Anchored Rating Scale (Descriptions along the scale to

define): A behavioral approach to performance appraisal that consists
of a series of vertical scales, one for each important dimension of job
performance

– Essay: A trait approach to performance appraisal that requires the rater to

compose a statement describing employee behavior

– Management by Objectives: Philosophy of management that rates

performance on the basis of employee achievement of goals set by mutual
agreement of employee and manager.

– Critical Incidence methods: Check Lists by Key Words Unusual event that
denotes superior or inferior employee performance in some part of the job.

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4.2. Job Evaluation

– It is a Process of systematically determining the relative worth of jobs to

create a job structure for the organization.

– Job evaluation is the process of analyzing and assessing the various jobs
systematically to ascertain their relative worth in an organization.

Types of job evaluation methods:

1. Non-analytical
• Ranking Method
• Job-Grading Method
2. Analytical
• Point- Ranking Method
• Factor Comparison Method
4.3. Wage and Salary Administration

• Wage And Salary Administration?

Wage salary administration is essentially the application of a systematic approach to the

problem of ensuring that employees are paid in a logical, equitable and fair manner.

• COMPENSATION:

It can be defined by as money received in performance of work plus many kinds of services
and benefits that organizations provide to their employees.
• WAGE:

Wage is a general term referring to direct monetary compensation. It is also used specifically
to refer to payments to service workers on the basis of hourly rated production.

4.4. Incentive Compensation

Incentive pay links pay (as a reward) to performance. Types of incentive scheme: Piece rate,
Profit sharing, Profit-related pay, Share-related pay and Performance-related pay.

Part V: Maintaining and Retaining Human Resources

5.1. Job changes- Transfers, Promotions and Separations

• The movement of personnel within an organization can be termed as promotions,

transfers, demotions and separations.

• Promotion

• Promotion is advancement of an employee to a better job - better in terms of

greater responsibility, more prestige or status, greater skill and especially
increased rate of pay or salary..

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• Types of Promotion

- Horizontal promotion: When an employee is shifted in the same category.

Example: A junior clerk promoted to senior clerk is such an example.
- Vertical Promotion: This is the kind of promotion when an employee is
promoted from a lower category to lower category involving increase in
salary, status, authority and responsibility. Generally, promotion means
‗vertical promotion‘.
- Dry Promotion: When promotion is made without increase in salary; Such
promotion is made either there is resource/fund crunch in the organization or
some employees hanker more for status or authority than money.
• Promotion

– Merit as a basis of Promotion: skill, knowledge, ability, efficiency as

aptitude as measured from educational, training and past employment record.

– Seniority as a Basis of Promotion: refers to relative length of service in the

same job and in the same organization. The logic behind this as a basis of
promotion is that there is a positive correlation between the length of service
in the same job and the amount of knowledge and the level of skill acquired by
an employee is an organization.

• Demotion
– Demotion is a process by which the employee is downgraded and sent to a
lower position from the one he is holding at present.
– It is one type of internal mobility and opposite of promotion
– It is the reassignment of a lower level job to an employee with delegation of
responsibilities and authority required to perform that lower level job and
normally with lower level pay „
– Organizations use demotion less frequently as it affects the employee‘s career
prospects and morale
• Transfer

– A transfer is a change in job assignment. It does not involve a change in

responsibility and status.
– A movement of an employee between equivalent positions at periodical
intervals is called ―transfer‖.
– A transfer therefore does not involve a change of responsibility or
compensation.
• Separation

– Separation means cessation of service or agreement with the organization for

one or other reason.

• Forms of Separation

– It can be resignation and dismissal.

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 • Forms of Separation

– Retrenchment: is a permanent termination of the services of an employee for

economic reasons in a going concern.
– Layoff: in contrast to dismissals, are terminations, sometimes temporary,
required for business needs unrelated to worker behavior or performance.
– Golden Handshake: the employees with a certain minimum service can opt
for voluntary retirement and get a fat lump sum in return.
– Retirement:
5.2. Absenteeism and Labor Turnover

• Absenteeism

– Absenteeism means unauthorized absence of the worker from his job or the
absence of worker when work is available.

• Labor Turnover
– Labor turnover, is the rate of change in the number of employees of a
concern during a definite period.
• Labor turnover involves costs not only in human values but also in money.

5.3. Employee Health and Safety

• Health at the individual employee level is not just the absence of illness but also
includes positive health or optimal functioning
• Internal factors in health and safety include:
– Job stress
– Safety
– Diversity and discrimination
– Sexual harassment, violence, and incivility
5.4. Employee Welfare (Employee Benefits)
• Employee Welfare
– Employee welfare means ―the efforts to make life worth living for workmen.‖
• Some Employee Welfare Programs
– Housing, bachelor quarters, family residence
– Roads, lighting, parks, playground
– Schools, nursery
– Markets
– Transport
– Health and Medical Services
– Recreation: games, clubs, cultural programs, festival celebration
– Community Leadership Development: counseling of elders, community
services for children, youth and women

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5.5. Social Security
• Social security system comprises health and unemployment insurance, family
allowances, provident funds, pensions and gratuity schemes, and widow‗s and
survivor‗s allowances.
5.6. Discipline and Grievance
• Discipline
– Discipline means getting obedience to rules and regulations of the
organization. Discipline is absolutely essential for the smooth running of
business.
– Discipline refers to the set of actions imposed by an organization on its
employees for failure to follow the organizations rules, standards or policies.
• Purpose of Discipline
– Correct/improve performance and/or work behavior:
– Provide specifics to employee:
– Maintain consistency in the work unit:
– Document:
• Causes Of Discipline Problems
– Causes Related To the Worker
– Causes Related To the Socio-Cultural Factors -
– Causes Related To the Work Environment –
– Causes Related To the Management Practices –
• Employee Discipline Approaches:
– Progressive Discipline: steps in progressive discipline are:
• Verbal Discussion →Verbal Discussion → Written Assessment
→Suspension → Termination
– Positive Discipline
• Employees plays active role in changing own behavior
• Emphasis on change, not punishment
• Management intervenes as more of a counselor
• Focus on learning from past mistakes
• Requires training management and is time consuming
• Positive effects on bottom line
• Grievance
– Grievance can be defined as ―...any discontent or dissatisfaction, whether
exposed or not, whether valid or not, arising out of anything connected with
the company which an employee thinks, believes or even feels to be unfair,
unjust or inequitable.‖
– A grievance is usually more formal in character than a complaint.
– A grievance may be understood as an employee‘s dissatisfaction or feeling of
personal injustice relating to his or her employment relationship.
– A grievance is generally well- defined in a collective bargaining agreement.

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It is resolved by set procedure :
• How the grievance will be imitated?
• The number of steps in the process.
• Who will represent each party?
• The specified number of working days within which the grievance
must be taken on the next step in the hearing.

2. ORGNAIZATION BEHAVIORS (OB) Course Guidebook

Chapter one: An over view of Organizational Behavior
Definition:

Organizational behaviour (often abbreviated as OB) is a field of study that investigates show
individuals, groups, and structure affect and is affected by behaviour within Organizations.
Behaviour refers to what people do in the organization, how they perform, and what their
attitudes are. Because the organizations studied are often business organizations,

OB is frequently applied to address workplace issues such as absenteeism, turnover,

productivity, motivation, working in groups, and job satisfaction. Managers often apply the
knowledge gained from OB research to help them manage their organizations more
effectively.

Organizational Behaviour (OB) can be defined as the understanding, prediction and

management of human behaviour both individually or in a group that occur within an
organization.

Nature and Importance of OB:

Organizational behaviour has emerged as a separate field of study. The nature it has acquired
is identified as follows:

1. A Separate Field of Study and not a Discipline Only

O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific
theoretical background. Therefore, it is better reasonable to call O.B. a separate field of
study rather than a discipline only.
2. An Interdisciplinary Approach

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 It tries to integrate the relevant knowledge drawn from related disciplines like
psychology, sociology and anthropology to make them applicable for studying and
analysing organizational behaviour.
3. An Applied Science
What O.B. basically does is the application of various researches to solve the
organizational problems related to human behaviour.
4. A Normative Science ; O.B. prescribes how the findings of applied researches can be
applied to socially accept organizational goals. Thus, O.B. deals with what is accepted by
individuals and society engaged in an organization.
5. A Humanistic and Optimistic Approach
It, deals with the thinking and feeling of human beings. O.B. is based on the belief that
people have an innate desire to be independent, creative and productive. It also realizes
that people working in the organization can and will actualize these potentials if they are
given proper conditions and environment.
6. A Total System Approach
The system approach is one that integrates all the variables, affecting organizational
functioning. The systems approach has been developed by the behavioural scientists to
analyse human behaviour in view of his/her socio-psychological framework. Man's
socio-psychological framework makes man a complex one and the systems approach
tries to study his/her complexity and find solution to it.

Application of OB in Management: Why study OB? To

 Responding to Economic Pressures:

 Responding to Globalization
 Working with People from Different Cultures
 Managing Workforce Diversity
 Improving Customer Service
 Coping with ―Temporariness
 Stimulating Innovation and Change etc.

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Contributing Disciplines to OB and their category under the three levels of analysis of
ob

Foundations of OB
The subject of ob is based on few fundamental concepts which revolve
around the nature of people and organizations. The basic assumptions in OB

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 are:

Levels of analysis or building block of OB

The three basic levels are like building blocks:

Each level is constructed upon the previous level. Group concepts grow out of the
foundation we lay out in the section on individual behavior. We then overlay structural
constraints on the individual land group in order to arrive at OB.

When we look at the different levels in the organization, we recognize that each has
challenges that can affect how the levels above and/or below might operate.

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Chapter two: Foundation of individual behavior and learning in an
organization

PERCEPTION

Perception is a process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment.

Factors affecting Perception

PERCEPTUAL PROCESS:
The different stages are
1. Receiving:

2. Selecting:

3. Organizing:

4. Interpreting:

Attribution theory

Attribution theory has been proposed to develop an explanation of the Law in which we
judge people differently depending on the meaning attributed to a given behaviour.

This determination depends on three factors:

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i. Distinctiveness

ii. Consensus

iii. Consistency

For Example There is substantial evidence that when we make judgments about the
behaviour of other people, we have a tendency to underestimate the influence of external
factors and overestimated the influence of internal or personal factors. This is called the
fundamental attribution error. There is also a tendency for individuals to attribute their
own successes to internal factors such as ability or effort while putting the blame for failure
on external factors such as luck. This is called the self-serving bias and suggests that
feedback provided to employee in performance reviews will be predictably distorted by
recipients depending on whether it is positive or negative. Distinctiveness refers to whether
our individual displays different behaviours in different situations. If everyone who faces a
similar situation responds in the same way, we can say the behaviour shows consensus. While
responding in the same way a number of times, it shows consistency. The more consistency
in the behaviour, the more the observer is inclined to attribute it to internal cause. These are
errors or biases that distort attribution theory.

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4 FREQUENTLY USED SHORTCUTS IN JUDGING OTHERS

i. Selective perception
ii. Halo effect Contrast effects
iii. Projection
iv. Stereotyping
SPECIFIC APPLICATIONS IN ORGANIZATION
1. Employment Interview
2. Performance Evaluation: Etc.
ATTITUDE

An attitude is ―mental state of readiness, learned and organized through experience, exerting
a specific influence on person‘s response to people, object and situations with which it is
related‖. Attitudes are ―learned dispositions towards aspects of our environment. They may
be positively or negatively directed towards certain people, service or institutions‖.
COMPONENTS OF ATTITUDES

1. Affective component: refers to your feelings or emotions linked to an attitude object.

Affective responses influence attitudes in a number of ways. For example, many people are
afraid/ scared of spiders. So this negative affective response is likely to cause you to have a
negative attitude towards spiders.

2. Cognitive component : refer to the beliefs, thoughts, and attributes that we would
associate with an object. Many times a person's attitude might be based on the negative and
positive attributes they associate with an object.

3. Behavioural component: refer to past behaviours or experiences regarding an attitude

object.The idea that people might infer their attitudes from their previous actions.
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Job related Attitudes

1. Job involvement (person to job fitness): The degree, to which a person identifies with his
or her job, actively participates in it, and considers his or her performance important to self
worth.

2. Job satisfaction- It refers to an individual‘s general attitude towards his or her job.

3. Organisational commitment (Person to organization fitness): The degree to which an

employee identifies with a particular organization and its goals and wishes to maintain
membership in the organization.

PERSONALITY ; 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.

Determinants of Personality: Heredity, Environment, Family, Socialisation process:

Personality Traits

Personality traits are the enduring qualities or characteristics that describe an individual
behaviour.

1. The Myers-Briggs Type Indicator (MBIT)

The Myers-Briggs Type Indicator (MBTI) is the most widely used personality assessment
instrument in the world. It is a 100-question personality test that asks people how they usually
feel or act in particular situations. Respondents are classified as: extraverted or introverted (E
or I), sensing or intuitive (S or N), thinking or feeling (T or F), and judging or perceiving (J
or P). These terms are defined as follows:

2. The Big 5 Model

3. Type A and Type B personality

Organizational Implications
Perception has many implications in organizational situations in the sense that biased
assessments of ourselves and others can occur in many ways. For example, perceptual
distortions can occur during the hiring process and factors like stereotyping, halo effect or

29
selective perception can affect the appraisal. There are several areas of performance appraisal
where perceptual distortions can occur. First, a work group is likely to blame other groups or
departments for their own failure. For example, the marketing department may blame
production department for poor sales or it may blame administration for low hiring and
training budgets. Secondly, a superior may evaluate many subordinates at the same time and
it is likely that first two or three subordinates in the beginning will be rated higher than the
following subordinates due to possible fatigue and boredom. Also, if the first two evaluations
happen to be excellent then the following subordinates will be judged by comparison thus
creating a bias in the mind of the evaluator. Thirdly, research has indicated that in evaluating
performance, both effort and ability are taken into consideration, but more weight is given to
effort. Thus a poor performer would be seen as ‗not trying hard enough‘, rather than his
lacking in ability. Finally, if the superior has a particularly favourable impression of a
subordinate, then minor instances of poor performance may be ignored. Halo effect and
stereotyping may also influence the evaluation.

LEARNING

According to S.P. Robbins, ―learning is any relatively permanent change in behavior that
occurs as a result of experience.‖ Whenever any change occurs learning is taken place in the
individual.. This definition consists of the following four key elements:

i) Change process:
ii) Permanent change
iii) Setting behavioral actions:

iv) Need for meaningful experiences

Theories of Learning:
There are three types of learning theories. These theories are classical conditioning, operant
conditioning and social learning.

CLASSICAL CONDITIONING THEORY

Classical condition is defined as the formation of S-R link (Stimulus-Response) or habit
between a conditioned stimulus and a conditioned response through the repeated paring of
conditioned stimulus with an unconditioned stimulus.

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

OPERANT CONDITIONING THEORY

Operant conditioned principle is proposed by B.F. Skinner, an American Psychologist. It is a
type of conditioning in which desired voluntary behavior leads to a reward or prevent a
punishment. Operant conditioning principle emphasizes strongly that the behavior of an
individual is a function of its consequences.

APPLICATION OF OPERANT CONDITIONING IN WORK LIFE

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

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COGNITIVE LEARNING THEORY

Cognition refers to an individual‘s thoughts, knowledge, interpretations, understandings or

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

SOCIAL LEARNING THEORY

People learn through both observation and direct experience, which is called as social
learning theory. Individual learn by observing what happens to other people and just by being
told about something, as well as by direct experiences. By observing people around us,
mostly from parents, teachers, peers, films and television performers, bosses, we learn new
behavior pattern. The following four processes are vital to determine the influence that a
model will have on an individual.

i) Attention Process: People learn from a model only when they recognize and pay
attention to its critical features. People tend to be most influenced by models that
are attractive, repeatedly available similar to us in our estimation.
ii) ii) Retention Process: A model‘s influence will depend on how well the individual
remembers the model‘s action after the model is no longer readily available.
iii) iii) Motor Reproduction Process: After a person has seen a new behavior by
observing the model, the watching must be converted to doing. This process then
demonstrates that the individual can perform the modeled activities.
iv) iv) Reinforcement Process: Individual will be motivated to exhibit they modeled
behavior if positive incentives or rewards are provided. Behavior that is positively
reinforced will be given more attention, learned better and performed more often

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Chapter three: FOUNDATIONS OF GROUP BEHAVIOUR

Definition of Group
A group is defined as two or more individuals, interacting and interdependent, who
have come together to achieve particular objectives
Classification of groups
Groups can be either Formal or Informal.
1. Formal Groups:

i) Command Group:
ii) Task Group:
iii) Committee:
2. Informal Groups:

i) Friendship Groups:

ii) Interest Groups:

iii) Reference Groups:

iv) Membership Groups:

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Stages of group development

Bruce Tuckman (1965) developed a 4-stage model of group development. He labeled the stages,
Dr Suess-style:

1. Forming ( orientation): The group comes together and gets to initially know one other and
form as a group.

2. Storming ( power stuggle): A chaotic vying for leadership and trialing of group processes

3. Norming( cooperation and integration): Eventually agreement is reached on how the group
operates (norming)

4. Performing ( Synergy): The group practices its craft and becomes effective in meeting its
objectives. Tuckman added a 5th stage 10 years later:

5. Adjourning ( Closure): The process of "unforming" the group, that is, letting go of the group
structure and moving on.

Group Norms

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All groups have norms—―acceptable standards of behavior that are shared by the group‘s
members.‖ Norms tell members what they ought and ought not to do under certain circumstances

Status: Status is a socially defined position or rank given to groups or group members by others.
We live in a class-structured society despite all attempts to make it more egalitarian

Group Size: The size of a group affects the group‘s overall behavior, but the effect depends on
the dependent variables

Social loafing: It is the tendency for individuals to expend less effort when working collectively
than when working individually.

Group Cohesiveness: The degree to which members are attracted to each other and are
motivated to stay in the group.

Understanding Work teams

Definitions

A team is a work group that must rely on collaboration if each member is to experience the
optimum success and achievement.

"A team is a small number of people with complementary skills .who are committed to a
common purpose, performance goals, and approach for which they are mutually accountable‖.

Team leaders place considerable emphasis on team building and then evaluate their own
performance on the basis.

Types of Teams

1. Process Team
2. Self Managed Team
3. Cross Departmental Team Or Cross Functional Team
4. Quality Improvement Teams Or Quality Circles
5. Virtual Team

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Process team: When organization do not have departmental affiliation but function immediately
to undertake broad organization level process improvement.

Self Managed Team: It is a formal mature group of employees who work without supervisory
personnel and responsible for a complete work package It is process team of employees. These
are capable of producing result. They select their own team and evaluate performance It require a
total change in organizational structure.

Cross Departmental Or Functional Team: Cross functional team are basically to study,
analyze, and offer solution that they are required to implement. Here it cannot divert the
responsibility on others. It manages social collaboration and concept creation. It is a small group
of interdependent employees from various functional areas of organization. It is formed to handle
a specific problem such team becomes essential when the organization.

 Struggle with a problem that impacts many section of the organization

 Need to improve the operation or system of process, demanding close coordination from
more than one section or department.
 Reveals that multi skilled person cannot take up the work
 It require simultaneous application of multifarious skills, expertise, and judgment of
person from different section (crossing the boundaries) to accomplish the goal.

Problem solving team: It is also called quality improvement team or quality circle or simply
works team. It consists of eight to ten members from a common work area. It has a clear and
specific focus on process improvement within a single work unit. Organization can establish
such team without making major organizational change.

Virtual team: A virtual team allows the member to meet without concern for space or time and
enables organization to link the workforce together which could not have been done in past. This
type of team members are advance in technology, achieve business goal, solve day to day
problem, provide feedback, keep all member aware, share success, encourage achievement and
so forth. Geographic dispersion never appears as a roadblock.

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Chapter four - Motivation concepts and their applications
Motivation: An Overview It has been researched and found out that people who are motivated
generally remain in a state of tension. They are able to relieve this tension only by achieving
something substantial or by achieving their stated goals and objectives. This constant tension will
actually inspire them to do a greater activity in order to arrive at the desired outcomes as fast as
possible. Thus, greater the tension in an individual to reach to one‘s goals, greater are the levels
of motivation or in other words, the more the tension, the more motivated an individual is. Thus,
the basic motivation process can be depicted as follows: The concept of motivation has three
basic characteristics. These are:

1. Effort: The amount of effort put into the activity identifies the strength of the person‘s
work-related behaviour. Hard work usually reflects high motivation. A student who
works very hard to get top grades can be referred to as highly motivated. A professor who
is engaged in research and publishes many high-quality articles is exerting extensive
effort relating to his job.

The concept of motivation has three basic characteristics. These are:

1. Effort: The amount of effort put into the activity identifies the strength of the
person‘s work-related behaviour. Hard work usually reflects high motivation. A
student who works very hard to get top grades can be referred to as highly motivated.
A professor who is engaged in research and publishes many high-quality articles is
exerting extensive effort relating to his job.

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 2. Persistence: Motivation is a permanent and an integral part of a human being. Its
second characteristic is persistence in the efforts. Motivation is continuously goal
directed so that once a goal is achieved, a higher goal is selected and efforts are
exercised towards this higher goal; for example, a professor who published a book
simply to get a promotion and then stops or reduces his research efforts is not a
motivated individual. Accordingly, high motivation requires persistent efforts.
3. Direction: Persistent hard work determines the quantity of effort while direction
determines the quality of the anticipated output. All efforts are to be directed towards
the organizational goal. This would ensure that the persistent effort is actually
resulting in accepted organizational outcomes, for example, a quality control
inspector is consistently expected to direct his efforts in discovering defects in the
produced items so that the organizational goal of high-quality output is met.

MOTIVATION AND PERFORMANCE

Requirements for job satisfaction may include high pay, equitable payment system, and
opportunities for promotion, considerate and participative management, and social interaction at
work, interesting and varied tasks and a high degree of control over work place and work
methods. The degree of satisfaction obtained by individuals however, depends largely on their
own needs and expectations and the environment in which they work. No positive strong
connection between satisfaction and performance is yet established. A satisfactory worker is not
necessarily a high producer and vice versa. Refer positive, negative, intrinsic and extrinsic
motivation.

Reading assignment: read about need based and process based theories of motivation and their
application in the work area

NB: concerning about this chapter there will be more under leadership and change management
course

38
Chapter five - Management of organizational conflict

Wherever there is interaction, there is conflict.

There are five basic types of conflicts. These are:

 Conflict within the individual:

 Interpersonal conflict:
 Conflict between the individual and the group:
 Intergroup conflict:
 Inter-organizational conflict

Strategies for resolving conflict

The concept of conflict resolution has been used interchangeably from time to time with dispute
resolution where legal process is involved.

Dual model of conflict resolution

This aspect of conflict resolution deals with an individual‘s preference to deal with a
conflict. This is based on two dimensions:
(i) Assertiveness or a concern for one self.
(ii) Empathy or concern for others.

39
 Reading assignment: Elaborate each of the above with example

NB: concerning about this chapter there will be more under leadership and change
management course
CHAPTER SIX: STRESS MANAGEMENT
Stress is a dynamic condition in which an individual is confronted with an opportunity, demand,
or resource related to what the individual desires and for which the outcome is perceived to be
both uncertain and important. Although stress is typically discussed in a negative context, it is
not necessarily bad in and of itself; it also has a positive value. It’s an opportunity when it
offers potential gain.

Potential Sources of Stress

There are three categories of potential stressors: environmental, organizational, and
personal.

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Consequences of Stress

Stress shows itself in a number of ways, such as high blood pressure, ulcers, irritability,
difficulty making routine decisions, loss of appetite, accident proneness, and the like. These
symptoms fall under three general categories: physiological, psychological, and behavioral
symptoms.

A. Physiological symptoms: Most early concern with stress was directed at physiological
symptoms because most researchers were specialists in the health and medical sciences. Their
work led to the conclusion that stress could create changes in metabolism, increase heart and
breathing rates and blood pressure, bring on headaches, and induce heart attacks.

41
B. Psychological symptoms: Job dissatisfaction is ―the simplest and most obvious psychological
effect‖ of stress. But stress shows itself in other psychological states.for instance, tension,
anxiety, irritability, boredom, and procrastination. For example, a study that tracked
physiological responses of employees over time found that stress due to high workloads was
related to higher blood pressure and lower emotional well-being.

C. Behavioural symptoms: Research on behavior and stress has been conducted across several
countries and over time, and the relationships appear relatively consistent. Behavior-related
stress symptoms include reductions in productivity, absence, and turnover, as well as changes in
eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, and sleep
disorders.

Managing Stress

1. Individual Approaches;

A. Time management techniques:

B. Increased physical exercise:

C. Relaxation training:

D. Social support network

2. Organizational Approaches;

Several organizational factors that cause stress are controlled by management and thus can be
modified or changed. Strategies to consider include improved employee selection and job
placement, training, realistic goal-setting, redesign of jobs, increased employee involvement,
improved organizational communication, employee sabbaticals, and corporate wellness
programs.

Stress and job performance

One of the major concerns of management is the negative impact that stress has on performance.
People under high stress tend to withdraw from the contact with the stressor in the form of

42
turnover and absenteeism. In extreme cases, it may result in sabotage. Workers sometimes create
mechanical failure in order to take a break from the strain of monotonous work. Any factor that
causes negative effects on our physical and psychological well-being is also expected to affect
our work behaviour. Exposure to strong and enduring stress influences important aspects of our
behaviour at job, thus affecting productivity. The relationship between stress and performance
appears to be rather complex. It is affected by the difficulty of the task being performed, the
nature of the specific stressor involved and a wide range of personal and situational factors.
However, in general, productivity is considered to be at a peak with a moderate level of stress.
Performance is poor at a low level of stress as well as at a high level of stress. At a low level of
stress, the person may not be sufficiently energized and may not be wholeheartedly involved in
his work, resulting in low productivity. As the level of stress increases from low to moderate, the
performance level also increases to reach the peak level. An optimum level of stress exists for
any task. If the stress continues to increase from this level, the person becomes too agitated and
frustrated, resulting in performance deterioration

Chapter Seven - Culture and Diversity

Just like individuals, you can think of organizations as having their own personalities, more
typically known as organizational cultures. It refers to a system of shared assumptions, values
and beliefs that show employees what is appropriate and inappropriate behaviour.

An organization‘s culture may be one of its strongest assets, as well as its biggest liability. In
fact, it has been argued that organizations that have a rare and hard-to imitate organizational
culture benefit from it as a competitive advantage. . For example, if a company is in the high-tech
industry, having a culture that encourages innovativeness and adaptability will support its
performance. However, if a company in the same industry has a culture characterized by
stability, a high respect for tradition, and a strong preference for upholding rules and procedures,
the company may suffer as a result of its culture. In other words, just as having the ―right‖
culture may be a competitive advantage for an organization, having the ―wrong‖ culture may
lead to performance difficulties, may be responsible for organizational failure, and may act as a
barrier preventing the company from changing and taking risks. In addition to having
implications for organizational performance, organizational culture is an effective control

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mechanism for dictating employee behavior. Culture is in fact a more powerful way of
controlling and managing employee behaviors than organizational rules and regulations. When
problems are unique, rules tend to be less helpful. Instead, creating a culture of customer service
achieves the same result by encouraging employees to think like customers, knowing that the
company priorities in this case are clear: Keeping the customer happy is preferable to other
concerns such as saving the cost of a refund.

Dimensions of Culture

Innovative Cultures: According to the OCP framework, companies that have innovative
cultures5 are flexible and adaptable, and experiment with new ideas. These companies are
characterized by a flat hierarchy in which titles and other status distinctions tend to be
downplayed.

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Aggressive cultures: Companies with aggressive cultures value competitiveness and
outperforming competitors: By emphasizing this, they may fall short in the area of corporate
social responsibility. For example, Microsoft Corporation is often identified as a company with
an aggressive culture. . In aggressive companies, people may use language such as ―We will kill our
competition.‖ In the past, Microsoft executives often made statements such as ―We are going to cut off
Netscape‘s air supply.… Everything they are selling, we are going to give away.‖

Outcome-Oriented Cultures: The outcome-oriented cultures as those that emphasize

achievement, results, and action as important values. A good example of an outcome-oriented
culture may be Best Buy Co. Inc. Having a culture emphasizing sales performance, Best Buy
tallies revenues and other relevant figures daily by department. Employees are trained and
mentored to sell company products effectively, and they learn how much money their department
made every day.

Stable Cultures Stable: cultures are predictable, rule-oriented, and bureaucratic. These
organizations aim to coordinate and align individual effort for greatest levels of efficiency. When
the environment is stable and certain, these cultures may help the organization be effective by
providing stable and constant levels of output.

People-Oriented Cultures: People-oriented cultures value fairness, supportiveness, and respect

for individual rights. These organizations truly live the mantra that ―people are their greatest
asset.‖ In addition to having fair procedures and management styles, these companies create an
atmosphere where work is fun and employees do not feel required to choose between work and
other aspects of their lives. In these organizations, there is a greater emphasis on and expectation
of treating people with respect and dignity.

Team-Oriented Cultures: Companies with team-oriented cultures are collaborative and

emphasize cooperation among employees. For example, Southwest Airlines Company facilitates
a team-oriented culture by cross-training its employees so that they are capable of helping each
other when needed. The company also places emphasis on training intact work Detail-Oriented
Cultures: Organizations with detail-oriented cultures are characterized in the OCP framework
as emphasizing precision and paying attention to details. Such a culture gives a competitive

45
advantage to companies in the hospitality industry by helping them differentiate themselves from
others.

• Cultural Dimension

Cultural dimensions are the psychological dimensions, or value constructs, which can be used to
describe a specific culture.

Cultural dimensions are the new phases which are used to compare countries based on national
cultural differences and similarities.

There are major dimensions of organizational culture and are:-

1) Dominant culture and Sub-culture

A dominant culture is a set of core values shared by a majority of the organization‘s members.
The dominant culture is macro view which helps and guide the day-to-day behaviour of
employees.

A sub-culture is a set of values shared by a small minority of organization‘s members. Sub-

culture arises as a result of problems that are shared by members of the organization.

2) Strong culture and Weak culture

Strong culture refers to the degree of commitment of the organization‘s members to the core
values. On the other hand weak culture is just the reverse of strong culture in every aspect where
there is no intensity and commitment.

3) Mechanistic and Organic cultures

Mechanistic is a type of culture which exhibits bureaucracy. Here, people restrict their careers to
their own specialization only whereas organic culture is just opposite to mechanistic culture there
is no prescribed specialization, hierarchies and authority.

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4) Authoritarian and Participative cultures

In authoritarian culture power is centralized in the leader and all subordinates are expected to
obey the orders strictly. But in participative culture all the people working in the organization are
having freedom to participate in decision-making process of a company.

5) National culture V/S Organizational culture

Organizational and national culture is always influenced by the culture of the land where the
company belongs too.

CHAPTER EIGHT: ORGANIZATIONAL POWER AND POLITICS

BASES OF POWER IN ORGANIZATIONS

A person in an organizational setting can have power from two sources. These are interpersonal
sources and organizationally based structural sources

1. Interpersonal Sources of Power: These sources of power focus on the interpersonal

relationships between manager and the subordinates. These are: Legitimate power:
Reward power: Coercive power: Expert power: and Referent power: It is also known as
charismatic power
2. Structural and Situational Bases of Power:

This dimension involves structural and situational sources within the organization and include
knowledge as power, resources as power, decision making as power and link with others as
power. Knowledge as power: All organization use information to operate. Thus individuals or
groups who possess knowledge critical to the attainment of organizational goals and objectives
have power.

ORGANIZATIONAL POLITICS

Organizational politics are informal, unofficial, and sometimes behind-the-scenes efforts to sell
ideas, influence an organization, increase power, or achieve other targeted objectives. Brandon,
R., & Seldman, M. (2004). Aristotle wrote that politics stems from a diversity of interests, and
those competing interests must be resolved in some way. ―Rational‖ decision making alone may

47
not work when interests are fundamentally incongruent, so political behaviors and influence
tactics arise.

Politics has been defined by Pffeffer as ‗those activities taken within organizations to acquire,
develop and use power and other resources to obtain ones preferred outcomes in a situation in
which there is uncertainty or dissensus about choices‘. politics involves those activities or
behaviours through which power is developed and used in organizational settings. Power is a
property of the system at rest; politics is the study of power in action. An individual, sub-unit or
department may have power within an organizational context at some period of time; politics
involves the exercises of power to get something accomplished, as well as those activities which
are undertaken to expand the power already possessed or the scope over which it can be
exercised. It is clear that political behaviour is designed and initiated to overcome opposition or
resistance. Opposition and resistance is bound to occur in all organizations because of severe
competition for scarce resources.Reasons that have strong influence on political orientation of
organizations. These are:

Scarcity of resources: As discussed before, any person or sub unit who has control over
allocations of scarce resources yields power, and political influence plays an important part in
how these resources will be distributed to various departments, rather than rational needs.

Non-programmed decisions: Non-programmed decisions involve unique problems which

cannot be solved by known and structured methods and procedures.

These unique problems involve many factors and variables that are ambiguous in nature leaving
room for political maneuvering by those who have the knowledge and techniques to successfully
confront and solve such complex problems. Such non-programmed decision are likely to be
made in the areas of strategic planning, merges and acquisitions, policy changes and so on.

Ambiguous goals: When the goals of an organization are clearly defined and each member of
the organization is aware of these goals and is also aware of his role in contributing towards
achievement of such goals then there are limited grounds for political influence. However, when
the goals of a department or the entire organization are ambiguous then more room is available
for playing politics.

48
Technology and environment: Organizational effectiveness is largely a function of the
organizations ability to appropriately respond to external environment which is highly dynamic
and generally unpredictable as well as adequately adapt to complex technological developments.
Thus, political behaviour is increased when the internal technology is complex and when
external environment is highly volatile.

Organizational change: Whenever there are changes in the organizational structure or

rearrangement of organization politics, people in powerful positions have the opportunity to play
political games. These changes may include restructuring of a division or creating a new
division, personnel changes, introducing a new product line and these are all invitations to
political processes when various individuals and groups try to control the given situation.

Techniques of Political Play

Even though the political play style will vary with the situation at hand, there are certain
guidelines which can be adopted to gain and use political power. Some ofthese guidelines and
strategies that can be used are:

Cultivate the right allies: There is strength in number and more people you have on your side
the more political power you will have. It is necessary, however, to have the alliance with the
right people.

Try to be positively popular: It is necessary to develop a friendly persuasive techniques. Build

your image:. Some of the factors that enhance a preferred image consist of being well dressed,
having a pleasant smile, being attentive, honest, sociable and loyal to the organizational interests.
In addition, always project an image of competence and self-assurance. Be on top of everything
and work hard and be associated with successful projects.

Control information: One technique of political behaviour is to control the dissemination of

critical information to others.The more critical the information and fewer the people who have it,
the stronger the powerbase of those who possess such informationControl communication
channels: People who may be in low level hierarchical positions but have some control over
lines of communications can yield considerable political power. For example, secretaries

49
frequently control access to their bosses. The secretary may have considerable power in deciding
who sees the boss and who doesn‘t at a given time. She may use this power in favouring those
whom she likes and frustrating those against whom she may have a grudge.

Chapter nine - organizational design and structure

Koontz and Donnel have defined organizational structure as ‗the establishment of authority
relationships with provision for coordination between them, both vertically and horizontally in
the enterprise structure‘.

FORMS OF ORGANIZATION STRUCTURE

(a) Mechanistic form of organizational structure. The term mechanistic aptly describes
organization that function in a machine like manner to accomplish organization‘s goal in a highly
efficient manner. It is organizational structure based on formalized system that is relatively rigid
in nature. This is generally applicable to those organizations that are not influenced by
technological, product, market changes and generally maintains a constant pattern. In
mechanistic form of organizational structure, authority is centralized at the top level of
management, emphasizes achieving high level of production and efficiency through extensive
use of rule and procedures and has a rigid hierarchy of authority. Decision making is generally
reserved at the top level. The tasks are well defined so that the goals set by the top level
management are attained smoothly. The structure is characterized by plenty of written orders and
instructions. Persons at higher level have greater knowledge of the problem the organization
facing than those at lower level, rewards are chiefly obtained through obedience to instructions
from superiors, highly complex because of its emphasis on specialization of labor, highly
formalized because of its emphasis on function as the primary basis of departmentalization.

(b) Organic form of organizational structure. Organizations those are subject to change due to
environmental factors like technology, market changes and product development generally adopt
organic form of organizational structure. For example software industry. In such structures
authority is delegated to various functional levels/individuals. Decentralized decision making is
practiced that allows people to make their own decisions based on the environment and that they

50
do not have to look over their shoulders. There are very few levels of organizational hierarchy
and existence of flexible reporting system. Jobs are fairly well defined with few orders and
instructions. These days organic form of organizational structure is related to work groups and
teams working independently on a particular project that report directly to top management.
They are self-supervised, self-directed and self-controlled sub units that are self-accounted for
their performance and attainment of organizational goals. The structure is more loosely and
subject to changes very frequently to adapt to the environmental changes. It is highly flexible.
One of the difference that underlie organic model from mechanistic model is that mechanistic
model seek to maximize efficiency and production, while the organic model seeks to maximize
flexibility and adaptability.

FACTORS AFFECTING ORGANIZATIONAL DESIGN

Although many things can affect the choice of an appropriate structure for an organization, the
following five factors are the most common: size, life cycle, strategy, environment, and
technology.

GUIDELINES FOR ORGANIZATIONAL STRUCTURE AND DESIGN

Organizational structure is the differentiation of functions to facilitate the achievement of goals.

Jobs are differentiated according to nature and specialization of jobs. The major guidelines
among others for organizational structure and design are:

1. There should be clear definition of the duties and responsibilities of personnel and
employed in the organization.
2. The structure must be directed towards promoting effective work at all levels of
management.
3. Adequate decentralization of decision making through the delegation of
responsibilities
4. Clear line of responsibility linking the chief executive to the various points of
decision operations

51
 5. The span of responsibility of a manager should be limited to a reasonable number
of subordinates
6. The structure should make accountable each manager in every level for his/her
actions and the action of his/her subordinates
7. The organizational structure should define the policies, procedures, and rules that
guide the activities and relationship of people in the organization.

STEPS IN THE STRUCTURE DESIGNING PROCESS

The following steps need to be followed while designing an organizational structure

1. Review plans and objectives

2. Determine work activities that are necessary to accomplish the objectives
3. Classifying and grouping activities in to manageable work units/departments
4. Assigning work and delegating authority to accomplish the task

Excersises

1. After reading ad internalizing the whole chapters; think of variables under each of the
three building blocks of OB( individual, group and organizational level of analysis) and
discuss how each of them determines employees work related behaviour;

2. Think of the most dominant work related behaviours of employees and mention them
the try try to investigate how each of issues discussed under this course determine(
shapes) them:

3. Discuss the relationship between stress and job performance.

4. Explain the organizational strategies for coping with stress and conflict

5. Define organizational culture. How does it differ from social culture? Give examples.

6. Try to build conceptual model for the course organizational behaviour

52
 7. What types of motivational practice, conflict and conflict management practice, stress
and stress management practice forced employees‘ to build negative behaviour? What do
you recommend concerning each so as to enables employees to positively behave?

8. What types of work related behavior employees exihibit under each of the different
elements of culture

9. Take one organization and identify the different both negative and positive work related
behaviours‘ of its employees then after conducting casual analysis finally give yours
comment, suggestion and recommendations if necessary?

10. Investigate the relationship of power and politics of the organization with employees
behaviour

1. LEADERSIP AND CHANGE MANAGEMENT

Dear learners, this guiding book introduce leadership and change management which is a
responsibility of an effective leader. It also introduces the concept of leadership styles, theories
of leadership and leader development, change, Obstacles to Change, Managing a change and
Adapting to Change, conflict and conflict management, ways of introducing change and
harmonizing the organization, processes analysis and measurement, business process
reengineering, benchmarking.
CHAPTER ONE INTRODUCTION TO LEADERSHIP

 Leadership is a dynamic relationship based on mutual influence and common purpose

between leaders and collaborators in which both are moved to higher levels of motivation
and moral development as they affect real, intended change. (Kevin Freiberg and Jackie
Freiberg, 1996).
 Leadership is the process of influencing employees to work toward the achievement of
objectives.
 Leadership is the process by which a person exerts influence over other people and
inspires, motivates, and directs their activities to help achieve group or organizational
goals.

53
  Leadership is the art or process of influencing people so that they strive willingly and
enthusiastically toward the accomplishment of group goals. Influencing people so that
they will strive willingly and with zeal and confidence toward the achievement of a group
goal implies many things.

MANAGEMENT LEADERSHIP
Requires five functions: planning, organizing, A major part of a manager‘s job
staffing, leading and controlling
Emerge formally. Managers need formal The leader of the work group may emerge
authority to be effective. informally as the choice of the group.
Deals with both the interpersonal and Deals with the interpersonal aspect of a
administrative aspect of a manager‘s job. manager‘s job.
Managers deals more with carrying out the Deals with change, inspiration, motivation and
organization‘s goals and maintain equilibrium influence
Managers may have to rely on formal authority Leaders may not possess the formal power
to get employees to accomplish goals.
Groups are often more loyal to a leader than a Groups are often more loyal to a leader than a
manager manager
Managers focus of system and structures Focus on people
Managers relies on control Leaders inspires trust
Managers imitates Originates
Accepts the status quo Challenges the status quo
Managers asks how and when Leaders asks what and why
WHAT MAKES EFFECTIVE LEADERSHIP

Effective leadership is the process of achieving desired results through people‘s willing
participation. The heart of this definition is: desired results (goals), through people, and willing
participation-people willingly follow leaders because they want them.

Warren Bennis, who devoted decades to researching leadership issues, concludes that virtually
all leaders of effective groups share four characteristics in common:

54
 1. They provide direction and meaning to the people they are leading. This means they
remind people what is important and why what they are doing makes important
difference.
2. They generate trust.
3. They favor action and risk taking. That is, they are proactive and willing to risk failing in
order to succeed.
4. They are surveyors of hope. In both tangible and symbolic ways they reinforce the notion
that success will be attained.

IMPORTANCE OF LEADERSHIP FOR GOOD GEVERNANCE AND DEVELOPMENT

Good governance and leadership are inexorably linked. The one breed the other, lack of the one
is lack of the other. Leadership uses the critical ingredient of good governance. Leadership is a
talent for transformation: the ability to bring out the best in others for the greater good of all.
Behind all good leadership is good governance.
UNIT TWO: LEADERSHIP THEORIES AND STYLES

This chapter deals with leadership style, leadership theories, transformational, transactional
and servant leaders. At the end of this chapter the student will be able to achieve the
following objectives

 Explain the meaning of leadership style and describe different styles of leaders
 Describe the various theories of leadership
 Explain the Transformational, transactional and servant leaders
 Identify the major skills and competencies of leader
 Describe the behaviors of good and bad leader

Leadership style is the behavior exhibited by a leader during supervision and working with
subordinates. A manager‘s personal leadership style-that is, the specific ways in which a
manager chooses to influence other people- shapes the way that manager approaches planning,
organizing, and controlling. Evidences suggest that leadership styles vary not only among
individuals but also among countries or cultures. There are different leadership styles.

55
Based on the extent of sharing decision making authority with subordinates there are four
leadership styles. These are autocratic, democratic, laissez fair and situational. They are
commonly known and/or practiced.

A. Autocratic/directive leadership style

An autocratic leader centralizes power and decision making authority in himself and exercise
complete control over subordinates. Such leader usually shows high concern for the task and
low concern for the people /human aspect/.
The following are the common characteristics of autocratic leaders:

- The leader make the decisions and closely supervises employees;

- Highly conscious of his /her position;
- They are sensitive about their authority; One-way communication;
- They are willing to delegate a very little decision making authority;
- The leader believes that pay is just a reward for working and the only reward that
will motivate employees.
- Orders are issued to be carried out with no questions allowed and no explanations.

Problems of autocratic style: force breeds counter-force: restriction of output,

antagonism, unionism. It impairs group moral and initiative, brings high rate of
grievance, absenteeism, turnover and dissatisfaction.

Strength of autocratic style: it is useful in certain situations. Some situation may call
urgent action in such situation autocratic leadership may be appropriate. In emergency
situations autocratic leadership style may be effective if the leader is wise.

B. Democratic or participative leadership style

Democratic leadership style is characterized by participation of the group and utilization of

its opinions. A manager with this style usually shares decision making authority with the
group and encourages participation and supports the task efforts of subordinates.

Democratic leadership style has the following characteristics:

56
 - Share decision making authority with subordinates;
- A leader appreciate suggestions from subordinates;
- The leader shows high concern for both task and people;
- Leaders are not sensitive about their authority;
- New ideas/change proposed by a group is respected;
- Develops a feeling of responsibility within the group;
- Motivates subordinates;
- Generally increases the quality of work and productivity;
- If forced to make a decision alone the leader explains his/her reason to the
group/subordinates.
C. Laissez faire/free-rein/ abdicative leadership style

A laissez faire leader develops a frame work for subordinates in which they can act and leave
decision making authority to the subordinates and remain for consultation.

Free-rein leadership style has the following features:

- The leader gives full decision making authority to the group and shows little interest
in the work process or its results;
- Leader exercise little control over the group/ subordinates;
- Individuals may have little interest in their work;
- Morale and team work are generally low.

Free rein leadership style can apply in organizations with highly skilled and well-
trained professional.

D. Situational leadership style

It is now being recognized that effectiveness of one or the other leadership style depends on
the situation. Leaders can utilize the combination of the above three styles depending on the
situation.

The manager need not restrict his choice from among a limited class of style or approaches.
The style a manger chooses may depend upon the following situations;

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  Forces in the manager such as his value system, his confidence in subordinates.
 Forces in subordinates, example, subordinates expectation s.
 Forces in the situation, example, type of organization, the nature of the problems, the
pressure of time, etc.

2.2. LEADERSHIP THEEORIES

2.2.1 The Great Man Theory of Leadership
Assumptions


The great man theory of leadership states that some people born with the necessary attributes that
set them apart from others and that these traits are responsible for their assuming positions of
power and authority. A leader is a hero who accomplishes goals against all odds for his
followers. The theory implies those in power deserve to be there because of their special
endowment.
Furthermore, the theory contends that these traits remain stable over time and across different groups.
Thus, it suggests that all great leaders share these characteristic regardless of when and where they
live or the precise role in the history they fulfilled.
Criticism

traits.
 In contemporary research, there is a significant shift in such a mentality.
2.2.2 The Trait Theory of Leadership
Early studies of leadership sought to identify enduring personal traits that distinguish leaders from
followers and effective from ineffective leaders. Traits are a person's particular tendencies to feel,
think, and act in certain ways. The search for leadership traits began in the 1930s, and after nearly
300 studies, the list was narrowed to several traits that showed the strongest relationship to effective
leadership.
 Intelligence: helps a leader solve complex problems.
 Task relevant knowledge ensures that a leader knows what has to be done, how it should be
done, and what resources are required for a group and origination to achieve its goals.

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  Dominance individuals need to exert influence and control over others helps a leader
enhance followers' efforts and abilities toward achieving group and organizational goals.
 Self confidence both helps a leader influence followers and motivates them to persevere in the
face of obstacles or difficulties.
 Energy/ activity level when high help a leader deal with the many demands he or she faces on
a day-to-day basis.
 Tolerance for stress helps a leader deal with the uncertainty inherent in any leadership role.
 Integrity and honesty ensure that that a leader behaves ethically and is worthy of his of
his/her followers' trust and confidence.
 Emotional maturity ensure that a leader is not overly self-centred can control his or her
feelings, and can accept criticism.
There is an important point to understand when viewing leadership using the trait approach. For
some traits it is not clear what comes first: being in leadership position or Possessing trait in
question. In other words is it possession of the appropriate trait that leads a person to become a
leader? Or personality traits that change over the long term (several years) does being put in a
leadership position result in a person developing leadership traits. The answer to this question is
not clear or unambiguous. Individuals who possess the traits associated with effective leadership
maybe more likely to become effective leaders than those who do nol. But many individuals who
possess the appropriate traits may never become leaders, and many leaders who possess them are
not effective. The difficulty of this question prompted researchers to look for other ways to
understand effective leadership and search for other factors that contribute to it.
2.2.3 Behavioral Leadership Theory
Rather than looking at the personal traits of leaders in later years researchers focused on what
leaders actually do-that is on the specific behaviours performed by effective leaders. Limited
success in the study of traits led researchers to look at the behaviours that specific leader‘s
exhibit. They wondered if there was something unique in the way that effective leaders behave.
They also wondered if it was possible to train people to be leaders.
The three most well-known behavioural theories of leadership are the Ohio State studies that
were conducted starting in the late 1940s, the University of Michigan studies conducted at about
the same time, and Blake and Mouton‘s Leadership Grid, which reflects the behavioural
definitions of both the Ohio and Michigan studies. All three approaches consider two main

59
dimensions by which managers can be characterized: attention to production and attention to
people.
The Ohio State Studies
The Ohio State researchers developed, a list of over 1,800 specific concrete behaviours they
thought leaders might engage in such as selling goals for followers, telling followers what to do,
being friendly, and making sure that followers are happy. The researchers then developed scales
to measure these behaviours and administered the scales to thousands of employees. Employees
were asked to indicate the extent to which their leaders performed the various leader behaviours.
After analyzing their responses, the researchers found that must leader behaviours involved
either consideration or initiating structure.
Consideration is defined as the extent to which a leader is likely to have job relationships
characterized by mutual trust, respect for employees‘ ideas, and regard for their feelings. A
leader who is high in consideration shows concern for followers‘ comfort, well-being, status, and
satisfaction. For instance, leaders using this style may create more flexible hours, or flex time, to
make it easier for employees to manage family issues during work hours.
Consideration: Behaviours indicating that a leader trusts, respects, and values good relationship,
with his or her followers is known as consideration.
Initiating structure refers to the extent to which a leader is likely to define and structure his or
her role and the roles of employees in order to attain goals; it includes behaviour that tries to
organize work, work relationships, and goals. For instance, leaders using this style may develop
specific output goals or deadlines for employees.
Initiating structure Behaviours that a leader engages in to make sure the work gets done and
subordinates perform their jobs acceptably are known as initiating structure. Assigning
individual task to followers, planning ahead, selling goals, deciding how the work should be
performed, and pushing followers to get their tasks accomplished are all initiating-structure
behaviours.
The Michigan Studies
Researchers at the University of Michigan, whose work is referred to as ―the Michigan studies,‖
also developed two dimensions of leadership behaviour that they labelled employee-oriented and
production-oriented.

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Employee-oriented leaders emphasize interpersonal relations. They take a personal interest in
the needs of their subordinates and accept individual differences among members.
Production-oriented leaders, in contrast, tend to emphasize the technical or task aspects of the
job.
They are mainly concerned with making sure the group accomplishes its tasks, and the group
members are simply a means to that end.
Leadership Grid A two-dimensional grid outlining 81 d developed a graphic portrayal of a two
Leadership Grid based on the styles of ―concern for people‖ and ―concern for production,‖ which
essentially represent the Ohio State dimensions of consideration and initiating structure, or the
Michigan dimensions of employee orientation and production orientation.

The grid has 9 possible positions along each axis, creating 81 different positions in which the
leader‘s style may fall, but emphasis has been placed on 5: impoverished management (1,1);
authority obedience management (9,1); middle and team management (9,9). The grid shows the
dominating factors in to how to get results from people, without focusing on what the specific
results are.
A lengthy review of the results of behavioural studies supports the idea that people oriented
behaviour by leaders is related to employee satisfaction and motivation, and leader effectiveness;
meanwhile, production-oriented behaviour by leaders is slightly more strongly related to
performance by the leader, the group, and the organization.

The Leadership Grid

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The research also provides some insights into when leaders should be production oriented and when
they should be people oriented:

leaders who are people oriented will increase employee satisfaction and performance.
 s to be people
oriented.

oriented will increase employee satisfaction, while those who are task oriented will
increase dissatisfaction.
 When people don‘t know what to do or individuals don‘t have the knowledge or skills
to do the job, it‘s more important for leaders to be production oriented than people
oriented.

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2.2.4 Contingency Leadership Theory: Does the Situation Matter?
Situational or contingency theories: Theories that propose that leadership effectiveness
depends on the situation. Situational, or contingency, theories of leadership try to isolate critical
situational factors that affect leadership effectiveness. The theories consider the degree of
structure in the task being performed, the quality of leader-member relations, the leader‘s
position power, group norms, information availability, and employee acceptance of leader‘s
decisions, employee maturity, and the clarity of the employee‘s role. We discuss four situational
theories below: the Fiedler contingency model, Hersey and Blanchard‘s situational leadership
theory, path-goal theory, and substitutes for leadership.
All of these theories focus on the relationship of the leader to followers, and there is broad
support for the idea that this relationship is important.

Fiedler Contingency Model

The first comprehensive contingency model for leadership was developed by Fred Fiedler. The
Fiedler contingency model proposes that effective group performance depends on the proper
match between the leader‘s style and the degree to which the situation gives control to the leader.
Fiedler created the least preferred co-worker (LPC) questionnaire to determine whether
individuals were mainly interested in good personal relations with co-workers, and thus
relationship-oriented, or mainly interested in productivity, and thus task-oriented.
Fiedler assumed that an individual‘s leadership style is fixed. Therefore, if a situation requires a
task oriented leader and the person in that leadership position is relationship oriented, either the
situation has to be modified or the leader must be removed and replaced for optimum
effectiveness to be achieved. Fiedler identified three contingency dimensions that together define
the situation a leader faces:
 Leader-member relations. The degree of confidence, trust, and respect members has in
their leader.
 Task structure. The degree to which the job assignments are procedure (that is,
structured or unstructured).
 Position power. The degree of influence a leader has over power variables such as hiring,
firing, discipline, promotions, and salary increases.

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Fiedler stated that the better the leader-member relations, the more highly structured the job, and
the stronger the position power, the more control the leader has. He suggested that task-oriented
leaders perform best in situations of high and low control, while relationship- oriented leaders
perform best in moderate control situations. In a high-control situation, a leader can ―get away‖
with task orientation, because the relationships are good and followers are easily influenced. In a
low-control situation (which is marked by poor relations, ill-defined task, and low influence),
task orientation may be the only thing that makes it possible to get something done. In a
moderate-control situation, the leader‘s relationship orientation may smooth the way to getting
things done.
Hersey and Blanchard’s Situational Leadership Theory
Paul Hersey and Ken Blanchard have developed a leadership model that has gained a strong
following among management development specialists. This model—called situational
leadership theory
(SLT)—has been included in leadership training programs at more than 400 of the Fortune 500
companies; and more than one million managers a year from a wide variety of organizations are
taught its basic elements. SLT views the leader-follower relationship as similar to that of a parent
and child. Just as a parent needs to give up control as a child becomes more mature and
responsible, so too should leaders. Hersey and Blanchard identify four specific leader
behaviours—from highly directive to highly laissez-faire. The most effective behaviour depends
on a follower‘s ability and motivation. SLT says that if a follower is unable and unwilling to do a
task, the leader needs to give clear and specific directions (in other words, be highly directive). If
a follower is unable and willing, the leader needs to display high task orientation to compensate
for the follower‘s lack of ability, and high relationship orientation to get the follower to ―buy
into‖ the leader‘s desires (in other words, ―sell‖ the task). If the follower is able and unwilling,
the leader needs to adopt a supportive and participative style. Finally, if the employee is both
able and willing, the leader does not need to do much (in other words, a laissez-faire approach
will work)
Path-Goal Theory
The essence of the theory is that it is the leader‘s job to assist followers attain their goals and to
provide the necessary direction and/or support to ensure that their individual goals are

64
compatible with the overall goals of the group or organization. The term path-goal derives from
the belief that effective leaders both clarify the path to help their followers achieve their work
goals and make the journey along the path easier by reducing roadblocks and pitfalls.
According to this theory, leaders should follow three guidelines to be effective:
 Determine the outcomes subordinates want. These might include good pay, job
security, interesting work, and the autonomy to do one‘s job.
 Reward individuals with their desired outcomes when they perform well.
 Let individuals know what they need to do to receive rewards (that is, the path to the goal),
remove any barriers that would prevent high performance, and express confidence that
individuals have the ability to perform well.
Path-goal theory identifies four leadership behaviours that might be used in different situations to
motivate individuals:
 The directive leader lets followers know what is expected of them, schedules work to be
done, and gives specific guidance as to how to accomplish tasks. This closely parallels the
Ohio State dimension of initiating structure. This behavior is best used when individuals have
difficulty doing tasks or the tasks are ambiguous. It would not be very helpful when used
with individuals, who are already highly motivated, have the skills and abilities to do the
task, and understand the requirements of the task.
 The supportive leader is friendly and shows concern for the needs of followers. This is
essentially synonymous with the Ohio State dimension of consideration. This behavior is
often recommended when individuals are under stress or otherwise show that they need to be
supported.
 The participative leader consults with followers and uses their suggestions before making a
decision. This behavior is most appropriate when individuals need to buy in to decisions.
 The achievement-oriented leader sets challenging goals and expects followers to perform at
their highest level. This behaviour works well with individuals who like challenges and are
highly motivated. It would be less effective with less capable individuals or those who are
highly stressed from overwork.
2.3.5 Contemporary Theory of Leadership
In what follows we consider transactional leadership, transformational leadership, and
charismatic leadership.

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Transactional leaders: Leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements. Such leaders guide or motivate their
followers in the direction of established goals by clarifying role and task requirements. In some
styles of transactional leadership, the leader uses rewarding and recognizing behaviours. This
approach results in performance that meets expectations, though rarely does one see results that
exceed expectations. In other styles of transactional leadership, the leader emphasizes correction
and possible punishment rather than rewards and recognition. This style ―results in performance
below expectations, and discourages innovation and initiative in the workplace.‖ Of course,
leaders should not ignore poor performance, but effective leaders emphasize how to achieve
expectations rather than dwell on mistakes.
Transformational leaders: Some leaders inspire followers to transcend their own self-interests
for the good of the organization and have a profound and extraordinary effect on their followers.
These are transformational leaders. Transformational leaders change followers‘ awareness of
issues by helping them looks at old problems in new ways, and they are able to excite, arouse,
and inspire followers to exert extra effort to achieve group goals.
Charismatic leadership: Leadership that critically examines the status quo with a view to
developing and articulating future strategic goals or vision for the organization, and then leading
organizational members to achieve these goals through empowering strategies.
Sharing a Vision
Perhaps one of the key components of charismatic leadership is the ability to articulate a vision.
A vision has clear and compelling imagery that offers an innovative way to improve, which
recognizes and draws on traditions, and connects to actions that people can take to realize
change. Vision taps people’s emotions and energy. Properly articulated, a vision creates the
enthusiasm that people have1for sporting events and other leisure-time activities, bringing the
energy and commitment to the workplace.
The key properties of a vision seem to be inspirational possibilities that are value-centred and
realizable, with superior imagery and articulation. Visions should be able to create possibilities
that are inspirational and unique, and offer a new order that can produce organizational
distinction. A vision is likely to fail if it does not offer a view of the future that is clearly and
demonstrably better for the organization and its members.

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Desirable visions fit the times and circumstances and reflect the uniqueness of the organization.
People in the organization must also believe that the vision is attainable.
It should be perceived as challenging yet doable. Visions that have clear articulation and
powerful imagery are more easily grasped and accepted.

Servant Leadership
This type of leadership emphasizes increased service to others, a holistic approach to work
promoting a sense of community and the sharing of power in decision making.
Characteristics to the development of servant leaders:
 Listening- they need to listen intently to others. Listening and reflecting regularly is
essential for the growth the servant leader
 Empathy- people need to be accepted & recognized for their special & unique spirits
especially when their behavior or performance is unacceptable
 Healing- learning to heal is a powerful force for transformation & integration. This is a
great strength for servant leaders to help make people they connect with whole
 Awareness- general awareness and self-awareness strengthens the servant leader
 Persuasion- rather than using the leader‘s position of authority these leaders are effective
at building consensus in groups
 Conceptualization- Servant leaders have the ability to think beyond day to day and
balance with daily duties
 Foresight- the ability to foresee the likely outcome of a situation. This allows servant
leaders to understand the lessons from the past, the realities of the present and the likely
consequence of a decision for the future
 Stewardship- assumes first and foremost a commitment to serving the needs of others
UNIT THREE: CHANGE MANAGEMENT

3.1 Meaning and Implications

Change - Making or becoming different
Difference from previous state
Substitution of one for another
Variation
To undergo, show or subject to change

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 To make or become different
Change is with us and will always be here, and there are two ways of dealing with it:
Reactively by responding only when one has to, usually too late
Proactively by planning for change and trying to keep, if not one step ahead, then
at least in the vanguard of change Of course, there is a third option - ignore it and
hope it will go away. In any organizational change there are three so-called
‗states‘ to be dealt with : the further state, which defines where members of the
organization want it to be : the present state, which describes where it is at
present; and the transitional state, which specifies in details how to get from the
present to the future state.
3.2. Forces for Organizational Change
Organizations today operate in a very dynamic and changing environment. They have to make
suitable changes from time to time to become competitive; to serve customers better; to be on par
with latest technology; to maintain or to improve upon existing level of profits.
All the forces, which initiate changes, can be broadly divided into two categories: Internal
Forces and External Forces. Let us learn them in detail.
A. Internal Forces
1. Change in Leadership: A change in leadership of an organisation may result in change
in perceptions, strategies, activities and results.
2. Change in Employees Profile: Some changes in employees profile are inevitable
because of death, retirement, transfer, promotion, discharge or resignation. Women
employment is on the increase. Further in the context of present day globalization,
employees are recruited from different national and cultural backgrounds. Human
Resource policies and practices have to be reoriented to suit the diverse workforce.
3. Change in Employees Morale and Motivation: The changes in leadership, their
policies and practices may affect the morale and motivation of the employees resulting in
declining productivity, production and profits.
4. Union Influence: The influence of the union on many organizations in respect of
recruitment, service conditions, wage rates etc. is still perceptible in spite of the

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 implementation of policies of liberalization by many Governments. The management will
have to make suitable changes in response to demands of the union.
5. Implementation of New Technology: Technological developments result in change of
job, production process, and employee profile. More computers, automation; and
reengineering programmes result in substantial changes in most of the organisations. The
Internet has its profound impact on the markets of number of organisations.
Biotechnology is another field where large number of products are likely to be created.
B. External Forces
1. Competition: Global competition has come into existence. Mergers and acquisitions
have been on the increasing trend. Organisations have to make suitable changes in
response to the demands from the competition. They should acquire the capacity of
developing new products rapidly and market them quickly. Short production runs, and
short product cycles by equally flexible and responsive systems will be required to face
these competitive challenges.
2. Economic Fluctuations: The fluctuations in security markets, interest rates, exchange
rates etc. have continued to impose changes on organisations.
3. Social Trends: Increase in college attendance; delayed marriages by young couple;
economic upliftment of women and backward communities etc. suggest changes, which
are to be considered by organizations. All these result in fluctuations in the demand for
products used by these groups.
4. Global Politics: Collapse of Soviet Union, the reunification of Germany, the policies of
W.T.O., U.S attack on Afganistan and Iraq etc. have their impact on the business of
different organisations, whose activities are related to such developments.
3.3. Types of Change
1. Radical Change
Radical change refers to the organization wide transformation programs involving the rapid
and wholesale overturning of old ways and old ideas and their replacement by new and
unique. This type of changes are usually large- scale, dramatically affecting the organization
and frequently involve major upheaval.
2. Incremental Change (Evolutionary Change)

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Incremental change is a gradual change that takes place over a period of time. This type of
change is relatively small–scale, and localized. It emphasizes the less dramatic and often
uncoordinated nature of the change. It brings ad hoc and localized improvements in
performance. It includes changes of:
 Work methods and processes
 Factory layout, new product launches, etc.
3. Planned and Unplanned Change
Planned change: Robbins (1987) defines planned change as that which is planned, proactively
and purposefully. This is a deliberate effort in response to the environment. An organisation is an
open system which is dependent on the environment; and since the modern business environment
is dynamic, any organisation or firm that wants to succeed must create an internal mechanism to
facilitate planned change. This will help to keep the organisation viable.
Unplanned Change: Refers to changes that occur spontaneously or randomly.
Remedial Vs Developmental Change
Change can be intended to remedy current situations, for example, to improve the poor
performance of a product or the entire organization, reduce burnout in the workplace, help the
organization to become much more proactive and less reactive, or address large budget deficits.
Remedial projects often seem more focused and urgent because they are addressing a current,
major problem. It is often easier to determine the success of these projects because the problem
is solved or not.
Change can also be developmental – to make a successful situation even more successful, for
example, expand the amount of customers served, or duplicate successful products or services.
Developmental projects can seem more general and vague than remedial, depending on how
specific goals are and how important it is for members of the organization to achieve those goals.
Some people might have different perceptions of what is a remedial change versus a
developmental change. They might see that if developmental changes are not made soon, there
will be need for remedial changes. Also, organizations may recognize current remedial issues
and then establish a developmental vision to address the issues. In those situations, projects are
still remedial because they were conducted primarily to address current issues.

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Evolutionary Vs Revolutionary Change
Evolutionary change is gradual, incremental, and narrowly focused. Evolutionary change is not
dramatic or sudden but, rather, is a constant attempt to improve, adapt, and adjust strategy and
structure incrementally to accommodate to changes taking place in the environment. Such
improvements might entail utilizing technology in a better way or reorganizing the work process.
Total quality management and organizational development are among the known evolutionary
changes.
3.4. Process of organizational change
A successful change process involves three steps:
 Identifying the need for change;
 Cultivating a new behaviour or substitute; and
 Feeling comfortable with the new situation.
One strategy of change is through the adoption of a system approach. The organization can be
viewed as a system and analysed in terms of its major interrelated variables (sub-systems). The
variables can be identified in a number of ways including: task, technology, structure, people and
management.
Let us now consider the following models of change process. The first one is Lewin‘s three-step
model.
1. Lewin’s Model
According to Kurt Lewin, the change process consists of three steps: i) Unfreezing the status
quo; ii) Movement to a new stage; and iii) Refreezing the new change to make it permanent.
The three stages of Lewin‘s change model can be described as follows;
1st: Unfreezing: Focuses on making an organization open to change. Individuals are
encouraged to replace old behaviors and attitudes with those desired by management.
Managers also need to devise ways to reduce barriers to change.
2nd: Changing: The focus of this stage is providing employees with new information, new
behavioral models or new ways of looking at things. The purpose is to help employees
learn new concepts to implement change.
rd
3 : Refreezing: The focus of this stage is stabilizing the change by helping employees
integrate the changed behavior or attitude into their normal ways of doing things.

2. Continuous Process Model

The Lewin‘s model is very simple and straightforward. However it does not deal with several
important issues. Hence the second model of change process continuous change process model

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has come into existence. This model treats the change from the perspective of top management.
In this approach, the top management perceives that certain forces or trends call for change and
the issue is referred to organisation‘s usual problem solving and decision-making process. The
top management defines the goals to be attained after the change. Alternatives for change are
also considered and evaluated, and an acceptable one is selected.

The top management may seek the assistance of a change agent – a person responsible for
managing the change effort who may be a member of the organisation or an outsider. While an
internal change agent is likely to know the organisation, people, tasks, political situations etc.
very well; an outsider is likely to view the situation more objectively. As per the direction and
management of the change agent, the organization implements the change through Lewin‘s
model.
The final step in this model is measurement, evaluation and control. Through this process, the
top management determines the effectiveness of the change process by evaluating various
indicators of organisational productivity or employee‘s morale.
3. Action Research Approach
Action research refers to a change process based on systematic collection of data and then
selection of a change action based on what the analyzed data indicates. Action research takes the
view that meaningful change is a combination of action oriented (changing attitude and
behavior) and research oriented (testing theory). Action research approach involves the following
Diagnose need Introduce Evaluate and
processes. establish
for change intervention
change
Establish Disengage
consultant
Determine consultant’s
and client Gather data, Implement desired
relationship effectiveness of service
analyze data, and incremental and
change and
decide intervention quantum change
refreeze new
objectives
conditions

Figure 3.4: the action research process

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 4. Appreciate Inquiry Approach
Appreciate inquiry tries to break out of the problem-solving mentally by framing relationships
around the positive and the possible. It is an organizational change process that directs attention
away from the group‘s own problem and focuses participants on the group‘s potential and
positive elements. Appreciate inquiry process involves the following steps.

Discovery Dreaming Designing Delivering

Identifying the Envisioning Engaging in Dev eloping
best of “what “what might dialogue about objectives
is” be” “what should about “what
be” will be”

Figure 3.5: the appreciative inquiry process

Read in details about the following concepts

 Business Process Reengineering (BPR)

 Business Score Card (BSC)

 Total Quality Management (TQM)

 Different types of Change

UNIT FIVE: CONFLICT AND CONFLICT MANAGEMENT

.MEANING AND NATURE OF CONFLICT
Conflict is a process in which one party perceives that its interest are being opposed or
negatively affected by another party.

Conflict is defined as an incompatibility of goals or values between two or more parties in a

relationship, combined with attempts to control each other and antagonistic feelings toward each
other. The incompatibility or difference may exist in reality or may only be perceived by the
parties involved. Nonetheless, the opposing actions and the hostile emotions are very real
hallmarks of human conflict.

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SOURCES OF CONFLICT IN ORGANIZATION

Some of the conditions that cause conflict in organizational setting are:

A. Incompatible Goals: a common source of conflict is goal incompatibility. Goal

incompatibility occurs when personal or work goals seem to interfere with another person‘s
or department‘s goals.
B. Different Values And Beliefs: incompatibility in any of life, ideologies-the preferences,
principles and practices which people believe. Cultural diversity, and different backgrounds
and experiences makes indifferent to understand or accept the beliefs and values that other
people hold toward organizational decisions and events.
C. Power conflict occurs when each party wishes to maintain or maximize the amount of
influence that it exerts in the relationship and the social setting. It is impossible for one party
to be stronger without the other being weaker, at least in terms of direct influence over each
other. Thus, a power struggle ensues which usually ends in a victory and defeat, or in a
―stand-off‖ with a continuing state of tension.
Power conflicts can occur between individuals, between groups or between nations,
whenever one or both parties choose to take a power approach to the relationship. Power also
enters into all conflict since the parties are attempting to control each other.
D. Task Interdependence: conflict tends to increase with the level of task interdependence.
Task interdependence exists when team members must share common inputs to their
individual tasks, need to interact in the process of executing their work, or receive outcomes
(such as rewards) that are partly de3termined by the performance of others. The higher the
level of task interdependence, the greater the risk of conflict, because there is a greater
chance that each side will disrupt or interfere with the other side‘s goals.
E. Unclear job boundaries: unclear line of responsibility within an organization can be a
source for conflict.
F. Scarce resources/economic conflict: scarce resources generate conflict because scarcity
motivates people to compete with others who also need those resources to achieve their
objectives.

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G. Communication problem: conflicts often occur due to lack of opportunity, ability, or
motivation to communicate effectively. When two parties lack the opportunity to
communicate, they tend to use stereotypes to explain past behaviors and anticipate future
actions. Some people lack the necessary skills to communicate in a diplomatic, non-
confrontational manner.

Functional and Dysfunctional Conflict

Conflict that supports the individual and group goals, which leads to higher performances called
functional conflict while the conflicts that hinders individual or group performance is called
dysfunctional conflict. The latter generally takes destructive form. There is thin margin between
the two types of conflicts mentioned above. While evaluating the impact of conflict on goal
achievement, individual perception and effect of group performance should be evaluated. If the
conflict contributes towards higher performance then the conflict should be called functional or
otherwise dysfunctional.
Functional Conflict
1. Conflict develops cohesiveness within the group members. A group goal therefore becomes a
priority. Individual goals are then relegated to secondary position.
2. Conflict leads to innovation and creativity, as there is competing sprit among various groups.
3. Conflict provides challenging work environment and enhances opportunities for self-
development of group that leads to formation of group norms.
4. Enhance work culture leads to up gradation of various systems within the organization and
therefore growth is achieved.

Dysfunctional Conflict
Conflict may turn out to be detrimental and disastrous and having deleterious effects.
Dysfunctional nature of conflict can be identified in the following circumstances:
1. When conflict does not lead to solution.
2. When basic goals of the organization are neglected.

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 3. People should be treated with due respect. If it is violated and a climate of distrust and
suspicion is created people feel defeated and demeaned which develops antagonism and
leads to conflict.
4. Conflict may lead to absenteeism and subsequently to increased turn over if not
controlled in time.
5. Dual management style may create hatred and lead to dysfunctional conflict.
6. Disagreement with management may be considered as disloyalty, if this environment
prevails, an opportunity for creativity would be lost and employees would loose interest
in their job. This would lead to increased conflicting situations.
LEVELS OF CONFLICT

It is possible to identify four types of conflict that might occur in organizations. Conflict can
occur on several levels in an organization. These are:

1st: Intrapersonal Conflict: conflict between an individual‘s values, goals, and needs are
intrapersonal conflicts. Intrapersonal conflicts arise when acting in accordance with one value,
goal, or need makes it impossible to fulfill some other value, goal, or need.

Types of intrapersonal conflicts are:

- Approach-approach conflict occurs when a person has to make a choice between two
equally attractive alternatives. For example, employed parents routinely experienced
approach-approach conflicts between their dual roles of parent and employee.
- Avoidance –avoidance conflict occurs when a person has to make a choice between two
equally unattractive alternatives. For example, chief executive officer may decide
between to decrease employees‘ salary or to fire few employees to stay in the market.
- Approach-avoidance conflict occurs when a person has to make a choice among a set of
options that have good and bad outcomes. For example, many employees face this
conflict between the desire for career success and the desire for more personal time.

2nd Interpersonal Conflict: occurs when two people have incompatible needs, goals, or
approaches in their relationship. Interpersonal conflict is likely occurring when individuals are
competing for the same resources, such as promotions, work facilities, or work assignments.

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Interpersonal conflict is also likely in groups that are heterogeneous. Heterogeneous could be
either diversity of the work force or people representing different functions (for example cross
functional team).

3rd Inter Group Conflicts: are conflicts between two or more groups in the same organization.
Intergroup conflict occurs when there are differences in values, goals, or needs between two or
more groups in the organization. Competition for scarce resources is a common source of
intergroup conflict.

Intergroup conflicts in organizations also often arise between line employees and staff
employees. Line and staff conflict is conflict arising from the role and perceptual differences
between the two groups.

Intergroup conflicts occur for four reasons:

- The groups are interdependent;

- The groups have different goals;
- The groups perceptions are different;
- The groups share the common resources; and
- The organization increasingly needs specialists.

In general intergroup conflicts are common in organizations.

4th Inter-Organizational Conflicts: are conflicts between two or more organizations. An

example of inter-organizational conflict is corporate takeover attempt whereby one organization
tries to take control over another organization. Such conflict may also arise because of
competition and controlling resources among organizations.

CONFLICT MANAGEMENT STYLES/CONFLICT RESOLUTION

Some people enter a conflict with a win-win orientation while others have a win-lose
orientation.

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 Win-win orientation: is the belief that the parties will find a mutually beneficial solution
to their disagreement. Win-win orientation is a systematic attempt to maximize the goals
of both parties.
Win-lose orientation: they adopt the belief that conflicting parties are drawing from a
fixed pie, so the more one party receives, the less the other party will receive. Conflict
tends to escalate when the parties develop win-loss orientation because they rely on more
assertive influence tactics to gain advantage. A win-loss orientation may occasionally be
appropriate when the conflict really is over a fixed resource, but few organizational
conflicts are due to perfectly opposing interests with fixed resources.
Lose-lose orientation: both parties loss due to the conflict.

Adopting a win-win or win-lose orientation influences our conflict management style, that is,
how we act toward the other person. Researchers have recognized five interpersonal styles of
approaching the other party in a conflict situation. The most recent variations of this model
appear in the graph below.
Figure 5.1 interpersonal conflict management styles

Assertiveness (Motivation to satisfy ones Own interests)

Cooperativeness (motivation to satisfy other party‘s interests)

Problem solving: It is also known as problem confronting or win-win (collaboration).

Problem solving tries to find a mutually beneficial solution for both parties. Information sharing
is an important feature of this style because both parties collaborate to identify common ground

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and potential solutions that satisfy both (or all) of them. Collaboration involves an attempt to
work with the other person to find a win-win solution to the problem in hand - the one that most
satisfies the concerns of both parties. The win-win approach sees conflict resolution as an
opportunity to come to a mutually beneficial result. It includes identifying the underlying
concerns of the opponents and finding an alternative which meets each party's concerns.
Examples of when collaborating may be appropriate:
 When consensus and commitment of other parties is important
 In a collaborative environment
 When it is required to address the interests of multiple stakeholders
 When a high level of trust is present
 When a long-term relationship is important
 When you need to work through hard feelings, animosity, etc
 When you don't want to have full responsibility
Some caveats/warnings of collaborating:
 Requires a commitment from all parties to look for a mutually acceptable solution
 May require more effort and more time than some other methods. A win-win solution
may not be evident
 For the same reason, collaborating may not be practical when timing is crucial and a
quick solution or fast response is required

Once one or more parties lose their trust in an opponent, the relationship falls back to other
methods of conflict resolution. Therefore, all involved parties must continue collaborative efforts
to maintain a collaborative relationship

Withdrawing: It is also known as avoiding. Avoiding tries to smooth over or avoid

conflict situations altogether. It represents a low concern for both self and the other party;
in other words, avoiders try to suppress thinking about the conflict. For example, some
employees will arrange their work area or tasks to minimize interaction with certain co-
workers.

This is when a person does not pursue her/his own concerns or those of the opponent. He/she
does not address the conflict, sidesteps, postpones or simply withdraws.

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Examples of when withdrawing may be appropriate:
 When the issue is trivial and not worth the effort
 When more important issues are pressing, and you don't have time to deal with it
 In situations where postponing the response is beneficial to you, for example –
 When it is not the right time or place to confront the issue
 When you need time to think and collect information before you act (e.g. if you are
unprepared or taken by surprise)
 When you see no chance of getting your concerns met or you would have to put forth
unreasonable efforts
 When you would have to deal with hostility
 When you are unable to handle the conflict (e.g. if you are too emotionally involved or
others can handle it better)
Possible advantages of withdrawing:
 When the opponent is forcing / attempts aggression, you may choose to withdraw and
postpone your response until you are in a more favorable circumstance for you to push
back
 Withdrawing is a low stress approach when the conflict is short
 Gives the ability/time to focus on more important or more urgent issues instead
 Gives you time to better prepare and collect information before you act
Some caveats/warnings of withdrawing:
 May lead to weakening or losing your position; not acting may be interpreted as an
agreement. Using withdrawing strategies without negatively affecting your own position
requires certain skill and experience
 When multiple parties are involved, withdrawing may negatively affect your relationship
with a party that expects your action
Forcing: It is also known as competing. Forcing tries to win the conflict at the other‘s expense.
This style, which has the strongest win-lose orientation, relies on some of the ―hard‖ influence
tactics to get one‘s own way.

An individual firmly pursues his or her own concerns despite the resistance of the other person.
This may involve pushing one viewpoint at the expense of another or maintaining firm resistance
to another person‘s actions.
Examples of when forcing may be appropriate:
 In certain situations when all other, less forceful methods, don‘t work or are ineffective
 When you need to stand up for your own rights, resist aggression and pressure
 When a quick resolution is required and using force is justified (e.g. in a life-threatening
situation, to stop an aggression)
 As a last resort to resolve a long-lasting conflict
Possible advantages of forcing:

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  May provide a quick resolution to a conflict
 Increases self-esteem and draws respect when firm resistance or actions were a response
to an aggression or hostility
Some caveats/warnings of forcing:
 May negatively affect your relationship with the opponent in the long run
 May cause the opponent to react in the same way, even if the opponent did not intend to
be forceful originally
 Cannot take advantage of the strong sides of the other side‘s position
 Taking this approach may require a lot of energy and be exhausting to some individuals
Smoothing/Yielding: yielding involves giving in completely to the other side‘s wishes, or at
least cooperating with little or no attention to your own interests. This style involves making
unilateral concessions and unconditional promises, as well as offering help with no expectation
of reciprocal help.
It is also known as accommodating. Smoothing is accommodating the concerns of other people
first of all, rather than one's own concerns.
Examples of when smoothing may be appropriate:
 When it is important to provide a temporary relief from the conflict or buy time until you
are in a better position to respond/push back
 When the issue is not as important to you as it is to the other person
 When you accept that you are wrong
 When you have no choice or when continued competition would be detrimental
Possible advantages of smoothing:
 In some cases smoothing will help to protect more important interests while giving up on
some less important ones
 Gives an opportunity to reassess the situation from a different angle
Some caveats/warnings of smoothing:
 There is a risk to be abused, i.e. the opponent may constantly try to take advantage of
your tendency toward smoothing/accommodating. Therefore it is important to keep the
right balance and this requires some skill.
 May negatively affect your confidence in your ability to respond to an aggressive
opponent
 It makes it more difficult to transition to a win-win solution in the future
 Some of your supporters may not like your smoothing response and be turned off

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Compromising: It involves looking for a position in which your losses are offset by equally
valued gains. Compromising looks for an expedient and mutually acceptable solution which
partially satisfies both parties.

It involves matching the other party‘s concessions, making conditional promises or threats, and
actively searching for a middle ground between the interests of the two parties.
Examples of when compromise may be appropriate:
 When the goals are moderately important and not worth the use of more assertive or more
involving approaches, such as forcing or collaborating
 To reach temporary settlement on complex issues
 To reach expedient solutions on important issues
 As a first step when the involved parties do not know each other well or haven‘t yet
developed a high level of mutual trust
 When collaboration or forcing do not work
Possible advantages of compromise:
 Faster issue resolution. Compromising may be more practical when time is a factor
 Can provide a temporary solution while still looking for a win-win solution
 Lowers the levels of tension and stress resulting from the conflict
Some caveats/warnings of using compromise:
 May result in a situation when both parties are not satisfied with the outcome (a lose-lose
situation)
 Does not contribute to building trust in the long run
 May require close monitoring and control to ensure the agreements are met
Reference:
Stephen R. Robins, Organizational Behavior, Concepts, Controversies and
applications, 7th Edition, 1996.
Plunkett and Attner, Management 6th Edition.
KoonertyWethrich, Management, 9th edition.
Georgerr Terry, Principles of Management, 5th Edition.\
Other relevant books to Organizational behavior, management,
Psychology,

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