UNIT-III

INDIVIDUAL BEHAVIOUR & MOTIVATION

4. PERSONALITY TYPES

4.1 INTRODUCTION ABOUT PERSONALITY

 The word personality can be traced to the Latin words person who is
translated as to speak through.
 Personality is the collection of all possible ways in which an individual reacts
and communicate with others.
 Personality is an integrated system which includes both the aspects of a
person the one which are inherited as well as those that are learned.
 Personality is an important factor influencing an employee’s behaviors.
 People’s personality plays an important role in determining their
 success and also that of the organization they are associated with.
 An individual’s personality is the combination of traits and patterns that
influence their behavior, thought, motivation, and emotion.
 It drives individuals to consistently think, feel, and behave in specific ways;
in essence, it is what makes each individual unique.
 Over time, these patterns strongly influence personal expectations, perceptions,
values, and attitudes.

The personal quality is well known

as personality

[Type here]
 4.2 DEFINITION OF PERSONALITY

1. The sum totals of ways in which in individual reacts to and interacts with other.

ROBBINS

2. Personality means how a person affects other and how he understands and views
himself as well as the patterns of inner and outer measurable traits and the
situation interaction. FRED LUTHANS

3. Macionis define as “It is the constant pattern of thinking, feeling and acting.”

4. Ogburn and Nimkoff define it as the totality of sentiments, attitudes, idea, habits, skills
and behaviors of an individual.”

4.3 PERSONALITY TYPES

EXTROVERSION
AGREEABLENESS

EMOTIONAL STABILITY
CONSCIOUSNESS

[Type here]
 OPEN TO
EXPERIANCE

[Type here]
 I. EXTROVERSION

 People get the energy from their preferences of extroversion or introversion.

EXTROVERSION: as a behavior where someone enjoys being around people more than
being alone.

INTRAVERSION: someone who is shy quiet and prefers to spend time alone.

 Extroversion type people develop and maintain wide range of social network
while the introversion type people narrow down their relationships to a few
people.
 Extroverts are assertive sociable talkative etc. they prefer relationships over
quality and quality of output.
 Extroverts at workplace prefer variety and they don’t mind the interruption of
work place by people.

a. SOCIABILITY
 It is the ability of a person in maintains interrelationship within a social group.
 The employees with high skills create nature and develop social networks.
Such employees never eel the social relations as disturbance at the workplace.

b. TALKTIVE
 People with talkative skills are with open mind and speak their mind to others
many executives with their speaking skills attract and influence the subordinates
regarding their job behaviors and performance.

II.AGREEABLE NESS

[Type here]
  Individuals with agreeable traits (particular characteristic) think from the view point
of their employees or clients accept the proposal needs or requests of the
employees.
 Highly agreeable people are co-operative warm and trusting where as
less agreeable people are cold, (soft) disagreeable and antagonistic.

[Type here]
 a. GOOD NATURED
 It includes respecting the employees ideas views opinions values and
considering them in decision making.
 It includes involving the employees in decisions making helping and guiding them
in their work.

b. CO-OPERATIVE
 Co operative traits regarding attitude and practice of superiors of an organization
help the company in moulding the job behavior and increasing the job
performance.

c. TRUSTING
 Trust is worthiness of being relied upon confidence in the truth of anything. It
is resting on the integrity.

III. CONSCIOUSNESS

 It refers to governing or regulating the work activity by conscience persons

with a high level of conscientiousness are reliable organized dependable
and persistent.

a. RESPONSIBLE
 The responsible trait of the individuals them to take up the work
activities with without delegation and makes the superior to concentrate
on policy issues.
 It improves the job performance of the employees.

b. DEPENDABLE
 Sub ordinates commit themselves to organizational goals take up the
responsibility and carryout the organization activates that contribute to
the strategy even they are not assigned them.
[Type here]
 c. ACHIVEMENT ORIENTED
 Employees translate the objectives into achieve goals based on
ground realities and conditions and achieve the goals to a larger
extent.

IV.EMOTIONAL STABILITY

 Some executives absorb the actions reactions views feelings attitudes

outcome of activities etc and maintain stability of their emotions.

V. OPENESS TO EXPERIENCE

 Executives are expected to be open to new job experiences learn absurd

and integrate them with previous experiences and knowledge.

a. IMAGINATIVE
 All the business ventures come into existence only after they cross the
stage of imaginative or projective.

b. ARTISTICALLY SENSITIVE
 Employees should be sensitive to all types of changes in the environment
and imagination.
 With this employees learn much from the environment.

c. INTELLECTUAL
 It enables the individuals to think and analyze rationally and
understand systematically.
 It helps the employees to make efficient decisions.

[Type here]
 5. JOHARI WINDOW

 The JOHARI WINDOW model was devised by American psychologists JOSEPH

LUFT and HARRY INASHAM in 1955.
 This concept is particularly helpful to understanding
employees/employer relationships with the psychological concept.
 The JOHARI WINDOW model can also be used to assess and improved a
group’s relationship with other groups

1 open/free area 2 blind area

3 hidden areas 4 un-known area

1. OPEN/FREE AREA
 It shows the behavior motives attitudes knowledge skills of an individual that
he/she is awareness of and is willing to share it with others.
 The open self is characterized as a state where in the individual is open and
straight forward to him and others also

[Type here]
 2. BLIND AREA
 The blind self shows the state of an individual known to others but not known
to him.
 Johari region 2 is what is known about a person by others in the group,
but is unknown by the person him/herself.
 By seeking or soliciting feedback from others, the aim should be to reduce this
area and thereby to increase the open area (see the Johari Window diagram
below), ie, to increase self-awareness.
 This blind area is not an effective or productive space for individuals or groups.
 A blind area could also include issues that others are deliberately withholding
from a person. We all know how difficult it is to work well when kept in the dark

3. HIDDEN SELF
 This quadrant of the JOHARI WINDOW shows the state of an individual known
to him but not known to the others.
 This is generally seen in the individual who are introvert and do not like to
share their private lives with anyone.
 The individual keeps his feelings, ideas thought to himself and do not disclose it
in front of the others.
 The hidden area could also include sensitivities, fears, hidden agendas,
manipulative intentions, and secrets - anything that a person knows but does
not reveal, for whatever reason.
 It's natural for very personal and private information and feelings to remain
hidden, indeed, certain information, feelings and experiences have no bearing on
work, and so can and should remain hidden.

[Type here]
4.UNKNOWN SELF

 The Information which are unaware to yourselves as well as others. This

includes the information, feelings, capabilities, talents etc.
 This can be due to traumatic past experiences or events which can be unknown
for a lifetime.
 The person will be unaware till he discovers his hidden qualities and capabilities
or through observation of others.
 Open communication is also an effective way to decrease the unknown area and
thus to communicate effectively.

6. TRANSACTIONAL ANALYSIS

 Transactional refers to the communication exchanges between people

 Transactional analysis is theory of personality and human interactions
 Transactional analysis is a powerful tool to bring about human well being
transactional analysis proposed by the originator Dr. ERIC BERNERNE,
MD
 Transactional analysis is based on a very simple in which each person is
considered to have three primary personality modes or ego states parent adult
and child.
 Transactional analysis is a technique used to help people better understand
their own and others behavior especially in interpersonal relationship.
 Transactional Analysis is a social psychology and a method to
improve communication.
 The theory outlines how we have developed and treat ourselves, how we relate
and communicate with others, and offers suggestions and interventions which
will enable us to change and grow.
 Transactional Analysis is underpinned by the philosophy that:
UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT
  people can change
 we all have a right to be in the world and be accepted

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 EGO STATES

Parent adult child

a. PARENT
 The parent ego states includes the attitudes and behaviors of all those people
who are emotionally significant and act as parent.
 The parent represents a massive collection of recordings in the brain of
external events experienced or perceived in approximately the first 5 years of
life.

EXAMPLES OF RECORDING IN THE PARENT

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

  Never talk to strangers
 Always chew with your mouth closed
 Look both ways before you cross the street

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 b. ADULT
 The adult ego state is authentic, direct, reality based, fact seeking and
problem solving.
 They assume that human beings as equal, worthy and responsible.
 The process of adult ego state formation goes through one’s own experiences
and continuously updating attitudes left over from childhood.
 People with adult ego state, gather relevant information, carefully analyse
it, generate alternatives and make logical choices.

c. CHILD
 The child ego state is characterized by very immature behaviour.
 The important features of child ego state are creativity, anxiety,
depression, dependence, fear, joy, emotional sentimental etc.

7.MOTIVATION

 Every human action is the result of a read or desire

 Motivation is defined as an urge in an individual to perform goal directed behavior.
 Therefore, motivation cannot be inflicted from outside but it is an intrinsic desire
in a man to achieve the target goal through performance or activity.
 Motivation is the reason for people's actions, willingness and goals
 Motivation is one's direction to behavior, or what causes a person to want
to repeat a behavior, a set of force that acts behind the motives.
 An individual's motivation may be inspired by others or events (extrinsic
motivation) or it may come from within the individual (intrinsic motivation)
Motivation has been considered as one of the most important reasons that
inspires a person to move forward.
 Mastering motivation to allow sustained and deliberate practice is central to
high levels of achievement e.g. in the worlds of elite sport, medicine or music.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

8. CONCEPT OF MOTIVATION

 Motivation is derived from the word motive a motive is an inner state that
energies activities or moves and directs behavior towards goals.
 Motivation represents an unsatisfied need which creates a state of tension or
disequilibrium causing the individual to move in a goal directed pattern
towards restoring a state of equilibrium by satisfying the need.
 Motivation is a process that starts with defiance the process of motivation lies
in the meaning of and relationship among needs drivers and incentives.
 Motivation can be positive or negative goals form a part of the
motivational process. Goal achievement results in the satisfaction of want.
 Motivation is basically internal to a person and it varies from person to person. It
is a going process.
 Positive motivation is based on incentives or rewards and negative motivation
is based on penalties fear etc.
 Motivation is the force which energizes human behaviors.

NEED DRIVE GOALS/INCENTIVES

(Deficiency) (Deficiency with direction) (Reduction of drives & fulfils
deficiencies)

NEED: need is defiance needs are created whenever there is a physiological or

psychological imbalance.

DRIVE: drive is a deficiency with direction. They are action oriented and provide an
emerging trust towards goal accomplishment.

INCENTIVES: incentives are anything that will alleviate a need to reduce a drive.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

8.2 SIGNIFICANCE OF MOTIVATION

 Motivation identifies employee potentialities and makes the employees to know

his potentialities
 Mitigation concerts motivated employees into committed and loyal employees
 Motivation results in exploring potentialities development of skills knowledge
and abilities
 Motivation concerts the potentialities into performance.
 Motivated employees explore the alternative methods of performing a task
and they select a better method than the existing method.
 Motivated employees use their innovative and creative skills, talents etc.

Significance of motivation

Increase in productivity human resource optimum utilization basis for co-

Development of other resource operation

a. INCREASE IN PRODUCTIVITY
 Motivated workless exert at all their energies towards the job. This would in
turn result in increase the employee efficiency and there by productivity.
 The committed employees do the work in a better way and also reduce the
wastage which in turn contributes to higher productivity.

b. HUMAN RESOURCE DEVELOPMENT

 Motivated employees behave positively maintain sound human relations
congenial superior subordinate results

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

  The present day high technology and software industries depend upon highly
self motivated employees.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 c. OPTIMUM UTILIZATION OF OTHER RESOURCES
 All other resource without human resource can produce nothing.
 The motivated human resources utilize all other resources to the optimum
extent &maximize productivity.

d. BASIS FOR CO-OPERATION

 Motivation makes the people understand each other completely leads to
group work and team spirit.

9. MOTIVATIONAL THEORIES

9.1 MASLOW THEORY

 The most popular and important content theories of motivation are the
MASLOW’S theory.
 MASLOW’S theory is based on the hierarchy of five human needs
 Maslow a humanistic psychologist believed that people are not merely
controlled by mechanical forces or unconscious instinctual impulses of
psychoanalysis.
 Maslow set up a hierarchical theory of needs in which all the basic needs are at
the bottom and the needs concerned with man’s highest potential are t the top.
 Maslow’s need hierarchy theory has received wide recognition, particularly
among practicing managers.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

i. PHYSIOLOGICAL NEEDS

 These are basic necessities of human life food water, shelter sleep etc.
 Maslow says that until these needs are satisfied to the required level man does
not aim for the satisfaction of the next higher level needs.
 In the organization context needs are represented by employees concern for
salary and basic working conditions.
 It is the duty of managers to ensure that these needs of the employees are met
so that they can be motivated to strive for gratification of higher order needs.

ii. SECURITY OR SAFETY NEEDS

 These refer to the need to be free of physical danger or the feeling of loss of
food job shelter. Security needs spring up the moment the makes and effort in
the direction of providing himself the source of continuity of physiological needs.
 Security needs in the organizational context correlate to such factors as job
security safe working conditions unionization and lobbying (seek to influence) for
protective legislation. Managerial practices to satisfy the safety needs of employee
include pension scheme group insurance provident fund etc.

iii. SOCIAL OR ACCEPTANCE NEEDS

 These social needs begin occupying the mind of a man. An individual motivated on
this level longs for affectionate relationship with others namely for a place in his
or her family and reference group.
 In organizational context social needs represents the need for a compatible
work group peer acceptance friendly supervision etc.
 Managers do well to encourage informal groups besides supervision needs to
be effective and friendly behavior with sub ordinates pays.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

iv. SELF-ESTEEM NEEDS

 These needs are power prestige status and self confidence.

 Every man has a feeling of importance and he wants other to regard him highly.
 These needs more people aim high and make them achieve something great.
 Those needs for employees include status symbols awards, promotions titles etc.

V. SELF-ACTUALIZATION NEEDS

 This is the highest needs in the hierarchy man tries to maximize his potential
and accomplish something when this need is activated in him.
 By being aware of the self actualization needs of subordinates mangers can use
a variety of approaches to enable subordinates to achieve personal as well as
organization goals.

9.2 HERZBERG’S TWO FACTOR THEORY

 HERBERG constructed a two dimensional paradigm of factors affecting

peoples attitude about work.
 According to the theory the absence of hygiene factors can create job
dissatisfaction but their presence does not motivate or create
satisfaction Herzberg’s theory is also called motivation hygiene theory.
 According to Herzberg, today’s motivators are tomorrow’s hygiene because
the latter stop influencing the behavior of persons when they get them.
 Accordingly, one’s hygiene may be the motivator of another.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 Hygiene factors motivational factors

Pay recognition
Company policies promotional opportunities
Fringe benefits responsibilities
Status achievement
Interpersonal relations

A. HYGIENE FACTOR
 These factors are those motivating factors whose presence motivates
the employees at the work place but for a limited period only.
 These factors play a very important role in creating a healthy work
environment which ultimately fulfils the physiological needs of the employees.

SOME OF HE HYGIENE FACTORS LIKE

(i) PAY
 The salary structure of the employees should be set according to the market value.
 Salary paid to the employees working at save position in different
organizations should remain same.

ii. COMPANY POLICIES

 The policies set by the company should be flexible unbiased and transparent
in nature.
UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT
  Rigidity in working hour’s leaves breaks etc can make the working environment
un- comfortable for the employees.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 iii. FRIENGE BENEFITS

 Fringe benefits in the form of medical claim benefit plays for family
assistance employees to a greater extent.

iv. STATUS

 The employees should be given proper respect in the organization

 They should have a well known status within the organization which must
be retained by the firm

V. INTER PERSONAL RELATIONS:

 The relationship between the employee and his colleagues his superiors and
juniors should be healthy and understandable.

B.MOTIVATIONAL FACTORS

 These factors are associated with positive feelings of employees about the job
 Motivational factors are necessary to keep job satisfaction and job
performance high.

(i)RECOGNITION
 Managers should motivate the employees by praising and appreciating them
for their hard work and good performance.

(ii) PROMOTIONAL OPPORTUNITIES

 Another way by which an organization can motivate its employees is by
providing them with numerous opportunities for their advancement that can
help them in their career growth.

(iii) RESPONSIBILITY:
 Employees should be made sale responsible for their performance and must
be provided with job ownership.
UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT
 (iv) ACHIEVEMENT
 While performing any job employees must develop a sense of achievement
 They must realize that their hard work will be rewarded at the end of the
day. For this managers can use some sort of rewards to motivate the
employees.

9.3 DAVID ME CLELLAND THEORY

 It was in the late 1940’s that DAVID C. MC CLETLLAND and his friends began to
study 3 needs that motivate human behavior power affiliation and
achievement.
 MC CLELLAND believes that each person has a need for all the three.

THE THEORY FOCUS ON THREE NEEDS LIKE

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 Need for achievement need for power need for affiliation

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 A. NEED FOR ACHIEVEMENT
 Employees with a high need for achievement derive satisfaction from
achieving goals.
 Need for achievement refers to the drive to excel to achieve in relation to
set standards and to strive to succeed.
 MC CLELLAND and his associates have made specific suggestions for developing
a high achievement need.
 Give employee periodic feedback on performance. This will provide
information that will enable them to modify or correct their will enable them to
modify or correct their performance.
 Provide good models of achievement employees who are “heroes” should
be available for others to emulate.
 Avoid tasks that are either extremely difficult or extremely easy.

McClelland identified the following three characteristics of high-need

achievers:
 High-need achievers have a strong desire to assume personal responsibility
for performing a task for finding a solution to a problem.
 High-need achievers have a strong desire for performance feedback.
B. NEED FOR POWER
 The employee exhibiting the needs for power derives satisfaction from the
ability to control others.
 Individuals with a high npow derive satisfaction from being in position of
influence and control.
 Organizations that foster power motive tend to attract individuals with a high
need for power (for ex: military and political organizations)
 People with high order need for power prefer to be placed in competitive
and status oriented situation.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

People who have a high need for power are characterized by:
1. A desire to influence and direct somebody else.
2. A desire to exercise control over others.
3. A concern for maintaining leader-follower relations.

C.NEED FOR AFFILIATION

 Need for affiliation refer to the desire for friendly and close interpersonal
relationship
 The new employees who come from various places organizations educational
and social back grounds normally have the need for affiliation.
 They possess senility towards others there is a need to form strong
interpersonal ties and to get close to people psychologically.

The people with high need for affiliation have these characteristics:
1. They have a strong desire for acceptance and approval from others.
2. They tend to conform to the wishes of those people whose friendship
and companionship they value.
3. They value the feelings of others.

9.4. PORTER AND LAWLER MODEL

 This theory deals with effort performance rewards and satisfaction.

 LYMAN PORTER & EDWAR LAWLER, two OB researchers developed on expectancy
model of motivation that stretches beyond vroom’s work. This model attempted to
o Identify the source of people valences and extensities and
o Link effort with performance and job satisfaction
 According to performance is a function of three important factors like
 If an employee wants to perform the must be motivated.
 Motivation alone does not ensure performance and hence a person must have
the necessary abilities and skills as well.
 An employee must have an accurate knowledge of the requirements of the job.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

FOLLOWING ARE THE KEY VARIABLES IN THIS MODEL

Effort performance reward satisfaction

a. EFFORT
 Effort does not directly lead to specific level of performance. Effort is only the
amount of energy exerted by an individual to achieve specific task.
 It is only the result of attractiveness of the reward and how he perceives a relation
between effort and pay off.

b. PERFORMANCE
 Effort alone is not enough as performance results only when the effort is continued
with ability
 Effort and performance cannot be taken to the same.
c. REWARD
 A person gets intrinsic reward himself by performance a task well.
 Intrinsic reward will be a feeling of accomplishment.
 Extrinsic rewards like pay promotion and status offered by the organization.

d. SATISFACTION
 The satisfaction depends on the perceived rewards and the actual rewards.
 If an individual fells that he should have received more for what he had done
it results in dissatisfaction and vice versa.
 Thus motivation and achievement result in satisfaction and dissatisfaction of an
employee about the job, organization etc.

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

DIAGRAM OF PORTER AND LAWLER MODEL

Perceived
Abilities & traits 4 equitable reward 8
Value of
reward 1

Intrinsic Satisfaction 9
reward 7A
Performance
Effort3
accomplish - ment 6

Extrinsic
reward 7B

Perceived effort reward probability 2

Role 5
perceptions

UNIT-III

1. What is individual behavior? What are the factors that affect on individual
behavior?
2. Compare and contrast Maslow’s theory of motivation and Herzberg two
factor theory of motivation?
3. What is meant by transactional analysis? What is its importance in
understanding people in organization?
4. What is meant by motivation? Explain any two theories of motivations which
are applicable to present organizations?
5. What is Johari window? Discuss the stages of personality development?
6. Define motivation. Explain Herzberg motivational theory?

UNIT-III- INDIVIDUAL BEHAVIOUR & MOTIVATION | BALAJI INST OF IT & MANAGEMENT

 (17E00101) MANAGEMENT & ORGANIZATIONAL BEHAVIOUR

Objective of the course is to give a basic perspective of Management theories and Practices. This will
form foundation to study other functional areas of management and to provide the students with the
conceptual framework and the theories underlying Organisational Behaviour.

1. Role of Management – Concept – Significance – Functions – Principles of Management - Patterns of

Management: Scientific – Behavioural – Systems – Contingency.
2.Decision Making & Controlling – Process – Techniques. Planning – Process – Problems –– Making It
Effective. Controlling - System of Controlling – Controlling Techniques – Making Controlling Effective
3. Individual Behaviour & Motivation – Understanding Individual Behaviour – Perception – Learning –
Personality Types – Johari window- Transactional Analysis- Motivation – Concept of Motivation -
Motivational Theories of Maslow, Herzberg, David Mc Clelland, and Porter and Lawler
4.Group Behavior & Leadership: Benefits of Groups – Types of Groups – Group Formation and
Development. Leadership and Organizational Culture and Climate: Leadership – Traits Theory –
Managerial Grid – Transactional Vs Transformational Leadership – Qualities of good leader- Women
Leadership in India.
5. Organisational Behaviour–Organizing Process – Departmentation Types – Making Organizing
Effective – Organisational culture- Types of culture – Organisational Culture Vs Organisational climate -
Conflict management - Change Management

Textbooks:

 Organisational Behaviour, Stephen P. Robbins, Pearson Education

 Management and Organisational Behaviour, Subbarao P, Himalaya Publishing House
 Principles of Management, Koonz,Weihrich and Aryasri, Tata McGraw Hill.
References:

 Organisational Behaviour ,S.S.Khanka, S.Chand

 Organisational Behaviour , Mishra .M.N ,Vikas
 Management and Organisational behaviour, Pierce Gordner, Cengage.
 Behaviour in Organizations, Hiriyappa .B.New Age Publications
 Organisational Behaviour, Sarma, Jaico Publications.
 Principles of Management ,Murugesan ,Laxmi Publications

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

 UNIT-4

GROUP BEHAVIOR AND LEADERSHIP

1. BENEFITS OF GROUPS

1.1 INRODUCTION ABOUT GROUPS

 A group is any collection of individuals who have mutually dependent relationship
 A group is an important subsystem is any organization
 Group is combination of two or more people formed with a purpose of
achieving their common and shared goals through their interactive effort.
 Working in groups is not always a pleasant job.

1.2 CHARACTERISTICS OF EFFECTIVE GROUPS

 Groups should have relaxed comfortable and information atmosphere.

 Members should more good listening skills patience and participate in task
related discussions.
 Group members should have an understanding of each other’s strengths
and weakness.
 Group roles should be clearly determined and assigned.
 Group decisions should be based on conscious and agreement.

1.2 BENEFITS OF GROUPS

 Working in groups can be challenging when you have different personalities on

the team, but the collaborative work also provides benefits to the company
and individual employees.
 The staff members may need practice and training in working as a team
for those benefits to become apparent.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

 shared experince &
knowledge

Idea generation Fact checking

support Build
trust
Encourage
healthy
risk-taking

1. Shared Experience and Knowledge

 Each employee comes to a company with a certain set of relevant skills and
knowledge. Some of those experience areas overlap while others are distinct
to one or two employees.
 When you group employees for work projects, everyone gets the advantage
of shared knowledge and experience.
 That pooled work experience makes it easier to tackle a difficult project with
different facets. If an employee works individually on a project, he might
struggle with some aspects of it because of limited experience.
 In a group, he can draw on the expertise of his colleagues and potentially
expand his own knowledge.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

2. Idea Generation
 The team environment requires employees to discuss the project. This leads to
more ideas being generated. The discussion may encourage greater creativity
and push the members to think of new ideas.
 Discussing the project may also be better for finding solutions to problems.
When working individually,
 An employee is limited to her own ideas on the project without the perspective
of her colleagues.
 Employees may discover new ways to approach a particular task that is
more effective

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3. Fact Checking
 Individual projects rely on one employee to get the facts straight without
any mistakes.
 With multiple people working on the same project, you have a built-in system
of checks and balances.
 When all team members are actively engaged in the project, they are more likely
to catch a mistake before it turns into a major problem.

4. Support

 The sense of security and support a team creates may encourage employees
to take more risks.
 Where an employee may be conservative when working on an individual project,
she may find encouragement and inspiration from team members to push
herself further.
 Working individually sometimes creates a sense of isolation and makes
employees feel as if they have no one else behind them.
 The support of the team environment helps some employees increase
productivity and become more motivated at work.

5. Builds Trust

 Relying on other people builds trust, and teamwork establishes strong

relationships with coworkers.
 Despite occasional disagreements, an effective team enjoys working together and
shares a strong bond.
 When you put your trust in a coworker, you are establishing the foundation of
a relationship that can endure minor conflicts.

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  Trusting your teammates also provides a feeling of safety that allows ideas
to emerge.

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  It helps employees open up and encourage each other. Open communication is
key when working on a team and produces effective solutions in difficult group
projects.
 Without trust, a team crumbles and cannot succeed on assigned projects. Great
teams build each other up and strengthen individual members to create a
cohesive group.
 By working together, employees learn that wins and losse

6. Encourages Healthy Risk-Taking

 An employee working on a project alone will probably not want to stick their
neck out for an off-the-wall idea.
 If the project fails when working solo, that employee takes the full brunt of the
blame. While you may not get full credit for a successful team project, working
with other people spreads out the responsibility for a failed assignment.
 Working as a team allows team members to take more risks, as they have
the support of the entire group to fall back on in case of failure.

2. TYPES OF GROUPS

Informal
group
formal task
group group
types
of groups

interst friendship
group group
reference
group

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 (i) FORMAL GROUP
 When two or more individuals join together a group due to the official
structure and job relationship in an organization such a group is called formal
group
 Group of production manager materials manager and quality control manager of
a company.

COMBINAITON OF FORMAL GROUPS

CONTRIBUTIONS TO ORGANISATIONS

 Create new ideas implement action plans

 Co-ordinate interdepartmental efforts
 Solve complex problems requiring varied information and perspectives
 Socialize and train new common.

CONTRIBUTIONS TO INDIVIDUALS

 Satisfy needs for affiliation

 Confirm identify and enhance self esteem
 Reduce feelings of insecurity and powerlessness
 Provide a mechanism for solving personal and interpersonal problem.

(ii) INFORMAL GROUPS

 Informal groups are natural formations in the work environment which appear
in response to the need for social contract.
 They may also develop across or outside of formal groups whatever the way
of formation informal groups obviously do not posses formal structures.
 Informal groups are formed out of the common interest’s aptitudes values
opinions of the people.

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CONTRIBUTION TO ORGANISATION

 Help integrate new employees into the formal expectations of the organizations
 Provide social satisfaction unlikely for anonymous individual workers to experience
 Enhance members access to information
 Provide and enforce guideline for appropriate behavior.

CONTRIBUTION TO INDIVIDUALS

 Satisfaction of social and affliction needs

 Satisfaction of needs for security and support
 Enhance feelings of self esteem if members are valued by other group members.

(iii) TASK GROUP

 Working together in order to accomplish a particular task form a task group
 Task group boundaries are not limited to the particular department but they
may spread throughout the organization and sometimes spread even beyond
the organization. the employees belong to different department

(iv) FRIENDSHIP GROUP

 People with common characteristics form groups these common
characteristics include hard working work avoiding smart working risk taking
etc.
 Enlightened (. showing understanding, acting in a positive way, ) managers
maintain good relations with friendship groups because these groups have
tremendous influence on their members that managers would prefer to have
directed towards organizational goals.

(v) REFERENCE GROUP

 Reference groups are the bases for many interest and friendship groups
 Reference groups are based on such factors as race, gender policies religion social
class etc. reference groups provide values for individual ion which to base
personal decisions.
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 (vi) INTEREST GROUP
 People with common interests like maintenance and developing working
conditions recreational facilities providing employees services etc form the interest
group.

3. GROUP FORMATION AND DEVELOPMENT

 Groups are formed and developed through various stages

 BRUCE TUCKMAN has developed five stages model of group process.

Forming :little agreement unclear purpose, guidance

Storming :conflict clarification belonging

Norming :co-operation, development, support

Performing :productivity, achievement, pride

Adjourning: Separation, recognizing, satisfaction.

STAGE-1 FORMING

 Members are concerned about exploring friendship and task potentials. They
do not have strategies for addressing the group’s task.
 Members observe others various events and issues and decide what type
of behavior is acceptable.

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  As awareness increases this stage of group development is completed
when members is accept themselves as a group and commit the group
goals.
 Once members cross this stage they are clear of the hierarchy and relationships.

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STAGE -2 STROMING

 Storming stage is characterized by conflict and confrontation among the

group members due to confusion over relationship purpose and direction.
 One objective of this stage is to resolve the conflict about power and task structure.
 During this stage members accept the group but there would be conflict over
the leadership objectives as well as relationship.

STAGE -3 NORMING

 At this stage a signal leader emerges and this may bring about group cohesion.
There is now a strong ease of group identity and camaraderie (mutual trust and
friendship among people who spend a lot of time together.)
 Members formulate common goals and expectations of the group new
group standard roles and behavior expectations are formed for members.
 Desired outcomes for this stage of group development are increased
members involvement and mental supports as group harmony emerges.

STAGE-4 PERFORMING

 Group members during this stage exert all their energies towards functioning
and performing the tasks in order to attain the group goals.
 They share their ideas, skills, knowledge and competence in order to excel in
the organizational activities forgetting their individual preferences and
differences.
 Permanent groups continue to work as achieving organizational objectives is
never ending task until the organizations exist.

STAGE -5 ADJOURNING
 Temporary groups like committee’s task forces, commissions and teams reach
this stage after completing their task which is purely a temporary setup.

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  The leader can facilitate positive closure of this stage by recognizing and
rewarding group performance.

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5. ORGANISATIONAL CULTURE

 Organizational culture is a system of shared meaning held by members

that distinguishes an organization from other organization.
 Organizational culture is the set of values that helps the organizations
employees understand which actions are considered acceptable and which are
acceptable.
 Organizational culture has assumed considerable importance now days become
of its impact on employees
 Basically organizational culture is the personality of the organization.
 Organization culture is the collection of relatively uniform and enduring
values beliefs customers and practices that are uniquely shared by an
organization’s members and which are transmitted from one generation of
employees to the next.

4.1 DEFINITION OF ORGANISATION CULTURE

According to ROBBINS organization cultural refers to a system of shared meaning held by

members that distinguishes the organization from other organization.

4.2 OBJECTIVES OF AN ORGANISATION CULTURE

 Giving the organization clear pictures of their culture from an unbiased assessment.
 Maximizing a strategic plan for culture change in each employee.
 Identifying and eliminating the subtitle and overt barriers to productivity.
 Enhancing respect for all individuals.
 Enabling and encouraging different management style to flourish.

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4.3 TYPES OF ORGANISATION CULTURE
1. Academy culture
2. Baseball team culture

3. Club culture 4. Fortress culture

5. Person or support culture

1. ACEDEMY CULTURE
 Employees are highly skilled and tend to stay in the organization while
working their way up the ranks.
 The organization provides a stable environment in which employees can
develop and exercise their skills.

o Example, universities hospitals large corporations etc.

2. BASE BALL TEAM CULTURE

 Employees are free agents who have highly prized skills. They are in high
demand and can get jobs elsewhere rather easily.
 This type of culture exists in fast faced high risk organizations. Like
investment banking advertising etc.

3. CLUB CULTURE
 The most important requirements for employees in this culture is to fit into
the group.
 Usually employees start at the bottom and stay with the organization. The
organization promotes from within and highly values seniority. Example,
military, some law firms etc.

4. FORTRESS CULTURE
 Employees don’t know if they will be laid off or not these organizations often
undergo massive reorganization.

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  These are many opportunities for those with timely specialized skills.
Example, savings and loans large car companies etc.

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 5. PERSON OR SUPPORT CULTURE
 Support culture is that culture which offers its members satisfaction resulting
from relationships mutuality’s belonging and connection.
 In this culture autonomy over the work they do and if power is to be
exercised then this is on the basis of expertise.

4.4FUNCTIONS OF ORGANIZATION CULTURE:

 It distinguishes one organization from the other. It creates brand name
for the organisation.
 It develops a sense of identity amongst members. The members associate
themselves with the organisation. Employees of Earnest & Young feel
proud to be part of the company because of its strong culture.
 It promotes commitment amongst employees to achieve organisational
goals. Employees subordinate individual interests for the larger
corporate results.
 It develops appropriate standards for employees and holds them together
to achieve those standards.
 It provides a control mechanism for shaping the attitude and behavior of
employees.
 It gives direction to organisational activities and ensures that
everyone moves in the same direction.

5.ORGANISATIONAL CLIMATE

 Organizational climate does not deal with values and norms. It is concerned
with the current atmosphere in an organization.
 Wow this place has an amazing energy people are really friendly and if
feels positive. That’s the climate.

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  Essentially the climate is the perceptions and attitudes of the people in the culture.

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  Organizational climate is also referred to as the situational determinants
which affect the human behaviors
 The climate should be viewed from a total system perspective.
 In theory the concept of organizational climate is not very clear but practically it
is related to work performance job contentment and self esteem of the
employees.
 Climate of an organisation is somewhat like the personality of a person. Just as
every individual has a personality that makes him unique and different from
other persons.
 Each organisation has an organisational climate that clearly distinguishes it
from other organizations.
 Basically, the organisational climate reflects a person’s perception of
the organisation to which he belongs.
 It is a set of unique characteristics and features that are perceived by the
employees about their organizations which serves as a major force in
influencing their behavior.
 Thus, organizational climate in a broad sense can be understood as the
social setting of the organisation.

DEFINITION
1. According to JAMES AND SELLS organizational climate is a collective perception of
the work environment by the individuals within a common system.
2. According to West, Smith, Lu Feng and Lawthom (1998), shared perceptions of
the fundamental elements of individuals’ particular organisation are regarded as the
organisational climate.
3. According to Wallace, Hunt and Richards (1999), also emphasize collective perceptions
of organisational members and define climate as the summary perception of how an
organisation deals with its members and environment.

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5.1 IMPORTANCE OF ORTGANISATIONAL CLIMATE

 Organizational climate influences to a great extent the performance of the

employees because it has a major impact on motivation and job satisfaction
of individual employees.
 Organizational climate determines the work environment in which
the employee feels satisfied or dissatisfied. Since satisfaction determines or
influences the efficiency of the employees, we can say that organizational climate is
directly related to the efficiency and performance of the employees.

 The factors that can be observed and measured are called overt factors and
the factors that are not visible and quantifiable are called covert factors. Overt
factors organizational climate are Hierarchy, Financial resources,

Goals of organizations, Skills and abilities of personnel, Technological state,

Performance standards and Efficiency measurement.

 The techniques that are generally helpful in improving the climate of

the organization are Effective Communication System, Concern for

people, Participative decision making, Change in policies, Procedures and rules and
Technological changes.

 A climate that favors risk taking will encourage employees of test and exchange
unusual knowledge and ideas. Participation is a very effective tool to develop sound
organizational climate and job satisfaction.
 More satisfied employees possess some personality characteristics that are
likely to be reflected in good work performance, self-efficacy and locus of control.
An atmosphere of cooperation opens access among group members and creates
individual motivation to exchange knowledge with group members resulting in
more productivity.

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OTHER POINTS-IMPORTANCE OF ORTGANISATIONAL CLIMATE
1. Enhance employee performance
2. Building strong relationship
3. Indicates success or failure
4. Builds confidence
5. Minimize turn over

1. ENHANCE EMPLOYEE PERFORMANCE

 Organizational climate is a clear indicator of employee and
organizational performance.
 This is due to the fact that constructive work environment leads to motivated
work force.

2. BUILDING STRONG RELATIONSHIP

 Organization culture helps manager to discover the relationship
between organizational methods and the employee’s needs.
 If manager know what motivates employee then they will be easily able to
boost their morale.
 Hence a positive and strong relationship can be formed which ultimately makes
an organization successful.

3. INDICATES SUCCESS OR FAILURE

 The success or failure of an organization is also determined by its climate.
o For example,
 In organizations with positive climate employees enjoy working with each other.
 They willingly perform the work and are satisfied with the organization.

4. BUILDS CONFIDENCE
 In an ideal organizational climate the sub originates are confident and
show faith towards their superiors through hard work.

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 5. MINIMIZE TURN OVER
 The employees working in a positive climate are satisfied and have no intention to
leave the organization.
 Thus higher morale reduces the employee turnover and from work absence.

5.2 The following techniques in improving the climate of the organisation:

1. Effective Communication System:
 There should be a two way communication in the organisation so that
the employees know what is going on and react to it.
 The manager can modify his decision on the basis of feedback
received. 2. Concern for People:
 The management should be interested in the human resource development. It
should work for the welfare of employees and an improvement in their
working conditions.
 For developing a sound organizational climate, the management should have
show concern for the people.
3. Participative Decision Making:
 The management should involve the employees in decision making process,
particularly those decisions which are related to goal setting and affect them.
 Participative decision making will make the employees committed to the
organisation and more cooperative also.
4. Change in Policies, Procedures and Rules:
 The organizational climate can also be changed by making changes in the
policies, procedures and rules.
 It is a time consuming process but the changes will also be long lasting if the
workers see the changes in policies, procedures and rules as favorable to
them.

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5. Technological Changes:
 Generally, the workers and employees resist any innovative changes. But
where technological changes improve the working conditions of the
employees, the change will be easily accepted.
 Better climate will be there if the management adopts innovative changes in
consultation with the employees.

6. LEADERSHIP

 Successful of any organization depends on leaders. The quality of

leadership provided by the managers determines the degree of success of
business.
 Leadership involves the exercise of influence on the part of the leader over
the perception motivation communication etc.
 Manager ship is the authority to carry out these functions.
 Leadership is the process of influencing for the purpose of achieving shared goals.
 The effectiveness of leaders depends on their ability to influence and be influenced
by the followers in the task accomplishment.
 Leaders ensure that the necessary tasks are accomplished. Develop each
member of the team
 Leadership provides direction guidance restore confidence and makes the way easy
for achieving the objective.
 The role the leaders play can either take the organization to heights of success.
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  The strength of a leader is measured by the ability to facilitate the self-leadership
of others.
 Leadership is a very frequently used word the reason for this frequent use is
because every society, organization country and the world require leaders to
lead people towards the achievement of common goals.
 Leadership is a group activity a leader influences his followers and followers
have influence over their leader. Leadership is meant for a given situation.

Leadership involves:
 Establishing a clear vision, sharing that vision with others so that they will follow
willingly, providing the information, knowledge and methods to realize that
vision, and coordinating and balancing the conflicting interests of all members
and stakeholders.
 A leader steps up in times of crisis, and is able to think and act creatively in
difficult situations. Unlike management, leadership cannot be taught, although it
may be learned and enhanced through coaching or mentoring.
 Someone with great leadership skills today is Bill Gates who, despite early
failures, with continued passion and innovation has driven Microsoft and the
software industry to success.
 The act of inspiring subordinates to perform and engage in achieving a goal.

6.1 DEFINITIONS OF LEADERSHIP

1. Leadership is ultimately about creating a way for people to contribute to

making something extraordinary happen." Alan Keith
2. “Leadership occurs when one person induces others to work toward
some predetermined objectives.” — Massie
3. “Leadership is the ability of a superior to influence the behavior of a subordinate or
group and persuade them to follow a particular course of action.” — Chester Bernard

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6.2 DIFFERENCE BETWEEN LEADERS AND MANAGERS
LEADERS MANAGERS
Innovate Administer
An original A copy
Develops Maintains
Originates Imitates
Focuses on people Focuses on systems and structures
Do the right thing Does things right
Challenges the status Accept the status
Inspire Control
Believes in WE Believes in I
Visionary Rational
Creative Persistent
Initiate change Authoritative
Counts on trust Counts on controls
Depended on good will and Dependence on his authority.
confidence

6 TRAITS THEORY
 The trait theories of leadership focus on the individual characteristics
of successful leaders.
 The trait theorists believes that people become leaders because of special
traits they posses and that leaders are born not made.
 Successful leaders possess many of the following traits like.
UNIT-IV GROUP BEHAVIOR & LEADERSHIP |
  Drive - desire for achievement high energy initiative

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

  Honesty and integrity – they are trusty worthy open and reliable.
 Physical features – have good physique
 Self confidence – trust in own abilities
 Creativity – creative and have the capacity to come up with original ideas.
 Flexibility – leadership have the ability to adapt to the needs of followers.
 Leadership motivation – strong desire to influence others and reach
shared goals.
 The theory assumes that a leader is born and not trained. This assumption is
not acceptable to the contemporary thinkers on the subject.
 The personality of man in his inner life including such inner elements as
background life history, believes life experiences attitudes self image love hates
and philosophy of life.

7.1 THE TRAITS CAN BE CLASSIFIED LIKE

A. SELF-KNOWLEDGE: knowledge of own talents and value of foreign

assignments with responsibility and accountability.
B. OPEN TO FEEDBACK: effective leaders develop valued and varied source of
feedback on their behavior and performance.
C. HUMAN RELATIONS: a successful leader should have adequate knowledge of
human relations. An important part of a leader’s job is to develop people and
get their voluntary co-operation for achieving work.
D. TECHNICAL SKILLS: the ability to plan organizes delegates analyses seek advice,
make decisions control and win co-operation requires the use of important
abilities which constitute technical competence of leadership.
E. COMMUNICATIVE SKILLS: a successful leader knows how to communicate
effectively communication has great force it getting acceptance from the receivers.
A successful leader is an extrovert.

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Strengths/Advantages of Trait Theory

 It is naturally pleasing theory.

 It is valid as lot of research has validated the foundation and basis of the theory.
 It serves as a yardstick against which the leadership traits of an individual can
be assessed.
 It gives a detailed knowledge and understanding of the leader element in
the leadership process.

Limitations of The Trait Theory

 There is bound to be some subjective judgment in determining who is regarded

as a ‘good’ or ‘successful’ leader
 The list of possible traits tends to be very long. More than 100 different traits
of successful leaders in various leadership positions have been identified. These
descriptions are simply generalities.
 There is also a disagreement over which traits are the most important for
an effective leader

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  The model attempts to relate physical traits such as, height and weight, to
effective leadership.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

  Most of these factors relate to situational factors. For example, a minimum
weight and height might be necessary to perform the tasks efficiently in a military
leadership position.
 In business organizations, these are not the requirements to be an effective leader.

7.2 GROUPS AND EXCHANGE THEORIES OF LEADERSHIP

 Social psychology is the basis for group theories of leadership social exchange view
of leadership indicates that exchange theories propose that group members make
contributions at a cost to themselves and receives benefits at a cost to the group
of other members.
 Social exchange indicates that leadership is an exchange process between
the leaders and followers.

7.3 BEHAVIOURAL THEORIES

 Behavioral theories of leadership propose that specific behaviors differentiate

leaders from non leaders.
 These theories attempts to explain leadership I terms of the behavior that he
leader exhibits. These theories between patterns of leadership behavior and
group performance.

8. MANAGERIAL GRID

 It describes the relationship between the leader's concern for task and concern
for people, but this theory differs in its perspective.
 The managerial grid Considers leadership style based on their focus on task
and people.
 The managerial grid model (1964) is a style leadership model developed by Robert
R. Blake and Jane Mouton.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

  In this style, managers have low concern for both people and production.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

  This model originally identified five different leadership styles based on the
concern for people and the concern for production.
 The Managerial Grid is based on two behavioral

dimensions: Concern for People

 This is the degree to which a leader considers the needs of team members,
their interests, and areas of personal development when deciding how best to
accomplish a task.

Concern for Production

This is the degree to which a leader emphasizes concrete objectives, organizational

efficiency and high productivity when deciding how best to accomplish a task.

 Using the axis to plot leadership „concerns for production‟ versus „concerns
for people‟,

8.1 MANAGERIAL GRID MODEL:

 In each of the axis, both horizontal and vertical, you can find nine ranges. Nine
is the highest and one is the lowest range.
 So, if you are people-oriented manager who thinks about the team’s needs first,
you would score closer to nine (or even nine).
 On the other hand, if you had less care for the team’s needs, you would
be somewhere close to zero.
 When you score yourself in both the horizontal and vertical axis, you’ll get
the results for your management style

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HIGH

9 1, 9 country club 9, 9 team work

7
5.5 Middle off

6 1, 1 9,1

5 1.1

1 LOW 1 2 3 4 5 6 7 8 9 HIGH

1. Impoverished Management (1, 1):

 Managers with this approach are low on both the dimensions and
exercise minimum effort to get the work done from subordinates.
 The leader has low concern for employee satisfaction and work deadlines and as
a result disharmony and disorganization prevail within the organization. The
leaders are termed ineffective wherein their action is merely aimed at preserving
job and seniority.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

  For example, a manager nearing retirement or termination may lose interest
in both his staff and his product.
 He does the minimum amount of work required each day to get the job done but
has no long-term interest in improving productivity or developing his employees.
Employees lose faith in their company when their leader shows so little interest
in them or their work

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

 2. Country Club (1, 9):

 This is a collegial style characterized by low task and high people

orientation where the leader gives thoughtful attention to the needs of
people thus providing them with a friendly and comfortable environment.
 The leader feels that such a treatment with employees will lead to
self- motivation and will find people working hard on their own.
 However, a low focus on tasks can hamper production and lead to
questionable results.
 This leadership style may also be the leader’s conscious choice. The moment
an employee has to deal with personal problems the manager’s care and
support will be experienced as positive.
 It will temporarily affect the production but the backlog will be caught up at
a later time

For example:
 A newly promoted manager wants to remain friendly with his former peers so
he resists providing corrective criticism or discipline, even when it is warranted.
 Leaders who use this style focus so much on their staff that they fail to
recognize risks or threats to productivity and miss opportunities to develop new
business.

3.Task management (9, 1):

 Here leaders are more concerned about production and have less concern
for people.
 The employees’ needs are not taken care of and they are simply a means to an end.
 The leader believes that efficiency can result only through proper organization
of work systems and through elimination of people wherever possible.

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  Such a style can definitely increase the output of organization in short run but
due to the strict policies and procedures, high labour turnover is inevitable.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP |

  This leader is authoritative and he exerts disciplinary pressure. The leader
requires the utmost of the employees and imposes sanctions when they fail to
meet the requirements.

4.Middle-of-the-Road (5, 5):

 This is basically a compromising style wherein the leader tries to maintain

a balance between goals of company and the needs of people.
 The leader does not push the boundaries of achievement resulting in average
performance for organization. Here neither employee nor production needs
are fully met.
 In this leadership style the ‘happy medium ‘course is adopted.
 The leader maintains a balance between the needs of the people and
the production and the leader scores an average mark on both criteria

5.Team Management (9, 9):

 The leader feels that empowerment, commitment, trust, and respect are the
key elements in creating a team atmosphere which will automatically result
in high employee satisfaction and production.

A team management style has the leader projecting the following principles:

Commitment to the organization and its goals and mission

 Emphasis on finding ways to motivate team members

 Working hard and expecting others to show full commitment towards

goal- achievement
UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT
  Empowers the team and tries to be an inspiration for employees.

 Team management is a challenging leadership style, as your attention and focus

must be equally divided in achieving results and ensuring people are happy.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

  As a manager, you would want to ensure people are committed to
the organization and that they understand its vision and objectives.
 You would include the rest of the team in decision-making, to ensure
everyone has a stake in productivity and effectiveness

For example:

 An experienced manager inspires commitment from her employees and

promotes career development, but doesn't ignore the need to meet
aggressive deadlines in order to remain competitive.

 Using this style, a leader appreciates allegiance and admiration from his
staff but recognizes that running a successful business does not depend on
being liked by your employees.

9. TRANSACTIONAL VS TRANSFORMATIN LEADERSHIP

9.1 TRANSACTIONAL LEADERSHIP

 Transactional leadership involves an exchange relationship between leaders and
followers.
 The transactional style of leadership was first described by Max Weber in
1947 and then by Bernard Bass in 1981.
 When the transactional leader allocates work to subordinates he is
considered to be fully responsible for it.
 The basic assumptions behind transactional leadership are that people
are motivated by reward and punishment.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

  This style is most often used by the managers. It focuses on the basic
management process of controlling, organizing, and short-term
planning.
 The famous examples of leaders who have used transactional technique
include McCarthy and de Gaulle.
 Transactional leadership involves motivating and directing followers
primarily through appealing to their own self-interest.
 The power of transactional leaders comes from their formal authority and
responsibility in the organization. The main goal of the follower is to obey
the instructions of the leader. The style can also be mentioned as a ‘telling
style’.
 If a subordinate does what is desired, a reward will follow, and if he does not
go as per the wishes of the leader, a punishment will follow.
 Here, the exchange between leader and follower takes place to achieve
routine performance goa
 It is also known as managerial leadership.
Transactional leader facilitate this transition from external to internal control by
 Changing the mental models of employees
 Linking desired out comes to values held by employees
 Building strong employee identification with the group or organization.

The transactional leader tends to use the following compliances approaches like.

 ENJOYMENT: the leader attempts to convince the target of the enjoyment he

or she will experience along with compliance.
 REWARD: the leader offers favors benefits or future rewards for compliance.
 RECIPROCITY: the leader appeals based on felling of debt to the leader in
that them attempts to tap the intrinsic process and instrumental sources of
motivations.

QUALITIES OF TRANSACTIONAL LEADERSHIP

 Directive and action oriented

 Reward and punishment,Rewards and incentives

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

  Structure is clear,Short term goals and

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

EXAMPLES OF TRANSACTIONAL LEADERSHIP

 This model is also useful for big corporations like HP(Hewlett-Packard)

 Many high level members of the military CEO of large international companies
and NFL coaches.

10 TRANSFORMATION LEADERSHIP
 Transformational leadership is based on leaders shifting the values beliefs
and needs of the followers.
 We need much more of transformational leadership in every sphere be
it government business education or even non-profit organizations.
 The basic assumption behind this form of leadership is that people will follow
a person who inspires them
 A person with vision and passion can achieve great things the way to get
things done is by injecting enthusiasm and energy
 Transformational leadership starts with the development of vision a view of
the future that will excite and convert potential followers.
 The transformational leader thus takes every opportunity and will use
whatever works to convince others to climb on board.
 This vision may be developed by the leader by the senior team or may emerge
from a broad series of discussions.
 Transformational leader are always visible and will stand up in be counted
rather than hide behind their troops.
 They show by their attitudes and actions how everyone else should behave.
 They also make continued efforts to motivate and rally their followers
constantly doing the rounds listening, shooting and enthusing.
 When the behavior becomes internalized the leaders need to monitor
employee behavior is greatly reduced.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

  Transformational leadership is a style of leadership where the leader, along with
his/her team, is able to identify the challenges ahead,

 Resources available and is constantly engaging and involving the employees to

perform to the best of their abilities and grow professionally and personally in the
process.

 The most important aspect of transformational leadership is that the leader is not
only bothered about his performance or deliverables

 But also consciously tries to guide his subordinates and uses his experience and
expertise to give a good professional career to the subordinates

Examples of Transformational Leadership

Few examples of transformational leaders in the world and see how they functioned

1. Mahatma Gandhi:

 Mahatma Gandhi gave the Indian freedom movement a sense of direction and
purpose. He was able to make it a truly mass movement that till then existed
in fragmented interests and limited to either extreme elite participation or
participation of the extreme poor.
 By preaching his theory of non violence, Gandhi was able to bring in each citizen
of India into the freedom struggle and make every single person’s contribution
count.

2. Steve Jobs:
 Steve Jobs has to mandatorily be one of the names in the most
iconic transformational leaders the world has ever seen.
 His passion for perfection, simplicity and sophistication drove the company and
he made sure that it got engraved into every employee who worked at Apple.
 He constantly challenged his employees to think beyond what has already been
done and made them create products that the world did not even know it
needed.
UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT
SOME OF THE CHARACTERISTICS OF TRANSFORMATION LEADERS

 Courageous,Believe in people
 Value-driven
 Life-long Visionaries
 Have the abilities to deal with complexity ambiguity and un-certainty.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

10.2Difference between Transactional and Transformational Leaders

Transactional leadership Transformational Leadership

Leadership is responsive Leadership is proactive

Works within the Work to change the organizational culture by

organizational culture implementing new ideas

Transactional leaders make Transformational leaders motivate and empower

employees achieve organizational employees to achieve company’s objectives by
objectives through rewards and appealing to higher ideals and moral values
punishment

Motivates followers by appealing to Motivates followers by encouraging them to

their own self-interest transcend their own interests for those of
the group or unit

11 WOMEN LEADERSHIP IN INDIA

 Historically women have been discriminated against in our male
dominated society
 Women were considered to be fit to cook food but not to work in
business establishments.
 The picture is not totally different today. As we go into the future
discriminating against woman will certainly go and they will sure occupy equal
status along with male counterparts.
 The government is also keen on uplifting the status of women
 Participation of woman in business as owner’s managers and employees is
less encouraging considering the size of the population and the vest
opportunities available.
 Two questions regarding woman in leadership postings need to be addressed.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

  Are women more or less people oriented than male leaders? Are women
more or less job oriented than men?
 Will female leaders not be permitted to lead because of the stereotypes
and biases of their employees?
 With regard to the first question no differences are observed in the skills and
abilities of male and female leaders.
 Regarding second questions what we stated above holds good. There is the
deviate attitude of a male worker to work under a women manager un wanted
chivalrous attitude if the formers is boss.
 Women leaders encourage participation share power and information
and enhance people’s self worth.
 It is time for the corporate world to create an equitable workplace where
equal pay is given and childcare becomes a parent responsibility and not just
women responsibility.
 Male managers tend to be similar thinking decision types. Women
managers bring greater variety of thinking and personality type.
 Women typically invest in their families and communities significantly more
than men – spreading wealth and increasing the quality of life for
themselves and their families.
 Diversity of thinking at the senior level gives management teams a wider
peripheral vision of what constitutes a risk and provides a more
balanced approach for reacting to it, either as an opportunity or a threat.
 Gender diversity in firms’ decision-making teams could ultimately be the
difference between reaping success or failure. Women’s participation in the
workforce is thus critical in realizing the promise of the nation’s
demographic dividend.
 This needs proactive efforts both from a corporate and policy level, and
from women themselves.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

KEY STRENGTH OF WOMEN LEADERS IN INDIA

 Ability to network with colleagues Ability to perceive and understand situations

 Strong sense of dedication loyalty and commitment to their organizations
 Ability to multitask Behaving in a gender neutral manner
 Willingness to share information (interactive leadership style)

Examples of women leaders in India:

 Arundhati Bhattacharya, Chairperson,

 Chanda Kochhar– CEO & MANAGING DIRECTOR- ICICI BANK
 Archana Bhargava, Chairman and Managing Director, United Bank of India[2]

 Bala Deshpande, MD, New Enterprise Associates India

 Renu Sud Karnad, Managing Director of HDFC
 Kiran Mazumdar -SHAW-CMD –BIOCON
 Rekha Menon– CHAIRMAN & MD- ACCENTURE INDIA

External Questions: (Old Question papers)

UNIT-IV

1. Explain various types of group formation with examples?

2. “All managers must have leadership qualities but all leaders cannot have
managing qualities”. Discuss?
3. Discuss different leadership styles?
4. Define group? Explain the types of groups and process of formation of
group?
5. What is meant by leadership? Explain managerial grid theory in leadership?
6. Describe transactional and transformational leadership style.?
OR

7. Why transactional leadership is better than transformational leadership in

present organizations? Explain with an example.
PREPARED BY :

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT, KADAPA.

UNIT-IV GROUP BEHAVIOR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT

 (17E00101) MANAGEMENT & ORGANIZATIONAL BEHAVIOUR

Objective of the course is to give a basic perspective of Management theories and Practices. This will
form foundation to study other functional areas of management and to provide the students with the
conceptual framework and the theories underlying Organisational Behaviour.

1. Role of Management – Concept – Significance – Functions – Principles of Management - Patterns of

Management: Scientific – Behavioural – Systems – Contingency.
2.Decision Making & Controlling – Process – Techniques. Planning – Process – Problems –– Making It
Effective. Controlling - System of Controlling – Controlling Techniques – Making Controlling Effective
3. Individual Behaviour & Motivation – Understanding Individual Behaviour – Perception – Learning –
Personality Types – Johari window- Transactional Analysis- Motivation – Concept of Motivation -
Motivational Theories of Maslow, Herzberg, David Mc Clelland, and Porter and Lawler
4.Group Behavior & Leadership: Benefits of Groups – Types of Groups – Group Formation and
Development. Leadership and Organizational Culture and Climate: Leadership – Traits Theory –
Managerial Grid – Transactional Vs Transformational Leadership – Qualities of good leader- Women
Leadership in India.
5. Organisational Behaviour–Organizing Process – Departmentation Types – Making Organizing
Effective – Organisational culture- Types of culture – Organisational Culture Vs Organisational climate -
Conflict management - Change Management

Textbooks:

 Organisational Behaviour, Stephen P. Robbins, Pearson Education

 Management and Organisational Behaviour, Subbarao P, Himalaya Publishing House
 Principles of Management, Koonz,Weihrich and Aryasri, Tata McGraw Hill.
References:

 Organisational Behaviour ,S.S.Khanka, S.Chand

 Organisational Behaviour , Mishra .M.N ,Vikas
 Management and Organisational behaviour, Pierce Gordner, Cengage.
 Behaviour in Organizations, Hiriyappa .B.New Age Publications
 Organisational Behaviour, Sarma, Jaico Publications.
 Principles of Management ,Murugesan ,Laxmi Publications

MCOB NOTES
 UNIT-5
ORGANISATIONAL
BEHAVIOR

1. ORGANISATIONAL PROCESS

INTRODUCTION:
 Organizational behavior is the study of how people act in groups, particularly
at work.
 This field of study has yielded four types of organizational behavior and each
has different effects on workplace productivity and morale.
 In practice, no single type of organizational behavior characterizes a business,
so you need to analyze which types your company uses and find ways to utilize
that knowledge to make your company effective.

Grouping the jobs & department

identifications organisa
assingment
division of tion process of duties
work

establishing
reporting relationship

MCOB NOTES
 1. Identification and Division of work:
 The organizing function begins with the division of total work into smaller
units. Each unit of total work is called a job.
 And an individual in the organization is assigned one job only. The division of
work into smaller jobs leads to specialization because jobs are assigned to
individuals according to their qualifications and capabilities.

MCOB NOTES
  The division of work leads to systematic working. For example, in a bank
every individual is assigned a job.
 One cashier accepts cash, one cashier makes payments, one person issues cheque
books, one person receives cheques, etc. With division of work into jobs the
banks work very smoothly and systematically.

2. Grouping the Jobs and Departmentalisation:

 After dividing the work in smaller jobs, related and similar jobs are
grouped together and put under one department.
 The departmentation or grouping of jobs can be done by the organisation
in different ways. But the most common two ways are:

(a) Functional departmentation:

 Under this method jobs related to common function are grouped under one
department. For example, all the jobs related to production are grouped under
production department; jobs related to sales are grouped under sales
department and so on.

(b) Divisional departmentation:

 When an organization is producing more than one type of products then
they prefer divisional departmentation.
 Under this jobs related to one product are grouped under one department. For
example, if an organisation is producing cosmetics, textile and medicines then
jobs related to production, sale and marketing of cosmetics are grouped under
one department, jobs related to textile under one and so on.

MCOB NOTES
 3.Assignment of Duties:
 After dividing the organisation into specialised departments each individual
working in different departments is assigned a duty matching to his skill
and qualifications.

MCOB NOTES
  The work is assigned according to the ability of individuals. Employees are
assigned duties by giving them a document called job description.
 This document clearly defines the contents and responsibilities related to the job.

4.Establishing Reporting Relationship:

 After grouping the activities in different departments the employees have to

perform the job and to perform the job every individual needs some
authority.
 So, in the fourth step of organising process all the individuals are assigned
some authority matching to the job they have to perform.
 The assignment of the authority results in creation of superior-
subordinate relationship and the question of who reports to whom is
clarified.
 The individual of higher authority becomes the superior and with less
authority becomes the subordinate.
 With the establishment of authority, managerial hierarchy gets created (chain
of command) and principle of scalar chain follows this hierarchy.
 The establishment of authority also helps in creation of managerial level.
 The managers with maximum authority are considered as top level managers,
managers with little less authority become part of middle level management
and managers with minimum authority are grouped in lower level management.

2. Departmentation Types

MCOB NOTES
  Departmentation’ or ‘Departmentalization’ is the process of grouping the activities
of an enterprise into several units for the purpose of administration at all levels.

 The administrative units so created may be designated as departments,

divisions, units, branches, sections, etc.

 Departmentation can provide a necessary degree of specialization of executive

activity for efficient performance.

MCOB NOTES
  It can simplify the tasks of management within a workable span. It also provides
a basis on which the top managers can co-ordinate and control the activities of
the departmental units.

Importance of Departmentation:

1. Advantages of Specialization:
 Departmentation enables an enterprise to avail of the benefits of
specialization. When every department looks after one major function, the
enterprise is developed and efficiency of operations is increased.

3. Expansion:
 One manager can supervise and direct only a few subordinates.
 Grouping of activities and personnel into departmentation makes it possible for
the enterprise to expand and grow.

4. Fixation of Responsibility:
 Departmentation enables each person to know the specific role he is to play in
the total organisation.

 The responsibility for results can be defined more clearly, precisely and accurately
and an individual can be held accountable for the performance of his
responsibility.

5. Upliftment of Managerial Skill:

 Departmentation helps in the development of managerial skill. Development
is possible due to two factors.

MCOB NOTES
  Firstly, the managers focus their attention on some specific problems which
provide them effective on-the-job training. Secondly, managerial need for further
training can be identified easily because the managers’ role is prescribed and
training can provide them opportunity to work better in their area of specialisation.

MCOB NOTES
 6. Facility in Appraisal:
 Appraisal of managerial performance becomes easier when specific tasks are
assigned to departmental personnel. Managerial performance can be
measured when the areas of activities are specified and the standards of
performance are fixed. Departmentation provides help in both these areas.

 When a broader function is divided into small segments and a particular segment
is assigned to each manager, the area to be appraised is clearly known; and the
factors affecting the performance can be pointed out more easily.

 Similarly, the standards for performance can be fixed easily because the
factors influencing the work performance can be known clearly. Thus,
performance appraisal becomes more effective.

7. Administrative Control:
 Departmentation is a means of dividing the large and complex organisation into
small administrative units. Grouping of activities and personnel into
manageable units facilitates administrative control.
 Standards of performance for each and every department can be
precisely determined.

2.1Types of Departmentation
1. Functional Departmentation.

3. Territorial or Geographical Departmentation.

MCOB NOTES
 4. Customer wise Departmentation.

5. Process or Equipment wise Departmentation.

6. Combined or Composite Form of Departmentation.

MCOB NOTES
 1. Functional Departmentation:
 It refers to grouping the activities of an enterprise on the basis of functions such
as production, sales, purchase, finance, personnel, etc.

 The actual number of departments in which an enterprise can be divided depends

upon the size of establishment and its nature. To begin with, we may have three
or four main departments. With the growth in the size of the business, more
departments and sub-departments may be created.

A simple representation of functional departmentation is given below:

Advantages:
It is a very simple, natural and logical way of grouping activities.

It promotes specialization and expertise in various functional areas and experts can
be employed.

It facilitates co-ordination both within the function and at the inter-departmental

level.

 It generates a high degree of centralization at the level of chief executive.

Disadvantages:
 It may lead to internal frictions among the various departmental heads as
one department may ignore the interest of the other,
MCOB NOTES
  In functional departmentation, men are experts of these areas of function only.
This hinders the development of all-round managers.
 It leads to excessive centralisation and delay in decision making.
 It is unsuitable where emphasis lies on products more than the functions.

MCOB NOTES
 2. Product Wise Departmentation:
 The grouping of activities on the basis of products is very popular with
large organizations having distinct type of products.
 Under this method, all activities related to one type of product are put
together under one department under the direction of a production manager.
 Product wise departmentation is also known as multifunctional product
departmentation, because each product department handles all the
functions concerning it.
 An electronic company, for instance, may have different departments dealing
in television sets, radios and transistors, computers, agro-dairy instruments,
etc.

A simple representation of product wise departmentation is given as follows:

Advantages:
It ensures better customer service.

 Unprofitable product lines can be easily determined.

 It solves the co-ordination problem of functional departments.
 It makes control effective.
 It assists in the development of all-round managerial talent.
 It is flexible as a new product division can be easily
added. Disadvantages:

MCOB NOTES
  It is expensive because of duplication of service functions in various
product divisions.

MCOB NOTES
  It may not be linked by customers and dealers who have to deal with
different salesmen of the same enterprise for different products.

 It may cause difficulty in apportioning general expenses incurred by the

enterprise as a whole.

3. Territorial or Geographical Departmentation:

 When several activities of an enterprise are geographically dispersed in different
locations, territorial or geographical departmentation may be adopted.

 All activities relating to a particular area or zone may be grouped together

under one zonal manager or head.

There may be further sub-division of activities under one zonal manager as illustrated
here:

Advantages:
It enables an enterprise to cater to the needs of local people in a satisfactory

manner.
 It enables a concern to make use of locational advantages.
 It facilitates effective control.
 It facilitates effective co-ordination of activities within an area.
 It assists in the development of all-round managerial talent.

MCOB NOTES
 Disadvantages:
 It is an expensive method of creating departments and over head costs are
also increased
 It leads to duplication of activities which creates confusion and involves costs,
 Co-ordination among various territorial divisions may become
difficult. 5.Customer Wise Departmentation:
 A business house may be divided into a number of departments on the basis of
customers it serves, viz., large and small customers ;industries and ultimate buyers
, government and other customers.
 The peculiar advantage of customer wise departmentation is that it ensures
full attention to different types of customer and their different needs, tastes
and requirements can be read effectively.
 However, it may not be possible to group all activities of an enterprise on the
basis of customers.
 In fact, the activities may be classified or grouped on such basis. But there may be
problems of co-ordination with other departments. There may not be enough
work, at times, in case of certain types of Customers. This may lead to idle
capacity.

1. Process or Equipment Wise Departmentation:

 An enterprise where production is carried through different processes may adopt
process wise departmentation to enable continuous flow of production.
 Similarly, where work is carried on machines which are common, departments
may be created on the basis of equipments, such as milling departments, grinding
departments, lathe department etc.
 The main advantage of this method is that it avoids duplication of equipment
in various activities.

MCOB NOTES
  Moreover, specialized people can be engaged to work on specialised
equipments and departments.

MCOB NOTES
 6. Combined or Composite Method of Departmentation:
 In practice, it may not be advisable to create departments on the basis of any
one of the above mentioned methods.
 An enterprise may have to combine two or more of the methods of
Departmen- tation to make best use of all of them.
 Such a method is known as combined or composite method of departmentation.

This can be illustrated as follows:

3. MAKING ORGANISATION EFFECTIVE

 “Organizing” is the function of gathering resources, establishing orderly uses

for such resources and structuring tasks to fulfill organizational plans.

 It includes the determination of what tasks are to be done, how the tasks are to
be grouped, who is going to be responsible to do these tasks and who will make
decisions about these tasks.

MCOB NOTES
  Organizational effectiveness is the concept of how effective an organization is in
achieving the outcomes the organization intends to produce.[1] Organizational
Effectiveness groups in organizations directly concern themselves with several
key areas.

MCOB NOTES
  They are talent management, leadership development, organization
design and structure, design of measurements and scorecards, implementation of
change and transformation, deploying smart processes and smart technology to
manage the firms' human capital and the formulation of the broader Human
Resources agenda

3.1 The process of organizing effective

2. Determining activities: 4.Assigning work and resources:

3Classifying and grouping

1. Reviewing plans and objectives:

5.Evaluating results:

Reviewing plans and objectives:

The first step for the management is to reflect on the organizational goals and
objectives and its plans to achieve them so that proper activities can be determined.

 For example, if a high class restaurant is to be opened in an elite area, then the
management must establish objectives and review these objectives so that these
are consistent with the location of the restaurant and the type of customers to
be served.

MCOB NOTES
 2. Determining activities:
 In the second step, managers prepare and analyze the activities needed
to accomplish the objectives.
 In addition to general activities such as hiring, training, keeping records and so
on, there are specific activities which are unique to the type of business that an
organization is in.
 For example, in the case of the restaurant, the two major activities or tasks
are cooking food and serving customers.

3.Classifying and grouping activities:

 Once the tasks have been determined, these tasks must be classified
into manageable work units.
 This is usually done on the basis of similarity of activities. For example, in a
manufacturing organization, the activities may be classified into
production, marketing, finance, research and development and so on.
 For example, in the area of serving customers in the restaurant, there may be
different persons for taking cocktail orders, for food orders and for clearing
the tables.
 For cooking food, there may by different cooks for different varieties of food.

4.Assigning work and resources:

 This step is critical to organizing because the right person must be matched with
the right job and the person must be provided with the resources to accomplish
the tasks assigned.
 The management of the restaurant must determine as to who will take the
orders and who will set as well as clear the tables and what the relationship
between these individuals will be.

MCOB NOTES
  Management must also make sure that adequate resources of food items,
utensils and cutlery is provided as necessary.

MCOB NOTES
 5.Evaluating results:
 In this final step, feedback about the outcomes would determine as to how well
the implemented organizational strategy is working.

 This feedback would also determine if any changes are necessary or desirable in
the organizational set-up.

 For example, in the case of the restaurant, complaints and suggestions from
customers would assist the manager in making any necessary changes in
the preparation of food, internal decor of the restaurant or efficiency in
service.

MCOB NOTES
  Driving successful individual transitions should be the central focus of the
activities in organizational change management.
 Organizational change management is complementary to your
project management.
 Project management ensures your project’s solution is designed, developed and
delivered, while change management ensures your project’s solution is
effectively embraced, adopted and used.

 Minimize
 engagement
 Improve performance
 Reduce
 Innovation

8.1 Change Management Process

Step 1: Urgency Creation

 A change is only successful if the whole company really wants it. If you are
planning to make a change, then you need to make others want it.
 You can create urgency around what you want to change and create hype.
 This will make your idea well received when you start your initiative. Use statistics
and visual presentations to convey why the change should take place and how the
company and employees can be at advantage.

Step 2: Build a Team

 If your convincing is strong, you will win a lot of people in favour of change.

MCOB NOTES
  You can now build a team to carry out the change from the people, who support
you. Since changing is your idea, make sure you lead the team.
 Organize your team structure and assign responsibilities to the team members.
Make them feel that they are important within the team.

MCOB NOTES
 Step 3: Create a Vision
 When a change takes place, having a vision is a must. The vision makes everything
clear to everyone.
 When you have a clear vision, your team members know why they are working on
the change initiative and rest of the staff know why your team is doing the change.

Step 4: Communication of Vision

 Deriving the vision is not just enough for you to implement the change. You need
to communicate your vision across the company.
 This communication should take place frequently and at important forums. Get
the influential people in the company to endorse your effort.
 Use every chance to communicate your vision; this could be a board meeting or
just talking over the lunch.

Step 5: Removing Obstacles

 No change takes place without obstacles. Once you communicate your vision, you
will only be able to get the support of a fraction of the staff. Always, there are
people, who resist the change.
 Sometimes, there are processes and procedures that resist the change too! Always
watch out for obstacles and remove them as soon as they appear. This will
increase the morale of your team as well the rest of the staff.

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 Step 6: Go for Quick Wins
 Quick wins are the best way to keep the momentum going. By quick wins, your
team will have a great satisfaction and the company will immediately see the
advantages of your change initiative.

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  Every now and then, produce a quick win for different stakeholders, who get
affected by the change process. But always remember to keep the eye on the long-
term goals as well.

Step 7: Let the Change Mature

 Many change initiatives fail due to early declaration of victory. If you haven't
implemented the change 100% by the time you declare the victory, people will be
dissatisfied when they see the gaps.
 Therefore, complete the change process 100% and let it be there for sometime.
Let it have its own time to get integrated to the people's lives and organizational
processes before you say it 'over.'

Step 8: Integrate the Change

 Use mechanisms to integrate the change into people's daily life and corporate
culture.
 Have a continuous monitoring mechanism in place in order to monitor whether
every aspect of the change taking place in the organization. When you see
noncompliance, act immediately.

8.2 Benefits of effective change management

1. Return on investment:

 Economies of scale as the approach to change is re-used for each initiative

saving the number of days spent defining a unique approach to each change
initiative.

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  Faster implementation of change as those
 d can estimate with greater certainty the impact on their workloads and the level
of impact in their departments.

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 2. Quality of the outcome achieved:

 Increased understanding of the impact of the change which ensures that

all processes, systems and people that are impacted are consulted, and
their requirements incorporated into the change plan.
 Appropriate levels of involvement with agreed responsibilities for making
the change happen reduces the resistance to change and increases the rate
of adoption, leading to greater realization of benefits

3. Efficiency of resources:

 Clarifies the roles and responsibilities of all those involved in the change effort,
ensuring that those with the most relevant skills and experience are given
appropriate activities to manage. R
 education in the number of ‘failed’ change initiatives and the waste of
resources involved in making changes that ‘run out of steam’ or get overtaken
by other events which had not been assessed when the change was conceived.
 Reduction in the level of activity that is duplication of effort or that is running at
cross purposes to other changes being made elsewhere in the organization.
 Enhanced employee morale and a reduction in recruitment and retention costs.

4.Assessment and Motivation

 With a strategic change management plan, your organization will have a vision for
what the process of change will look like, and what milestones need to be
reached to achieve the end goal.

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  This allows those in charge of the transition to assess the success of the project
during each critical stage, and also provides an opportunity to motivate
individuals and teams to help achieve the desired goals with recognition for those
who succeed.

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 5. Maintaining Day-to-Day Operations

 While some sacrifices may be necessary to reach your desired future state,
you should be able to implement change without harming your current
operations.
 An effective change management plan will consider what individuals and
teams need in order to continue doing their jobs and maintain day-to-day
operations without noticeable negative effects.

6. Considering Employee Concerns

 Addressing the concerns of employees allows organizations to be more efficient
and effective.
 Developing a change management plan will allow your organization to address
these concerns and keep the lines of communication open with all the
individuals and teams involved in the transition.

7. Reducing Risk and Inefficiency

 Taking the time to create an organizational change management plan will allow
you to save time and reduce risks in the end.
 By simply creating a plan that considers all the individuals and teams involved in
the transition, you can reduce the possibility of an unsuccessful attempt to change,
and reduce the amount of time it takes to implement the change.

8. Boost in Morale
 When employees see that the leaders in their organization have taken the time to
develop a change management plan that considers their wants and needs, they
are bound to perform better and get more involved in the transition.
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  So make sure your staff feels supported and that they have the information
they need to succeed.

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 External Questions: (Old Question papers)

UNIT-V

1. How do you create and maintain organization culture?

2. What is departmentation? Explain types of departmentation and its importance in
organizations
3. What is organizational conflict? How to manage them?
4. Describe causes of conflicts in organization

IMPORTANT QUESTIONS FOR EXTERNAL EXAMS

External Questions: (Old Question papers)

UNIT-I

1. What are the principles of management? Explain each of them?

2. What is meant by scientific management and explain its implications in
organizational behavior?

OR Patterns of Management (Scientific,Behavioural,Systems ,Contingency)

3. Describe the functional areas of management? Or Functions of Management?
4. What is the system approach in management? Explain the contingency theory?

External Questions: (Old Question papers)

UNIT-II

1. What are the tools and techniques of decision making?

2. Describe the meaning and process involved in decision making?
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 3. Define planning? Discuss the techniques in planning?
4. What is meant by system of controlling? When controlling can be make
effective? Explain with an example

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 UNIT-III

1. What is individual behavior? What are the factors that affect on individual
behavior?
2. Compare and contrast Maslow’s theory of motivation and Herzberg two
factor theory of motivation?
3. What is meant by transactional analysis? What is its importance in
understanding people in organization?
4. What is meant by motivation? Explain any two theories of motivations which
are applicable to present organizations?
5. What is Johari window? Discuss the stages of personality development?
6. Define motivation. Explain Herzberg motivational theory?

External Questions: (Old Question papers)

UNIT-IV

1. Explain various types of group formation with examples?

2. “All managers must have leadership qualities but all leaders cannot have
managing qualities”. Discuss?
3. Discuss different leadership styles?
4. Define group? Explain the types of groups and process of formation of
group?
5. What is meant by leadership? Explain managerial grid theory in leadership?
6. Describe transactional and transformational leadership style.?

OR
7. Why transactional leadership is better than transformational leadership in
present organizations? Explain with an example.

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 External Questions: (Old Question papers)

UNIT-V

1. How do you create and maintain organization culture?

2. What is departmentation? Explain types of departmentation and its importance in
organizations
3. What is organizational conflict? How to manage them?
4. Describe causes of conflicts in organization?

PREPARED BY:

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT, KADAPA.

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