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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

ORGANISATIONAL BEHAVIOUR
COURSE CODE: BFM603

CLASS: TYBFM SEMESTER: VI

STUDY MATERIAL PREPARED BY

ASST. PROF. VIJAY BHOJWANI


(BMS-MARKETING, MMS-HR, M.COM- Management)

MS. SONA JACOB


M.COM(ACCOUNTANCY), SET-MAH

FOR PRIVATE CIRCULATION ONLY

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

TABLE OF CONTENTS

Sr.n Description Page


o no

1 Introduction to Organisational Behaviour 4-28


a) Organisational Behaviour- Organisational Behaviour Multidiscipline-
Different model of Organisational Behaviour
b) Individual behaviour is studied through Personality (Determinants of
personality, Personality traits theory, Big five model, Personality traits important
for organisational behaviour like authoritarianism, locus of control,
Machiavellianism, introversion-extroversion achievement orientation, self –
esteem, risk taking, self-monitoring and type A and B personalities), Johari
Window
c) Attitudes (Nature and components of attitude, Functions of attitude, Ways of
changing attitude)
d) Job satisfaction

2. Perception, Values, Motivation and Learning 29-48


a) Understanding self-studied through- Perception (Perception features and
factors influencing individual perception, Effects of perceptual error in
managerial decision making at workplace.
b) Understanding self-studied through- Values (Meaning, types)
c) Motivation (Meaning, types, theories of motivation)
d) Learning (Meaning, theories of learning)

3 Group Behaviour and Team Behaviour 49-64


a) Group Behaviour, Informal Groups – Group Dynamics- Types of Groups-
Nature and effects of Informal groups-Benefits of Informal groups-Formal
groups – Monitoring informal organisation- Identifying and Rewarding Informal
leader- Key Roles of Informal leader –Are there Multiple informal leaders?
Formal Groups- Potential Outcomes of Informal Group Processes
b) Team and Team Building- Modern organisation- Outcomes of Modern
Organisation-Teamwork – Task team- Difference Between Groups and Teams-
Life cycle of Team –Major Factors for Effective Teams- Team Building- Need
for Team building- Team Building, Process- Skills Useful in Team Building

4 Understanding Others: Interpersonal relationships 65-80


a) Conflict Management –Nature of Conflict- Level of Conflict- Source of Conflict-
Effects of Conflict- Process of Conflict- Stages of Conflict- Conflict Handling
Orientations
b) Power and Organisational Politics-Sources of Power-Organisational Politics-
Influence and Political Power, Political tactics to gain power

5 • Stress Management, Counselling and Change 81-97


a) Stress Management and Counselling- How it Comes About –How it Affects
Various Elements of Job Performance- Extreme Product of Stress- Stress
and Job Performance-Approaches to Stress Management-Characteristic of
Counselling-Types of Counselling

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

b) Change and its Effects- Nature of Change – Effect of Change – Response


to Change –Resistance to change – Reasons for Resistance to Change-
Transformational Leadership and Change-What are Elements of
Transformational Leadership- Three stage model of changes Process

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Module 1: Introduction to Organisational Behaviour


Chapter A: Organisational Behaviour
Meaning
Organisational Behaviour is the study and application of knowledge about how
people act within organisations. It is a human tool for human benefits. It applies to
the behaviour of people at work in all types of organisations: public, private,
cooperative sector, commercial or service organisations.

Definition
“organisational behaviour is directly concerned with the understanding, prediction,
and control of human behaviour in organisations.” — Fred Luthans.

“Organisation behaviour is the study of human behaviour in organisational settings


that interface between 2 human behaviours and the organisation and the
organisation itself.”
—- Moorhead/Griffin.

Importance of organisational Behaviour

1. It builds better relationships by achieving people’s, organisational, and social


objectives.
2. It covers a wide array of human resources like behaviour, training and
development, change management, leadership, teams etc.
3. It brings coordination which is the essence of management.
4. It improves the goodwill of the organisation.
5. It helps to achieve objectives quickly.
6. It makes optimum utilization of resources.
7. It facilitates motivation.
8. It leads to higher efficiency.
9. It improves relations in the organisation.
10. It is multidisciplinary, in the sense that it applies different techniques,
methods, and theories to evaluate the performances.

Features/Nature of the Organisational Behaviour:

1. Behavioural Approach to Management

Organisational behaviour is that part of whole management which represents the


behavioural approach to management. Organisational behaviour has emerged as a
distinct field of study because of the importance of human behaviour in organisations.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

2. Cause and Effect Relationship


Human behaviour is generally taken in terms of cause and effect relationship and not
in philosophical terms. It helps in predicting the behaviour of individuals. It provides
generalizations that managers can use to anticipate the effect of certain activities on
human behaviour.

3. Organisational Behaviour is a Branch of Social Sciences

Organisational behaviour is heavily influenced by several other social sciences viz.


psychology, sociology and anthropology. It draws a rich array of research from these
disciplines.

4. Three Levels of Analysis

Organisational behaviour encompasses the study of three levels of analysis namely


individual behaviour, inter-individual behaviour and the behaviour of organisations
themselves. The field of organisational behaviour embraces all these levels as being
complementary to each other.

5. A Science as well as an Art

Organisational behaviour is a science as well as an art. The systematic knowledge


about human behaviour is a science and the application of behavioural knowledge
and skills is an art. Organisational behaviour is not an exact science because it
cannot exactly predict the behaviour of people in organisations. At best a manager
can generalize to a limited extent and in many cases, he has to act on the basis of
partial information.

6. A Body of Theory, Research and Application

Organisational behaviour consists of a body of theory, research and application


which helps in understanding the human behaviour in organisation. All these
techniques help the managers to solve human problems in organisations.

7. Beneficial to both Organisation and Individuals

Organisational behaviour creates an atmosphere whereby both organisation and


individuals are benefitted by each other. A reasonable climate is created so that
employees may get much needed satisfaction and the organisation may attain its
objectives.

8. Rational Thinking

Organisational behaviour provides a rational thinking about people ‘and their


behaviour. The major objective of organisational behaviour is to explain and predict
human behaviour in organisations, so that result yielding situations can be created.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

NATURE OF ORGANISATIONAL BEHAVIOUR:


Organisational behaviour is an applied behavioral science. It has been built with
contributions from several other fields. The major sciences that have contributed to
organisational development are psychology, sociology, social psychology, and
anthropology. The contribution of psychology is more at the micro or individual level
whereas the other sciences have contributed more at the macro or group level.

The following sciences have contributed significantly to OB:

(1) Psychology: Psychology is described as "a science that seeks to measure,


explain and change the behaviour of humans and other animals" (Robbins and
Judge, 2013). The main concern of a psychologist is to understand and explain
individual behavior. Psychology has made important contributions to OB in the
following areas: learning, perception, motivation, training emotions, leadership
effectiveness, job satisfaction performance appraisal, employee selection technique
employee design, work stress, attitude measurement etc.

(2) Social Psychology: Social psychology studies how people influence each other
by combining concepts and ideas for psychology and sociology.Social psychology
has made important contributions to the following areas: behavioral and attitude
change, communication, group processes and decision making conflicts, power etc.

(3) Sociology: Sociology is the "study of people in relation to their social environment
or culture" (Robbins and Judge, 2013).Sociology has made important contributions
to OB in the following areas: intergroup behavior, organisational theory,
organisational technology, power and politics, organisational change and
organisational culture.

(4) Anthropology: Anthropology is "the study of societies to learn about human


beings and their activities'' (Robbins and Judge, 2013).The work of anthropologists
has helped OB understand the difference in values, attitudes and behaviour of
people in different countries and different organisations. It has also contributed to
OB's understanding in the areas of organisational culture and organisational
environment.

GOALS OF organisational BEHAVIOR


Organisational behaviour has four main goals or objectives.

1) Describe behaviour: The first goal of organisational behaviour is to gather


information that helps us to describe human behavior accurately and
completely. organisational behaviour describes how people behave under
different conditions. Knowledge of organisational behaviour helps managers
to describe and communicate various aspects of human behaviour in a
common and consistent language.
2) Understand behavior: Mere description of human behaviour is of little use.
An important goal of organisational behaviour is to understand and explain
the causes of people's behavior. organisational behaviour tries to find the

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

reasons behind human actions. organisational behaviour attempts to


understand why people behave as they do. Knowledge of OB helps
managers to understand their employees better and deal more effectively with
them.
3) Predict behavior: A better understanding of the causes of behaviour helps in
predicting future behaviour of employees. Managers are able to predict which
employees are likely to be sincere and dedicated and which ones are likely to
be disruptive. Knowledge of OB helps managers to identify and unproductive
employees. Thus managers can appropriate actions to increase effective
behaviours, eliminate or reduce ineffective actions.
4) Control behavior: The final objective of organisational behaviour is to control
or influence behaviour in ways that are beneficial to everyone in the
organisation. Organisational behaviour suggests ways by which we motivate
employees, reduce stress in the workplace, team effort and so on.

Organisational Behaviour – 2 Main Principles:


Applying the knowledge of organisational behaviour in management is to make
management more purposeful and practical. Management is managing the activities
of people. When dealing with an individual, it is of vital importance to understand the
individual and his behaviour.
Organisational behaviour is based mainly on two main principles:
1. Nature of the people, and
2. Nature of the organisation.

1. Nature of the People:


(i) Individual differences:
Every individual is different from the other in respect of intelligence, habit, nature,
attitude, etc. This individual difference is the outcome of his psychological aspects.
Organisational behaviour is a part of psychology.
An individual with psychological differences will show the same in his behavioural
pattern in an organisation. Management (Manager) has to behave differently with
different persons. This knowledge is provided to management by the study of OB.

(ii) Whole Person:


An individual is a whole person with physical and psychological aspects. Therefore,
we cannot deal with a person by part. For example, an employee working in an
organisation has a lot of personal problems worrying him. It is not possible for him to
perform the work by keeping away these problems at home and work efficiently with
his physical capability alone. No one can separate the physical and psychological
aspects and deal with the individual.

(iii) Caused Behaviour:


This is a reaction in an individual due to some needs and wants, which he has to
satisfy. These may be financial or non-financial. This behaviour has to be regulated
by proper motivation. Hence the management and OB have to work together to
understand the exact nature of the need of an individual to be satisfied and the
desired incentive to be provided to the individual so as to help satisfy his needs.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

(iv) Human Dignity:


People in an organisation have some strong beliefs and possess certain value
systems of their own. Let it be a manager or a worker; each possesses the dignity of
his position and role in the organisation. An individual, who possesses a strong value
system may not compromise it simply, as such he has to be given the deserving
value and recognition. Related approach of OB and management will be of great
help in such a situation.

2. Nature of Organisation:
Nature of organisation has three aspects:

(i) Social System:


Organisational activities are controlled by social and psychological norms. People
have psychological needs and motives, at the same time, they are bound to shoulder
social responsibility, according to their role in the organisation.

The behaviour of people in an organisation is normally governed by the group and


by individual’s desire. One can find the above two types of norms operating. Due to
proper interaction of these norms, organisational activities become cordial and
efficient.

(ii) Mutual Interests:


These always bring cooperation and confidence among people. It is the source of
sound organisational behaviour. People and organisations are interdependent like
OB and management. People need organisation for livelihood on the other hand, the
organisation needs people for achieving its goals. So the relation between OB and
management can bring all round progress, if both have an amicable relationship
between them.The mutuality of interest provides a common platform to build upon.

3) Ethics:
. Ethical practice is a fundamental concept that organisational behaviour strongly
advocates.
When organisations engage in ethical actions and practices the result is a triple
reward system. The objectives of the individual, organisation and society are met.
Thus everyone wins and all the three - people, organisation and society benefit and
gain.

● Individuals gain by way of greater job satisfaction and a spirit of cooperation


and teamwork develops. This in turn has a positive impact on organisations .
● Their quality of products and services improve, and costs are reduced.The
greatest beneficiary and biggest winner of organisations adopting ethical
practices is the society.
● Society gains because it has better products and services, more capable
citizens and an environment of cooperation and progress.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Models of Organisational Behaviour:


Human behaviour is a very complex phenomenon. It is extremely difficult to
understand and predict human behavior. This is because individuals behave
differently in different situations and the same individual behaves differently in the
same situation.

The models of OB are frameworks to explain and manage the behaviour of people
in organisations . They attempt to explain why people behave the way they do and
what managers must do to achieve organisational goals.

There are four different types of models in OB.

1. Autocratic Model:
The root level of this model is power with a managerial orientation of authority. The
autocratic model depends on power. Those who are in command must have the
power to demand ―you do this-or else, meaning that an employee who does not
follow orders will be penalized. In an autocratic environment the managerial
orientation is formal, official authority. This authority is delegated by right of
command over the people to it applies. Under an autocratic environment the
employee is obedient to a boss, not respect for a manager.

2. Custodial Model
A successful custodial approach depends on economic resources. This approach
depends on money to pay wages and benefits. Since employee’s physical needs
are already reasonably met, the employer looks to security needs as a motivating
force. The custodial approach leads to employee dependence on the organisation.
Rather than being dependent on their boss for their weekly bread, employees now
depend on organisations for their security and welfare.

3. Supportive Model
The supportive model depends on leadership instead of power or money.
Through leadership, management provides a climate to help employees grow and
accomplish in the interests of the organisation the things of which they are capable.
The leader assumes that workers are not by nature passive and resistant to
organisational needs, but that they are made so by an inadequately supportive
climate at work. They will take responsibility, develop a drive to contribute, and
improve themselves if management will give them a chance.

4. Collegial Model
The root level of this model is partnership with a managerial orientation of
teamwork. The collegial model depends on management’s building a feeling of
partnership with employees. The result is that employees feel needed and useful.
They feel that managers are contributing also, so it is easy to accept and respect
their roles in their organisation. Managers are seen as joint contributors rather than
as bosses. The managerial orientation is toward teamwork. Management is the
coach that builds a better team

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

CHALLENGES FOR organisational BEHAVIOR


The dawn of the new century has brought in new challenges for organisational
behavior. The need to understand the behaviour of people in organisations has
become more important than even before. This is because managers face issues of
the kind that they have never faced before.

1.The Challenge of Globalization


Organisations no longer operate within national borders. They Operate all over the
world. The world has become a global village. Globalization is having a tremendous
impact on the way people are managed and businesses are run, the manager's job
has changed significantly. Managers face a real challenge when they have to go and
work in a foreign country. This challenge is even greater when they have to work with
people who have negative feelings and sentiments against the manager's country.
For example, an American manager who has to work in Pakistan. OB’s knowledge
on issues such as emotions, motivation, leadership and appropriate leadership can
help managers overcome this challenge.

2.The Challenge of Workforce Diversity

The composition of the workforce is changing dramatically, becoming increasingly


diverse. The most notable changes in workforce are:

(1) The increasing presence of women in the workforce.

(2) The workforce is becoming multiracial and multinational in nature.

(3) The increase in the education level of the workforce.

(4) The age composition of the workforce.

The increased diversity is placing heavy demands on management. Managing and


accommodating such a diverse group. Changing the workforce is perhaps the
greatest challenge facing HRM

3.The Challenge of Improving Quality and Productivity

There is fierce competition among organisations to gain a larger share of the market.
To face this competition managers have to reduce costs on one hand and improve
the productivity and quality of products and services on the other. OB provides useful
insights to managers in bringing about these changes.

4.The Challenge of Improving Customer Service

Top quality customer service has become vital for an organisation's continuous
survival. Friendly and efficient customer service could make all the difference
between acquiring or retaining or losing a customer or client. organisations need to
create a customer-responsive culture. . In order to meet these challenges, managers

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

need to cultivate in their employees the right attitudes and behaviour: associated with
customer satisfaction.

5.The Challenge of Improving People Skills

Excellent customer service is possible only if the employ - possess good people
skills. Hence a challenge before today’ manager is to improve the people skills of his
employees. He does so by improving the employees’ listening skills, building 8 sense
of belongingness and team spirit, designing jobs in a way that motivates them to
work harder and so on.

6.The Challenge of Stimulating Innovation and Change

The only thing that is constant in this world is change. It is only organisations which
are able to adapt and master the challenges presented by the changes are able to
survive. To do so, organisations must display high levels of flexibility, continuously
improve the quality of their products and keep coming with a continuous series of
innovative products and services.

7.The Challenge of Coping with Temporariness

Temporariness means that everything in the organisation is transient or temporary;


nothing is constant or permanent. Temporariness may be at the job level or at the
organisational level. Job temporariness may take different forms such as changing,
employee's job description, appointment of temporary workers and tasks being done
by flexible teams rather than individuals. The challenge for managers is to cope with
a climate that is highly unpredictable and temporary in nature. They also need to
prepare their employees for the same.

8.The Challenge of Working in Networked Organisation

The communication revolution in the internet has completely changed the way
people Putters and managers' jobs of managing people in a networked organisation
are quite different from when employees were physically present before him.
Managers face the challenge of developing new methods of motivating, leading and
resolving conflicts

9. The Challenge of Creating a Positive Work Environment


Managers have realized that putting additional pressures on the employees to cope
with fierce competition will not work. Rather, the creation of a positive work
environment will be more beneficial and advantageous in the long run.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

B. Personality

Meaning:
The word personality is derived from a Greek word “persona” which means “to speak
through.” Personality is the combination of characteristics or qualities that forms a
person's unique identity. Personality can be defined as those inner psychological
characteristics that both determine and reflect how a person think and act in an
environment

Determinants of personality

The determinants of personality can be grouped in five broad categories:

● Family Factors
● Social Factors
● Situational Factors
● Biological Factors
● Cultural Factors

1. Biological Factors: The study of the biological contributions to personality may


be studied under three heads:
● Heredity-
Heredity refers to those factors that were determined at conception. Physical
stature, facial attractiveness, sex, temperament, muscle composition and
reflexes, energy level, and biological rhythms are characteristics that are
considered to be inherent from one’s parents.
● Brain-
The second biological approach is to concentrate on the role that the brain
plays in personality. The psychologists are unable to prove empirically the
contribution of the human brain in influencing personality.
● Physical Features-
A vital ingredient of the personality, an individual’s external appearance, is
biologically determined. The fact that a person is tall or short, fat or skinny,
black or white will influence the person’s effect on others and this in turn, will
affect the self-concept.

2. Cultural Factors
Among the factors that influence personality formation is the culture in which we
are raised, early conditioning, norms prevailing within the family, friends and
social groups and other miscellaneous experiences that impact us. The culture
largely determines attitudes towards independence, aggression, competition,
cooperation and a host of other human responses.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

3. Family Factors
Whereas the culture generally prescribes and limits what a person can be
taught, it is the family, and later the social group, which selects, interprets and
dispenses the culture. Thus, the family probably has the most significant impact
on early personality development. Overall home environment created by the
parents, in addition to their direct influence, is critical to personality
development. The parents play an especially important part in the identification
process, which is important to the person’s early development.

4. Social Factors
There is increasing recognition given to the role of other relevant persons,
groups and especially organisations, which greatly influence an individual’s
personality. This is commonly called the socialization process. Socialization
starts with the initial contact between a mother and her new infant. After infancy,
other members of the immediate family – father, brothers, sisters and close
relatives or friends, then the social group: peers, school friends and members
of the work group – play influential roles.
5. Situational Factors
Human personality is also influenced by situational factors. The effect of the
environment is quite strong. Knowledge, skill and language are obviously
acquired and represent important modifications of behavior. An individual’s
personality, while generally stable and consistent, does change in different
situations. The varying demands of different situations call forth different
aspects of one’s personality.

Personality traits

Many contemporary personality psychologists believe that there are five basic
dimensions of personality, often referred to as the "Big 5" personality traits. These
five primary personality traits are: Extraversion is sociability, agreeableness is
kindness, openness is creativity and intrigue, conscientiousness is thoughtfulness,
and neuroticism often involves sadness or emotional instability.

Some use the acronym OCEAN (openness, conscientiousness, extraversion,


agreeableness, and neuroticism) to remember the Big 5 personality traits.

1. Openness

Openness (also referred to as openness to experience) emphasizes


imagination and insight the most out of all five personality traits. People who
are high in openness tend to have a broad range of interests. They are curious
about the world and other people and are eager to learn new things and enjoy
new experiences.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

People who are high in this personality trait also tend to be more adventurous
and creative. Conversely, people low in this personality trait are often much
more traditional and may struggle with abstract thinking.

2. Conscientiousness

Among each of the personality traits, conscientiousness is one defined by high


levels of thoughtfulness, good impulse control, and goal-directed behaviours.
Highly conscientious people tend to be organized and mindful of details. They
plan ahead, think about how their behaviour affects others, and are mindful of
deadlines. Someone scoring lower in this primary personality trait is less
structured and less organized. They may procrastinate to get things done,
sometimes missing deadlines completely.

3. Extraversion

Extraversion (or extroversion) is a personality trait characterized by


excitability, sociability, talkativeness, assertiveness, and high amounts of
emotional expressiveness. People high in extraversion are outgoing and tend
to gain energy in social situations. Being around others helps them feel
energized and excited.

People who are low in this personality trait or introverted tend to be more
reserved. They have less energy to expend in social settings and social
events can feel draining. Introverts often require a period of solitude and quiet
in order to "recharge."

4. Agreeableness

This personality trait includes attributes such as trust, altruism, kindness,


affection, and other prosocial behaviours.1 People who are high in
agreeableness tend to be more cooperative while those low in this personality
trait tend to be more competitive and sometimes even manipulative.

5. Neuroticism (Emotional Stability)

Neuroticism is a personality trait characterized by sadness, moodiness, and


emotional instability.1 Individuals who are high in neuroticism tend to
experience mood swings, anxiety, irritability, and sadness. Those low in this
personality trait tend to be more stable and emotionally resilient.

(An Easy Way To Understand the Big 5: In this scenario, there are certain
characters and how they cope after they rank their boat and are stranded on an
island in the middle of the ocean.
Open Pavi and Bhavesh are excited and interested in exploring this beautiful island.
The exotic nature inspires them. They have collected stones, shells and blossoms to
decorate the bamboo hut that they built for everyone. Pavi and Bhavesh feel this is
an opportunity to learn so many new things.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Sakshi and Palvi are conscientious. They are not excited, They are concerned
about the seriousness of the situation. They are prepared and start the crucial tasks
right away. They both feel that it is their duty to organize everyone and make sure
they will look for things they need for survival : Freshwater and Food.
Extravert Krusha is thrilled because they all survived. She feels a strong need to
talk and share her happiness. She gathers everyone to celebrate their survival.
Agreeable Komal and Arun are kind by nature and despite tiredness and thirst,
their main concern is the well being of their friends. They offer a drink from their
coconut to their friends. Her friends know komal and arun usually agree to everything
and are not shy to ask for their help.
Sumit and Atharva are neurotic and easily stressed. They had a total breakdown.
These both feel completely lost on the island.)

Personality attributes and their Impact on behaviour in organisations:

1. LOCUS OF CONTROL

Locus of control refers to the extent to which individuals believe that they can control
events affecting them.
● Individuals who have a high internal locus of control (internals) believe
that their own behaviour and actions primarily, but not necessarily
totally, determine many of the events in their lives.
● Individuals who have a high external locus of control (externals) believe
that chance, fate, or other people nm primarily determine what happens
to them.

An individual’s locus of control has a number of significant implications


for an organisation:
● Absenteeism and alienation: Individuals with external locus-of-
control are less satisfied with their jobs, have higher absenteeism rates
and are more alienated. This is because external people believe that
they have little control over organisational outcomes.

● Influence: Internals are more likely to try to influence or persuade


others and are less likely to be influenced by others. internals are more
independent, more reliant on their own.
● Motivation: Internals display greater work motivation. and See a
strong relationship between what they do and what happens to them.
They expect that working hard wil, a good performance.

1. SELF-ESTEEM
Self-esteem refers to how individuals perceive the terms of their abilities,
………competencies, effectiveness, and the like.

People with high self-esteem perceive themselves capable, significant, and


worthy. These individuals believe that they are competent, have strong

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

abilities, and are confident in their ability to succeed in a wide range of


situations.

People with low self-esteem tend to perceive themselves neither competent


nor capable. They see themselves as low ability levels, and thus are less likely
to predict success for themselves.

Some of the important findings impact of self-esteem on organisational


behaviour are:
● Achievement: Self-esteem is positively related to achievement and a
willingness to expend effort to accomplish tasks.
● Influence: Individuals with low self-esteem are more open to external
influence than individuals with high self-esteem.

2. Machiavellianism

Machiavellian personalities approach situations logical thoughtfully and are


even capable of lying to achieve per goals. They are rarely affected by loyalty,
friendships, promises, or the opinion of others.

A considerable amount of research has been directed to studying the


implications of high-Mach and low- Mach personalities on organisational
behavior.
Some of the important findings are:

● Ruthless: Persons high on Machiavellianism (high- Mach) tend to manipulate


others in a ruthless manner. And low-Machs reject this approach and care
about fair play, loyalty, and other principles.
● Not team players: High-Machs are not team players. They contribute to the
organisation or the team only to the extent there is something in it for them.
● Influence: High-Mach personalities tend to behave with psychological
detachment and little emotion. They are not easily influenced by others but
effectively manipulate others.

3. SELF MONITORING
Self Monitoring reflects a person’s ability to adjust his or her behavior to external,
situational factors. Self-monitoring individuals readily change their behaviour so that
it matches the specific situation and so that they can make the best possible
impression on others. For example, they adopt one style while dealing with
subordinates and another when dealing with the boss.
Self monitoring has been found to have significant implications for behavior.
Some of the important findings are:
● Job performance: High self-monitors tend to do better than low self-monitors
in jobs that require communication and interacting with different groups of
people.
● Career Success: High self-monitors tend to obtain promotions than low self-
monitors, especially when it involves movement from one company to

16
STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

another, because of their willingness to adapt their behaviour and to act in


ways that please others.
● Relationships: A downside of high self-monitors is that they run the risk of
being viewed as unreliable, inconsistent even manipulative by others. High
self-monitors tend to have less stable and less deep relationships than low
self monitors.

5. TYPE-A PERSONALITY
Type personality- Individuals who are more prone to stress are often
described as Type A personalities. There are also more cardiovascular
problems (heart problems).

Type A personality implies a temperament which is stress-prone, concerned


with time management. They are ambitious, rigidly organised, hard-working,
anxious, highly status-conscious, hostile and aggressive. Individuals who
possess Type A personality have the following behavioural patterns:

● They move, walk and eat fast.


● Great at multitasking.
● Self-driven feels guilty when relaxing.
● Feels impatient with the pace of things, dislikes waiting.
● They have a busy schedule and do not have time to enjoy life.
● They are high-achievers, perform beyond par. They do not easily
accept failure.

Type B personality- These individuals are one that is less prone to stress,
easy going, work steadily, enjoy achievement, modest ambition, and live in
the moment. They are social, creative, thoughtful, and procrastinating.
Individuals who possess a Type B personality are associated with the
following behavioural traits:

● They are not concerned about time.


● They compete for fun, not to win.
● Mild-mannered.
● Relaxing without any guilt.
● Live a stress less life.
6. RISK TAKING
There are wide differences between people with regard to their willingness to take
risks or chances. High risk-taking managers take less time and information to
make decisions. An interesting finding is that the accuracy of decisions is the same
for both high risk-taking managers and low risk-taking managers. The aptness to
take risks may be an advantage on certain jobs (such as stock broker) and a
disadvantage on other kinds of jobs (an accountant who does auditing).

Johari Window
The Johari Window is a framework for understanding conscious and unconscious
bias that can help increase self-awareness and our understanding of others. It is the

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

creation of two psychologists, Joseph Luft and Harrington Ingham, who named
the model by combining their first names. It is composed of four quadrants in which
people using the framework can identify what they know about themselves and what
other people know about them. This results in four areas of understanding:
● Open area: Anything you know about yourself and are willing to share
with others
● Blind area: Anything you do not know about yourself, but that others
have become aware of
● Hidden area: Anything you know about yourself and are not willing to
share with others
● Unknown area: Any aspect unknown to you or anyone else

1.Open Self: This quadrant shows the behavior, motives, attitudes, and knowledge
skills of an individual that he is aware of and is willing to share with others. The open
self is characterized as a state wherein the individual is open and straightforward to
himself and others about what he is doing, how he is doing and what are his
intentions.
2.Blind Self: The blind self-shows the state of an individual known to others but not
known to him. It usually happens, when an individual or a subject copies the
behaviour of some significant personalities unconsciously since his childhood.
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 individuals
who are introverted and do not like to share their private lives with anyone. The

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

individual keeps his feelings, ideas or thoughts to himself and does not disclose it in
front of others.
4.Unknown Self: The unknown self is the mysterious state of an individual neither
known to him, nor others know about it. Often the feelings, thoughts or ideas go so
deep down the individual that it becomes difficult for the individual as well for the
other people to understand it.

C. Attitude

Meaning
An attitude is a positive, negative, or mixed evaluation of an object expressed at
some level of intensity. It is an expression of a favorable or unfavorable evaluation
of a person, place, thing, or event.

Definition
Attitudes "as evaluative statements- either favourable or unfavourable-
concerning objects, people or events.They reflect how one feels about
something."- Stephen Robbins and Timothy Judge

Nature of Attitude
● Attitudes are learnt. (Social interaction and Experiences)
● Attitude has an object (person, place, thing)
● Attitude influence behaviour
● Attitude is a relatively stable phenomenon.

THE THREE COMPONENTS OF ATTITUDES

Sumit is getting 30K a month


on the same qualification in
Wipro.
Sakshi is getting 50K a month
on the same qualification in
Wipro.
Sumit feels his pay is low.

Sumit may feel:


Organisation does not
have fair pay policy.

Sumit may think to leave


the organisation or his
productivity may be low.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Attitudes have three components:

1. Cognitive component: It refers to how we think about someone or


something. The cognitive component is the belief or opinion aspect of the
attitude. For example, an employee saying that he finds his job very boring.
2. Affective component: It is the emotional aspect of attitude. It refers to how
we feel liking or disliking someone or something. For example: an employee
saying that he hates his job.
3. Behavioral Component: Behaviour component of an attitude consists of a
person's tendencies to behave in a particular way toward an object. It refers
to that part of attitude which reflects the intention of a person in the short-run
or long run. For Example: an employee says he wants to change his job.

Attitudes are not as simple as they appear. It includes our thoughts, feelings and
intentions to act. All the three components of attitudes are very closely related and
sometimes it is difficult to separate one aspect from the other. The cognitive and
affective components of attitudes are especially closely intertwined. This is because
the way we think is the way we feel.

In organisations employees attitudes have a profound impact on their behavior.


Hence, it is important to understand how attitudes are formed, how they affect job
behaviors and how they can be changed,

Ways of Overcoming the Barriers and Changing the Attitudes:


A few important ways in which the barriers can be overcome and the attitudes can
be changed are as explained below:

1. Providing New Information:

One of the ways of changing attitudes is by providing new information. Sometimes,


this information will change a person’s beliefs and in this process his attitudes. This
is specifically true when the reason for the negative attitude is insufficient or
misleading information. Organisations should provide new information regarding new
policies, plans, decisions, protocols and regulations to the staff.

2. Use of Fear:
A second way of changing attitudes is through the use of fear. Research has found
out that fear can cause some people to change their attitude. However, the degree
of fear is very important for the final outcome. Mild fear appeals lead to more attitude
change than strong fear appeals. For example, if low levels of fear are used, people
often ignore them. If moderate levels of fear arousal are used, people often become
aware of the situation and will change their attitudes. However, of high levels of fear
arousal are used, people often reject the message because it is too threatened and
thus not believable

3. Resolving Discrepancies/Difference:

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Another way of changing attitudes is by resolving discrepancies between attitudes


and behaviour. Research shows that when job applicants have more than one offer
of employment and are forced to choose, they often feel that their the final choice
many have been a mistake. However, this mild conflict or dissonance does not
usually last very long – though consciously developing negative attitudes towards
companies not chosen over time

4. Influence of Friends or Peers:


Change of attitude can come about through persuasion of friends or peers. Credibility
of others, especially peers, is important to effect change. Peers with high credibility
shall exercise significant influence as compared to those peers who have low
credibility.

5. The Co-opting Approach:


Another way in which attitude change takes place is by co-opting, which means
taking people who are dissatisfied with a situation and getting them involved in
improving things. For example, an employee feels that the company should be doing
something to improve the employees’ benefits. The company appoints him as a
member of the employees benefit committee. By giving him the opportunity to
participate in employee benefit decision making, the company increases the chances
that his attitude will change. Once he realizes the practical problems involved in
determining the best possible benefits and the efforts and hard work involved in it,
he is most likely to change his attitude.

7. Training Sessions:

The use of training sessions in which employees share and personalize their
experiences and practice new behaviours can be a powerful stimulant for changing
attitude.

FUNCTION OF ATTITUDE

a. Adjustment Function
Attitudes often help people to adjust to their work environment. When employees are
well treated, they are likely to develop a positive attitude toward management and
the organisation. When employees are criticized and given a minimal salary, they
are likely to develop a negative attitude toward management and the organisation.
These attitudes help employees adjust to their environment and are a basis for future
behavior. The adjustment function directs people toward pleasurable or rewarding
objects and away from unpleasant, undesirable ones.

b. Ego-Defensive Function

The ego-defensive function refers to holding attitudes that protect our self-esteem or
that justify actions that make us feel guilty. This function involves psychoanalytic
principles where people use defence mechanisms to protect themselves from
psychological harm.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Mechanisms include denial, repression, projection, rationalization, etc.


For example; an older manager whose decisions are continually challenged by a
younger subordinate manager may feel that the latter is brash, cocky, immature, and
inexperienced.
In truth, the younger subordinate may be right in challenging the decisions. The older
manager may not be a very effective leader and may constantly make poor decisions.
On the other hand, the older manager is not going to admit this but will try to protect
the ego by blaming the other party.

c. Value-Expressive Function

Whereas ego defensive attitudes are formed to protect a person’s self-image, value-
expressive attitudes enable the expression of the person’s centrally held values.
Central values tend to establish our identity and gain us social approval thereby
showing us who we are, and what we stand for. Some attitudes are important to a
person because they express values that are integral to that person’s self-concept.
Therefore consumers adopt certain attitudes to translate their values into something
more tangible and easily expressed.

d. Knowledge Function
The knowledge function refers to our need which is consistent and relatively stable.
This allows us to predict what is likely to happen, and so gives us a sense of control.
Some attitudes are useful because they help to make the world more
understandable. They help people ascribe causes to events and direct attention
towards features of people or situations that are likely to be useful in making sense
of them. Consequently, they help to make the world more understandable,
predictable, and knowable. Knowing a person’s attitude helps us predict their
behavior.

For example- Stereotyping - In the absence of knowledge about a person, we may


use a stereotyped attitude for judging the person.

Job Satisfaction Meaning

Job Satisfaction is the most popular concept among the various related attitudes. In
Fact, when people speak of employees they are actually speaking of job satisfaction.
The two are used interchangeably.

Job satisfaction is the favourableness or unfavourable news with employees viewing


their work. Job satisfaction may be the positive or negative feelings that individuals
have toward their job.

Definition
Job satisfaction as "a positive feeling about one's job resulting from an evaluation of
its characteristics."-Robbinsand Judge

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

DETERMINANTS OF JOB SATISFACTION


A number of factors determine an employee's attitude towards his work. Hence, job
satisfaction is said to be multidimensional in nature.

The level of job satisfaction depends on a number of factors. The factors related to
job satisfaction can be broadly classified into three categories-

(A)Personal factors.

(B)Factors Inherent in the job.

(C)Factors Controlled By The management.

(A)Personal Factors:

● Sex/Gender:
Researches established that generally speaking women are more satisfied with their
jobs than men. This is true despite the fact that women are discriminated against in
respect of employment opportunities, pay and promotions. Women Prefer friendly
people to work with good working conditions and a secure job. On the other hand,
men aspire for achievement status, job security, and want to shoulder additional
responsibility. That's why men are likely to be less satisfied than women.
● Age:
In general, job satisfaction increases with age. The lowest job satisfaction is reported
by the youngest workers. Young workers today expect a great deal of personal
fulfillment from their jobs. Job challenge, self-expression and freedom to make
decisions are factors important to them. They are thus disappointed when they begin
to work and fail to find challenges and responsibility.

● Number of Dependents:
Research has established that the smaller the number of dependents, the higher is
the job satisfaction. Also the larger the number of dependents, the lower is the job
satisfaction. It is possible that financial and other dissatisfaction needs increase with
the increase in family size leading to dissatisfaction.
● Job Experience:
During the initial stage of employment, new workers tend to be satisfied with their
job. This is because work provides young workers with opportunities to develop their
abilities and skills, and work may seem attractive because it is new. After about 4
years, satisfaction begins to decrease because the employee feels his growth and
advancement in the organisation is too slow. After about eight years, satisfaction on
the job once again increases.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Intelligence:
A person should have intelligence which is equal to the intellectual demands of the
job. Having intelligence much higher than or much lower intellectual demands of the
job will lead to job dissatisfaction. Persons who are too intelligent for the work may
not find the job challenging and will become bored and dissatisfied. Individuals
whose intelligence is far below what is required by the job may get frustrated as they
are unable to cope with the work.

● Education:
Some studies have shown that highly educated persons are less satisfied. But other
studies do not support these findings. Education raises one's expectations from life.
If the job we get does not fulfill these expectations, the education becomes a source
of dissatisfaction. No clear evidence has yet been obtained about the relationship
between education and job satisfaction.

● Personality:
Those individuals who are generally happy are found to be satisfied with their job
also. Research suggests that employees who are more satisfied in their work are
better adjusted and emotionally more stable.

● Level of Aspiration
:Satisfaction depends upon individual wants from the world and what he gets in
return. People work in order to satisfy their various needs and wants. Dissatisfaction
is the obvious result when an employee's needs and wants are not satisfied. Hence
job satisfaction depends upon the fulfillment of personal needs.

(B)Factors Inherent In the Job:


● Nature of Job: Jobs that offer greater variety and change give workers more
satisfaction than routine and mechanical jobs. However it is important to keep
in mind that the type of work an individual prefers varies from person to
person.

● Skill:
Placing the right man on the right job is very important. Research has shown
that people are more satisfied with their work if the skills they possess match
the skills required to perform the job well. Satisfaction increases when
employees get opportunities to use their abilities and skills.
● Occupational Status:
Every occupation has some status in society. Occupational status refers to
how important the job is in the eyes of other people or the respect and dignity
an occupation enjoys in the society. The higher the occupational status of a
job, the higher is the job satisfaction. Occupational status changes from

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

country to country and even from community to community. Occupational


status may change with time. For example, MBA's today enjoy high social
status.

● organisational size:
Job satisfaction is higher in smaller organisations than in very large
organisations . Higher satisfaction in smaller companies is a result of a
number of factors such as better communication between the management
and the employees, more cooperation, more scope for advancement and so
on. Job satisfaction is lower in big organisations. This is because: Employees
lose their identity in large organisations. They become just one more name on
the organisation's payroll.

● Geographical Location and size of the city:


A number of studies have shown that workers in small cities are more satisfied
than workers in large cities. Big cities have problems in the form of large
crowds, longer time to commute to the workplace, and higher cost.
There is also a feeling of loss of identity and although one is never alone yet
one is lonely. In contrast workers in smaller cities feel more secure, have
greater time for their family and other activities leading to higher job
satisfaction.

(C) Factors controlled by the Management:

● Security: Job security contributes highly to job satisfaction Job security is


related to economic security and psychological security. Job security is more
important for unskilled workers and less important for skilled employees. It is
more important for married men and single women and less important for
unmarried men and married women. Job security is less important for
educated people and more important for uneducated people.
● Pay: Managements have overemphasized the importance of pay in job
satisfaction. Managements usually have the attitude that the only thing that
workers want is more pay. This is not true. Money helps to satisfy
physiological (bodily) needs but there are other factors that are more
important such as working conditions, job etc. The importance we give to
money is dependent on several factors like standard of living, dependents,
etc.

● Working Conditions:
Providing good working conditions (proper lighting, ventilation, safety,
sanitation) is the responsibility of the management. Bad working conditions
put unnecessary strain on the employees.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Advancement Opportunities:
Promotional opportunities are very important for managerial personnel and
skilled workers and less important for unskilled workers. Advancement
opportunities are more important for young people and less important for older
employees. Lack of promotional and growth opportunities leads to increasing
feelings of frustration and dissatisfaction.

● Responsibility:
It can be a source of satisfaction or dissatisfaction depending on the
individual. Managers desire responsibility, freedom and independence in
doing their work whereas unskilled and clerical workers prefer not to be
burdened with responsibilities.

● Supervision:
Supervision is the most important factor controllable by the management
contributing to job satisfaction or dis-satisfaction. For the average worker the
supervisor is the company. His attitudes to the company are the same as his
attitudes to the supervisors. Workers want supervisors who are
understanding, sympathetic, solve their problems, do not interfere with their
normal work and whom they can easily approach.

● Co-workers:
Friendly and co-operative co-workers are a source of satisfaction to the
individual employee. Being accepted by the group leads to a sense of
belongingness and increases job satisfaction.

● Communication and Knowledge of Results:


Employees Want information about organisational policies and decisions
Which affect them either directly or indirectly. Inadequate downward flow of
information may create a feeling of insecurity among the employees. Easy
accessibility to information and free communication between the management
and the employees can reduce dissatisfaction on the job.

THE IMPACT OF JOB SATISFACTION


Both job satisfaction and dissatisfaction have a strong impact on the organisation.
They have a strong impact on the organisation’s bottom line (profit/loss).
According to the exit-voice-loyalty-neglect model, - dissatisfied employees
react in two ways:
(1) Constructively or destructively
(2) Actively or passively
The response of a dissatisfied employee is an outcome of these two dimensions. He
may respond in one of the following ways:

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

(1) Exit: This is an active-destructive response. The employee either quits the
organisation or looks for new inside or outside the organisation.

(2) Voice: This is an active-constructive response. employee attempts to improve


conditions in the organisation through discussions with superiors, problem solving
behaviour or engaging in union activity.

(3) Loyalty: This is a passive-constructive response. The employee himself does


nothing but waits for conditions to improve. He has full faith and trust in the
management and protects them from external criticism.

(4) Neglect: This is a passive-destructive response. The employee gradually


withdraws from the job allowing conditions in the organisation to go from bad to
worse. He remains absent, puts less effort at work, reports late to work and so on.

MCQ
1.Organisational behaviour is_______
a) A science b) An art c) A science as well as an art

2.A study of the culture and practises in different societies is called _____
a) Personality b) Anthropology c) Perception d) Attitudes

3. In present context, challenges for organisational Behaviour are _____


a) Employee expectation b) Workforce diversity c) Globalization d) All of the
above

4. Organisational Behaviour is the study of _____________ in the organisation


a) Human b). Employer c) Human Behaviour d). Employees

5. __________ model is founded on leadership.


a) Custodial b) Supportive c) Collegial d) Autocratic

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

6. The combination of characteristics or qualities that form an individual’s distinctive


character” is the definition of ____
a) Personality b) Motivation c) Attitude d) behaviour

7. Every individual is ________ by their personality.


a) Intellectual b) Specific c) Unique d) systematic

8. Sometimes due to any hard situation _____ of an individual will change but will
take a long time.
a) objective b) attitude c) motivation d) Personality

9. Outgoing, talkative, social are part of __________ Personality Trait as per big 5
personality trait
a) Friendly b) Openness to experience c) Introversion d) Extroversion

10. Sensitive and intellectual are part of __________ Personality Trait as per big 5
personality trait
a) Agreeableness b) Emotional Stability c) Openness to experience d)
Introversion

11.Belief, opinion, knowledge, emotions feelings intention are the components of


a) OB b) Job satisfaction c) Attitude d) Personality

12. The elements of Attitude does not include ____________


a) Cognitive b) Behavioral c). Observation d) Affective

Descriptive Questions:

1. Explain the features of organisational behaviour.


2. What are the models of organisational behaviour?
3. Discuss Goals of organisational behaviour in detail.
4. State the challenges in organisational behaviour.
5. Explain the importance of Organisational behaviour.
6. Explain the determinants of personality.
7. Explain Johari Window in detail?
8. Discuss the Big five model in personality.
9. State the function of attitudes in detail.
10. Explain nature/component of attitude in Organisation.
11. What are the determinants of job satisfaction?

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Module 2: Perception, Values, Motivation and Learning

A. Perception

Meaning
Perception is the process by which we become aware of, and Owns to vents around
us. It is through our perceptions that we define reality.

Definition
“Perception may be defined as a process by which individu­als organise and interpret
their sensory impressions in or­der to give meaning to their environment.”- Stephen
P. Robbins

“Perception includes all those processes by which an individual receives information


about his environment—seeing, hearing, feeling, tasting and smelling.”: – Joseph
Reitz

There are two types of realities: Objective reality and Perceived reality.

● Objective reality is what truly exists in the physical world.


● Perceived reality is what individuals experience through one or more of their
sense organs and the meaning they give to those experiences.

FEATURES OF PERCEPTION

> Perception is an intellectual process.

> Perception is one of the basic cognitive or psychological behaviours.

> Perception differs from person to person based on their psychological and
intellectual ….process.

> Perception assigns meaning to sensory events.

> After picking up sensory information, perception involves the creation of a mental
representation of the object or event that gives rise to sensory experience.

Factors/ Determinants of Perception


A) CHARACTERISTICS OF THE PERCEIVED (STIMULI)
The characteristics of the perceived person, object, or event (stimuli) play an
important role in the perceptual process. Perception is affected by the characteristics

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

of the target being observed. Some of the characteristics of the stimuli that affect
perception are:
● Size: The larger the size of the stimuli, the more likely it is to be perceived.
For example, a full page advertisement in the newspaper is more likely to be
noticed than a small advertisement.
● Intensity: The more intense a stimulus (bright lights, loud noises, and the like)
the more likely it is going to be perceived. For example, an employee is likely
to pay more attention to when the boss shouts at him.
● Contrast: Contrast is the difference between something and its surroundings
that makes it more likely to be selected for perceptual processing. Stimuli that
differ from their surroundings are more likely to be selected for attention. For
example, an employee who wears jeans and a T-shirt to the office when all
other employees are wearing suits is more likely to be noticed.
● Novelty: Something is novel when it differs from what we have experienced
in the past. We tend to be more attentive to novel stimuli. For example, people
are more likely to notice a person who has newly joined their office.
● Motion: Moving objects are more likely to be noticed than stationary objects.
A moving message on the computer Monitor is more likely to receive attention
than a stationary Message.
● Repetition: A repeated factor is more likely to be noticed than a single factor.
Marketing managers use this principle in trying to get the attention of
prospective customers by repeating their advertisements.

B) CHARACTERISTICS OF THE PERCEIVER


Perception is heavily influenced by the personal characteristic of the individual
perceiver. Some of the characteristics of perceiver that affect perception are:
● Motives: Unsatisfied needs or motives stimulate individuals and exert a
strong influence on perception. For example, an unemployed person is more
likely to notice an advertisement for a job.
● Interests: The focus of our attention is influenced by interests. For example,
a car mechanic is more likely to hear an unusual sound from the car engine.
● Expectations: Expectations affect our perceptions as we see and hear what
we expect to see and hear. For example, a person waiting for an important
phone call is more likely to hear the phone ring despite all the noise around.
● Personality: Personality has considerable influence on what and how people
perceive. Personality strongly affects how an individual perceives other
people. For example, an extrovert pays more attention to interpersonal stimuli
such as how much the co-workers socialize after work.
● Attitude: An individual's attitude strongly influences how one perceives. For
example, a manager with a negative attitude towards unions will feel
threatened even when union officials make a mutually beneficial proposal.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Past experiences: A person’s past experiences and learning exerts


considerable influence on how he/she perceives. For example: a manager
who was once deceived by his subordinate is likely to perceive every action
of his subordinate with suspicion.

C) CHARACTERISTICS OF THE SITUATION


The physical, social and organisational context of the perceptual even setting
influences the perceptual process.
● Physical setting- This include place, location, light, heat, basic amenities,
etc. If all these things are proper then people may perceive positively and vice
versa.
● Social Setting- This includes human resources i.e people around you or the
affected parties or the people concerned about you or the persons you are
concerned about or the people who you are working with.
● Organisational setting: This includes the hierarchy in the organisation,
organisational set up, Structure, etc. All these influence the perception.

Perceptual errors in workplace


A perceptual error is the inability to judge humans, things or situations fairly and
accurately. Examples could include such things as bias, prejudice, stereotyping,
which have always caused human beings to err in different aspects of their lives.
Perceptual error has strong impact in organisation and it hampers in proper decision
making skill while hiring,performance appraisal,review,feedback etc

There are many types of perceptual errors in workplace

1. Selective Perception-People generally interpret according to their basis of


interests, idea and backgrounds. It is the tendency not to notice and forget the stimuli
that cause emotional discomfort. For example we might think that fresher graduates
with above 80 % marks will exceptionally do well in technical interviews of respective
subjects

2.Halo Effect-This is the process of evaluating an individual performance based on


his / her single characteristic. Such a bias is also called the halo effect. The halo
effect occurs when we believe a single characteristic possessed by someone is
associated with a host of other desirable traits. Just on the basis of individual
attributes he or she will be evaluated favorably or unfavorably. For example, we
always have the impression that a lazy person can never be punctual on any
occasion, most attractive people are also believed to be smarter, warm people are
rated as sociable and humorous and intelligent people are rated as better leaders.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

3. Stereotypes-We always have a tendency to classify people to general groups


/categories in order to simplify the matter. Stereotyping is judging someone on the
basis of one’s perception of the group to which that person belongs. It can be also
called stereotyping bias or availability bias. It involves how information is stored and
assessed in our minds.For example-Women are always good homemakers and can
do well in work life balance

4.Contrast Effect-Contrast effect is an unconscious bias that happens when two


things are judged in comparison to one another, instead of being assessed
individually. Our perception is altered once we start to compare things to one another.
We tend to judge them relative to each other rather than on their own merit. We again
sometimes judge people in comparison to others. This example generally found in
sports, academics and performance review

5.Projection- Projection is the mental process by which people attribute to others


what is in their own minds. This is very common among Perceptual errors. Projection
of one's own attitude, personality or behaviour into some other person. For example-
To all honest people, everybody is honest.

6. Expectancy effect - Expectancy is a tendency to perceive people, objects on the


basis of what we expected them to be in the first place; the tendency to create or find
in another situation or find that which one expected to find in the first place. This
effect is the fact that people's expectations of an individual determine his behavior.
For example, a manager who is told that a new employee is competent, is not only
more likely to perceive the employee as competent but is also likely to provide
opportunities for employees to demonstrate competence on the job. The
expectations become reality.

B. Values

Meaning
Values defined in organisational behaviour as the collective conceptions of what is
considered good, desirable, and proper or bad, undesirable, and improper in a
culture. Some common business values are fairness, innovations and community
involvement.

Definition
“A value is a belief that something is good and desirable”- M. Haralambos

Types of Values
According to Milton Rokeach classification, values can be of the following types:

1. Terminal Values
2. Instrumental Values

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

1) Terminal Values: 'Terminal values' lead to ends to be achieved. it is an ultimate


goal in a derided status or outcome in life. e.g., family security, self-
respect, comfortable life, and a sense of accomplishment. Terminal values reflect
what a person is ultimately trying to achieve. A terminal value is an outcome or
desired end state that people seek to achieve. Organisations might adopt any of the
following as terminal values, or guiding principles-quality, responsibility, excellence,
innovativeness, morality, economy, and profitability. values, such as a sense of
pleasure, salvation, accomplishment, happiness, and wisdom are life goals or
desired end-states. These values represent the things that an individual wants to
achieve or accomplish during their life.

2) Instrumental Values: 'Instrumental values are alternative behaviours or means


by which a person achieves desired end-state its relate to means for achieving
desired ends. It is a tool for acquiring terminal values. e.g. independence, love, and
obedience, ambition, courage, honesty, and imagination. Instrumental values reflect
how an individual gets there. An instrumental value is a desired mode or type of
behaviour. Modes of behaviour that organisations advocate include hard work,
respecting authority, traditions, courage, being conservative, cautious, creative,
honest, taking risks, and maintaining a high standard.The key thing to remember
about instrumental values is that they direct us in determining how individuals should
behave in the pursuit of our goals.

C. Motivation
Meaning
Motivation is the word derived from the word ’motive’ which means needs, desires,
wants or drives within the individuals. It is the process of stimulating people to actions
to accomplish the goals.

Importance of motivation

A manager guides the people in a desired manner to achieve organisational


objectives. Two important things are necessary for any work to be done; People
should have the ability and willingness to work. Unwillingness to work is of no use.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Therefore, motivation theory is needed to create a desire to work in the minds of


workers.

1. Optimum Use of the Means of Production: – Workers work honestly with


motivation. It creates the possibility of optimum utilization of the factors of
production such as labour and capital.
2. Desire to Work: – Motivation affects people’s willingness to work. A man is
technically, mentally and physically fit to work but he may not be ready to
work. Motivation creates a desire on the part of the workers to do the job
better.
3. Reduction in Absenteeism: – Financial incentive schemes force workers to
work more. The financial incentive plan is designed in such a way that
monetary benefits are given based on the number of hours worked. It reduces
absenteeism.
4. Low Labour Turnover: – Motivation has both financial and non-financial
incentive schemes. It helps in retaining the existing laborers. The enterprise
can plan its activities on a long term basis with the help of low labour turnover.
5. Building Good Labour Relations: – Motivation helps in solving labour
problems of absenteeism, labour turnover, indiscipline and grievances. This
ensures the creation of good labour relations.
6. Increase in Efficiency and Production: – Both the workers and the
management have benefited from the motivational schemes. On the one
hand, the wages of workers increase commensurate with the increase in
production and efficiency. On the other hand, the concerted efforts of
motivated people increase the productivity of the organisation and its profits.
7. Sense of Belonging: – A proper motivation plan fosters a close relationship
between the enterprise and the workers. Workers begin to feel that the
enterprise belongs to them and regard their interests as theirs. Thus, there is
no difference between workers and enterprise.
8. Motivation Helps to Bring About Change Easily: – A motivated employee
is open-minded and able to understand that adapting to environmental
changes is vital for the future success and growth of the business. They can
easily accept the change as they can see the additional rewards that they get
as a result of the change.

Motivation Theory in organisational Behaviour


Motivation Theory in organisational Behaviour and see how different motivations
affect our performance in the workplace: –

(A) Maslow’s Hierarchy of Needs: –


Abraham Maslow, an American psychologist, proposed a hierarchy of needs in his
paper, A Theory of Human Motivation. Maslow said that people are motivated when
their needs are met. Once our basic needs and wants are met, we are motivated to
do more. For example, if you are someone who values a good work-life balance and

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

your organisation offers you a part-time opportunity, you will happily accept the offer
and fulfil your responsibilities to the best of your abilities.
● Physiological Needs: – Physiological needs are considered as the most
basic needs of human beings. These are the needs that are very important
for our existence. Examples of physiological needs are food, shelter, warmth,
health, homeostasis and water.
● Security Needs: – Once the basic needs of food, shelter, water etc. are met,
there is an innate desire to move to the next level. The next level is known as
security requirements. The primary concern of the individual here is related to
safety. Safety and security can be in relation to many things such as a stable
source of income which provides financial security, personal protection from
any kind of unnatural events, animal attacks and emotional security and
physical security which is security for health. E.g. freedom, protection and no
pain.
● Social Needs (also called love and related needs): – This is the third level
in the need hierarchy theory. This is the stage where a person seeks
acceptance from others in the form of love, belongingness after fulfilling his
physical needs as well as security needs. At this stage human behaviour is
driven by emotions and there is a strong need to make emotional connections.
E.g. love, friendship and involvement in social activities.
● Esteem Needs: – It is considered as the fourth level of hierarchy of needs
theory. It deals with the need of the individual to be recognized in society. It is
related to getting recognition, self-respect in society. The need for recognition
and acceptance arises when a person has satisfied the need for love and
belonging. E.g. self-confidence, recognition and appreciation.
● Self-Actualization Needs: – This is the last level of the theory of hierarchy of
needs proposed by Maslow. This is the highest level of needs and is known
as the need for self-actualization. It is concerned with the need of an individual
to achieve or realize the full potential of one’s own potential. At this stage, all
individuals strive to be the best version of themselves. In other words, self-
realization is a journey of personal growth and development. E.g. becoming
the very best you can be.

(B) Herzberg’s Two Factor Theory: –


In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or
the motivator-hygiene theory. According to Herzberg, there are some job factors that
result in satisfaction while there are other job factors that prevent dissatisfaction.
According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the
opposite of “Dissatisfaction” is “No Dissatisfaction”.

Herzberg classified these job factors into two categories-

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

1) Hygiene factors- Hygiene factors are those job factors which are essential
for the existence of motivation at the workplace. These do not lead to positive
satisfaction for the long-term. But if these factors are absent/if these factors
are non-existent at the workplace, then they lead to dissatisfaction.
Hygiene factors are also called as dissatisfiers or maintenance factors as they
are required to avoid dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the physiological
needs which the individuals wanted and expected to be fulfilled. Hygiene
factors include:
○ Pay: The pay or salary structure should be appropriate and
reasonable. It must be equal and competitive to those in the same
industry in the same domain.
○ Company Policies and administrative policies: The company policies
should not be too rigid. They should be fair and clear. It should include
flexible working hours, dress code, breaks, vacation, etc.
○ Physical Working conditions: The working conditions should be safe,
clean and hygienic. The work equipment should be updated and well-
maintained.
○ Status: The employees’ status within the organisation should be
familiar and retained.
○ Interpersonal relations: The relationship of the employees with his
peers, superiors and subordinates should be appropriate and
acceptable. There should be no conflict or humiliation element present.
○ Job Security: The organisation must provide job security to the
employees.
2) Motivational factors- According to Herzberg, the hygiene factors cannot
be regarded as motivators. The motivational factors yield positive satisfaction.
These factors are inherent to work. These factors motivate the employees for
superior performance.
These factors are called satisfiers. These are factors involved in performing
the job. Employees find these factors intrinsically rewarding. The motivators
symbolized the psychological needs that were perceived as an additional
benefit. Motivational factors include:
○ Recognition: The employees should be praised and
recognized for their accomplishments by the managers.
○ Sense of achievement: The employees must have a sense of
achievement. This depends on the job. There must be a fruit
of some sort in the job.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

○ Growth and promotional opportunities: There must be growth


and advancement opportunities in an organisation to motivate
the employees to perform well.
○ Responsibility: The employees must hold themselves
responsible for the work. The managers should give them
ownership of the work. They should minimize control but retain
accountability.
○ Meaningfulness of the work: The work itself should be
meaningful, interesting and challenging for the employee to
perform and to get motivated.
(C)The McClelland’s Theory of Needs: – David Clarence McClelland, an American
psychologist, proposed three motivational drivers that influence our life experiences.
The first achievement is required. He said that people with a high need for
achievement pursue objectives that hold them accountable. They want immediate
acknowledgment of their efforts. People with the second type of motivation are
motivated by the need for affiliation, the social relationships they form, and the
positive interactions between them. They thrive in social situations and make best
use of interpersonal skills. The third type of people – those in need of power – want
roles that give them authority and exercise their influence over others.

● Need For Achievement: – As the name suggests there is an urge to achieve


something in what you do. If you are a lawyer then the case needs to be won
and recognized, if you are a painter then you want your painting to be famous.
It is this need which drives a person to work and even struggle for the purpose
which he wants to achieve.
● Need for Affiliation: – The need for affiliation is an individual’s urge to have
interpersonal and social connections with others or a particular group of
people. They want to work in groups by forming friendly and lasting
relationships and aspire to be liked by others. They prefer to cooperate with
others to compete with them and usually avoid high-risk situations and
uncertainty.
● Need For Power: – The need for power is the desire within a person to have
control and authority over another person and to influence and change their
decisions according to their needs or desires. The need to increase their self-
esteem and prestige drives these people and they want their thoughts and
ideas to be accepted and applied to the thoughts and ideas of others.

(D) Alderfer's ERG theory


This model contains three basic needs an employee seeks to fulfill. As each need is
fulfilled, it serves as motivation to fulfill a different need.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

ERG stands for existence, relatedness and growth, and these are defined as:
● Existence - the need for basic material existence, like physiological health and
safety
● Relatedness - the need for interpersonal connections, social status and
recognition
● Growth - the need for personal development, including creative and
meaningful work
1. Existence needs concern our basic material requirements for living. These
include what Maslow categorized as physiological needs (such as air, food,
water, and shelter) and safety-related needs (such as health, secure
employment, and property).
2. Relatedness needs have to do with the importance of maintaining
interpersonal relationships. These needs are based in social interactions with
others and align with Maslow’s levels of love/belonging-related needs (such
as friendship, family, and sexual intimacy) and esteem-related needs (gaining
the respect of others).
3. Growth needs describe our intrinsic desire for personal development. These
needs align with the other portion of Maslow’s esteem-related needs (self-
esteem, self-confidence, and achievement) and self-actualization needs
(such as morality, creativity, problem-solving, and discovery).

Alderfer proposed that when a certain category of needs isn’t being met, people will
redouble their efforts to fulfill needs in a lower category. For example, if someone’s
self-esteem is suffering, he or she will invest more effort in the relatedness category
of needs.

(E) Theory X and Theory Y


In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two
aspects of human behaviour at work, or in other words, two different views of
individuals (employees):
1. one of which is negative, called as Theory X and
2. the other is positive, so called as Theory Y
According to McGregor, the perception of managers on the nature of individuals is
based on various assumptions.

Assumptions of Theory X

● An average employee intrinsically does not like work and tries to escape
it whenever possible.
● Since the employee does not want to work, he must be persuaded,
compelled, or warned with punishment so as to achieve organisational
goals. A close supervision is required on part of managers. The
managers adopt a more dictatorial style.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Many employees rank job security on top, and they have little or no
aspiration/ ambition.
● Employees generally dislike responsibilities.
● Employees resist change.
● An average employee needs formal direction.

Assumptions of Theory Y

● Employees can perceive their job as relaxing and normal. They exercise
their physical and mental efforts in an inherent manner in their jobs.
● Employees may not require only threat, external control and coercion to
work, but they can use self-direction and self-control if they are
dedicated and sincere to achieve the organisational objectives.
● If the job is rewarding and satisfying, then it will result in employees’
loyalty and commitment to organisation.
● An average employee can learn to admit and recognize the
responsibility. In fact, he can even learn to obtain responsibility.
● The employees have skills and capabilities. Their logical capabilities
should be fully utilized. In other words, the creativity, resourcefulness
and innovative potentiality of the employees can be utilized to solve
organisational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’ nature
and behaviour at work, while Theory Y presents an optimistic view of the employees’
nature and behaviour at work. McGregor views Theory Y to be more valid and
reasonable than Theory X. Thus, he encouraged cordial team relations, responsible
and stimulating jobs, and participation of all in the decision-making process.

(G) McClelland’s Needs Theory

McClelland’s Needs Theory was proposed by a psychologist David McClelland, who


believed that the specific needs of the individual are acquired over a period of time
and gets molded with one’s experience of life. McClelland’s Needs Theory is
sometimes referred to as Three Need theory or Learned Needs Theory.

Motivation – Three Needs Theory:


● Need for Achievement (nACH): Personal responsibility, Feedback, Moderate
risk
○ Typical behaviours:

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

■ High: Must win at any cost, must be on top, and receive credit.
■ Low: Fears failure, avoids responsibility.
● Need for Power (nPOW): Influence, Competitive
○ Typical behaviours:
■ High: Demands blind loyalty and harmony, does not tolerate
disagreement.
■ Low: Remains aloof, maintains social distance.

● Need for Affiliation (nAFF): Acceptance and friendship, Cooperative


○ Typical behaviours:
■ High: Desires control of everyone and everything, exaggerates
own position and resources.
■ Low: Dependent/subordinate, minimizes own position and
resources.

McClelland has identified three basic motivating needs, Viz. Need for Power, Need
for Affiliation and Need for Achievement and, along with his associates performed
considerable research work on these basic needs.

1. Need for Power (n-pow): Power is the ability to induce or influence the behaviour
of others. The people with high power needs seek high-level positions in the
organisation, so as to exercise influence and control over others. Generally, they are
outspoken, forceful, demanding, practical/realistic-not sentimental, and like to get
involved in the conversations

2.Need for Affiliation (n-affil): People with high need for affiliation derive pleasure
from being loved by all and tend to avoid the pain of being rejected. Since human
beings are social animals, they like to interact and be with others where they feel
people accept them. Thus, people with these needs like to maintain pleasant social
relationships, enjoy the sense of intimacy and like to help and console others in times
of trouble.
3.Need for Achievement (n-ach): McClelland found that some people have an
intense desire to achieve. He has identified the following characteristics of high
achievers:

● High achievers take the moderate risks, i.e. a calculated risk while performing
the activities in the management context. This is opposite to the belief that
high achievers take high risk.
● High achievers seek to obtain the immediate feedback for the work done by
them, so as to know their progress towards the goal.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Once the goal is set, the high achiever puts himself completely into the job,
until it gets completed successfully. He will not be satisfied until he has given
his 100% in the task assigned to him.
● A person with a high need for achievement accomplishes the task that is
intrinsically satisfying and is not necessarily accompanied by the material
rewards. Though he wants to earn money, satisfaction in the accomplishment
of work itself gives him more pleasure than merely the cash reward.

Hence, McClelland’s Needs Theory posits that the person’s level of effectiveness
and motivation is greatly influenced by these three basic needs.

MODERN THEORIES OF MOTIVATION

(A) Goal-setting theory of motivation.

Edwin Locke put forward the Goal-setting theory of motivation. This theory states
that goal setting is essentially linked to task performance. It states that specific and
challenging goals along with appropriate feedback contribute to higher and better
task performance.

In simple words, goals indicate and give direction to an employee about what needs
to be done and how much effort is required to be put in.

The important features of goal-setting theory are as follows:

● The willingness to work towards attainment of a goal is the main source


of job motivation. Clear, particular and difficult goals are greater
motivating factors than easy, general and vague goals.
● Specific and clear goals lead to greater output and better performance.
Unambiguous, measurable and clear goals accompanied by a deadline
for completion avoids misunderstanding.
● Goals should be realistic and challenging. This gives an individual a
feeling of pride and triumph when he attains them, and sets him up for
attainment of the next goal. The more challenging the goal, the greater
is the reward generally and the more is the passion for achieving it.
● Better and appropriate feedback of results directs the employee
behaviour and contributes to higher performance than absence of
feedback. Feedback is a means of gaining reputation, making
clarifications and regulating goal difficulties. It helps employees to work
with more involvement and leads to greater job satisfaction.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Employees’ participation in a goal is not always desirable.


● Participation in setting goals, however, makes goals more acceptable
and leads to more involvement.
Goal setting theory has certain eventualities such as:

1. Self-efficiency- Self-efficiency is the individual’s self-confidence and


faith that he has potential of performing the task. Higher the level of self-
efficiency, greater will be the efforts put in by the individual when they
face challenging tasks. While, lower the level of self-efficiency, less will
be the efforts put in by the individual or he might even quit while meeting
challenges.
2. Goal commitment- Goal setting theory assumes that the individual is
committed to the goal and will not leave the goal. The goal commitment
is dependent on the following factors:
1. Goals are made open, known and broadcasted.
2. Goals should be set-self by an individual rather than
designated.
3. Individual’s set goals should be consistent with the
organisational goals and vision.
Advantages of Goal Setting Theory

● Goal setting theory is a technique used to raise incentives for employees


to complete work quickly and effectively.
● Goal setting leads to better performance by increasing motivation and
efforts, but also through increasing and improving the feedback quality.
Limitations of Goal Setting Theory

● At times, the organisational goals are in conflict with the managerial


goals. Goal conflict has a detrimental effect on the performance if it
motivates incompatible action drift.
● Very difficult and complex goals stimulate riskier behaviour.
● If the employee lacks skills and competencies to perform actions
essential for the goal, then the goal-setting can fail and lead to
undermining of performance.
● There is no evidence to prove that goal-setting improves job satisfaction.

(B) Reinforcement theory of motivation

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

It was proposed by BF Skinner and his associates. It states that an individual's


behaviour is a function of its consequences. It is based on the “law of effect”, i.e, an
individual's behaviour with positive consequences tends to be repeated, but an
individual's behaviour with negative consequences tends not to be repeated.
Reinforcement theory of motivation overlooks the internal state of individuals, i.e.,
the inner feelings and drives of individuals are ignored by Skinner. This theory
focuses totally on what happens to an individual when he takes some action. Thus,
according to Skinner, the external environment of the organisation must be designed
effectively and positively so as to motivate the employee. This theory is a strong tool
for analyzing the controlling mechanism for an individual's behaviour.

The managers use the following methods for controlling the behaviour of the
employees:

1.Positive Reinforcement- This implies giving a positive response when an


individual shows positive and required behaviour. For example - Immediately
praising an employee for coming early for a job. This will increase the probability of
outstanding behaviour occurring again. Reward is a positive reinforcement, but not
necessarily. If and only if the employees’ behaviour improves, reward can be said to
be a positive reinforcement. Positive reinforcement stimulates occurrence of a
behaviour. It must be noted that more spontaneous is the giving of reward, the
greater reinforcement value it has.
2.Negative Reinforcement- This implies rewarding an employee by removing
negative / undesirable consequences. Both positive and negative reinforcement can
be used for increasing desirable/required behaviour.

(C)Equity theory of motivation


In the equity theory of motivation, an employee's motivation depends on their
perception of how fair the compensation and treatment is for their work input. Equity
Theory states that the employees perceive what they get from a job situation
(outcomes) about what they put into it (inputs) and then compare their inputs-
outcomes ratio with the inputs- outcomes ratios of others.

The equity theory of motivation describes the relationship between the employee’s
perception of how fairly he is being treated and how hard he is motivated to work. J.
Stacy Adams developed equity theory.

This theory show-

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Inputs: Inputs include all the rich and diverse elements that employees
believe they bring or contribute to the job – their education, experience, effort,
loyalty, commitment.
● Outcomes: Outcomes are rewards they perceive they get from their jobs and
employers’ outcomes include- direct pay and bonuses, fringe benefit, job
security, social rewards and psychological.
● Overrewarded: if employees feel over-rewarded equity theory predicts then
they will feel an imbalance in their relationship with their employee and seek
to restore that balance.
● Equity: if employees perceive equity then they will be motivated to continue
to contribute at about the same level.
● Unrewarded: unrewarded who feel they have been unrewarded and seek to
reduce their feeling of inequity through the same types of strategies but the
same of this specific action is now reversed.

This theory is based on the following two assumptions about human behavior:

1. Individuals make contributions (inputs) for which they expect certain outcomes
(rewards). Inputs include such things as the person’s past training and
experience, special knowledge, personal characteristics, etc. Outcomes
include pay, recognition, promotion, prestige, fringe benefits, etc.
2. Individuals decide whether or not a particular exchange is satisfactory, by
comparing their inputs and outcomes to those of others, in the form of a ratio.
Equity exists when an individual concludes that his/her own outcome/input
ratio is equal to that of other people.

The three situations of equity theory are illustrated in the following figure:

Roles played by the equity in motivation;

1. Employees make comparisons between their job inputs and outcomes relative
to those of others.
○ If we perceive our ratio to be equal to that of the relevant others with
whom we compare ourselves, a state of equity is said to exist. We
perceive our situation as fair.
○ When we see the ratio as unequal, we experience equity tension.
2. Additionally, the referent that an employee selects adds to the complexity of
equity theory. There are four referent comparisons that an employee can use:
○ Self-inside: An employee’s experiences in a different position inside
his or her current organisation.
○ Self-outside: An employee’s experiences in a situation or position
outside his or her current organisation.
○ Other-inside: Another individual or group of individuals inside the
employee’s organisation.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

○ Other-outside: Another individual or group of individuals outside the


employee’s organisation.

(D) The expectancy theory

The expectancy theory was proposed by Victor Vroom of Yale School of


Management in 1964. Vroom stresses and focuses on outcomes, and not on needs
unlike Maslow and Herzberg.

The theory states that the intensity of a tendency to perform in a particular manner
is dependent on the intensity of an expectation that the performance will be followed
by a definite outcome and on the appeal of the outcome to the individual.

The Expectancy theory states that employee’s motivation is an outcome of:

1. how much an individual wants a reward (Valence),


2. the assessment that the likelihood that the effort will lead to expected
performance (Expectancy) and
3. the belief that the performance will lead to reward (Instrumentality).
1. In short, Valence is the significance associated by an individual about the
expected outcome. It is an expected and not the actual satisfaction that
an employee expects to receive after achieving the goals.
2. Expectancy is the faith that better efforts will result in better performance.
Expectancy is influenced by factors such as possession of appropriate
skills for performing the job, availability of right resources, availability of
crucial information and getting the required support for completing the job.
3. Instrumentality is the faith that if you perform well, then a valid outcome
will be there. Instrumentality is affected by factors such as belief in the
people who decide who receives what outcome, the simplicity of the
process deciding who gets what outcome, and clarity of relationship
between performance and outcomes.
Thus, the expectancy theory concentrates on the following three relationships:

● Effort-performance relationship: What is the likelihood that the


individual’s effort be recognized in his performance appraisal?
● Performance-reward relationship: It talks about the extent to which the
employee believes that getting a good performance appraisal leads to
organisational rewards.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Rewards-personal goals relationship: It is all about the attractiveness or


appeal of the potential reward to the individual.
Vroom was of the view that employees consciously decide whether to perform or not
at the job. This decision solely depended on the employee’s motivation level which
in turn depends on three factors of expectancy, valence and instrumentality.

D. Learning
Meaning
Learning can be defined as a relatively permanent change in behaviour or potential
behaviour as a result of direct or indirect experience. Learning is thus a change in
behaviour as a result of experience.

Definition
“Learning is any relatively permanent change in behaviour that occurs as a result of
experience.” -Stephen P. Robbins

Nature of Learning

● Learning is a relatively permanent change in knowledge or behaviour that


results from practice or experience. There are several key points in this
definition.

● Learning comes change in knowledge or behaviour has to be relatively


permanent or long-lasting. Learning takes place as a result of practice or
through experience

Theories of Learning

1. Classical Conditioning
The Classical Conditioning Theory was proposed by a Russian Physiologist Ivan
Pavlov. According to this theory, behaviour is learnt by a repetitive association
between the response and the stimulus. The classical conditioning theory is based
on the assumption that learning is developed through the interactions with the
environment. Also, the environment shapes the behaviour and internal mental state
such as thoughts, feelings, emotions do not explain human behavior.

Example: When a CEO visits an organisation, production charts are updated,


individuals put on a good dress, window panes are cleaned and floors are washed.
What all one has to do is to just say that the Top Boss is visiting. You will find that all
the above work is undertaken (response) without any instructions. Because the

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

people in the organisation have learned the behaviour (conditioned). It has caused a
permanent change in the organisation (S-R connections).

(Easy to Understand: Pavlov conducted an experiment on a dog and measured the


amount of saliva secreted by a dog, with the use of a surgical procedure, when it is
exposed to different stimuli or objects. At first, when Pavlov presented a piece of
meat (US) to the dog, he noticed a great amount of salivation (UR) whereas, in the
second time, when he just rang the bell, he observed there was no effect of a bell on
the dog’s salivation. After this, Pavlov rang the bell accompanied with meat and
noticed the salivation of a dog. He repeated this process several times, and finally,
one day he just rang the bell without meat and observed that dog still salivated to the
bell alone)

2. Operant Conditioning
As per this theory, people learn to repeat the behaviour if the consequences are
favourable and it is not likely to be repeated if the consequences are unfavourable.
In Operant. People learn to behave to get something they want or avoid something
they don’t want. Operant behaviour means voluntary or learned behavior. The
tendency to repeat such behaviour is influenced by the reinforcement or lack of
reinforcement brought about by the consequences of the behaviour. Reinforcement
therefore strengthens behaviour and increases the likelihood it will be repeated.
Example: Working hard and getting the promotion will probably cause the person to
keep working hard in the future.

3. Cognitive Learning Theory


This theory tells us that learning can take place when relationships between cues
and expectancy are strengthened. Behaviourists such as Skinner and
Watson believed that learning through operant and classical conditioning would be
explained without reference to internal mental processes. Today, however, a growing
number of psychologists stress the role of mental processes. They choose to
broaden the study of learning theories to include such cognitive processes as
thinking, knowing, problem-solving, remembering and forming mental
representations.

4. Social Learning Theory


As per this theory, learning can take place through imitating others. Albert Bandura
contends that many behaviours or responses are acquired through observational
learning. Observational learning, sometimes called modelling, results when we
observe the behaviours of others and note the consequences of that behaviour.
Social learning theory is a behavioral approach. The approach basically deals with
the learning process based on direct observation and the experience.

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MCQ
1. Psychological process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment is definition
of_______________
a) Attitude b) thinking c) Perception d) Personality
2. The__________________ theory states that human mind will receive or accept
only those information which it feels that it is relevant.
a) Perception theory b) Selective Perception c) relevance Theory
3. Stereotyping generally affects the ________________________
a) organisation Structure b) behaviour c) Interpersonal Relations d)
Communication
4. _______________ is our perception of one personality trait influences how we
view a person’s entire personality. a) Perception b) Halo effect c) Stereotyping d)
Individual Personality
5.___________ means the mental action or process of acquiring knowledge and
understanding through thought, experience, and the senses.
a) Learning b) development c) Cognition d) Training
6. _______________is the process of stimulating people to actions to accomplish
the goals.
a) Bonus b) Motivation c) Performance
7. ________is the developer of 'Two Factors theory' of Motivation.
a) Herzberg b) Lawless, David. J c). A. H. Maslow d) Porter, Lyman W. and
Hackman
8.Engaging in work behaviour and striving hard to perform well for the primary
purpose of fulfilling one's own satisfaction, pride and happiness is called
________________
a). Social Motivation b) Intrinsic Motivation c) Extrinsic Motivation

Descriptive Questions:

1. Explain the features of Perception features.


2. What are the factors influencing individual perception?
3. Discuss the effects of perceptual error in managerial decision making.
4. State the types of values in organisational behaviour.
5. Explain the types of motivations in detail.
6. Explain the theories of motivation.
7. Explain the theories of learning in detail.

Module 3: Group Behaviour and Team Behaviour

A. Group Behaviour

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Meaning
A group can be defined as two or more interacting and interdependent individuals
who come together to achieve particular objectives

Definition
A group “as two or more in *interacting and interdependent, who have come to
achieve particular objectives.” –Stephen Robbins

“A group is two or more who interact with one another such that each person is
influenced by the other person’.--Marvin Shaw

The salient features of a group are:

(1) It consists of two or more people.

(2) The members of a group interact with one regularly.

(3) The members are mutually dependent on one another.

(4) The members of the group share common interests or goals.

Informal
An informal group is one that's not organisationally determined or influenced and
usually formed by the members themselves in response to the need for social
contact.

Group dynamics
Group dynamics contains two terms: Group + Dynamics= GD
Group is basically a collectivity of two or more persons. Dynamics comes from the
Greek word meaning FORCE. Thus, “Group dynamics is concerned with the
interactions of forces among group members in a social situation ” Group dynamics
refers to the attitudinal and behavioral characteristics of a group. Group dynamics
concern how groups form, their structure and process, and how they function. Group
dynamics are relevant in both formal and informal groups of all types. In an
organisational setting or in Social Group Work, groups are a very common
organisational entity and the study of groups and group dynamics is an important
area of study in organisational behavior.

TYPES OF GROUPS:

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Most individuals belong to various types of groups. These different groups can be
broadly classified in two types:

(1) Formal groups: formal group is “a designated work group defined by an


organisation's structure.(Robbins and Judge, 2009). They are groups that are
consciously created by the organisation for its goals. An airline flight crew is an
example of a formal group.
In a formal group, behaviour of members:
(1) Is determined by the group and
(2) Is directed towards attainment of the group goals,

Formal groups can be further classified in to different type,

a) Command group: A command group is a group composed of individuals who


report directly to a given manager (Robbins and Judge, 2009). The organisational
charts determine the command group. Command groups are determined by the
organisation rules regarding who reports to whom and usually consist of supervisor
and his subordinates. The marketing department comprising the General Manager
and the other marketing staff is an example of a command group.

b) Task Group: A task group is a group created by management to accomplish


certain organisational goals specifically created to solve a problem or perform a
defined task. It is composed of individuals with some special interest or expertise in
a specific area regardless of their position in the organisational hierarchy. For
example, a committee established by the organisation to study and recommend
changes in the existing wage system. Task groups are usually disbanded once the
assigned task or purpose has been accomplished. All command groups also have
task groups but all task groups need not have command groups.

(2) INFORMAL GROUPS

Informal groups have few rules and procedures and members enjoy greater freedom
of thought and action The different types of informal groups are

a) Interest groups: Interest groups consist of persons who share common interests.
These may be job-related interests, such an intense desire to learn the latest in
computers, or non-work interests, such as sports, national politics or religion,

b) Friendship groups: Friendship groups consist of individuals who come together


because they share one or more common characteristics. Informal work groups are
an important part of organisation life. They help individuals satisfy needs that are not

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met by formal groups. Informal groups provide their members with social satisfaction
and a sense of security and belongingness.

EFFECTS OF INFORMAL GROUPS

Informal groups in organisations have significant impact on the working of


organisations and members of the same organizations. The impact of informal
groups or organisations can be positive or negative.

The following are some of the positive effects of informal organisations :

1) Informal groups contribute immensely towards creating dq awareness and


spreading of organisational culture. Members become aware about the many
organisational values through the socialization that takes place in informal
groups.
2) Informal organisations increase the social satisfaction of the group members
by giving them status, recognition and opportunities to interact with others.
Routine and boring jobs become interesting and bearable due to social
interaction provided by informal groups. Informal groups are an important
source of social and psychological support to group members.
3) Informal organisations help in eliminating red-tape and cutting across
departmental boundaries. This helps in problem solving, group decision
making and sharing of job knowledge..
4) informal groups help in establishing and maintaining norms of acceptable
behaviours. They may support moral/immoral acts as well as ethical /unethical
acts.
5) Communication gaps among members are filled by organisations . Informal
organisations cut across hierarchical and departmental boundaries and
ensure that information gets transmitted quickly.

The following are some of the negative effects of informal organisations :

1) Informal organisations often create obstacles in the pag change. Informal groups
often have a tendency to - status quo and hence resist change.

2) As employees are members of both formal and informal groups, it sometimes


creates situations of role conflict. The individual employee is sometimes torn
between the demand and conflicting expectations of the two groups.

3) Informal groups exerts strong pressures on the members to conform through their
informal Members are sometimes manipulated by informal leaders for their personal
gains.

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4) Informal groups are often the source of rumour organisations . Social


communication bypasses communication in the organisation and distorts informal
groups. This is especially true in situations that are ambiguous and are high on
emotions.

Monitoring Informal Organisation

● Bases for Networks - They usually focus on either interpersonal feelings


expressed among individuals.
● Influencing Informal organisation - Management did not establish informal
organisation and it cannot abolish them
● Accept and understand informal organisations
● Identify various levels of attitudes and behaviours
● Consider possible effects on informal systems
● Integrate the interest of informal groups with those of formal groups.
● Keep formal activities from threatening informal organisations.

Informal Leader

● The informal leader plays several useful roles for a work unit.
● Informal leaders may help socialize new members into the organisation, and
they may be called upon by the group to perform the more complex task.

Key roles of Informal leaders:

● They’re good at building relationships. And they make friends with lots of
different kinds of people
● They deeply understand the organisation. They know how things work. They
know what the culture is, they understand the leaders, the history, and the
unspoken rules. They know what battles are worth fighting and which are not.
They share their knowledge with others generously and without hubris or
fanfare. As an example, Marion, had grown up living in the city where my
friend was working and was happy to be a reference for the social customs
and recommend the best places to hang out.
● They help without ulterior motives. They see the work that needs to be done
and they do it. They’re not looking to be rewarded, and the offer to help isn’t
leverage to gain power.

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● They’re early adopters. They tend to be the first one to know about new tools
and technologies, which signals to everyone else that they’re not following
anyone

Multiple Informal Leader

Informal groups overlap to the extent that one person may be a member of several
different groups, which means that there is not just one leader but several of varying
importance

Formal Groups

In formal groups, the behaviour that team members should engage in are stipulated
by and directed toward organisational goals. The major purpose of formal groups is
to perform specific tasks and achieve specific objectives defined by the organisation.
The most common type of formal work group consists of individuals cooperating
under the direction of a leader.

Characteristics of Formal Groups:


● They are approved by some authority.
● There is a fixed division of labour. Individuals are assigned specific
responsibilities.
● There are personal interactions between the group members.
● Group members are rewarded.

Potential Outcomes of Formal Group Processes

● Support for Decisions


The most important byproduct of face to face group meetings is that people who
participate in making a decision feel more strongly motivated to accept it and carry it
out. In many instances, this is not a by-product but the primary purpose. Group
decisions also carry more weight with those who are not group members. Everyone
is more likely to accept a group decision. It is free from individual prejudice because
it is based on a combination of views.
● Quality of Decisions
Groups are highly effective problem-solving tools. They have greater information
available to them than individuals, a variety of experiences, multiple perspectives
from diverse thinkers, and the capacity to examine suggestions and reject incorrect
ones. Groups can produce more and better-quality solutions to some problems than
individuals.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

● Individual differences
Social facilitation is that group members try harder to contribute to a task because
other people are around. The presence of others stimulates them to perform better.
Having other people around increases a person’s general level of arousal and
awareness, stimulating
mental activity. Presence of others makes some people apprehensive about being
appraised, formally or informally by others and raise their level of performance to
look good. Presence of others may raise another's awareness of the discrepancy
between actual and ideal self and stimulate the person to close the gap(and raise
their self-esteem).

B. Team and Team Building


Meaning
A team is composed of members who are dependent on each other, work towards
interchangeable achievements, and share common attainments.

Definition
A team as “a group whose members have complementary skills and are committed
to common purpose or set of performance goals for which they hold themselves
mutually accountable.” –Greenberg and Baron

A work team as “a group is an individual efforts results in a performance that is


greater than sum of those individual inputs,” –Stephen Robbins

The important characteristics of a team are:

(1) Small number; A team consists of few people as interaction and influence
processes needed for the team to function can occur only when the number is small.
(2) Mix of skills: A team includes people with a mix of skills appropriate to the tasks
to be done.
(3) Common purpose of goal: A team comes together to take action to pursue a
goal. The purpose becomes the focus of the team, which makes all decisions in
pursuit of the goal.
(4) Mutually accountable: Mutual accountability is a kind of promise that members
make to each other to do everything possible to achieve their goals, and it requires
commitment and trust of all members.

Modern organisation

Modern organisation means a boundaryless organisation which is networking


together and collaborating more than ever before. Modern style of management
largely depends on soft skills – consensus building, relationships, listening, and
understanding, taking the team along with you willingly rather than dragging them
along with you.

Outcomes of Modern Organisation:

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1.Stability: People believe that traditional organisations are stable in their activities
and progress. On the other hand, the modern one is more dynamic with its multiple
business strategy. They need multiple progress and constant changes.

2.Flexibility: Modern organisations are always flexible to change their workflow,


focuses as well as connectivity. There the organisation is needed to update their
competitive advantages and the employees are required to upgrade their knowledge
and skills. Traditional organisations are fixed, inflexible and planned.

3.Teamwork: Team work is the main concept of modern organisation. The


organisation who builds a more effective team can gain more. On the other hand a
traditional one follows a chain of command where every employee should be obeyed
to his superior.

4.Employee Morale: As an employee of a modern organisation get more freedom


and flexibility to exchange his or her assessment. Consequently in this type of
organisation you find high employee morale. Traditional is a job oriented organisation
so you are not sure about the matter of employee morale.

5.Risk Management: Traditional organisation maintain a specific policy to protect


any kind of risk that would be hampered for the organisation or its employees. So
employees are more educated about the matter thus can take any step. Modern
organisations are slightly brave in this matter. Though they are always ready to take
on new challenges so everyone here is prepared to face any risk instantly.

6.Diversification: Moreover the main contradiction between the modern and


traditional organisation is their business policies. Traditional organisations are
slightly conservative and they try to follow traditional rules and regulations. They
always flow a static business strategy and make a workflow model maintaining a
traditional marketing policy and employee management system. A modern
organisation is doing modification, rescheduling, flexible entity management and
dynamic business strategy.

7.Technology: Modern organisation is more technology based and boundaryless.


So the number of employees or the office compartment doesn’t matter. But traditional
organisations are centralized and backward to accept advanced technology.

So today is the right time to think about the business model of your organisation. In
the present situation public demands are unlimited and their attention becomes
diversified. So you should be more dynamic, more virtual and more advanced in
modern technology.

Teamwork
Teamwork builds strong employee relationships because the more employees work
close to each other, the more they get to know each other and develop a liking for

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each other. The more they work together, the more they learn and learn to live with
each other’s likes, dislikes, strengths, and weaknesses

1. Teamwork is efficient work

A key pillar of the industrial revolution, a foundation of modern civilisation, was the
division of labour. And that’s just another way to say teamwork.

Employee teamwork enables your workforce to:

● Split difficult tasks into simpler ones.


● Work together to complete them faster
● Develop specialised skills, so that the best person for each task can do it
better and faster

In a nutshell, teams make work more efficient. That can lead to better productivity,
reduced costs, greater profitability, and many other benefits.

2. Teams self-monitor
In teamwork, many people have responsibility for the same goal. Most
significantly, teammates observe and depend on the quality of each other’s work.
When one team member’s performance dips, the others have the knowledge and
motivation to help them improve. Without management intervention, effective teams
can often regulate their own performance.

3. Teams innovate faster

For any task or problem, there are usually countless solutions. When one employee
tackles a project, they might be able to think of a few different ideas given time. But
when a team tackles a problem, the project benefits from multiple perspectives, skill
sets, and experiences all at once. A team approach can therefore lead to faster,
deeper innovation.

4. Teammates learn from each other


Working together, they’ll soon learn each other’s strengths and correct each other’s
mistakes. And everyone’s performance will improve.

Example: Imagine you have a workforce of 10 designers all working in separate


rooms. Each designer works to their own strengths and suffers from their own
weaknesses, with nobody to teach or learn from.

5. Teamwork can create healthy competition

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Provided the right challenge and rewards are in place to promote competition, team
performance can keep improving. Hence, teamwork helps to create healthy
competition with each other.

Example: But what happens to that same team of 10 designers a year down the line,
when they’ve learnt all they can from each other? They’ll soon start to compete with
one another, to prove their ability and chase promotion or other incentives within your
organisation.

6. Teamwork promotes strong working relationships

Finally, when employees work together and succeed as a team, they form bonds that
can turn into trust and friendship. It’s human nature. And it’s great for your
organisation, since employees who like and trust each other are more likely to:
● Communicate well with each other.
● Support and motivate each other
● Work cooperatively

TEAM VERSUS GROUP

People often refer to their groups as teams. However a team is different from a group.
There are several important differences between a team and a group: .

a) Goal and Performance: The performance of a team depends on both individual


contributions as well as collective work. In a group, performance usually depends on
the work of individual members. The basic goal of a group is to share information.
The primary goal of a team is collective performance.

b) Synergy: In a group there is no positive synergy. It is at best neutral but it can


sometimes be negative. Groups do not engage in collective work that requires. joint
efforts. The performance of the work group is merely the sum of each individual group
member's contribution.

c) A team is a coordinated effort. A work team generates a lot of positive synergy.


They generate additional energy. The efforts of the individual members results in a
performance that is greater than the sum of the individual inputs.

d) Accountability: In a team the focus is on individual accountability as well as


mutual accountability. The team ‘works together to produce an outcome and each
team member is responsible for that outcome. Rewards are shared in a team.
e) Commitment: In a group, members share a common interest goal. Team
members not only have a common goal but they also have a common commitment
to the purpose. Team members have a feeling of ‘ownership’ about their purpose
which is missing in groups.
f) Connection to management: Teams usually have greater autonomy than groups.
Work groups have to respond regularly to the demands placed on them by the

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management. In contrast, the work team has greater flexibility and less interference
from the management.

g) Skills: In a work group, members possess random and varied skills. In a work
team, skills of the members are complementary.

LIfe Cycle of Team


Here’s how each stage works:
1.Forming: This is where team members first meet. It’s important for team leaders
to facilitate the introductions and highlight each person’s skills and background.
Team members are also given project details and the opportunity to organize their
responsibilities.

2.Storming: At this stage, team members openly share ideas and use this as an
opportunity to stand out and be accepted by their peers. Team leaders help teams
in this stage by having a plan in place to manage competition among team members,
make communication easier, and make sure projects stay on track.

3.Norming: By now, teams have figured out how to work together. There’s no more
internal competition, and responsibilities and goals are clear. Each person works
more efficiently because he or she has learned how to share their ideas and listen to
feedback while working toward a common goal.

4.Performing: There’s a high level of cohesion and trust between team members.
Teams are functioning at peak efficiency with less oversight from team leaders.
Issues still come up, but at this point, teams have strategies for resolving problems
without compromising timelines and progress.

5.Adjourning: Teams complete their project and debrief on what went well and what
could be improved for future projects. Afterwards, team members move on to new
projects. Now let’s look at how to use this model to amplify the strengths within your
remote marketing team so that projects are successful and completed on time.

Major Factor For Effective Team:

1. They have clear goals and plans

Before jumping right into work, effective teams first set common goals with clear
metrics of success.. Effective teams create plans on how to attain their goals,
detailing each individual's contribution and respective deadlines. This allows every
member to understand not only their own role but also their fellow team members’.
Plans are then regularly reviewed during status update meetings to see if the team
is on track or if adjustments are needed for goals to be met.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

2. They have strong leadership

A successful team is usually led by an individual who is trusted and respected by its
members. Such leaders unify members toward the same direction by providing focus
and guidance. They also offer encouragement and motivation to keep the team
morale high, even in the midst of challenges. The best leaders even help team
members achieve their individual goals and realize their potential.

3. Members fulfill their own tasks and also help one another

Since members are deeply committed to the team’s success, they make sure to
follow through with the team’s plan by accomplishing their individual tasks excellently
and on time and trusting that their teammates will do the same. However, should a
teammate encounter difficulties with their share of the load, members willingly lend
a helping hand.

4. Members communicate openly with the team

In a successful team, members feel that their ideas and input matter so they are not
afraid to express their own thoughts and opinions, even if these conflict with what
has been presented. In fact, diverse opinions are welcomed and seen as
opportunities to stir creativity and generate fresh ideas.. This culture of trust allows
members to share their knowledge, build on each other’s ideas, collaborate, and
experiment.

5. Members resolve conflict constructively

Having disagreements within a team is inevitable. However, in an effective team,


members try to resolve their issues in a constructive manner by doing the following:

Speaking to one another calmly and in a non threatening tone. Allowing the other
person to speak without being interrupted. Practicing active listening to understand
where the other person is coming from. Focusing on the facts rather than attacking
the person’s character. Respecting each other’s viewpoints.

6. Members feel they directly contribute to the company’s success

When there are multiple teams in a company, each team may become too focused
on their own goals that they lose sight of the bigger picture — the company’s overall
goals. However, members of an effective team feel that their work is important and
that their team directly contributes to the overall success of the company.

Team building

Team building is a management technique used for improving the efficiency and
performance of the workgroups through various activities. It involves a lot of skills,

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analysis and observation for forming a strong and capable team. The whole sole
motive here is to achieve the organisation's vision and objectives.

Team Building Process

Team building is not a one-time act. It is a step by step process which aims at bringing
a desirable change in the organisation. Teams are usually formed for a particular
task or project and are mostly for the short term.

1. Identify the Need for Team Building


The manager has first to analyze the requirement of a team for completing a
particular task. It should find out the purpose of the work to be performed, required
skills for the job and its complexity before forming a team.

2. Define Objectives and Required Set of Skills

Next comes the chalking down of the organisational objectives and the skills
needed to fulfil it.

3. Consider Team Roles

The manager considers the various aspects, i.e. the interactions among the
individuals, their roles and responsibilities, strengths and weaknesses,
composition and suitability of the possible team members.

4. Determine a Team Building Strategy

Now, the manager has to understand the operational framework well to


ensure an effective team building. He must himself be assured of the
objectives, roles, responsibilities, duration, availability of resources, training,
the flow of information, feedback and building trust in the team.

5. Develop a Team of Individual

At this stage, the individuals are collected to form a team together. Each
member is made familiar with his roles and responsibilities within the team.

6. Establish and Communicate the Rules

The rules regarding the reporting of team members, meeting schedules, and
decision making within the team are discussed. The individuals are
encouraged to ask questions and give their views to develop open and healthy
communication in the team.

7. Identify Individual’s Strengths


Various team-building exercises are conducted to bring out the strengths of
the individuals. It also helps in familiarizing the team members with each
other’s strengths and weaknesses.

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8. Be a Part of the Team

At this point, the manager needs to get involved with the team as a member
and not as a boss. Making the individuals realize their importance in the team
and treating each member equally is necessary. The team members should
see their manager as their team leader, mentor and role model.

9. Monitor Performance

Next step is checking the productivity and performance of the team as a


whole. It involves finding out loopholes and the reasons for it. This step is
necessary to improve the team’s performance and productivity in the long run.

10. Schedule Meetings

One of the most crucial steps is to hold purposeful meetings from time to time
to discuss team performance, task-related problems and discuss the future
course of action.

11. Dissolve the Team

Lastly, the manager needs to evaluate the results and reward the individuals
on their contribution and achievement. Finally, the team is dispersed on the
fulfilment of the objective for which it was formed.

Need of Team Building

Team building has radically evolved as a technique to develop and manage


to

1. Identify Strengths and Weaknesses: Through team-building exercises, the


strengths and weaknesses of each member can be identified. In day to day
routine work, such an analysis cannot be done. These competencies can be
used by the managers to form effective teams.

2. Direct Towards Vision and Mission: Team building activities define the role
and importance of the team for the organisation to reach its vision. It makes
the individuals understand the organisation’s goals, objectives, mission and
vision very clearly and motivates them to contribute towards it.

3. Develops Communication and Collaboration: Team building activities


enhance the interpersonal relations of the team members. It makes individuals
comfortable and familiar with one another. Collaboration develops trust and
understanding among the team members.

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4. Establishes Roles and Responsibilities: It defines and clarifies the role of


each member of a team. Moreover, the members are given individual
responsibilities, along with the motivation of performing as a team.

5. Initiates Creative Thinking and Problem Solving: In a team, individuals are


motivated to give their views, opinions and solution to a particular problem. It
leads to brainstorming and exploring their creative side.

6. Builds Trust and Morale: By conducting team building activities, the


organisation makes the employees feel valued. It encourages them to develop
their skills and build strong interpersonal relations, ultimately boosting the
morale and trust of the team members.

7. Facilitates Delegation: The managers find it more suitable to delegate the


work to a team rather than an individual. Therefore, team building helps the
managers to efficiently and adequately delegate the task to the team.

8. Better Productivity: If the team is wisely formed and all the team members
work collaboratively to achieve the objectives, the productivity of all the
individuals improve. Thus, increasing the productivity of the team and the
organisation.

Team-Building Skills

1. Good Communication Skills

For a team to work together efficiently, you need to have good communication skills
and should be able to express ideas and thoughts.

The key traits of being a good communicator are that you are clear, concise, and
specific when you convey information. There must be frequent communication to
ensure the free flow of information between team members and the whole
organisation.

Communication is an important and effective team-building skill because, without it,


teamwork cannot exist!

2. Active Listening Skills

Active listening skills are an extension of good communication. People don’t want to
just listen all the time, they also want to be heard.

That’s why active listening is an essential part of team-building skills because it


focuses on what others are saying and tries to understand their concerns. It makes
them feel acknowledged and appreciated. Active listening skills also mean that you
are able to read nonverbal cues such as body language and facial expressions and
respond to them in an appropriate manner.

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3. Problem-Solving Skills
It’s normal for problems to arise in every team. As a team builder, you should be able
to recognize potential issues before they become bigger and more serious problems.

You should be able to remain calm during a conflict and study the situation in its
entirety before reaching any consensus. Your problem-solving skills determine how
well your team can work together in times of disagreements, which is why it is an
indispensable team-building skill.

4. Delegation Skills

You know that you cannot handle all the work in a group alone. That’s why, as a
team builder, it is your job to delegate work. This way, everyone is responsible.

To be a good delegator you must create achievable goals, assign tasks according to
members’ expertise, and communicate well. Delegation is an important team-
building skill that decides how efficiently you can achieve results.

5. Organisational Skills

A team cannot function smoothly if there is no proper organisation within it.As a good
team builder, you should ensure that all the tasks that your team needs to work on
are well-organized. This includes planning ahead, setting goals, following a strict
schedule, keeping track of deadlines, and achieving the goals on time.

All of this helps the team to work effectively and efficiently, which is why being
organized is an essential team-building skill!

6. Accountability

Nobody wants to deal with team members who play the blame game. That is why
accountability is important in a team. It shows that you are willing to acknowledge
your mistakes and take responsibility for it. Taking accountability for making a
mistake is a must-have team-building skill for the very reason that it builds trust
amongst the team members.

7. Motivation

As a good team builder, you should be able to easily motivate your other team
members and get them excited about setting goals and achieving them.

You can give your members an incentive to work, which could include a bonus or a
financial reward. You can come into work with a positive attitude and provide moral
support to each member. You can also provide positive feedback to motivate your
team members. This sort of motivation can encourage members to improve the
quality and quantity of their work!

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8. Ability to Develop Relationships

Being in a team is all about developing good relationships with your teammates. It is
a team-building skill that strengthens personal connections between members and
aids them in performing better as a team.

Your relations can go beyond the boundaries of a professional one-to-one, you can
become closer with your team members on a personal level too!

9. Being Supportive

The point of having a team is to have people to fall back on. When team members
know that they have people to rely on and receive a helping hand from, it makes
working a lot more easier and comforting.

As a team builder, being supportive of your team members can have an extremely
positive impact on them. This in turn will boost their morale and encourage them to
work better.

MCQ
1. Groups created by managerial decision in order to accomplish stated goals of the
organisation are called ____________
a. formal groups b. informal groups c. task groups d. interest groups

2. ___________ is NOT a stage of the life cycle of a group.


a. performing b. norming c. reforming d. storming

3. A group that is determined by the organisation chart and composed of the


individuals who report directly to a given manager is known as ____________
a. task group b. command group c. friendship group d. interest group

4. ____________ is the second stage of group development.


a. performing b. norming c. reforming d. storming

5.__________ group formed to complete the project.


a. task group b. command group c. friendship group d. interest group

Descriptive Questions:

1. Explain the Types of Groups.


2. Explain the effects of Informal groups.
3. Discuss the Potential Outcomes of Informal Group Processes
4. States the Outcomes of Modern Organisation-
5. Explain the difference Between Groups and Teams
6. Explain the Life cycle of the Team.
7. What are the Major Factors for Effective Teams

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Module 4: Understanding Others: Interpersonal relationships

A. Conflict Management

Meaning
Organisational conflict, or workplace conflict, is a state of discord caused by the
actual or perceived opposition of needs, values and interests between people
working together. Organisational conflict is an internal misunderstanding or
disagreement that can occur between colleagues or leaders. These kinds of
disagreements can lead to a lack of cohesion and collaboration in the workplace

Definition

It can be defined as a “disagreement between two or more individuals or groups, with


each individual or group trying to gain acceptance of its view or objectives over
others”.-David L. Austin

LEVELS OF CONFLICT

Conflict can occur at three levels:

(1) Within an employee (Intrapersonal conflict)

(2) Between individuals (Interpersonal conflict)

(3) Across groups in organisations (Intergroup conflict)

1) Intrapersonal conflict: Intrapersonal conflict means conflict within oneself.


Intrapersonal conflict is often a result of “competing roles and values. For example,
a manager will experience intrapersonal conflict when there is a clash between his
values and the methods he has to adopt to be successful on the job.

2) Interpersonal conflict: Interpersonal conflict refers to conflict between two


persons such as the manager and his subordinate. These types of conflicts create
serious problems because they affect us emotionally and threaten our self-esteem
and self-image. Interpersonal conflicts often occur because the temperaments and
personalities of two persons are just not compatible. Communication gaps and
differences in “perception'' are some of the other causes of interpersonal conflicts.

3) Intergroup conflict: Intergroup conflicts in organisations are commonly in the


form of conflicts between two departments. of a company. For example, the
marketing department may conflict with the production unit. Intergroup conflicts occur
because each group wants to put down the other, gain more power and improve its
image. Such conflicts also occur due to differing viewpoints, group loyalty and
competition for resources.

Every organisation has limited resources but every group & department inflates its
contribution and wants more than What it can secure thus leading to intergroup

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conflicts. Most intergroup conflicts arise over the division or distribution of space,
money, equipment or personnel.

SOURCES OF CONFLICT

The causes of interpersonal conflict are:

1) Organisational change: Organisations need to adapt quickly to the rapid


changes taking place on the political, technological and societal front. People
have different ideas of how the organisation must adapt to these changes.
They differ in their views over the direction, route and the resources that the
organisation must choose in order to succeed. This often leads to conflict.

2) Personality clashes: Individuals differ in the way they look, think, feel and
act. While we are able to get on wonderfully with some people, we simply
cannot stand the sight of some people. Such differences in the personalities
of individuals, ‘often lead to conflict. Examples: Type A individuals are more
involved in conflict than Type B individuals. Persons high on self-monitoring
(those who are highly aware of how others are reacting to them) are more
likely to resolve conflicts in productive ways than individuals low in self-
monitoring.

3) Ambiguity over responsibility and ambiguity over jurisdiction: There is


sometimes uncertainty over who is responsible for performing various tasks
or duties. Under such conditions conflict can develop. There is sometimes
uncertainty over who has jurisdiction or authority.

4) Different values: People hold different sets of values and beliefs. They have
different philosophies about what and how things should be done. Such
differences among people often lead to conflicts. Conflicts of this nature are
more difficult to resolve.

5) Threat to status: For most individuals their status or rank is very important.
When their individual status, threatened they are likely to resort to face saving
acting & preserving their image. Thus conflicts may arise between the
individual and whoever threatened his status
.
6) Contrasting perceptions: People differ in the way they perceive things. Our
perceptions are a result of our pay experiences and expectations. Conflicts
arise when we expect others to look at things in the same way as we do. We
fail to realize that others may view the same object or event from, different
perspective.

7) Distrust: Trust is the capacity to depend on each other, words and actions.
It takes a long time to build trust but it cy be destroyed in an instant. While
trust among employees enriches the organisation, distrust can tear apart an

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organisation. The more strongly people suspect that another individual or


group is out to get them and is likely to act against their interests, the greater
the likelihood that a conflict will occur.

8) Faulty Communication: Individuals often communicate in a way that angers


or annoys others, even though it is not the intention to do so. Faulty
communication involves a lack of clarity and is a potential source of conflict.
For example, “Manager thinks that he has communicated clearly to
subordinate a task that needs to be done. But the subordinate is confused
about what should be done. The manager is angry when he finds that the task
has not been properly.do’ while the subordinate feels that the boss is being
unfair.

9) Grudges: When people are made to lose face (to look fool publicly), they
develop strong negative attitudes toward # individual responsible for these
outcomes. They spend lots of time and effort planning revenge. Grudges may
persist gears to the detriment of the organisation.

Effect of conflict

1.Mental Health Concerns


Conflict within an organisation can cause members to become frustrated if they feel
as if there’s no solution in sight, or if they feel that their opinions go unrecognized by
other group members. As a result, members become stressed, which adversely
affects their professional and personal lives. organisation members may have
problems sleeping, loss of appetite or overeating, headaches and become
unapproachable. In some instances, organisation members may avoid meetings to
prevent themselves from experiencing stress and stress-related symptoms.
2. Decrease in Productivity
When an organisation spends much of its time dealing with conflict, members take
time away from focusing on the core goals they are tasked with achieving. Conflict
causes members to focus less on the project at hand and more on gossiping about
conflict or venting about frustrations. As a result, organisations can lose money,
donors and access to essential resources.
3.Employee Turnover Impacts
organisation members who are increasingly frustrated with the level of conflict within
an organisation may decide to end their membership. This is especially detrimental
when members are a part of the executive board or heads of committees. Once
members begin to leave, the organisation has to recruit new members and appoint
acting board members. In extreme cases, where several members leave or an
executive board steps down, organisations risk dissolution.
4. Conflict Escalation and Violence
When conflict escalates without mediation, intense situations may arise between
organisation members. It’s unfortunate, but organisational conflicts may cause

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violence among members, resulting in legal problems for members and possibly the
organisation.
5. Inspire Creativity to Solve Problems
Fortunately, some organisation members view conflict as an opportunity for finding
creative solutions to solve problems. Conflict can inspire members to brainstorm
ideas, while examining problems from various perspectives.
6. Share And Respect Opinions
As organisation members work together to solve conflict, they are more willing to
share their opinions with the group. Conflict can also cause members to actively
listen to each as they work to accomplish the organisations ’ goals.

7. Improve Future Communication


Conflict can bring group members together and help them learn more about each
other. From learning each others’ opinions on topics relevant to the organisation’s
growth to understanding each member’s preferred communication style, conflict
within an organisation can give members the tools necessary to easily solve conflicts
in the future.
8. Identify New Members
Within organisations members actively participate in each meeting, enjoy serving on
multiple committees and have an opinion on each topic the group discusses. There
are also members who seemingly contribute little to the group and observe more
than talk. Conflict within an organisation can inspire typically silent members to step
up and demonstrate their leadership skills by offering meaningful solutions to the
problem the group is facing.

Process of Conflict-
Stage 1: Potential Opposition or Incompatibility

The first step in the conflict process is the presence of conditions that create
opportunities for conflict to develop. These cause or create opportunities for
organisational conflict to rise. They need not lead directly to conflict, but one of these
conditions is necessary if the conflict is to surface.

For simplicity’s sake, these conditions have been condensed into three general
categories.

1. Communication,
2. Structure, and
3. Personal Variables.

These 3 conditions cause conflict are explained;

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

1. Communications

Different word connotations, jargon, insufficient exchange of information and noise


in the communication channel are all antecedent conditions to conflict. Too much
communication, as well as too little communication, can lay the foundation for
conflict.

For instance, your new manager, Steve, is leading a project and you’re on the team.
Steve is vague about the team’s goals, and when you get to work on your part of the
project, Steve shows up half way through to tell you you’re doing it wrong. This is
conflict caused by communication.

2. Structure

In this context, the term structure is used to include variables such as size, the degree
of specialization in the tasks assigned to group members, clarity, members/goal
compatibility, leadership styles, reward systems and the degree of dependence
between groups.

The size and specialization act as forces to stimulate conflict. The larger the group
and the more specialized its activities, the greater the likelihood of conflict. The
potential for conflicts tends to be greatest when group members are younger and
when turnover is high.

For instance, let’s say you sell cars, and your co-worker has to approve the credit of
all the people who purchase a vehicle from you. If your co-worker doesn’t approve
of your customers, then he is standing between you and your commission, your good
performance review, and your paycheck. This is a structure that invites conflict.

3. Personal Variables

Certain personality types- for example, individuals who are highly authoritarian and
dogmatic- lead to potential conflict. Another reason for the conflict is the difference
in value systems. Value differences are the best explanations of diverse issues such
as prejudice disagreements over one’s contribution to the group and rewards one
deserves.

Perhaps you work with a man and you find him untrustworthy. Comments he’s made,
the way he laughs, the way he talks about his wife and family, all of it just rubs you
the wrong way. That's a personal variable, ripe to cause a conflict.

Stage 2: Cognition and Personalization


Conflict must be perceived by the parties to it whether or not the conflict exists is a
perception issue, the second step of the Conflict Process.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

If no one is aware of a conflict, then it is generally agreed that no conflict exists.


Because conflict is perceived does not mean that it is personalized.
Stage-2 is the place in the process where the parties decide what the conflict is about
and emotions play a major role in shaping perception.
For example;
If Joan and her new manager, Mitch, are having a disagreement, they may perceive
it but not be personally affected by it. Perhaps Joan is not worried about the
disagreement. It is only when both parties understand that conflict is brewing, and
they internalize it as something that is affecting them, that this stage is complete.

Stage 3: Intentions
Intentions are decisions to act in a given way, intentions intervene between people’s
perception and emotions and their overt behavior.
One has to infer what the other person meant in order to determine how to respond
to a statement or action. A lot of conflicts escalate because one party infers the wrong
intentions from the other person. There are five different ways a person can respond
to the other party’s statements or actions.

● Competing (I Win, You Lose)- One party seeks to satisfy his own
interests regardless of the impact on the other party.
● Collaborating (I Win, You Win)- One party, or both, desire to fully
satisfy the concerns of all parties involved in the conflict.
● Avoiding (No Winners, No Losers)- One party withdraws from or
suppresses the conflict once it is recognized.
● Accommodating (I lose, You win)- One party seeks to appease the
opponent once potential conflict is recognized.
● Compromising (You Bend, I Bend).- Each party to the conflict seeks
to give up something to resolve the conflict.

Stage 4: Behavior
behaviourist the stage where conflict becomes evident, as it includes the statements,
actions and reactions of the parties involved in the conflict. These behaviours might
be overt attempts to get the other party to reveal intentions, but they have a stimulus
quality that separates them from the actual intention stage.

behaviour is the actual dynamic process of interaction. Perhaps Party A makes a


demand on Party B, Party B argues back, Party A threatens, and so on. The intensity
of the behaviour falls along a conflict oriented continuum. If the intensity is low, the
conflict might just be a minor misunderstanding, and if the intensity is high, the
conflict could be an effort to harm or even destroy the other party.

Stage 5: Outcomes

Outcomes of a conflict can be either functional or dysfunctional:

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● Functional outcomes occur when conflict is constructive. It may be hard


to think of times when people disagree and argue, and the outcome is
somehow good. But think of conflict, for a moment, as the antidote to
groupthink. If group members want consensus, they’re bound to all
agree before all the viable alternatives have been reviewed. Conflict
keeps that from happening. The group may be close to agreeing on
something, and a member will speak up, arguing for another point of
view. The conflict that results could yield a positive result.
● Dysfunctional outcomes are generally more well known and understood.
Uncontrolled opposition breeds discontent, which acts to sever ties and
eventually leads to the dissolution of the group. organisations meet their
ultimate demise more often than you’d think as a result of dysfunctional
conflict. People who hate each other and don’t get along can’t make
decisions to run a company well.

STAGES OF CONFLICT:

● Latent Stage: Participants not yet aware of conflict


● Perceived Stage: Participants aware a conflict exists
● Felt Stage: Stress and anxiety
● Manifest: Conflict is open and can be observed
● Aftermath: Outcome of conflict, resolution or dissolution

Latent Conflict:
During the latent conflict stage, the parties involved don't realize there's a conflict
brewing. At this stage, the conflict hasn't yet started, but there's a potential for it to
start. Depending on the emotions of the people involved, the latent stage can quickly
escalate into actual conflict.

Four basic types of latent conflict are:

(i) Competition for scarce resources: Participants’ demand for resources exceeds
available resources.
(ii) Drive for autonomy: A party’s desires control over an activity that another party
believes is his or her own domain.
(iii) Divergence of goals: Two parties who must work together on a joint activity can’t
reach a consensus on what they should do.
(iv) Role conflict

2. Perceived Conflict:
Conflicts may sometimes arise even if no conditions of latent conflict exist. This is
the stage when one party perceives the other to be likely to thwart or frustrate his or
her goals. The case, in which conflict is perceived when no latent conflict arises, is
said to result from the parties misunderstanding each other’s true position. Such
conflict can be resolved by improving communication between the groups.

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3. Felt Conflict:
Felt conflict is the stage when the conflict is not only perceived but actually felt and
recognised. For example, A may be aware that he is in a serious argument with B
over some policy. But this may not make A tense or anxious and it may have no
effect, whatsoever, on A’s affection towards B. The personalization of conflict is the
mechanism which causes many people to be concerned with dysfunctions of conflict.
In other words, it makes them feel the conflict.

4. Manifest Conflict:
Manifest conflict is the stage when the two parties engage in behaviours which evoke
responses from each other. The most obvious of these responses are open
aggression, apathy, sabotage, withdrawal and perfect obedience to rules. Except for
prison riots, political revolutions and extreme labour unrest, violence as a form of
manifest conflict is rare. The motives towards violence may remain but they tend to
be expressed in less violent forms.

5. Conflict Aftermath:
The aftermath of a conflict may have positive or negative repercussions for the
organisation depending upon how the conflict is resolved. If the conflict is genuinely
resolved to the satisfaction of all participants, the basis for a more cooperative
relationship may be laid; or the participants in their drive for a more ordered
relationship may focus on latent conflicts not previously perceived and dealt with. On
the other hand, if the conflict is merely suppressed but not resolved, the latent
conditions of conflict may be aggravated and explode in a more serious form until
they are rectified. This conflict episode is called ‘conflict aftermath.’

Conflict-Handling Orientations
conflict-handling orientations are not universally applicable. Its uses vary from time
to time, person to person, even situation to situation.

When it uses appropriate are given below:

Conflict- Best Scenario to Use Conflict- Handling Orientation


Handling
Orientation

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Competition
● When quick, decisive action is vital.
● On important issues where unpopular actions need
implementing.
● On issues vital to the organisation’s welfare and when you
know you’re right
● Against people who take advantage of noncompetitive
behavior.

Collaboration
● To find an integrative solution when both sets of concerns
are too important to be compromised.
● When your objective is to learn.
● To merge insights from people with different perspectives
● To gain commitment by incorporating concerns into a
consensus.
● To work through feelings that have interfered with a
relationship.

Avoidance
● When an issue is trivial, or more important issues are
pressing.
● When you perceive no chance of satisfying your
concerns.
● When potential disruption outweighs the benefits of
resolution.
● To let people cool down and regain perspective.
● When gathering information supersedes immediate
decision.
● When others can resolve the conflict more effectively.

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● When issues seem tangible or symptomatic of their


issues.

Accommodation
● When you find you are wrong to allow a better position to
be heard to learn and to show your reasonableness.
● When issues are more important to others than yourself
to satisfy others and maintain cooperation.
● To build social credit for later issues.
● To minimize loss when you are outmatched and losing.
● To allow subordinates to develop by learning from
mistakes.

Compromise
● When goals are important, but not worth the effort or
potential disruption of more assertive modes.
● When opponents with equal power are committed to
mutually exclusive goals.
● To achieve a temporary settlement to complex issues.
● To arrive at expedient solutions under time pressure.

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● As a back-up when collaboration or competition is


unsuccessful.

B. Power and Organisational Politics

Power

Power is understood as the ability to influence other people and events. It may also
be described as the possibility of imposing one's will on the behaviour of others.
Power is the ability to influence other people. It refers to the capacity to affect the
behaviour of the subordinate with the control of resources..

The two important aspects of power are:

(1) Potential: Power may or may not be used. That is, a person may have
power and hence the potential to influence the behaviour of another person
but he may choose not to use it.

(2) Dependency: Dependency implies that the person who has the power
possesses something that another person needs. The more badly the other
person needs what the person with power has the more dependent he is.

SOURCES OF POWER

organisational power is used either by individuals or by groups. There are different


sources of individual power. That is the reason why some individuals are more
powerful than others. French and Raven identified five different bases of power:

(1) Reward Power: Reward power is the extent to which a person has control over
rewards that are valued by others. It is the individual’s ability to give pay raises,

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promote or transfer an employee, allot favorable assignments or include the


employee in a social group. Reward may also be in the form of praise and
recognition.

(2) Coercive Power: Coercive power is the extent to which a manager can deny
rewards or administer punishment to other people. The usual punishments in
business organisations are suspension, without pay, not giving the next increment,
giving a memo, giving a charge sheet, giving job assignments the person doesn’t
like, giving a transfer at any inconvenient place, termination of services and so on.
Coercive power uses fear as a motivator. Although it is effective in the short-term the
overall impact is negative. It causes bitterness in the mind of the person punished
even when the punishment is well deserved.

(3) Legitimate Power: Legitimate power is usually derived from an individual’s


formal rank or position in the organisation (such as chairman, director, president). It
is also known as position power or official power. This power allows a person to
control resources and to reward and punish others. The higher the position, the
greater is the legitimate authority. ~ People accept this power because they believe
that it will maintain order in the society. It is also accepted due pressure from peers
and friends who recognize this power and expect others too to follow it.

(4) Personal Power: Personal power is more of a personal nature It is also known
as referent power, charismatic power and power of personality. Personal power is
due to the individuals’ ability to attract followers on the strength of their own
personality. Such “leaders have something magnetic in them, high levels of
confidence and a firm belief in their objectives. It is these characteristics of the leader
that attracts and holds followers. People are emotionally attached to these leaders
and follow them because they want to.

Mahatma Gandhi, John Kennedy, Winston Churchill examples of leaders with


personal power.

5) Expert Power: Expert power is the ability to control another person’s behaviour
through the possession of knowledge and expertise that the other person needs but
does not have. Expert power comes from specialized learning. It is the kind of power
- that comes from a person's special skills or expert knowledge.

Politics

Politics is the making of a common decision for a group of people, that is, a uniform
decision applying in the same way to all members of the group. It also involves the
use of power by one person to affect the behaviour of another person. Organisational
politics refers to the self-interest and agenda of an individual in an organisation
without any concern about its impact on the objective of the company to achieve its

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goals. It is a process that is related to the self-serving human behaviour and his
interactions involving authority and power

Factors Influencing Political behaviour in organisation

Some are individual characteristics, derived from the unique qualities of the people
the organisation employs; others are a result of the organisation’s culture or internal
environment.

A) Individual Factors

Researchers have identified certain personality traits, needs, and other factors that
are likely to be related to political behavior.

● Employees who are highly self-monitor, possess an internal locus of control,


and have a high need for power are more likely to engage in political behavior.
● The high self-monitor is more sensitive to social cues and is more likely to be
skilled in political behaviour than the low self-monitor.
● Individuals with an internal locus of control are more prone to take a proactive
stance and attempt to manipulate situations in their favor.
● The Machiavellian personality is comfortable using politics as a means to
further his/her self-interest.

An individual’s investment in the organisation’s perceived alternatives and


expectations of success will influence the tendency to pursue illegitimate means of
political action.

● The more that a person has invested and the more a person has to lose, the
less likely he/she is to use illegitimate means.
● The more alternative job opportunities an individual has, a prominent
reputation, or influential contacts outside the organisation, the more likely
he/she will risk illegitimate political actions.

● A low expectation of success in using illegitimate means diminishes the


probability of its use.

B) Organisational Factors

Political activity is probably more a function of the organisation’s characteristics than


of individual difference variables.

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When an organisation’s resources are declining, when the existing pattern of


resources is changing, and when there is an opportunity for promotions, politics is
more likely to surface.

1. Cultures characterized by low trust, role ambiguity, unclear performance


evaluation systems, zero-sum reward allocation practices, democratic
decision -making, high pressures for performance, and self-serving senior
managers will create breeding grounds for politicking.
2. When organisations downsize to improve efficiency, people may engage in
political actions to safeguard what they have.
3. Promotion decisions have consistently been found to be one of the most
political in organisations .
4. The less trust there is within the organisation, the higher the level of political
behaviour and the more likely it will be illegitimate.
5. Making organisations less autocratic by asking managers to behave more
democratically is not necessarily embraced by all individual managers.
○ Sharing their power with others runs directly against some managers’
desires.
6. When employees see top management successfully engaging in political
behavior, a climate is created that supports politicking.

Organisational POLITICS

Politics are an integral and unavoidable part of organisation life, Political activity is
more at higher managerial levels in organisation than at lower managerial and non-
managerial |p, in the organisation. Unfortunately organisational politics are played in
order to enhance personal gains or to satisfy one’s o self-interests at the cost of
organisational objectives and Such types of politics affect organisational efficiency.

Political Tactics Used to Gain Power


Leaders adopt different tactics in order to gain political power. The frequently used
techniques of organisation politics are:

(1) Social exchanges: It is based on the principle of reciprocity. One does a favour
to others so that the person is under an obligation and is expected to return the favour
in due cause. Social exchange implies that “if you will do something for me, I will do
something for you”. A commonly used tactic is to distribute ‘IOUs’. That is doing
favours for others in the hope that these favours will be returned in times of need.

(2) Identification with higher authority: A constantly used political technique is to


attach oneself with some powerful and successful person in the organisation. This is
usually at a higher position in the organisation. This serves as a mentor who protects
as well as advances the interests of his protégé. The individual identifies with a

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powerful figure in the hope that some power “rubs off” on him. He often has some
special privileges and is sometimes recognized as thé spokesman or representative
of the powerful figure. Others approach the individual in the hope of gaining access
to higher authority.

(3) Selective service: In this tactic the employee gives service selectively to his
supporters. For example, the administrative manager quickly solves the problems of
one employee but takes more time in attending to similar problems of other
employees.

(4) Control of information: Information is the lifeblood of organisations . The


functioning of an organisation depends upon the availability of relevant information.
Controlling information becomes a political tactic. Information can be withheld,
falsified, distorted and so on.

(5) Alliances: In this form of politics two individuals who are basically powerless form
an alliance (come together) so that they become powerful enough to influence
others. For example, the sales manager and the financial manager present a
proposal together.

(6) Networking: The employee tries to develop friendships or personal contact with
influential people. For example, the manager joins the same club as his boss.

(7) Power and status symbols: In this tactic the employee tries to impress others
by acquiring symbols that imply power and status. For example, the manager lavishly
furnished his chamber.

(8) Power plays: The employee manipulates the situation in his favor, For example,
the manager gets a brilliant employee from another department transferred to his
department with the help of the vice-president.

MCQ

1._____________terms does Lewin use to describe the process of behaviour


modification

A. Refreezing. B. Changing. C. Unfreezing. D. Storming.

2.A person holds_____ power when he influences others by coercing, threatening,


harming and irritating.
A. Reward B. Coercive C. Normative D. Expert

3.Conflict that relates to the content and goals of work is termed ________ conflict.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

A) job B) task C) relationship D) process

4._____ occurs when people use whatever influence they can to taint the facts to
support their goals and interests.

A .politicking B. playing hardball C. facilitating teamwork D. forming


coalitions

5. ______ refers to the power that one receives because of position within the
formal hierarchy.

A. Reward power B. Coercive power C. Legitimate power D. Referent


power

6. When employees in organisations convert their power into action, they are
engaged in:___________

A. Expert power. B. Dependency. C. Personal power. D. Politics.

Descriptive Questions:
1. What is the nature of Conflict?
2. Explain the Level of Conflict in detail.
3. What is the Source of Conflict?
4. Explain the Process of Conflict.
5. Discuss the Stages of Conflict and Conflict Handling Orientations.
6. Explain the Sources of Power
7. What is the Influence of Political Power?
8. States the political tactics to gain power

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Module 5: Stress Management, Counselling and Change

A. Stress Management and Counselling

MEANING
Organisational stress can be described as a cognitive, behavioural and emotional
response to the harmful and aggressive aspects of the work, organisational climate
and work environment.
When an employee feels uneasy and helpless in solving tasks, such a condition
comes under organisational stress. In a work setting, people face various job-related
issues, such as discrimination, job dissatisfaction, and so on, which result in stress.

SOURCES/CAUSES OF STRESS

The causes of stress are called as antecedents of stress or stressors. The various
causes of stress are broadly divided into two:

(1) Extra organisational Stressors.

(2) Organisational Stressors

1) EXTRA organisational STRESSORS (Stressors outside the organisations)

● Every organisation affects and is affected by the external environment. Extra


organisational stressors such as social and technological changes, the
economic situation, the family situation, the race, religion and sex of a person,
civic amenities such as transport, area of residence, noise and air pollution
and such other matters have deep affects on people working in organisations
.

● Social and technological changes have always taken place by never at the
rate at which they are taking place today. It is th, speed of change which is
causing stress. Medical science improved the average span of life but the
quality of life deteriorated. In cities like Bombay, it is the pace of life which is
the stressor. People get caught up in the rush-rush, competitive mobile, on-
the go, crowded life. All these factors affect the person's state of well being
and may cause severe stress and tension.

● Financial problems can cause stress. Financial hardships are common in a


city like Mumbai where accommodation i, expensive and the standard of living
is high. A person has to do additional work or the wife has to take a job. This
reduces time for domestic family life and reduces the feelings of well-being
and increases the potential for stress. It can also be something more serious
such as strained relationship between the spouses or between the parents
and tl children. Another serious family stressor could be a handicapped child,
mentally retarded children etc.

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● An individuals race, religion, community, sex can be stressor For


example, religious minorities have greater stress than the majorities. Women
have more stress than men because the world is dominated by men. Working
women have more stress than the'' women who are at home.
● Civic amenities such as the area in which one lives, water supply, transport,
noise pollution, air pollution - all these are external organisational factors
which can cause stress.

2) Organisational STRESSORS (Stressors inside thé organisation)

● Occupational Demands: Some jobs are more stressful than others. For
example, the job of a firefighter, policeman, personnel manager and airline
pilot are more stressful than! the job of a clerk, librarian, beautician and lift
man. Jobs that involve risk and danger are more stressful. Research findings
indicate that jobs that are more stressful usually requires:

(a) Making decisions


(b) Constant monitoring of equipments and devices
(c) Repeated exchange of information with others
(d) Unpleasant physical conditions and (e) Performing unstructured rather
than structured tasks
● Personal V/s organisational Life: There are times when family and personal
needs interfere with organisational demands. For example, a manager is
promoted and given a very prestigious posting abroad. He is asked to resume
duty immediately but finds that his wife is very sick and that she needs him at
home. This conflict between the personal life and the organisational demands
will result in the manager undergoing a great deal of stress.

● Career Concern: Unfulfilled career expectations are a major source of stress.


If an employee feels that he is very much behind in the corporate ladder, then
he may experience severe stress. Also if an employee feels that there are no
opportunities for self-growth, he might feel stagnant and experience stress.

● Role Conflict: Members of an organisation often experience role conflict


when different people have different expectations from them. For example,
the supervisor who is the link between the management and the worker is
often the victim of role conflict. If he supports the management on certain
issues, then the workers will label him as a management stooge or ‘chamcha’.
At the same time if he is seen supporting the workers then the management
will not like it. Hence Supervisors very often experience stress as they are
caught between the management and the workers.

● Organisational Policies: Inflexible rules, pay inequities, frequent transfers,


rotating work shifts, unfair performance appraisals systems, unjust

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promotional policies etc. are some of the factors that lead to stress. Lack of
employee participation in decision-making can also cause stress.

● Working Conditions: Excessive heat or cold, poor lighting, unpleasant


smells, excessive humidity, distracting noise, presence of toxic elements and
radiation, inadequate safety measures conditions such as these affect the
employees and lead to stress. Rotating shifts is another cause of stress. Many
workers today have jobs requiring them to work in shifts. Some weeks they
work during the day and other weeks at night. Such frequent changes in the
work schedule require physical and psychological adjustments. It affects
family and social life and results in severe stress.
● Lack of Cohesiveness (togetherness): Individuals experience stress when
there is no unity among the members of the work group. Groups in which there
is mistrust, jealousy and frequent quarrels cause stress to employees.
Members of a cohesive group enjoy feelings of togetherness and oneness.

● Lack of Social Support: There is a definite relationship between stress and


social support. Employees who share with one another their problems and
sorrows are psychologically better off. When individuals believe that they have
the friendship and support of others at work, their ability to cope With the
effects of stress increases. If this kind of social support is not available then
an employee experiences stress.

There are three critical relationships at work:

a) Relationship with superiors

b) Relationship with subordinates

c) Relationship with co-workers or colleagues.

How (Stress) it Affects Various elements of Job Performance-

1. Poor Time Management

The positive side of stress is that it can jump-start your adrenaline and motivate you
to perform your tasks more quickly in response to impending deadlines. An
overwhelming workload, lack of peer support and too many demands at once,
however, contribute to a sense of frustration and panic that there isn't enough time
to complete the work. According to the authors of "Performance Under Pressure:
Managing Stress in the Workplace," if these conditions routinely result in overtime or
having to take work home, the stress of being unable to manage time efficiently can
fuel employees' resentment toward the company as well as negatively influence their
commitment and loyalty.

2. Strained Interactions and Relationships


Stress is a major contributor to job burn-out and strained interactions with peers and
supervisors. Overcoming Stress and Thriving in the Workplace." The combined

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feelings of helplessness and hopelessness generate heightened sensitivities to any


and all forms of criticism, defensiveness, depression, paranoia about job security,
jealousy and resentment toward co-workers who seem to have everything under
control, short-fuse tempers, diminished self-esteem and withdrawal.

3. Lack of Focus

Stress affects your ability to remember things you already know, to process new
information you are learning and to apply both to analytical situations and physical
tasks that require concentration. When you are mentally exhausted from all of the
worries, anxieties and tension brought on by a stressful environment or lifestyle, you
are more easily distracted and prone to make costly, harmful or even fatal mistakes
on the job.

4. Effect on Health

In addition to headaches, sleep disorders, vision problems, weight loss/gain and


blood pressure, stress affects cardiovascular, gastrointestinal and etc." If you're not
feeling well, you're not going to do your best work. Further, the amount of sick leave
taken to rest and recuperate from stress-related illnesses often means that the work
only accumulates during your absence and, thus, generates even more stress about
how to catch up once you return.

5. Stress Leads to Employee Burnout

This year, employees reported burnout as their number one concern. This concern
points to underlying issues with stress management and productivity at work. Chronic
stress, or burnout, means employees become less engaged with their work. When
employees are “checked out” at work due to burnout, they can’t maintain normal
productivity levels.

Burnout also increases absenteeism, presenteeism, and at its worst— lends itself to
more turnover. When stress turns into burnout, not only are employees less engaged
and productive, they’re also less satisfied with their jobs. One of the leading reasons
employees choose to quit their jobs is burnout from chronic stress. Burnout also puts
employees at higher risk of developing clinical depression, profoundly impacting
one’s job and quality of life.

6. Anxiety, Depression, & Lost Employee Productivity From Stress

Work-related stress can be a vicious cycle. Stress often leads to more significant
mental health concerns that impact team members’ productivity levels. In addition,
stress lends itself to increased rates of anxiety and depression, which can affect
employees’ job performance and personal lives. When employees experience
anxiety and depression, they find it more difficult to function normally and require
extra effort to be productive at work. Due to stress in the workplace, constant worry

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or concern about one’s performance can be overwhelming and lead to less


productive workdays.

7. Workplace Stress Means More Conflict, Less Collaboration

One employee’s stress can impact how well the whole team collaborates: a
phenomenon most HR departments know all too well. Collaboration becomes more
challenging when employees are stressed— leading to ineffective communication
that can cause workplace conflict.
Every member of an organisation has an emotional threshold when it comes to
stress. If an employee’s stress levels are low, their capacity to navigate difficult
conversations is greater. Conversely, when stress consumes an employee’s
emotional capacity, they have limited “emotional bandwidth” to dedicate to thoughtful
communication.

Extreme Products of Stress


Stress can be either temporary or long-term, and range from mild to severe. The
effects on an employee depend mostly on how long its causes continue, how
powerful they are, and how strong the employee's stress handling and recovery
powers are. Following are few extreme products of stress:
1. Burnout
A situation in which employees are emotionally exhausted, develop cynicism about
their work, and feel unable to accomplish their professional goals.The human body,
when faced with stress moves through three phases- alarm (fight or flight), resistance
(or, alternatively, adaption), and exhaustion. When employees are emotionally
exhausted, they cannot instantly rebuild their ability to cope with future stress, once
it is depleted. Burnout, physically and psychologically weakened from trying to
combat stress.
2. Workaholics
Place higher priority on work than on family or recreation, think and talk constantly
about work.
3. Trauma
Severe product of stress, TRAUMA, occurs following a major threat to one's security.
The event could be a natural disaster, an organisational crisis, dramatic employee
abuse by the employer, or personal job loss.
4. Workplace Trauma
Can arise from harassment at work, wrongful termination, discrimination, or an
employee's perceived incapacity to meet evolving performance expectations.
Example: A common source of workplace trauma is sudden job loss with potentially
crushing effect on one's self-esteem.
5. Layoff Survivor's Sickness
Feelings of uncertainty/insecurity, anger, guilt, and distrust. They are simultaneously
relieved and glad to have a job, guilty that their workmates were displaced.

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6. Workplace Violence
Sometimes a troubled employee takes dramatic and harmful physical action against
co-workers, managers, or company property. These violent, anger based acts can
include unprovoked fights, destruction of property, or use weapons to threaten harm.
7. Post-Traumatic Stress Disorder (PTSD)
The shock of sudden and dramatic violent incidents of sudden and dramatic violent
incidents often produces immediate stress-related symptoms.

Approaches to Stress Management

Stress experienced by the employees in their job has a negative impact on their
health, performance and their behaviour in the organisation. Thus, stress needs to
be managed effectively so as to set off these harmful consequences. Strategies for
managing stress are as follows-

Organisational approaches to Stress Management

1. Encouraging more of organisational communication with the employees


so that there is no role ambiguity/conflict. Effective communication can
also change employee views. Managers can use better signs and
symbols which are not misinterpreted by the employees.
2. Encourage employees’ participation in decision-making. This will reduce
role stress.
3. Grant the employees greater independence, meaningful and timely
feedback, and greater responsibility.
4. The organisational goals should be realistic, stimulating and particular.
The employees must be given feedback on how well they are heading
towards these goals.
5. Encourage decentralization.
6. Have a fair and just distribution of incentives and salary structure.
7. Promote job rotation and job enrichment.
8. Create a just and safe working environment.
9. Have an effective hiring and orientation procedure.
10. Appreciate the employees on accomplishing and over-exceeding their
targets.
Individual approaches to Stress Management

1. The employees should make a “to-do” list daily, prioritize the acts in the
list and plan the acts accordingly. Take regular breaks during work to
relax you. By effective time management, the employees can achieve
their targets timely and can meet work pressures and, thus, avoid stress.

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2. Do hard work. Strive to achieve your goals but do not do it to the harm of
family, health, or peers.
3. Indulge in physical exercises. It helps in effective blood circulation, keeps
you fit, diverts your mind from work pressures.
4. Encourage a healthy lifestyle. Take regular sleep, have plenty of water,
and have healthy eating habits. Promote relaxation techniques such as
yoga, listening music and meditation.
5. The employees should have an optimistic approach about their work.
They should avoid connections with negative approach employees.
6. The employees should have emotional intelligence at the workplace.
They should have self-awareness, self-confidence and self-control at the
workplace.
7. The employees should build social support. They should have close
connections with trustworthy peers who can listen to their problems and
boost their confidence level. This social network will help the employees
to overcome stress.
8. Employee counselling is a very good strategy to overcome employee
stress. Through counselling, employees can become aware of their
strengths and how to develop those strengths; their weaknesses and how
to eliminate them; and they can develop strategies for changing their
behaviour. Employees are also given career counselling which helps in
reducing their ambiguities with regard to career.
9. Do not remain preoccupied with yourself. Turn your focus outwards. Help
others. This will release some stress.

EMPLOYEE COUNSELING

John Newstrom and Keith Davis describe counselling as “discussion with an


employee of a problem that usually has emotional content in order to help the
employee cope with it better.”

Characteristics of counselling

(1) Communication: Counselling is an exchange of ideas and feelings between two


people, a counsellor and a counselee, Hence it is an act of communication.

(2) Beneficial for the individual as well as for the organisation: Through
counselling the employee becomes more cooperative, worries less about personal
problems and improves.ways. Counselling helps the employee cope with problems

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and thus leads to. an improvement in organisational performance. Counselling


makes the organisation more humane and considerate of people’s problems.

(3) Can be performed by anyone: Both professional and nonprofessional’s may


perform Counselling. A trained psychologist might play the role of a counsellor or the
employee's friend might play the same role.

(4) Confidential: Counsellors are expected to be confidential and hence the


employees can talk freely about any of their problems. The problems may be work
related or personal ones.

The objective of counselling is to improve the employee's mental health. Good


mental health means:

● Comfortable with oneself: This means that the individual has self-respect,
accepts his shortcomings, can laugh at himself and gets satisfaction from
simple everyday pleasures. Individuals who are comfortable with themselves
are able to handle their emotions of love, fear, anger, jealousy in an effective
manner. They take the disappointments of life in their stride and neither
underestimate or overestimate their abilities,

● Think and feel right about others: Individuals who feel like this are able to
love and consider the interests of others, They respect the differences in other
people, trust others and hay, satisfying and lasting personal relationships with
others.

● To cope with the demands of life: This means that, individual accepts
responsibilities, plans for the future, welcomes new experiences and new
ideas, sets realistic goals and tries to make full use of his potential.

TYPES OF COUNSELING

Counselling may be classified into three types depending upon the amount of
direction the counsellor gives to the counselee. At one of the continuum lies directive
counselling and at the other end lies nondirective counselling. Somewhere between
the two i, participative counselling.

1. Directive Counselling

The main function of directive counselling is to give advice but it also accomplishes
the functions of reassurance, communication and emotional release. It may clarify
thinking to a minor extent but reorientation rarely takes place in this kind of
counselling.

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Directive counselling is the process of listening to an employee's problems, deciding


with the employee what should be done, and then telling and motivating the
employee to do it.

The benefits of directive counselling are:

● It provides the counselee with an opportunity for emotional release. This


coupled with advice from the counsellor may help the employee to clarify his
thinking.

● The communication and reassurance that takes place in counselling may give
the employee the courage to take helpful courses of action.

The limitations or drawback of directive counselling are:

● An objection to this type of counselling is whether the counsellor has the right
to advise the employee. Many believe that this is ethically incorrect.

● The counselee may not follow the advice of the counsellor.

2. Nondirective Counselling

Nondirective counselling was developed simultaneously by two groups: Elton Mayo,


Fritz Roethlisberger and others at western Electric Company and Carl Rogers and
his associates. Non Directive counselling is also known as client-cantered
counselling because it focuses on the counselee rather than on the counsellor. The
counsellor listens to the counselee and encourages pin to explain troublesome
problems, understand them and determine the appropriate solution. The counsellor
does not pass any judgements and merely encourages the employee to express his
true feelings.

Nondirective counselling follows the iceberg model of counselling. According to this


model the feelings that the counselee expresses are merely the tip of the iceberg.
There are far more feelings hidden below the surface of a counselee’s
communication. Hence the counsellor constantly encourages the counselee to open
up and reveal deeper feelings.

The benefits of nondirective counselling are:

● It leads to the reorientation of the employee. It emphasizes on changing the


person instead of dealing only with the immediate problem.

● Emotional release takes place more effectively in nondirective counselling


leading to greater clarity in thinking.

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The limitations of nondirective counselling are:

● It is far more time-consuming and costly than directive counselling. Since each
employee requires long hours the counsellor can attend to the needs of fewer
employees.

● Only professionally trained counsellors can practice Nondirective counselling.

● Nondirective counselling depends on the capability and willingness of the


employee. It assumes that:

(a) The employee has a drive for better mental health.


(b) The employee has enough intelligence to perceive problems and
determine solutions to them.
(c) The employee is emotionally stable to deal with hi, problems.

3. Participative Counselling

Participative counselling is neither wholly client-cantered nor wholly counselor-


centered. Rather participative counselling is , mutual counsellor-counselee
relationship that establishes cooperative exchange of ideas to help solve a
counselee, problems. Participative counselling is also known as cooperative
counselling.

Participative counseling enjoys the benefits of both directive and nondirective


counseling. Participative counseling usually begins in a nondirective manner but as
the counseling session progresses the counselor assumes a more active role.
Participative counseling usually performs the functions of reassurance,
communication, emotional release and clarified thinking.

The benefits of participative counselling are:

● It is a suitable method for solving a problem


● The participants may be cooperative and sympathetic to the problem
employee.
● A useful solution may come out.
● Implementation of a solution may be easier.
The limitations of nondirective counselling are:
● It is time-consuming
● It may create a conflict of thought
● Some participants may not be agreeable to the solution
● Some participants might not manage time to participate

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B.Change and its Effects

Meaning
organisational change occurs when an organisation transforms its structure,
strategies, methods, culture and other elements to reorganize and restructure the
organisation. It implies alternation of structural relationships and the role of people in
an organisation. In simple words organisational change takes place when an
organisation makes a transition from its current position.

Definition

The term Change refers to any alternation which occurs in the overall work
environment of an organisation.--Keith Davis

Features of change

1. It results from outside and inside forces.


2. A change in any one part of an organisation affects the whole organisation.
For example any change in the production department will affect the finance
department, marketing department, personal department and other
departments.
3. It affects all the parts in the organisation but at varying degrees of significance
and at varying speed.
4. It may affect people, structure, technology, working process, work
environment, organisation policy and other elements of organisation.
5. Change is inevitable.
6. It is a continuous phenomenon. Organisation has to manage it.

Reasons for Changes:

Following are some of the causes of organisational changes which lead to


disequilibrium end resistance:

i. Change in Tools, Machines and Equip-ment:

Technological or mechanical changes in machines, tools and equipment may bring


change in the organisation. For example, instal-lation of an automatic machinery in
place of old machinery, may result in displacement or re- placement of people or loss
of job to people and may create disequilibrium.

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ii. Change in Methods and Procedures:

Man is a creature of habits. He feels irritated when change occurs in methods and
procedures of work of which he is accustomed to. As it takes time to adjust to the
new environment, it cre-ates disequilibrium till the complete adjustment to the new
environment.

iii. Change in Business Conditions:

Changes in business conditions such as change in the quality of the product, change
in the marketing system or practices, business cycles, change in industrial policy etc.
all create disequilibrium in the work-environment and it needs adjustment
accordingly.

iv. Change in Managerial Personal:

Change in the managerial personnel in the organisation may result in disequilibrium.


A personnel may retire or change place or may be appointed afresh, this will all affect
the policies, practices, proce-dures and programmes of the organisation and the
people are to adjust themselves accordingly.

v. Change in Formal organisation Structure:

The formal organisation structure establishes a form and line of command of


authority and re-sponsibility in an organisation. Along with these lines, channels of
communication and interper-sonal relations are established. If there is a change in
this formal organisational structure, there will be a change in the formal relationship
which creates disequilibrium.

vi. Change in Informal organisation:

Informal organisation is a must in every formal organisation and is a very important


part of our exist-ence because many of our motivational forces find satisfaction in
this relationship. Conse-quently, when management likes to introduce any change
that disturbs the informal relation-ship established among people there is bound to
be a state of imbalance.

A short list of some of the changes which affected almost all organisation in the past
few decades is given here:

i. Technological innovations have multiplied, products and knowhow are fast


becoming obsolete.

ii. Basic resources have progressively become more expensive.

iii. Competition has sharply increased.

iv. Environmental and consumer interest groups have become highly influential.

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v. The drive for social equity has gained momentum.

vi. The economic interdependence among countries has become more apparent.

Reasons for Resistance to Change

1. Misunderstanding about the need for change/when the reason for the
change is unclear — If staff do not understand the need for change you can
expect resistance. Especially from those who strongly believe the current way
of doing things works well…and has done for twenty years!
2. Fear of the unknown — One of the most common reasons for resistance is
fear of the unknown. People will only take active steps toward the unknown if
they genuinely believe – and perhaps more importantly, feel – that the risks
of standing still are greater than those of moving forward in a new direction
3. Lack of competence — This is a fear people will seldom admit. But
sometimes, change in organisations necessitates changes in skills, and some
people will feel that they won’t be able to make the transition very well
4. Connected to the old way — If you ask people in an organisation to do things
in a new way, as rational as that new way may seem to you, you will be setting
yourself up against all that hard wiring, all those emotional connections to
those who taught your audience the old way – and that’s not trivial
5. Low trust — When people don’t believe that they, or the company, can
competently manage the change there is likely to be resistance
6. Temporary fad — When people belief that the change initiative is a temporary
fad
7. Not being consulted — If people are allowed to be part of the change there
is less resistance. People like to know what’s going on, especially if their jobs
may be affected. Informed employees tend to have higher levels of job
satisfaction than uninformed employees
8. Poor communication — It’s self evident isn’t it? When it comes to change
management there’s no such thing as too much communication
9. Changes to routines — When we talk about comfort zones we’re really
referring to routines. We love them. They make us secure. So there’s bound
to be resistance whenever change requires us to do things differently
10. Exhaustion/Saturation — Don’t mistake compliance for acceptance. People
who are overwhelmed by continuous change resign themselves to it and go
along with the flow. You have them in your body, but you do not have their
hearts. Motivation is low
11. Change in the status quo — Resistance can also stem from perceptions of
the change that people hold. For example, people who feel they’ll be worse
off at the end of the change are unlikely to give it their full support. Similarly,

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if people believe the change favours another group/department/person there


may be (unspoken) anger and resentment
12. Benefits and rewards — When the benefits and rewards for making the
change are not seen as adequate for the trouble involved

Transformational Leadership and Change


World history is full of examples of leaders who brought about dramatic
transformations and achieved extraordinary success in changing the beliefs,
perceptions, values and actions of their followers. Leaders who accomplished such
near-impossible feats are known as Transformational leaders.
Transformational leaders initiate bold strategic changes to position the organisation
for the future. They attempt to create learrning individuals and learning organisations
that will be better prepared to take on the challenges of the future.

The important elements of transformational leadership are:

(1) Creating a vision: A vision is a crystallized long-range image or idea of what can
and should be accomplished. Transformational leaders create and communicate a
vision of what the organisation can be to their followers. They paint a picture that
excites the followers to high levels of commitment, stretches their imagination and
puts in efforts beyond their current capabilities.

(2) Communicating charisma: Charisma is a leadership characteristic that helps


employees to take early and sustained action.

Some of the characteristics of charismatic leaders are:

(a) They have high levels of self-confidence.

(b) They are strongly committed to their vision. They are willing to take personal risk
and are ready for self. sacrifice in order to attain their vision.

(c) The followers of such leaders * perceive them as change agents.

(d) They engage in behaviours that are seen as novel, unconventional and counter
to norms.

(e) They are sensitive to the needs of their followers.

The followers of such leaders have high respect for him and are fiercely loyal.

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(3) Stimulating learning: Transformational leaders develop a team which will be


able to handle challenges of the future even if the leader is not there. They develop
people’s capacity to benefit and learn from their experiences.

Under transformational leaders double-loop learning takes place. The followers learn
not only to handle the current change situation but also learn to manage future
changes effectively. They learn to anticipate problems, prevent many situations from
arising and challenge their own thinking. As a result the followers are not only able
to make the current change more successful but are also better prepared for the next
change.

In contrast, single-loop learning employees simply solve current problems and blindly
follow the changes that have been imposed on them.

Kurt Lewin’s three stages of change

The 3-stage model of change describes the current state as the status quo. It
presents the change process and then starts with the proposed change and then
evolves to the desired future state.

According to Lewin, change in organisations can go through three basic stages:

Phase 1: Unfreezing – Creating the momentum for change

The organisation must wake up to the new reality, break with the past, and
acknowledge that the old way of doing things is no longer acceptable. It will be very
difficult for the organisation to embrace a new vision of the future until it separates
itself from the structures and management behaviours that no longer work and that
it will seek to break.

Current behaviours or attitudes must be definitively denied or no longer reinforced or


affirmed for a period of time. This denial must establish a sufficient sense of urgency
to produce change. Create psychological security by reducing barriers to change or
by reducing the fear of failure.

Phase 2: Change – indicates the direction of change and implements the change so
that members develop new attitudes and behaviours.

The organisation creates and owns a vision of the future and integrates the steps
needed to reach that goal. One of the first steps in orchestrating change is to unite
the entire organisation under a cohesive vision. This vision not only includes some
statement of its mission, philosophy and strategic goals, but it is designed to very
clearly outline what the organisation should ideally look like in the future. It is likened

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to “organisational dreaming – using the imagination to encourage people to rethink


what is possible”.

Identification with the role model. That is, the most effective way to learn a new
perspective or establish a new attitude is to watch how others do it and to use that
person as a role model for developing new attitudes or behaviours. Selecting multiple
pieces of information from objective reality and sifting through the complexity of the
environment to find information about one’s particular problem.

Stage 3: Refreezing – Stabilizing Change

As new attitudes, practices and policies are used to change the company, they must
be “refrozen” or solidified. Refreezing stabilizes the organisation in a new equilibrium
to ensure that the new way of working does not change easily, and it reinforces the
new behaviours that underpin the change.

Giving members the opportunity to test whether the new attitudes and behaviours fit
their specific situation. The member’s initial buy-in to the role model may be minimal
and should be sustained with encouragement. Give the member the opportunity to
test the acceptance and affirmation of the new attitude by others with whom he has
a significant relationship. The new attitudes and behaviours of individuals can be
maintained somewhat longer as group members reinforce them with each other.
MCQ

1.---------------- is a cognitive, behavioural and emotional response to the harmful and


aggressive aspects of the work, organisational climate and work environment.

a. Attitude b. Stress c. Dissonance

2. The term __________refers to any alternation which occurs in the overall work
environment of an organisation.-

a. Task b. Culture c. Change

3. ___________is / are method of managing stress

a. Job relocation b. Career counselling c. Recreational facility d. All the above

4. According to Kurt Lewin, __________ is not a stage in the change process.

a. unfreezing b. restraining c. refreezing

5.Transformational change is often carried out: ___________

a.by middle managers. b. top down. c.. bottom up.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

Descriptive Question:

1. How Does Stress Affect Various Elements of Job Performance?


2. What are approaches to Stress Management/
3. Explain the characteristics of Counselling.
4. Discuss the Types of Counselling
5. What is the Nature of Change in an organisation?
6. Explain the Reasons for Resistance to Change.
7. What are Elements of Transformational Leadership?
8. Explain the Three stage model of Kurt Lewin.

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

SAMPLE QUESTION PAPER


Q.1:A MULTIPLE CHOICE QUESTION (Any 8) (8)
1.Conflict that relates to the content and goals of work is termed ________ conflict.
A) job B) task C) relationship D) process

2.._____ occurs when people use whatever influence they can to taint the facts to
support their goals and interests.
A.politicking B.playing hardball C.facilitating teamwork D. forming coalitions

3.______ refers to the power that one receives because of position within the formal
hierarchy.
A. Reward power B.Coercive power C. Legitimate power D.Referent power

4. ___________is / are method of managing stress


a. Job relocation b. Career counseling c. Recreational facility d. All the above

5. According to Kurt Lewin, __________ is not a stage in the change process.


a.unfreezing b.restraining c.refreezing

6.Transformational change is often carried out: ___________


a.by middle managers. b.top down. c.. bottom up.

7.Organisational behaviour is_______


a) A science b) An art c) A science as well as an art

8.A study of the culture and practises in different societies is called _____
a) Personality b) Anthropology c) Perception d) Attitudes

9. In present context, challenges for organisational Behaviour are _____


a) Employee expectation b) Workforce diversity c) Globalization d) All of the
above

10. Organisational Behaviour is the study of _____________ in the organisation


b) Human b). Employer c) Human Behaviour d). Employee

B: STATE WHETHER THE FOLLOWING STATEMENT ARE TRUE OR FALSE:


(7)
(Any 7)
1. OB is multidisciplinary
2. OB fails to recognize Dynamic nature of Organisation
3. OB assumes that there is no one best approach
4. Quality of the employees job supportiveness to their work environments are
far more important for the employees

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

5. managers good people skill is not the need of the globalised Competitive
market
6. People learn by observing others, with the environment, behaviour and
cognition
7. Motivation arises out of an interaction between a person and a particular
situation.
8. Intensity is what a person is motivated to achieve.
9. Whatever need that is motivating a person at a given time is a manifest need.
10. McClelland argued that a high need for social power was the most important
motivator for successful managers.

Q.2: A. Define Organisational Behaviour. State its importance and scope.


(8)

B..Define Personality. Outline the factors influencing personality of an individual


Critically discuss the various theories of personality? (7)
OR
C..Define Organisational Behaviour. Explain Autocratic & custodial models of OB
(8)
D. Define organisational Behaviour. Outline the challenges and opportunities for
OB? (7)

Q.3.A. Explain the theories of Motivation in detail . (8)


B.Explain the meaning of perception. What are the determinants of perception?
(7)
OR
C.Explain the theories of learning in detail (8)
D.What are the ways to change attitudes ? (7)

Q.4.A.What is Conflict? What are its causes and how can it be managed effectively?
(8)
B.What is Counseling?Explain the Types of Counseling (7)

OR
Q.5. Write Short notes (Any 3) (15)
● Maslow Hierarchy theory
● Values
● Kurt Lewin’s three stages of change
● Organisational change
● Transformational Leadership

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STUDY MATERIAL BFM603 ORGANISATIONAL BEHAVIOUR

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