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INTRODUCTION TO ORGANISATIONAL
BEHAVIOUR
Unit Structure
1.0 Introduction
1.1 Objectives
1.2 Definitions of Organisational Behaviour
1.3 Scope of Organisational Behaviour
1.4 Techniques Relevant To OrganisationalBehaviour
1.5 Summary
1.6 Questions

1.0 OBJECTIVES

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After the completion of the unit the student will be able to
1. Understand meaning feature nature of organisational behaviour
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2. Know the Philosophy and goals, Formal and informal organisations,
Social environment, System of controls and Attitudes and situation.
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3. Understand the Scope of organisational behaviour

4. Study Historical development of organisational behaviour
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5. Understand human relations factors

6. Study the impact of technology on organisational behaviour
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1.1 INTRODUCTION
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 iat work in all types of
organizations: public, private, cooperative sector, commercial or service
organisations. Whatever organisations are, there is a need to understand
organisational behaviour.
Organisational Behaviour is the study of human behaviour in
organisations to make more active human performance to achieve
organisational objectives as well as human objectives. Organisational
Behaviour aims at finding out those ways in which people will contribute
in best possible manner.
The study of Organisational Behaviour involves understanding, prediction
and control of human behaviour and the factors which influence the
performance of people in an organisation. It is concerned with the
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Master In Management Studies behaviour of individuals and groups not the behaviour of all members
collectively.

1.2 DEFINITIONS OF ORGANISATIONAL

BEHAVIOUR
1. Stephen P. Robbins : “Organisation Behaviour is a field of study that
investigates the impact that individuals, groups and structure have on
behaviour within organisations, for the purpose of applying such
knowledge toward improving an organisation‟seffectiveness.”
2. Moorhead/Griffin : “Organisation behaviour is the study of human
behaviour in organisational settings that interface between human
behaviour and the organisation and the organisation itself.”
3. Ramon J Aldag and Arthur P Brief : “Organisation behaviour is a
branch of the social science that seek to build theories that ca be
applied to predicting, understanding and controlling behaviour in
work organisations.”

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Nature and Feature: The following is the nature of organisational
behaviour :
1. Multidisciplinary study: Organisational behaviour is a
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Multidisciplinary Subject. Organisational of behaviour uses and
applies principles, practices thoughts and theories of various
disciplines such as : Law, History, Psychology, Political science,
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Economics etc. So Organisational behaviour is a Multidisciplinary

Subject.
2. Science as well as Art: Organisational behaviour is a science because
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it applies principles and concepts objectively.. Organisational

behaviour is also an art because its application changes as and when
required. Organisational behaviour searches concepts and solutions
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according to the situation and need.

3. System Approach: Organisational behaviour uses system approach.
System approach provides a useful framework for understanding how
the elements of any organisation react among themselves and with
their external environment. Organisational behaviour uses system
approach because it takes into account all the variables affecting
organisational functioning.
4. Contingency Approach: Today‟s business world is full of
uncertainties, i.e., in most organisational situations, outcomes are
affected by many factors.
In the earlier days of management studies, managers tried to search for
the universally applicable answers to organizational problems. That‟s why
the earlier management concepts were not successful. Organisational
environment is volatile and fast changing so management without
contingent approach can not be successful. It must have Contingency (as
and when required) approach.
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Elements in Organisational Behaviour: An organisation consists not Introduction to Organisational
Behaviour
only of people but also a changing network of interrelated activities. To
study the behaviour of people, we must understand the inter-relationship
between human behaviour and other variables, and the interactions
among the formal structure of organisation, tasks, technology and methods
of work, process of management, the behaviour of individuals and
groups, and the
external environment. The following are the main elements in
Organisational behaviour.
1. Philosophy and Goals : The Philosophy and goals of management
and workers create the climate of an organisation. The philosophy of
organisational behaviour is derived from both fact and value
premises. Fact premises represents, the behaviour of man or things
in common. It is a universally accepted fact just as law of gravitation,
law of demand and supply etc. Value premises represents the
desirability of certain goals. Value premises control the human
activities.

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The goal of an organisation is to produce more for the benefit of
society, i.e., workers, investors, and common public, and to satisfy
their needs to a maximum extent.
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2. Formal and Informal Organisations : Philosophy and goals can be
achieved through formal and informal organisations. Formal
organisation interprets the philosophy and goals of the organisation
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and implement in a rigid manner. Informal organisations on the

other hand, are opposite to formal organisation and are not
implement rigidly.
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3. Social Environment : Social environment means the association with

othe organisation in the society which influence each other.
4. Control System : Control is a must to get the best results. It
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intermingles formal organisation, informal organisation and social

environment and such intermingling becomes possible only through
communication and group process.
5. Attitudes and Situation : System of controls influences the two
principal factor of particular motivation i.e., attitudes of workers and
situation factor. An ideal mix of three will yield desirable results. All
these three– control, attitudes, and situations – affect each other and a
slight change in one factor may influence the motivational pattern.
Thus, an effective organisational behaviour system results in productive
motivation which should get an above average performance out of
average. Problem makers should be converted into problem solvers. It
benefits both.
If Organisational Behaviour is applied successfully, the result will be a
triple reward system - in which human, organisational and social
objectives are met.
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Master In Management Studies
1.3 SCOPE OF ORGANISATIONAL BEHAVIOUR
The major focus of Organisational Behaviour is to understand the
behaviour of employees in an organisation. The manager is expected to
make use of these information/ideas in persuading employees to give their
best to the jobs and thereby help the organisation to achieve its goals. The
focus of Organisational Behaviour is behaviour of an employee as an
individual who isworking in the organisation.
Psychology tell us that no two individuals are alike. Individual differences
will be there. And hence it is certainly possible that a strategy which may
enable a manager to persuade one employee may not succeed in
persuading another employee. So our manager will have to appreciate this
reality and then continue his efforts of persuading people around him.
Secondly, the individual with whom our manager is dealing would also
change over a period (So also our manager). So our manager will also be
required to keep this message in mind that strategy which had worked in
case of a particular individual a few years ago may not work for him now.

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At this stage we will not go into the details of why individuals change.
Let it be sufficient for usto realise that we change over a period.
Thirdly our individual whom our manager is trying to persuade is
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capable of being influenced by other individuals around him. In fact, the
process operates both ways. An individual is influenced by others around
him and controriwise he also can influence other individuals around him.
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The relationship amongst individuals who are working together is

reciprocal. However when an individual is working along with others in
the organisation some other considerations have to be kept in mind. Other
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individuals around our individual are capable of pressurising him. The

manager can also pressurise the individual is question. But the chances are
that the influence of the group members is likely to be more powerful
and the individual would usually accept these ideas which come to him
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from his co-workers. So the sum and substance of this discussion is that in
order to understand the behaviour of one single individual, the manager
will also have to understand the thinking of other individual around him.
He may have to raise some specific questions such as What is the thinking
of these individuals about their management? What is their thinking about
the work which they are doing? Who is the opinion-maker amongst these
employees? What are his views about such issues? „How can I persuade
this influential employee to my way of thinking?‟ and so on. So, in
order to influence one individual our manager must acquire an
understanding of this group or groups of individuals in his custodial care.
Fourthly, our individual manager may be in charge of one section or one
department. There are other departments as well with their own
peculiarities. So the relationships between these departments and sections
can also influence the behaviour of individuals in his section/department.
Fifthly, we also have to appreciate that the organisation is functioning in
society. Events occurring around the organisation are also capable of
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influencing our organisation and more specificallythe behaviour of people Introduction to Organisational
Behaviour
in our organisation. So our manager will also have to keep track of what
is happening in the world outside the organisation and try to appreciate
how these events can influence the behavior of individuals in his
organisation.

Historical Development of Organisational Behaviour:

The history of human relations is not new. It existed since the beginning
of the time but its dealings is quite new with the development of art and
science. In the early days people worked alone or in small groups where
human relations were not problem because organisations were not as
complicated as they are today. Human relations are handled very easily
because there were direct links between labour, capital and management.
They were supposed to be happy in such conditions in fulfilling their
needs Actual conditions were brutal and backbreaking. Life was very hard
those days. People worked from dawn to dusk under intolerable conditions
of disease, filth, danger and scarcity of resources. They had to work to
survive hence there was no possibility of trying to improve the

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behavioural satisfaction.
Then industrial revolution broke in. In the beginning there was no
improvement in human relations but later on improvement was seen in the
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working conditions of the people. The industry generated a surplus
capital of goods and knowledge that eventually provided workers
increased wages, shorter hours of work and more work satisfaction.
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In this new industrial environment, A Wales factory owner, Mr. Robert

Owen, was the first to emphasise the human needs of the workers. He
refused to employ young children in his factory. He taught his workers
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cleanliness and self-restraint and improved their working conditions a lot.

He was known as father of personnel administration in early days. This
could hardly be called modern organisational behaviour but it was the
beginning.
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A book entitled „The Philosophy of Manufacturers‟ written by Andrew

Ure was published in 1983 in which he recognised the mechanical and
commercial aspects of manufacturing. He also gave recognition to the
human factor to manufacturing. He illustrated how this factor was
recognised by providing workers hot tea, medical treatment, ventilation
and sick payments. The approaches of Owen and Ure were accepted
gradually and gave birth to paternalistic approach to people. It was the
beginning of the history.

Early Development:
During 1900s, F.W. Taylor presented the concept of scientific
management to the world. He awakened the management. He gave the
new dimension in the management thought, that paved the way for the
subsequent development of organisational behaviour. He was first to
recognise the fact that improved work situation would certainly add to the
productivity. He pointed out that just as there was a best machine for a job,
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Master In Management Studies so were there best ways for people to do their jobs. The goal still was to
improve the technical efficiency, but at least management was awakened
to the importance of one of its higher to neglect resources.
The major work of Mr. F.W. Taylor was published in 1911. During the
decade, the interest in human relations at work was accelerated by World
War I. „The National Personnel Associated” was formed in U.S.A. and
later in 1923, the name of the association was changed to „The
American Management Association‟. Its main object was to devote itself
exclusively to the consideration of human factor in commerce and
industry. In 1918, a „Selver Bay conference‟ was organised in New York
to consider „Human Relations in Industry‟ and since then, conference is
being regularly held. During the same period Whiting Williams was
engaged in studying workers while working with them and his experiences
were made public in 1920 entitled „What‟s on the Workers Mind.”

Mayo and Roethlisberger:

Eltan Mayo and F.J. Roethlesberger at Harvard University gave the
academic stature of human behaviour at work during 1920 and 1930.

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They showed keen insight, strainght thinking and sociological
backgrounds to the industrial experiments at Western Electric Company
Harthorne plant. The study developed the concept that an organisation is a
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social system and the human element is one of the most important
elements in it. The experiments showed that worker is not simply a tool
but he is a complex personality interacting in a group situation that is hard
to deal with and thoroughly misunderstood. Mayo pleaded that
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collaboration.... cannot be left to chance. His colleague Roethlisberger

added that „a human problem to be brought to a human solution requires
human dat and human tools‟.
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The Mayo research, though criticised as being inadequately controlled and

interpreted but its basic idea of social system within the work environment
have stood the test of time.
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Popularity:
During Second World War and after, the industrialists and academicians
showed a great interest in human relations in organisations. It was due to
short supplies of labour during war period. By the 1950s, the study of the
subject because of fashion of the day and it became popular. Main reasons
of its popularity were
(i) There was a cultural lag in understanding the human side of
organisation so that heavy emphasis was laid on its study to achieve
development equivalent to that in engineering, production, sales, etc.
(ii) Mayo and Roethlisberger researches were followed by fresh
researches, giving managers new understanding in building up a
more effective organisation.
(iii) Labour unions gained strength and pressed for better working

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 conditions for the workers. Workers also were better educated and Introduction to Organisational
Behaviour
expected better work environment, and more human quality
leadership in organisation. There was a change in social attitudes
demanding more social responsibility fromorganisations.
(iv) Work-environment itself became more complex and needed more
attention. Size of organisation increased considerably that
multiplied the complexity of work. Increased specialisation also
contributed to the complexity of work because now workers were
unable to understood the whole product.
The reasons discussed above show that the emphasis given to organisation
behaviour was a result of trends, development over a long period of time.
Human Relations Factors:
Behavioural climate is as important to an organisation as personality to a
man. Climate in an organisation can be achieved through an organisational
behaviour system. The main elements of the system are :
1. Philosophy and Goals:

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The climate of an organisation drives originally from the philosophy and
goals of those who join together to create it. A person join is the
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organisation with his psychological, social, and economic wants which we
expresses in both individual and group ways. These different interests–
individual and group– come together in a working social system.
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The philosophy of organisational behaviour is derived from both fact

and value premises. Fact Premises represent the view of how
people or things in common behave, i.e. it is a universally recognised
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fact. It is a well known fact that gravity of earth wil pull everything down
on the earth and therefore, no body will dare jump from a multi-storied
building otherwise he will be no more. Value Premises, on the other hand,
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represent the view of desirability of certain goals. A person who is

miserable unhappy from his life may jump from the upper top of the
multistoried building with an intention to die. He also knew the fact
premises of gravity but his value premises had changed. This illustration
shows that Value Premises control the human activities and therefore are
more important than the fact premises in an organisation.
The goal of an organisation is to produce goals and services and to provide
them to the society. To produce is no aim in itself. The main and important
aim of an organisation is to satisfy the consumers‟ needs. Production is
done by workers and is supplemented by the resources of another group
called shareholders or owners and in the midst of another group called
public. Every group–workers, shareholders and public–has its own tastes
and distastes and it is the responsibility fo the organisation to develop the
tastes and minimise the distastes of each group. It should work for the
maximum satisfaction of each group. Combined with the satisfaction of
consumer. Satisfaction of one group should not be over-emphasised and
all should be properly co-ordinated.
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Master In Management Studies 2. Formal and Informal Organisation :

The philosophy and goals of people are implemented by leadership

(manager) working through formal and informal organisations. Formal
organisations interpret the philosophy and goals of the organisation and
implement them in a rigid manner. The main preises of formal
organisation are planning, policies, organisation structure and
procedure. Though planning is done, policies are framed and
organisation structure and procedure are fixed by the management yet all
these are implemented by the workers at lowest level and, therefore,
should be in easy language. Planning, policies, structure and procedures
should be communicated to al concerned so that they can prepare
themselves and develop their abilities to work accodingly. The main aim
of organisation policy is not to bring uniformity in action but it guides
people in taking decisions. Employees at all levels can contribute in
determining the policy of the organisation and they should be motivated
for the purpose. Modern human behaviour policies prefer to emphasise
points whata person is to do and not what he is not to do so that he
maybecame a duty-conscious employee.

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A manager generally deals with the formal organisations but he is to
deal with the informal organisations too. Which are formed in a natural
way. Informal organisations are just opposite to formal organization
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3. Social Environment:

Every organisation comes into contact with other institutions and is

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affected by customs and practices prevalent in the society. Social

environment directly influence human behaviour at work.
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4. System of Controls:

All organisatios influence their members by means of control system. It is

a steering process to keep the organizational system on track and to
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ensure that what is plannedis translated into reality.

The very purpose of control is to get best results according to the plan
prepared by the organisations. Control will be effective if management is
able to implement certain rules and regulations.. It has been realised that
subordinates take interest in matters in which their officers take interest
or care most.

5. Attitudes and Situations:

The system of controls in an organisation influence with the attitudes of

workers and with situational factor to yield a motivation for a designated
person at a given time. If any of the three–control, attitude and situation
differs, the motivation will also be different. There is a contingency
relationship between the three. Each one attracts the other. For example,
suppose, control is tightened or situation is changed, and other two factors
remain constant, motivation will naturally be different and produce
different results. Thus motivation is determined by the interaction of

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controls, attitudes and situation. All operate in equilibrium within the Introduction to Organisational
Behaviour
social system.
Thus, effective organisational behaviour system results in productive
motivation. Such kind of motivation should get an above average
performance out of average people. Problems in the organisation are
reduced to a minimum because it develops problem solvers out of
problem makers. It establishes two way relationship, i.e., manager and
workers jointly influence each other and both are benefitted. Power rests
with people rather than power over them. People are treated like people
and nothing else.
Impact of Technology on Organisational Behaviour:
Technology is considered as the basic factor in the process of economic
development. In organisational environment, technological changes
means the technical knowledge used in the production of capital and
machinery. The modern changes in technology lead to increase in the
productivity of labour, capital and other production factors. J.K. Galbraith
defines technology as a systematic application of scientific or other

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organised knowledge to practical tasks. The technology is the powerful
means of wresting power from nature in all possible ways. Technology
strengthens the faculties of men and enables them to harness gigantic
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physicalforces of nature.
In the words of Frankel, “Technological change is not a mere
improvement in the technical know-how. It means much more than this. It
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should be preceded by sociological change also, a willingness and desire

on the part of community to modify their social, political and
administrative institutions so as to make them fit with new techniques of
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production and faster tempo of economic activity.”

According to H. Bhabha, “What the developed countries have and the
underdeveloped lack is modern since and economy based on modern
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technology. The problem of the developing underdeveloped countries is

therefore, the problem of establishing modern science in them and
transferring their economies to one based on modern science and
technology.”
Technology and Organisation : The interface between organisation and
technology can be explained under the following heads :
1. Technology Reaches through Organisation :
Organisation is an institution through which people expect new techniques
to be converted into goods and services. The managerial staff of the
organisations pool the necessary resources and work on the new
discoveries to convert them into useful products. Society depends on
organisation to keep the stream of discovery flowing into useful goods and
services for human beings. There is no doubt that economic prosperity of
a country depends on technology. Fifty-two percent of economic growth
of USA, France, UK and Japan has come from technical progress
achieved in these countries.
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Master In Management Studies 2. Increased Productivity:

The primary role of technology is to increase productivity in terms of

both quality and quantity. This is the main reason why most technology is
adopted. In an organisation, the objective may be quantitative and
qualitative in terms of maximum production at lower cost. As a result of
productivity improvements, real wages of employees tend to rise and
prices of some products decline.

3. More Spent on Research and Development:

The investment in Research and Development (R and D) has increased
from Rs. 20 crore in the First Five Year Plan to about Rs. 20,000 crore in
the Eighth Five Year Plan. Presently, there are 214 universities, 400
national laboratories and 1,300 in-house R and D centres in the industrial
sector. Several science and technology departments have been set up in the
areas of environment, non-conversional energy resources, bio-technology
industrial research, defence, health, agriculture and electronics.
An important question arises as to why does as organisation spend too

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much money on discovering new technologies? The following reasons for
making investment :
(a) Declining growth in base organisation,
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(b) Dramatic development in new technologies,
(c) Development of international competition, and
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(d) Vitality of the venture markets.

4. Fast Changing Technology:

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The changing global and national scenario is bound to make greater

demands on science and technology. Our government policy for science
and technology has to be geared to face this demand. Government policy
framework would continue to encompass encouragement of
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entrepreneurship, developing of indigenous technology through

investment in R andD, bringing in fast changing technology.
From the above discussions it may be said that development technology
has a large impact on organisation but in the technological race between
different economies, the developing economies lag for behind,
consequently they are dependent on the developed industrial world for
technology required to accelerate development process.

1.4 TECHNIQUES RELEVANT TO ORGANISATIONAL

BEHAVIOUR
1. Re -engineering:

Re engineering is the fundamental and radical redesign of business

processes to achieve dramatic improvements in critical, contemporary
measures of performance such as cost, quality, service and speed. Many
TQM approaches are designed to increase efficiency by streamlining
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current operations. Re engineering however, involves a total redesign of Introduction to Organisational
Behaviour
operations by analyzing jobs and asking : How can this work be done
most efficiently? Rather than modifying current work procedures, the
reengineering process begins with a clear state and plans the job from
beginning to end.
Re-engineering allows the organisation to eliminate inefficiencies and
increase productivity.

2. Bench Marking:
Benchmarking is the process of company work and service methods,
against the best practices and outcomes for the purpose of identifying
changes that will result in higher quality output. It incorporates the use of
human resources techniques such as goal setting to set targets that are
pursued, identified and then used as a basis for future action. The bench
marking process involves looking inside and outside the organisation to
find ways and means to improve operational efficiency. It is benefitial.to
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Organisations because:
(a) This technique helps organisations compare themselves against
successful companies for the purpose of identifying improvement
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strategies.
(b) It enables organisations to learn for others.
(c) It helps create a need for change by showing the organisation how
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procedures work assignments should be altered and resources

reallocated.
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2. Empowerment :

Empowerment is the authority to make decisions within one‟s area of

operations without having to get approval from anyone else. It has two
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unique characteristics:
(a) The personnel are encouraged to use their initiative.
(b) Employees are given not just authority but resources, as well, so
that they are able to make a decision and see that it is implemented.
There are several basic conditions necessary for empowerment to become
embedded in the organisational culture and become operational
(i) Participation: Empowerment assumes that all employees are willing
to improve their daily work processes and relationships.
(ii) Innovation: Empowerment encourages innovation because
employees have the authority and bring out new ideas and make
decision that result in new ways of doing things.
(iii) Access to Information: When employees are given access to
information, their willingness to cooperate and use theirempowerment
is enhanced.
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Master In Management Studies (iv) Accountability: Although employees are empowered to make
decisions they believe will be most beneficial to the organisation, they
are also held accountable for results. However thus accountability is
not intended to punish personnel or to generate immediate short term
results. Instead, the intent us to ensure that the empowered
employees are giving their best efforts, working towards agreed upon
goals, and behaving responsibility towards each other. If these
behaviours are exhibited then management continues to empower
employees to proceed at their own place in their own way.
Effective versus Successful Managerial Activities:
Luthans (1988), on the basis of his study, found that all managers engage
in four managerial activities.
1. Traditional management:
This activity consists of planning, decision making, and controlling. The
average manager spent 32 percent of his or her time performing this
activity, whereas successful managers spend 13% and effective managers
spend 13% of their time in this activity.

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2. Communication:
This activity consists of exchanging routine information and processing
paperwork. The average manager spent 29 percent of his or her time
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performing this activity while successful manager spends 28% and
effective managers spend 44% of their time in this activity.
3. Human resource management:
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This activity consists of motivating, disciplining, managing conflict,

staffing, and training. The average manager spent 20 percent of his or her
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time performing this activity, while successful manager spends 11% and
effective managers spend 26% of their time in this activity.
4. Networking:
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This activity involves socializing, politicking, and interacting with

outsiders. The average manager spent 19 percent of his or her time
performing this activity; while successful manager spends 48% and
successful manages spend 11% of their time in this activity.
It was found that successful managers spent more time and effort in
socializing, interacting and networking. They did not spend much time to
the traditional management activities or to the human resource
management activities (Luthans, 1988).

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 Introduction to Organisational
Behaviour

Mintzberg Managerial Role:

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The managerial roles in this category involve providing information and

ideas.
1. Figurehead: As a manager, you have social, ceremonial and legal
responsibilities. You're expected to be a source of inspiration. People
look up to you as a person with authority, and as a figurehead.
2. Leader: This is where you provide leadership for your team, your
department or perhaps your entire organization; and it's where you
manage the performance and responsibilities of everyone in the group.
3. Liaison: Managers must communicate with internal and external
contacts. You need to be able to network effectively on behalf of your
organization.

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Master In Management Studies Informational Category:
The managerial roles in this category involve processing information.
4. Monitor: In this role, you regularly seek out information related to
your organization and industry, looking for relevant changes in the
environment. You also monitor your team, in terms of both their
productivity, and their well-being.
5. Disseminator: This is where you communicate potentially useful
information to your colleagues and your team.
6. Spokesperson: Managers represent and speak for their organization.
In this role, you're responsible for transmitting information about your
organization and its goals to the people outside it.

Decisional Category:
The managerial roles in this category involve using information.
Entrepreneur: As a manager, you create and control change within the

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organization. This means solving problems, generating new ideas, and
implementing them.
1. Disturbance Handler: When an organization or team hits an
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unexpected roadblock, it's the manager who must take charge. You
also need to help mediate disputes within it.
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2. Resource Allocator: You'll also need to determine where

organizational resources are best applied. This involves allocating
funding, as well as assigning staff and other organizational resources.
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3. Negotiator: You may be needed to take part in, and direct, important
negotiations within your team, department, or organization.
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As labor-sourcing options increase, it opens up the possibility for more

efficiency and creativity in composing an organization‟s workforce. But
with more options often comes more complexity. Employers should not
only consider how roles are crafted when pairing humans with machines,
but also the arrangement of their human workforce and what types of
employment are best suited to obtain the creativity, passion, and skill sets
needed for the work at hand. Orchestrating this complex use of different
workforce segments might require new models. It could fundamentally
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change our view of the employee life cycle from the traditional “attract, Introduction to Organisational
Behaviour
develop, and retain” model to one where the key questions are how
organizations should access, curate, and engage workforces of all types.
Organizations have an opportunity to optimize the organizational benefits
of each type of talent relationship while also providing meaningful and
engaging options for a wide variety of worker needs and motivations.
However, making the most of the opportunity could require a complete
rethinking of talent models in a way that allows organizations to carefully
match people‟s motivations and skills with the organization‟s work needs.

Contributing Disciplines to Organizational Behavior (OB):

Organization behavior is an applied science that is built up on contribution
from a number of behavioral science such as:

1. Psychology:
The terms psychology comes from the Greek word „Psyche‟ meaning soul
or spirit. Psychology is the science that seeks to measure, explain and
sometimes change the behavior of human beings. Modern psychology is

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almost universally defined as the science of behavior which is nearly
identical with behavioral science, in general. Psychology has a great deal
of influence on the field of organizational behavior. Psychology is
concerned with individual behavior.
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Psychology studies behavior of different people in various conditions such
as normal, abnormal, social, industrial legal, childhood, adolescence, old
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age, etc. It also studies processes of human behavior, such as learning,

motivation, perception, individual and group decision-making, pattern of
influences change in organization, group process, satisfaction,
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communication, selection and training.

It is a science, which describes the change of behavior of human and other
animals. It is concerned with the more study of human behavior. The
major contribution of psychology in the field of OB (Organizational
m

Behavior) have been concerned are learning, Personality, Perception,

Individual decision-making, Performance appraised, Attitude
measurement, Employee selected, Work design, Motivation, Emotions,
Work strain and job satisfaction.
2. Social Psychology:
Social psychology is that part of psychology that integrates concepts from
psychology and sociology. In other words, social psychology studies all
aspects of social behavior and social thought – how people think about and
interact with others. One of the areas receiving considerable attention from
social psychology is change law to reduce its resistance and implement it
successfully. Additionally, social psychology is useful in the areas of
measuring and understanding changing attitudes; communication patterns;
the ways in which group activities can satisfy individual needs and group
decision making processes. It focuses on the influences of people on one
another.

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Master In Management Studies It is an area within psychology that blends concepts from psychology and
sociology and that focuses on the influence of people on one another. The
major contributions of social psychology to OB are Behavior change,
Attitude change, Communication Group process, and Group decision-
making
3. Sociology:
Sociology is the study of group behavior. It can be described as an
academic discipline that utilizes the scientific method in accumulating
knowledge about a person‟s social behavior. In other words, it studies the
behavior of the people in relation to their fellow human beings. Some of
the areas within OB that have received valuable input from sociologist
include group dynamics, organizational culture, formal organization
theory and structure, organizational technology, bureaucracy,
communication power, conflict and inter-group behavior. To the
managerial practice, its contribution is mainly in the field of bureaucracy,
role structures, social system theory, group dynamics, effect of
industrialization on the social behavior etc.

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4. Anthropology:
The term anthropology combines the Greek term „anthropo‟ meaning man
and the noun ending „logy‟ meaning science. Thus, anthropology can be
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defined as the science of man. It is also known as „science of humanity‟
which encompasses a broad range of studies including the evolutionary
history of human beings and features of different societies, cultures and
human groups. In other words, the field of anthropology studies the
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relationship between individuals and their environment. Groups of

individual living together create a body of shared ideas that are called
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culture. Culture is embodies in the system of symbols shared by a group of

people and is reflected in their language and beliefs. The culture of a
civilization or the sub-culture of a defined group is transmitted by the
stories and myths told by members of the group. These stories and myths
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help the groups to understand who they are and what things are important.
5. Political Science:
Political science is the branch of social science which deals with politics in
its theory and practice, and the analysis of various political system and
political behaviors. Political scientists study the behavior of individuals
and groups within a political environment. Specific topics of concern to
political scientists include conflict resolution, group coalition, allocation
of power and how people manipulate power for individual self-interest. In
other words, political science helps us to understand the dynamics of
power and politics within organizations, since there is usually a
hierarchical structure of differing levels of managers and subordinates.

1.5 SUMMARY
Organisational behaviour is the study of behaviour of people while at
work. It is a study (a) To understand the behaviour of individual
employees around him as individuals. (b) To understand the behaviour of
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these employees in the same group as they are interacting with each Introduction to Organisational
Behaviour
other as they are doing their work. (c) To appreciate how other
groups are related to his group and the people in his group. (d) To
persuade the employees to work for the goals of the organisation. (e)
To keep the employees fairly contented and enthusiastic about their
work and their organisation. Our manager will have to appreciate the
issues at three levels viz.
(1) The level of the individual employees; (2) The level of the group of
which our individual is a member and (3) The level of the organisation
wherein these groups are expected to work together.
These levels are different but also inter-related. And the subject matter is
not as simple as it sounds. At the present state of knowledge which we
have about human being and their behaviours we fully appreciate the fact
that even if we spend our whole life time in studying just one single
individual, still our understanding about him would be inadequate. And,
therefore, to persuade others to work for us is a formidable task indeed.
This is the challenge for the practising manager. And it is hoped that the
knowledge in this field of Organisational Behaviour may be some use to

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him in sorting out some of his problems.
The main concern for the managers in any organisation is to persuade
people to work together in a coordinated manner and achieve the goals of
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the organisation. The role of the manager is similar to that of a conductor
of an orchestra. Different musicians who are playing their different
instruments. And if they are able to work in a coordinated manner they can
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come out with a beautiful musical composition. And it is primarily the

responsibility of the conductor that they are trained to work together in
such a coordinated manner. So is the job of the manager.
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1.6 QUESTIONS
1. Define Organisation Behaviour. Explain in brief the contribution of
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Human Relations Movement in Organisational Behaviour.

2. What do you mean by „Organisational Behaviour‟? Discuss the
historical development of „Organisational Behaviour‟.
3. Briefly trace the historical development of Organisational Behaviour
as a discipline.
4. Explain briefly the various human relations factors.
5. What are the elements of an Organisational Behaviour system?
Discuss.
6. What is technology? What is its influence on organisation?
7. What do you understand by technology? Bring out the interface
between technology and business.
8. What are the main factors you will keep in your mind while
selecting appropriate technology?
*****
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 2
FOUNDATIONS OF INDIVIDUAL
BEHAVIOUR
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Individual Differences
2.3 Summary
2.4 Questions

2.0 OBJECTIVE
After the completion of the unit the student will be able to
1. Understand individual differences and determinants of

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individual behaviour
2. Understand personality traits
3. Determinants of personality
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4. Factors influencing individual behaviour
5. Assessment of personality
6. Approaches to study individual’s personality
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7. Various theories of Personality

2.1 INTRODUCTION
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Each of us has a good deal of knowledge about human behaviour acquired

through personal experiences. Since our childhood, we have observed the
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actions of others and have attempted to interpret what we see. This fact
might have not come to our conscious mind of most of us. But the
universal truth is that every human being watches and behaves
accordingly. This helps us in understanding and even predicting the
behaviour of others. Sometimes, we even generalise certain patterns of
behaviour such as “Everyone is motivated by money”, “Every student
attempts to maximise his knowledge”. All these views are based on our
limited experience or intuition.

2.2 INDIVIDUAL DIFFERENCES

Each person in the world is individually different. The idea of individual
difference comes originally from psychology. From the day of birth, each
person is unique: and experiences after birth tend to make him even more
different. The law of individual differences states that management can
motivate employees by treating them individually. There can be no
standard technique a dealing with the individuals because of differences
between them.
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Every individual may behave differently to the same stimulus under the Foundations Of IndividualBehaviour

given environment. And a person may respond differently to a given

stimulus under different environment. This is because of the differences
among individuals. People differ in age, sex, attitudes, background,
education, perception, intelligence, values system, physical features, etc.
There may be many possible combinations of these characteristics. That
is why, placed in similar situations, all
people do not act alike. For instance, in case of a road accident, the doctor
will like to provide first aid to the victims immediately and hospitalise
them, if necessary; the traffic controller will engage himself in analysing
the violation of traffic rules and an anti-social element will try to remove
the belongings of the persons involved in the accident. Therefore, it is
essential to recognise individual differences while dealing with any human
relation problem. The value of any generation about human behaviour
will always be subject to individual differences.

Determinants of Individual Behaviour :

I. Biographical Characteristics :

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(i) Age : The employee turnover among the older employees is very
low as compared to the employees in their twenties and thirties.
Absenteeism among the middle aged employees is les as compared to
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the young and old employees.
(ii) Sex : It is generally believed that physical differences between males
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and females will affect their job performance where they are required
to put hard physical labour. But as for a problem-solving ability,
analytical skills, motivation, leadership, sociability, etc. are
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concerned, there appears to be no difference among the males and

females. However, at the lower levels in the organisation, women
are more willing to conform to authority, whereas men are more
aggressive.
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(iii) Marital Status : Married employees show higher consistency in their

behaviour. Rates of absenteeism and labour turnover are lower
among them. They are also found to be more satisfied with their jobs.
(iv) Number of Dependents : The employees having more number of
dependents have less labour turnover, but high absenteeism.
(v) Ability : It refers to an individual’s capacity to perform his job. An
individual’s abilities are to two kinds, namely, intellectual and
physical.
Intellectual Abilities: The abilities required to perform mental work are
known as mental abilities. They include number aptitude, verbal
comprehension, perceptual speed and inductive reasoning. The degree of
intellectual abilities required will normally depend upon the level in the
organisation where the individuals is working.
Physical Abilities: These include stamina, strength and similar skills.
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Master In Management Studies Physical abilities are more important for doing less skilled and more
standardised jobs in the lower levels of the organization
II. Personality : Personality denotes the psychological characteristics
of a person that influence his behaviour towards goal achievement. It is
the sum total of ways in which an individual interacts with others.
Personality has key influence on work performance. In jobs where human
relations are very important, personality of the incumbent determines his
effectiveness.
The following factors give shape to the personality of an individual as
under :
1. Heredity: It means the transmission of the qualities from ancestor to
descendant through a mechanism laying primarily in the
chromosomes of the germ cells. Physical stature, facial attractiveness,
sex temperament, muscle composition, reflexes, etc. are inherited
from one’s parents. However, the importance of heredity varies from
one personality trait to another.

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2. Physical Features : An individual’s external appearance may have a
tremendous effect on his personality. Some people give relatively
higher weight age to the physical features of an individual while
defining his personality. Good physical appearance is an asset for
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the job of a sales person and public relations.
3. Family and Social Factors : The development of individual’s
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personality is also influenced by his family and other social groups.

The infant acquires those behaviour patterns that are customary and
acceptable to the standards of the family and the community where
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the family lives.

4. Situation : An individual’s personality may change in different
situations. The demands of different situations may call for different
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aspects of one’s personality. Therefore, we should not look at

personality factor in isolation. Although certain generalisations can
be made about personality, there are significant individual
differences which are further influenced by situational factors.
The relationship of the above factors affects the formation and
development of personality. Physiological inheritance is entirely an
internal contribution. Group and the culture are the early environmental
factors that influence later behaviour. Family and the social setting during
early stages of education are the important factors which influence the
initial formation of personality. Whatever the child learns lasts for life
time. Later in life, it is the peer groups of primary affiliations at work,
social activities, etc. which shape the personality.

Personality Traits:
Cattell identified 15 source primary traits. These were found to be
generally steady and constant sources of behaviour. But there was found

20
to be no scientific relevance. The traits are listed below : Foundations Of IndividualBehaviour

1. Reserved-Outgoing
2. Less intelligent-More intelligent
3. Affected by feelings-Emotionally stable
4. Submissive-Dominant
5. Serious-Happy go guy
6. Expedient-Conscientious
7. Timid-Venturesome
8. Tough minded-Sensitive
9. Trusting-Suspicious
10. Practical-Imaginative
11. Forthright-Shrewd
12. Conservative-Experimenting
13. Group-dependent-Self-sufficient

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14. Uncontrolled-controlled
15. Relaxed-Tense
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In the trait approach, several behvaiours are seen as cluster
characterising individuals with high degree of stability.
Locus of Control : People are assumed to be of two types : ‘Internals’
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and ‘Externals’. Internals are people who believe that much of what
happens to them is controlled by their destiny. Externals believe that much
of what happens to them is controlledby outside forces.
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Machiavellianism : High Machs tend to take control, especially in loosely

structured situations; Low Machs respond well to structured situations.
High Machs tend to be more logical, rational and pragmatic. They are
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more skilled in influencing and coalition building.

Characteristics of Type A and Type B individuals :Type A :

(i) More aggressive, competitive, hardworking, busy, impatient and
restless.
(ii) Seek challenges, workaholic and are successful.
(iii) Set very high goals for themselves and compete with themselves to
maintain those high goals.
(iv) Make excessive demands on themselves and others.
(v) Get excited very quickly even with the slightest stimulation.
(vi) Work for long hours and under constant time pressure.
(vii) Unable to relax and enjoy free time, become restless if they
have nothing to do.
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Master In Management Studies (viii) Suffer from coronary heart diseases, high blood pressure,ulcer etc.

(ix) As they are perfectionist, they achieve the target but become
hostile and frequently get angry with others.
(x) Other employees do not prefer to work with them.

Type B :
(i) React with more effective behaviour strategies.
(ii) Accept the situation and work on it.
(iii) Relaxed, easy going and enjoy leisure.
(iv) Set those goals to attain about which they are confident and
complete them without any time pressure.
(v) Have knowledge of their limitations and work accordingly.
(vi) Does not get excited quickly.

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(vii) Does not prove to serious health problems.

(viii) Other employees prefer to work with them.

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Personality :
The term ‘personality’ has been derived from the Latin term per sona
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which means to ‘spak through’. The Latin term denotes the masks worn by
actors in ancient Greece and Rome. Common usage of the word
‘personality’ signifies the role which the person (actor) displays to the
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public. Personality of an individual is unique, personal and a major

determinant of his behaviour. Because of differences in personality,
individuals differ in their manner of responding to different situations.
Some personality theorists emphasize the need to recognise the person-
m

situation interaction, i.e., the social learning aspects of personality. Such

an interpretation is highly meaningful to the study of human behaviour. In
psychology, the term ‘personality’ is interpreted in different ways by
different theorists. For example, Carl Rogers views personality in terms of
self, an organised, permanent, subjectively perceived entity which is at
the very heart of all our experiences. Gordon Allport defines personality
as what an individual really is, as an internal ‘something’ that guides and
directs all human activities. Still another conception is that of Freud, who
describes the structure of personality as composed of three elements-the
id, ego, and super ego.
According to Gordon Allport, “Personality is the dynamic organisation
within the individual of those psychological systems that determine his
unique adjustment to his environment.” In the words of Floyd L. Ruch,
“Personality includes external appearance and behaviour, inner awareness
of self as a permanent organising force and the particular pattern or
organisation of measurable traits, both inner and outer.”

22
A comprehensive definition of personality is given by Fred Luthans Foundations Of IndividualBehaviour

In his words, personality means how a person affects others and how he
understands and views himself as well as the pattern of inner and outer
measurable traits, and the person-situation interaction. How a person
affects others depends upon his physical appearance (such as height,
weight, facial features, colour, etc.) and behaviour (such as courteous,
friendly, expressive, cooperative, etc.). Thus personality represents the
‘whole person’ concept. It includes perception, learning, motivation and
more.

Determinants of Personality
1. Situational Factors :

An individual’s personality may change in different situations. The

demands of different situations may call for different aspects of one’s
personality. Therefore, we should not look at the personality factor in
isolation. Although certain generalisations can be made about
personality, there exist significant individual differences which are further

.in
influenced by situational factors.
The relationship of the above factors affects the formation and
development of personality. Physiological inheritance is entirely an
es
internal contribution. Group and the culture are the early environmental
factors that influence later behaviour. Family and the social setting during
early stages of education are the important factors which influence the
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initial formation of personality. Whatever the child learns lats for life time.
Later in life, it is the peer groups of primary affiliations at work, social
activities, etc. which shape the personality of an individual.
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2. Family and Social Factors :

The development of individual’s personality is also influenced by his

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family and other social groups. The infant acquires those behaviour
patterns that are customary and acceptable to the standards of the family
and the community where the family lives. The status of the family in the
society influences individual’s perception about self, others, work, money,
etc.
Family and social factors shape a person’s personality through the
processes of socialisation and identification. Socialisation is a process by
which an infant acquires, from the enormously wide range of behavioural
potentialities that are open to him at birth, those behaviour patterns that
are customary and acceptable to the family and social groups.
Socialisation process starts with initial contact between mother and her
new infant. Later on, other members of the family and social groups
influence the socialisation process.
The identification process occurs when a person tries to identify himself
with some person whom he feels ideal in family. Generally
a child in the family tries to behave like his father or mother. The
23
Master In Management Studies identification process can be examined from three different perspectives.
First, identification can be viewed as the similarity of behviour (including
feeling and attitudes) between the child and the model. Second,
identification can be looked as the child’s motives or desires to be like
the model. Third, it can be viewed as the process through which the child
actually takes on the attributes of the model.
3. Biological Factors:
(i) Heredity: It means the transmission of the qualities from ancestor to
descendant through a mechanism lying primarily in the chromosomes
of the germ cells. Physical stature, facial attractiveness, sex,
temperament, muscle composition, relexes, etc. are inherited from
one’s parents. However, the importance of heredity varies from one
personality trait to another. For example, heredity is generally more
important in determining a person’s temperament than his values and
ideals.
(ii) Brain: There is a general feeling that brain plays in important role in
the developmnt of one’s personality. However, no conclusive proof is

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available so far about the nature of relationship between the brain
and personality.
(iii) hysical Features : An individual’s external appearance may have a
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tremendous effect on his personality. Some people give relatively
higher weight age to the physical features of an individual while
defining his personality. Such factors include height, weight, colour,
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facial features, etc. of the individual. Good physical appearance is an

asset for the job of a sales person and public relations.
Factors Influencing Individual Behaviour:
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The important factors which influence the behaviour of individuals are

explained below:
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1. Personality:
Personality refers to personal traits such as dominance, aggressiveness,
persistence and other qualities reflected through a persons behaviour. An
individual’s personality determines the type of activities that he or she is
suited for, and the likelihood that the person would be able to perform the
task effectively. Thus, personality factors must be taken into account in
determining the suitability of an individual for a position/task in an
organisation.
2. Socio-cultural Factors :
The socio environment of an individual includes relationship with family
members, friends, co-workers, supervisors and subordinates. The
behaviour of others (as distinct from the individual’s relationship with
them) is also a part of an individual’s social environment. Similarly, every
individual has a cultural background which shapes his values and beliefs.
The socio-cultural factors moderate the effect of other factors to determine
the behaviour of an individual.
24
3. Motivation : Foundations Of IndividualBehaviour

Motivation refers to all the forces operating within a person to cause him
or her to engage in certain kinds of behaviour rather than others. Even if
all the factors are present to facilitate effective individual behaviour on a
particular job, these factors would amount to nothing unless the person is
motivated to perform well. Motivation may be internal, e.g., a person’s
skill, ability, and intelligence; or external e.g., incentives, training, etc.
Further, a person’s motivation is influenced by his or her attitudes, beliefs,
values and goals.
4. Organisational Factors :
Individual behaviour is influenced by a wide variety of organisational
systems and resources. Systems such as the organisational structure and
hierarchy strongly influence and constrain both what individuals do and
how they do. In addition, individual behaviour is influenced by various
types of resources provided by the organisation such s advice and
directions from leaders, physical support in terms of facilities and
technology.

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5. Ability :
Ability refers to the actual skills and capabilities that a person possesses
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and are required for the effective performance of activities. Railways need
to ensure that its employees possess the necessary abilities to engage in the
behaviour required for effective performance. This is accomplished either
by careful selection of people or by a combination of selection and
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training.
6. Perception :
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Perception is the view point by which one interprets a situation. For

instance, a railway booking clerk facily a well- dressed person perceives
him to be of a high status and talks tohim nicely, whereas he may tend
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to ignore an ill-dressed person, or make him wait, though both the

passengers want ‘first class’ tickets. In an organisational setting,
messages that the organisation sends to its members regarding the kind of
behaviour and activities expected of them are significant. The messages
are communicated in a variety of ways (job descriptions, policies,
procedures and discussion with supervisors, etc.). A key factor is that an
individual’s behaviour is influenced not by the organisation’s actual
expectation of him, but by how these are perceived by the person.
Personality refers to a stable set of personal characteristics and tendencies
that determine the commonalities and differences in people’s thoughts,
feelings, and actions it is an all-encompassing term and includes our
abilities, beliefs, attitudes, motivations, perceptions and so on.
Some aspects of individual’s personality are inherited but a lot many are
acquired by him in the course of his growing up. Some of the important
characteristics are developed during our infancy and childhood wherein
we have no control over our situations
25
Master In Management Studies Determinations of Personality:

One of the key factors in the determination of our personality is our

inheritance. People certainly differ in what they inherit from their parents
and other previous generations. Certain aptitudes, intelligence are
primarily inherited. In other words, limits are set to our personality by our
inheritance. If an individual has a limited I. Q. (Intelligence Quotient) then

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we may not expect too much from him in terms of scholastic attainments.
If an individual lacks mechanical aptitude, one cannot think in terms of
developing him into a good mechanical engineer.
es
Another determinant of personality is family environment. This can be
encouraging or discouraging. If both the mother and the father give
affection, support and guidance to the child then this child can develop its
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inherited aptitudes. On the other hand, even if an individual has certain

aptitudes, if he does not get a support and facilities and encouragement
from his parents, his potentials will not be developing, poverty of the
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parents can be a serious obstacle in our development. In a country like

ours, education cannot be equated with intelligence. Employees may be
illiterate but then can very very intelligent. So our family environment can
be anotherdeterminant of our personality.
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Our interactions with people also have a direct and pervasive effect on our
personality. Especially when we are young and more vulnerable, one bitter
experience with some persons can bring about profound changes in our
outlook on people.
Cultural factors also influence our personality. These factors are operative
though our parents and other elders around us. In a country like U.S.A.
there can be lot of pressures on the growing child to be competitive
and strive for success. In some other cultures, competition is not viewed
with favour. In our country, respect for parents and anyone in authority
may be encouraged and our growing children may not display any
questioning mentality. Such differences are there in different cultures.
Within the culture factors such as one’s caste, one’s religion one’s
language, one’s physical environment can also influence an individual’s
personality. In fact, culture is very wide and inclusive term and there
are a number of contributors to culture such as race, religion, language
physical surroundings, attitudes, values and beliefs reinforced by parents
26
and other elders etc. and these can contribute to similarities and Foundations Of IndividualBehaviour

differences between people. Within a given culture group there would be

more similarities but between cultures there could be many differences.
All this information isrelevant to the practicing manager because unless he
is able to appreciate the influences which are operative on the individuals
around him, he really cannot understand their behaviours.
The family background of an individual can play an important role in
influencing the behaviour of an employee. For example, if our employee
hears about the wonderful organisation wherein his father is working
(from the father himself) he is likely to be favourably disposed towards
the organisation even before he enters it. On the other hand if the
individual only receives this message that your real energy is your
employer from his father, he is going to be anti-management. Such
influences are operative on our employees even before they begin their
work career with our organisation. And while dealing with employees, the
manager will have to take into account these differences.
In short, personally would be the sum-total of various hereditary factors

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which influence an individual’s aptitudes and capacities plus other social
influences which are operative on him through his parents and other
individuals around him.
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Assessment of Personality:
The following methods are used in assessing personality characteristics of
the individuals.
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Self-rating:
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Self-rating methods are either questions or statements to which an

individual is expected to respond. In fact, we expect him to say
something about himself. The assumption here is that an individual is the
most knowledgeable source of information about himself. And, if we are
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able to persuade him to tell us the truth, he can be in position to do so. So

attempts are made to persuade him to give us the true information and
then he is expected to respond to our statements or questions. Usually the
statements and questions have graded and structured responses and the
individual’s job is very easy. He only has to indicate which of the various
alternatives is most applicable to him or which is most descriptive of him.
These responses can be given numerical values so the we can compute the
‘score’ of the individual and then thiscan be compared with the scores of
other individuals.
The approach is simple enough but the major difficulty is that the
individual may not give us the real information. He may give us the
expected information. He may give us such information which will create
a favourable impression about him in us. He may conceal undesirable
information. Or he may not take the task seriously and may give us
information, which is not dependable at all. This is the
serious disadvantage of these ‘self-rating methods’. So now researches
27
Master In Management Studies have become a bit wary about this approach in rating scales, we ask some
other person who may be knowledgeable about the individual in question
to give information about him. The teachers who have known him, or the
superiors with whom he worked can be good sources of information about
the individual. Sometimes we can ask an interviewer to judge him on the
basis of questions and answers. Such methods are widely used. But again
there could be serious limitations. We may not know enough about the
individual. We may have our likes and dislikes, or biases and prejudices
and these may interfere with our judgments. Sometimes, we may have an
ulterior motive in judging him more favourably or unfavourably. All these
are the possible shortcomings in the rating scale methods. But we use then
in interviews, performance appraisals and other such situations.

Situation Tests :
The third approach is the approach of situation tests. Here we deliberately
place an individual in a situation and then try to observe him and then
discover how he reacts to such situation. These can tell us a lot about the
individual. For example, we can give the individual an insoluble problem

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and then we can find out whether he persists in trying out different
solutions or whether he gives up too quickly. We may give him an
opportunity where he can cheat us and then find out whether he has a
tendency to cheat. One problem with this approach is hat an intelligent
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person can see through out game i.e. what are we tryingto do and then he
can put on display the expected behaviour.
There are, however, other kinds of situations which are called
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‘unstructured’ or ‘semi structured’ situations. Here a situation is capable

of having many possible interpretations. And we want to find out which
interpretation is selected by the individual. His choice itself can tell us
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something important about the individual. For example, if I tell a person to

construct a story out of a scene which I present to him (e.g. a picture
showing an old woman and a young woman looking at each other), he can
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interpret it in a variety of ways. If could mean a mother and daughter or

a mother-in-law anda daughter-in-law or a teacher and the student or may
be perfect strangers. The ideas which a person uses in constructing a story
may tell us something. Worthwhile about the individual. This approach is
called ‘projective techniques’. There are quite a few of such techniques
which are available for use. The unique feature of this approach is that the
individual cannot know what the real purpose of the exercise and he
may not be in a position to cheat us. The dependability of our
conclusions can be questioned but the method can collect a lot of
supportive evidence about theindividual’s behavior

Approaches to Study Individual’s Personality:

There are various approaches to the study of individual’s personality.
which have their own advantages and limitations. For all practical
purposes, no one is really concerned with measuring or understanding all
aspects of anyone’s personality. We are only concerned with
understanding some aspects of personality which will have a relevance
28
for our purpose. If one is concerned with the issue of selection, them only Foundations Of IndividualBehaviour

those aspects of personality which have relevance form the point of view
of one’s performance on the job would be of interest. For example, if one
is concerned with the selection if a manager, then one is interested only in
knowing how this individual views his work, what his views are about
subordinates, what kind of work-related values he cherishes, how far he
is prepared to sacrifice his other interests for the sake of organisation.
These be the relevant issues. Other aspects of his personality are not of
much relevance to us. A lot of personality test’s have been developed and
are also being used. There are reference books which give information
about these tests and their uses and limitations.

Integrated Personality
The term personality is concerned with the traits which an individual has
the ways, in which these traits have been clustered or grouped and how
these clusters of traits help an individual to adjust to his surroundings.
This would involve adequate understanding about one self and the
understanding of social world around the individual. An individual is a

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member of many groups and he is also trying to satisfy his needs. Many of
his needs are being satisfies through the group or groups of which one is
a member. So in order to get what he wants, the individual must have an
adequate understanding of norms, the beliefs, the expectations and the
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values of the group or groups of which he is a member. And then he
will be able to strike a balance between satisfaction of his needs and
expectations of the group members. If one is achieved at the expense of
ot

the other, there could be problems for the individual. So striking a balance
between the needs of the individual and the expectations of the group
members is one indicator of an integrated personality.
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Another indicator of an integrated personality is the balance between our

rationality and emotionality, an individual human being is always being
torn what he would like to do and what he shouldbe doing. He is aware
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of what he should be doing and he also realises that he wants to do

something else. He may accept an idea at an intellectual level but when it
comes down to the level of practicing it, he becomes aware of his own
motivations and then he is not willing to do it. In an organisation he is
aware of what is expected of him as a professional and at the same time he
realises that for his survival/personality, he is required to do something
else which may be exactly the opposite of what he should be doing as a
professional. There are many such situations leading to conflicts and the
individual is expected to find his way out in such situations. This is the
second achievement of an integrated personality.
An individual becomes aware of his potentials and will have to strive
hard to realise these. Many times an individual has abilities and interests
in some activity such as painting or writing poetry and so on and at the
same time to earn one’s living to support oneself and others who are
dependent on his he has to take up to some other career. This situation
again can create conflicts in the individual. So the issue is ‘how will be
resolve thesis conflict?’
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Master In Management Studies There are some indicators of integrated personality. Such a person is
satisfies with himself and her own achievements and at the same time, he
is aware that he has been able to fulfill the expectations of others around
him. He has been able to strike a balance between his aspirations and is
not overwhelmed by social pressures operative on him. In short, he is
happy and at the same time contributing to ‘social good’.

Personality Theories:
Researchers have developed a number of personality theories. Personality
theories can be grouped under various heads. These theories differ
markedly in the constructs they propose as forming the structure of the
personality, and also the way they relate these constructs to behaviour.
They also differ in the methods they use to assess or measure an
individual’s personality. We now examine these theories.

1. Intrapsychic Theory of Sigmund Freud :

Freud remains the most influential theorist in the areas of personality.
According to Freud the human mind is composed of three elements : (a)

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the preconscious, (b) the conscious, (c) the unconscious.
The items in the mind that can be recognised only through Freud’s
association methods are “preconscious”. The “conscious” element is
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concerned with thoughts, feelings, beliefs and desires that we probe during
introspection. The final component “unconscious” is basically concerned
with ideas and wishes that cannot be learned through introspection but can
ot

be determined by hypnotism, analysis of dreams, and Freudian therapeutic

techniques.
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According to Freud the “conscious” is guided by a “reasoned reality”

principle and the “unconscious” is guided by the famous “hedonistic
principle” of pleasure. Freud developed an organisation of personality
consisting of three structures within the human mind; the id, the ego, and
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the superego. These parts of the mind are primarily responsible for
originating human actions and reactions and modifications.

The Id :
It is the original and the most basic system of human personality. At the
base of the Freudian theory lies that id that is primitive, instinctual and
governed by the principles of greed and pleasure. Id represents a
storehouse of all instincts, containing in its dark depths all wishes, and
desires that unconsciously direct and determines our behaviour. Id is
largely childish, irrational, never satisfied, demanding and destructive of
others. But id is the foundation upon which all other parts of personality
are erected. Like a newly born baby id has no perception of reality. It is
primitive, immoral, insistent and rash. Id is the reservoir of the “psychic
energy” which Freud calls “Libido”. According to Freud id is totally
oriented towards increasing pleasure and avoiding pain, and it strives for
immediate satisfaction of desires.

30
One notable characteristic of id is that it cannot tolerate uncomfortable Foundations Of IndividualBehaviour

levels of tension within it and seeks to release the tension as soon as it

develops. The methods for dealing with tension by id are primary
processes and reflex actions. The former attempts to discharge a tension
by forming a mental image of desirable means of releasing the tension.
But his kind of tension release is temporary and mental and would not
satisfy the real need. Id basically represents an individual’s natural urges
and feelings.

Ego:
As an individual learns to separate the unreality from reality in
childhood, the ego develops. The ego is reality-oriented part of thinking; it
is largely practical and works in an executive capacity. Ego is rational and
logical, and in essence, it is the consciousmediator between the realities of
world and the id’s demands. It constantly works to keep a healthy
psychological balance between id’s impulsive demands and superego’s
restrictive guidance. Ego is rational master. The ego is said to be the
executive part of the personality because it controls the gateway to action,

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selects the features of the environment to which it will respond, and
decides what instincts will be satisfied.
The most important characteristic of ego is that it has the ability to
es
distinguish between mental images and actual sources of tension release,
and it responds to the real sources of tension reduction. The ego performs
this task by :
ot

1. Observing accurately what exists in the outside world perceiving).

2. Recording these experiences carefully (remembering) and
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3. Modifying the external world in such a way as to satisfy the

instinctual wishes (acting)

Superego :
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Superego represents noblest thoughts, ideals, feelings that are acquired by

a person from his parents, teachers, friends, religion, organisation and
colleagues etc. As a child grows and absorbs parental and cultural
attitudes and values, he develops superego. Super ego is the moralistic
segment of the human personality. The primary concern of superego is to
determine whether the action proposed by “ego” is right or wrong so that
the individual acts in accordance with the values and standards of the
society. If people violate the prohibitions of superego they may feel guilty.
The superego acts as a censor on the individual and as a censor a too
strong superego is likely to be in constant and pronounced battle with the
id. Freud says that the ego’s role is to mediate between the id and
superego. A personality becomes disorderlywhen either the id or superego
becomes dominant. At the same time, it should be noted that when too
much energy is consumed by ego in mediating between the id and
superego, an individual’s personal development will suffer (or adversely
affected).

31
Master In Management Studies Psychoanalysis, while acknowledged as having a powerful influence, has
been seriously questioned as a scientific theory. This theory is criticised
on methodological grounds. Further, Freud’s theory is criticised because it
is largely untestable since his constructs are difficult to define and are
ambiguous.

2. Trait Theories :

Trait theorists view personality from the standpoint of understanding

traits. Among trait theorists are included Allport, Cattell and Sheldon.
Allport is of the opinion that each individual possesses a set of traits that
are not shared by any other individuals. He emphasisesthe uniqueness of
personality. Cattle has extensively worked on traits in various work
settings employing a number of psychological measures. On the basis of
factor analysis he developed factor concepts such as tender-mindedness,
somatic anxiety, dominance etc. Sheldon extended physical structuring by
asserting that physique consists of three components endomorphs (soft
and spherical structure), mesomorphy (tough and muscular body) and
ectomorphy (linear and fragile). The relative existence of these three

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physical elements indicates specific personality patterns. Corresponding to
these physical aspects, he assumed three aspects of temperament;
viscerotonia (love of comfort and affection), somatotonia (physical
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adventure and risk taking) and cerebrotonia (restraint and inhibition).
Although he assumed a close relationship between respective aspects of
structure and personality, there is no evidence to support this view
ot

Evaluation of Trait Theories : When compared to type theories, trait

theories have some sense. Instead of making unrealistic attempt to place
personalities into discrete, discontinuous categories, trait theories give
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recognition to continuity of personalities. But the trait theories suffer from

the following limitations :
(a) Trait may be too abstract. For example, the scale of ‘measuring’
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‘anxiety’ may be abstract.

(b) Trait approach focuses on isolated traits without specifying how these
traits are organised within the personality. Without knowing which
traits are more important and how they are related to other traits of an
individual, it is not possible to make adequate description of an
individual’s personality.
(c) Another fundamental problem (or drawback) of trait theories is that
they are essentially descriptive rather than analytical.

3. Self-Theory :

The intrapsychic, physiognomy and trait theories, represent the traditional

approaches to understanding the complex human personality. Self-theory
rejects both psychoanalytic and behaviouristic conception of human nature
as too mechanistic portraying people as creatures helplessly tossed about
by internal instincts or external stimuli. Carl Rogers and his associates

32
have developed the self-theory that places emphasis on the individual as Foundations Of IndividualBehaviour

an initiating, creating, influential determinant of behaviour within the

environmental framework.
To understand the Roger’s theory we have to understand; (i) the self-
concept; (ii) the organism and (iii) the development of self.

(a) Self-Concept :

The most important concept in Roger’s theory is the self. The self consists
of all the perceptions, ideas, values and characteristics that characterise ‘I
or Me’. It includes ‘What I am’ and ‘What I can do’. Rogers defines the
self-concept as “an organised, consistent, conceptual gestalt composed of
perceptions of the characteristics of the I or me and the perceptions of the
relationships of I or me to these perceptions”. Here ‘I refers to the personal
self, and ‘me’ refers to the social self.
Personal self-consists of a person’s psychological processes such as
perception, motivation and attitudes etc. that result in a composed whole.
On the other hand the social self is the way an individual appears to others

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and the manner this person thinks he appears to others. The perceived self
influences the person’s perception of the world and his behaviour. An
individual with astrong, positive self-concept is quite likely to view world
quite differently from one whose self-concept is weak. One important
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thing to remember here is that self-concept does not necessarily mean or
reflect reality. The essence of this theory is that individuals normally are
active creators and initiators rather than passive reactors to the pressures
ot

of the environment.

(b) The Organism :

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The organism is essentially the locus of all experience. The totality of

experience is the field known to the person himself and is frequently
referred to as frame of reference : Behaviour of an individual is largely
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determined by this field and not by the stimulating conditions of events in

the external field or environment.
The individual evaluates every experience in relation to his self- concept.
The experiences may be symbolised or unsymbolised. When they are
symbolised they become part of individual’s consciousness. Conversely,
when they are unsymbolised they remain outside the confines of the
awareness of consciousness of an individual. The important thing here is
that distorted symbolisation gives rise to inappropriate behaviour.

(c) The Development of Self-Personality :

Rogers feels that the fundamental force motivating the human organism is
self- actualisation i.e., “a tendency toward fulfillment, toward the
maintenance and enhancement of the organism”. The tendency of self-
actualisation of both the organism and the self is subject to the profound
influence of the social environment. In the childhood itself, when the
child’s behaviour is evaluated continuously by his parents, he will be in

33
Master In Management Studies a position to discriminate between thoughts and actions that are considered
‘worthy’ and ‘unworthy’. He will be able to exclude the unworthy
experiences from his self-concept.
Rogers maintains that the innate tendency toward self-actualisation often :
runs counter to two needs - the need for their regard, and - the need for
positive reward. It is true that the latter need is universal whereas the
former one is the internalisation of those actions and values that others
approve. The regard may be conditioned and unconditional. Ideally, the
more completely the individual is given positive regard acceptance that is
not conditional to specific behaviours - the more congruence there will be
between his self-concept and his actual experience, as well as between his
self-concept and ideal self.

Evaluation of the Self-Theory:

Self-concept is the result of one’s perceptual process. It is a cognitive
factor and maintained through thinking-related activities. The self-theory
is appreciated on the ground that it is organised around the concept of self.
It is the one which says that personality and behaviour are largely

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determined by the individual whereas, in other theories, the individual is
the medium through which behaviour is elicited after having been acted
upon by elements over which he has no control
es
The Big Five Personality Traits:
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The Big Five personality traits is a suggested taxonomy, or grouping, for

personality traits
The five basic personality traits is a theory developed in 1949 by D. W.
Fiske (1949) and later expanded upon by other researchers including
Norman (1967), Smith (1967), Goldberg (1981), and McCrae & Costa
(1987).

34
Openness: Foundations Of IndividualBehaviour

Openness is a characteristic that includes imagination and insight. The

world, other people and an eagerness to learn and experience new things is
particularly high for this personality trait. It leads to having a broad range
of interests and being more adventurous when it comes to decision
making. Creativity also plays a big part in the openness trait; this leads to
a greater comfort zone when it comes to abstract and lateral thinking.
Anyone low in this trait tends to be viewed with more traditional
approaches to life and may struggle when it comes to problem solving
outside their comfort zone of knowledge.

Conscientiousness:
Conscientiousness is a trait that includes high levels of thoughtfulness,
good impulse control, and goal-directed behaviors. This organized and
structured approach is often found within people who work in science and
even high-retail finance where detail orientation and organization are
required as a skill set.

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A highly conscientious person will regularly plan ahead and analyses their
own behavior to see how it affects others. Project management teams and
HR departments regularly have highly conscientious people working in
their teams to help balance out the structural roles within the overall team
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development.

Extraversion:
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Extraversion is a trait that many will have come across in their own lives.
It’s easily identifiable and widely recognizable as “someone who gets
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energized in the company of others.”

This, amongst other traits which include, talkativeness, assertiveness and
high amounts of emotional expressiveness, have made extraverted people
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widely recognisable over many years of social interaction. Extroverts tend

to have very public facing roles including areas such as sales, marketing,
teaching and politics. Seen as leaders, extroverted people will be more
likely to lead than stand in the crowd and be seen to not be doing anything.

Agreeableness:
People who exhibit high agreeableness will show signs of trust, altruism,
kindness, and affection. Highly agreeable people tend to have high
prosocial behaviours which means that they’re more inclined to be helping
other people. Sharing, comforting and cooperating are traits that lend
themselves to highly agreeable personality types. Empathy towards
others is commonly understood as another form of agreeableness
even if the term doesn’t quite fit.

Agreeable people tend to find careers in areas where they can help the
most. Charity workers, medicine, mental health and even those who
volunteer in soup kitchens and dedicate time to the social studies are high
in the agreeableness chart.
35
Master In Management Studies Neuroticism:
Neuroticism is characterized by sadness, moodiness, and emotional
instability. Often mistaken for anti-social behavior, or worse a greater
psychological issue, neuroticism is a physical and emotional response to
stress and perceived threats in someone’s daily life. Individuals who
exhibit high levels of neuroticism will tend to experience mood swings,
anxiety and irritability. Some individuals who experience sudden changes
in character from a day-to-day perspective could be highly neurotic and
respond to high stress levels in their work and personal lives. Anxiety,
which plays a large part in the makeup of neuroticism, is about an
individual's ability to cope with stress and perceived or actual risk. People
who suffer with neuroticism will overthink a lot of situations and find
difficulty in relaxing even in their own space.
MBTI - Myers–Briggs Type Indicator:
The MBTI is an introspective self-report questionnaire indicating differing
Psychological preferences in how people perceive the world and make
decisions. In 1921, Carl Gustav Jung published the 16 personality types.

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The MBTI Dichotomies is categorized into 4 Extroversion/Introversion,
Sensing/Intuition, Thinking/Feeling and Judging/Perceiving. Extroversion
focus on the outer world of people and activity , Introversion focus on
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their inner world of ideas and experiences. Sensing Focus on present
realities, verifiable facts, and experience, Intuition Focus on future
possibilities, the big picture, and insights. Thinking Make their decisions
based on impersonal, objective logic People who prefer, Feeling Make
ot

their decisions based on personal priorities and relationships. Judging

Want the external world to be organized and orderly, Perceiving Seek to
experience the world, not organize it.
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There are sixteen Jung personality types. ISTP, ISTJ, ISFJ, ISFP, INTJ,
INTP, INFJ, INFP, ESTP, ESTJ, ESFP, ESFJ, ENTJ, ENTP, ENFJ,
ENFP.
m

ISTJ is stand for (Introversion, Sensing, Thinking, Judging) it is a no-

nonsense type of person who is reserved, very responsible and dependable.
ISTP is stand for (Introversion, Sensing, Thinking, Perceiving) Let's do it
- get it done now! could easily be an ISTP motto and description of their
philosophy of life.
ISFJ is stand for (Introversion, Sensing, Feeling, Judging) are warm,
generous and super dependable.
ISFP is stand for (Introversion, Sensing, Feeling, Perceiving) Out of all of
the different personality types, ISFP are typically one of the most down-
to-earth types. INTJ(Introversion, Intuition, Thinking, Judging) are natural
leaders They are a confident and original thinker, and believe strongly in
themselves.

36
INTP is stand for (Introversion, Intuition, Thinking, Perceiving) are Foundations Of IndividualBehaviour

perhaps the most intellectually thoughtful of all the personality types.

INFJ is stand for (Introversion, Intuition, Feeling, Judging) The difficult I
do immediately, the impossible takes me a little longer! This could be an
INFJ philosophy of life.
INFP is stand for (Introversion, Intuition, Feeling, Perceiving) Making the
world a better place is an INFPs motto. They need to have a crusade or
mission in life.
ESTP is stand for (Extroversion, Sensing, Thinking, Perceiving) are life's
adventurers. When an ESTP type is around, life is really buzzing.
ESTJ is stand for (Extroversion, Sensing, Thinking, Judging) is one of
life's natural organizers. They are down-to-earth, straightforward and
direct.
ESFP is stand for (Extroversion, Sensing, Feeling, Perceiving) are fun and
delightful to be with. They live for the moment, and know how to make
the most of each moment

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ESFJ is stand for (Extroversion, Sensing, Feeling, Judging) are people
persons. They are outgoing, friendly and warmly interested in others.
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ENTJ is stand for (Extroversion, Intuition, Thinking, Judging) are natural
born leaders. This motivation is so powerful that they may find it difficult
not to take the lead.
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ENTP is stand for (Extroversion, Intuition, Thinking, Perceiving)are

highly dynamic individuals who typically say, If at first you do not
succeed, try another way or move on. ENFJ is stand for (Extroversion,
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Intuition, Feeling, Judging) Realizing dreams, their own and those of

others, is what life is all about for an ENFJ. ENFP is stand for
(Extroversion, Intuition, Feeling, Judging) are charming, effervescent and
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people-oriented individuals

2.3 SUMMARY
The behaviour of an individual is determined by his personal
characteristics and the environment setting in which he operates. For
instance, the performance of a nurse in a hospital is affected by both
personal and environmental characteristics. Personal or individual
characteristics of a nurse include education, skills, experience, health, age,
background, aptitude, value system, perception etc. Environmental factors
under which a nurse functions include patients, other nurses, doctors and
hospital staff, physical facilities etc. The personal characteristics of an
individual and his environemnt variables have effect upon each other.
They determine his behaviour collectively. The behaviour of two
individuals may be totally different because of individual differences or
change in the situational setting.
The term personality has been derived from Latin word ‘per sonnare’
37
Master In Management Studies which means to speak through. According to Stephens P. Robbins, the
sum total of ways in which an individual reacts and interacts with other.
Personality includes all the unique traits and patterns of adjustment of the
individual in his relationship with other and his environment. According to
Allport, “Personality is the dynamic organisation within the individual of
those psychological systems that determine his unique adjustments to his
environment.” According to Hilgard, “Personality may be understood as
the characteristic patterns of behaviour and modes of thinking that
determine a person’s adjustment to the environment.”
According to G.W. Allport, “Personality is the dynamic organisation
within the individual of those psychological system that determine to
his environment.”

Various Theories of Personality :

1. Intrapsychic or Psycho-analytical Theory of Sigmund Freud:

Freud developed an organisation of personality consisting of three

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structures within the mind, the id, the ego and the super ego. These part of
the mind are primarily responsible for originating human reactions and
actions and modifications.
es
Id : Id is the original the most basic system of human personality. It is
the reservoir of the psychic energy. It seeks immediate gratification for
biological or instinctual needs.
ot

Ego : The ego is reality oriented part of thinking; it is largely practical

and works in an executive capacity. It is rational and
un

logical and in essence, it is the conscious mediator between the realities of

the world and the id’s demands.
Superego : Superego represents robbest thoughts, ideas, feelings that are
m

acquired by a person from his parents, teachers, friends, religion.

2. Trait Theory :

The 141 traits identified by Catell, was reduced to 16 traits, which he

termed as source or primary traits. These 16 traits are found to be
generally steady and constant sources of behaviour, allowing prediction of
an individuals behaviour in specific situations.

3. Type Theory :

People who are exclusively competitive and always seen to be

experiencing a chronic sense of urgency are those with the Type A
Personality.

2.4 QUESTIONS
1. What is individual difference? Discuss the causes of individual
difference.
38
2. Define the individual differences and determinants of individual Foundations Of IndividualBehaviour

behaviour?
3. Explain concept of personality. How does it determine thebehaviour
of an individual?
4. Discuss factors influencing individual behaviour.
5. What are the various theories about the Formation of
Personality ?
6. Define the term personality and discuss the various
determinants of personality.
7. “Personality is an organised whole without which an individual
would have no meaning”? Comment.
8. Discuss the various theories of personality.
“People are similar yet they are different.” Comment

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es
*****
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39
 3
WORK RELATED ATTITUDES, VALUES
AND PERCEPTION
Unit Structure
3.0 Objectives
3.1 Introduction
3.2 Meaning And Definitions
3.3 Factors Influencing Perception
3.4 Social And Person Perception
3.5 When Perception Fails
3.6 Perception And Ob
3.7 Additional Readings
3.8 Summary

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3.9 Questions

3.0 OBJECTIVES
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1. To study the sources of an individuals value system
2. To summarize the relation between attitudes and behavior
ot

3. To perceive the role consistency played by individuals in applying

attitude
4. To understand perceptional techniques of perception and OB
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3.1 INTODUCTION
Work related attitudes, values and perception differ according to the work
m

related mentality, expectations, ambitions and desires, benefits desired

by the employees. People at work have opinions and one does not have to
apply a formal survey to understand the attitude of workers. Work related
attitudes, values and perceptions are often related to human behavior.

3.2 MEANING AND DEFINITIONS

Values are important to the study of organizational behavior because they
lay the foundation for the understanding of attitudes and motivation and
because they influence our perceptions. Individuals enter an organization
with preconceived notions of what “ought” and what “ought not” be. Of
course, these notions are not value-free. On the contrary, they contain
interpretations of right and wrong. Values generally influence attitudes
and behavior.
When we were children, why did many mothers tell us “ you should
always clean your dinner plate”? The answer is that in our culture, certain
values have developed over time and are continuously reinforced.
40
Achievement, peace, cooperation, equity and democracy are societal Work Related Attitudes, ValuesAnd
Perception
values that are considered desirable. The values we hold are essentially
established in our early years from parents, teachers, friends and others.
Your early ideas of what is right and wrong were probably formulated
from the views expressed by our parents. As one grows up, one is
exposed to other value systems, and one alters number of values.
Attitudes are evaluative statements either favourable or unfavorable
concerning objects, people or events. They reflect how one feels about
some thing. When one says I like my job, one is expressing his attitude
about work. Attitudes are not the same as values, but the two are
interrelated. There are three components of attitude namely, cognition,
affect and behavior.
Attitudes like values are acquired from parents, teachers, peer group
members. People imitate the attitudes of popular individuals or those
they admire and respect.
Perception is the process through which the information from outside
environment is selected, received, organized and interpreted to make it

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meaningful. This input of meaningful information results in decisions and
actions.
Perception refers to interpretation of sensory data. In other words,
es
sensation involves detecting the presence of a stimulus whereas perception
involves understanding what the stimulus means.
ot

Perception is primarily an individual process so that different people may

perceive an identical situation differently. People perceive and behave on
the basis of what they perceive reality to be and not necessarily as
un

what reality is. “ All glitters is not gold” and “ things are not what they
seem”, are all reflections of various perceptions about the same situation.

3.3 FACTORS INFLUENCING PERCEPTION

m

There are three influences on the concept of perception. These are

1. The characteristics of the perceiver:

This includes factors like needs, values, experience and attitudes, habits,
ethics and personality. Our cultural upbringing also play important role in
our perception about others. It is difficult to judge a person and to perceive
the personality of a person raised in another culture because our
judgement is based on our own values.

2. The characteristics of the perceived:

This includes appearance, communication and personal behavior, facial

expressions, age, gender, personality traits and other forms of behavior.
People dressed in business suits are generally thought to be professionals
while people dressed in ordinary work clothes are assumed to be lower
level employees.

41
Master In Management Studies 3. The characteristics of the situation:
This includes physical location, social setting and organizationalsetting. In
an organizational setting where people are given an opportunity to interact
in a friendly and sociable work situation, they become more trustworthy
and less defensive
Major Influences on Perception Process

Perception
Overall understanding of perception

Characteristics of the perceiver

Needs, Values, Experiences, Attitudes Va
•

Characteristics of the perceived

Appearance, Communication, Behavior

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Characteristics of the situation : Physical Location, Social
setting, Orgnl Setting oOOOrganizationalOrganizational
es
settin

3.4 SOCIAL AND PERSON PERCEPTION

ot

Our perceptions of people differ from our perceptions of inanimate objects

like desks, machines, or buildings because we make inferences about the
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actions of people that we don’t make about inanimate objects. Nonliving

objects are subject to the laws of nature, but they have no beliefs, motives
or intentions. People do. The result is that when we observe people, we
attempt to develop explanations of why they behave in certain ways. Our
m

perception and judgement of a person’s actions, therefore, will be

significantly influenced by the assumptions we make about the person’s
internal state.
It is easy to judge people if we assume they are similar to us. For instance
if we want, if you want challenge and responsibility in your job, you
assume that others want the same. This tendency to attribute one’s own
characteristics to other people which is called projection can distort
perceptions made about others.
Our perceptual processes are very selective in nature and usually select
those stimuli from the environment that are familiar or fit in a known
pattern. Either highly familiar or unique stimuli get our attention. Some of
the attention getters are size of the object or message, how often the
message is repeated, whether the object is moving in stationary
surroundings, whether the object is totally novel or highly familiar and
so on.

42
Since perception can be considered as a process through which we Work Related Attitudes, ValuesAnd
Perception
interpret the stimuli around us, learning plays a very important part in
this process. Learning induces cognitive awareness about a stimuli, thus
recognizing such stimuli and preparing an appropriate response
Our perception is also attributable to the knowledge of certain causes that
may facilitate a certain type of behavior. Knowing the cause of a behavior
contributes to the accuracy of our perception about such a behavior. For
example, if a supervisor believes that poor productivity is attributed to the
performance of subordinates, he will have a different behavior towards
them than if he believesthe cause of poor performance to be beyond their
control.
In our social interactions, we sometimes change our impressions about our
long term friends on the basis of a single act. Many marriages have ended
in a divorce on the basis of a single un likeable trait of the partner.

3.5 WHEN PERCEPTION FAILS

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Human beings as complex as they are, cannot be absolutely objective
about their judgements regarding their environment. There are a number
of factors that taint our judgements about other people and situations.
Since the success of our efforts and decisions is contingent upon the
es
accuracy of the information, as well as the accuracy of impressions, it
is necessary to know what the barriers to perceptual accuracy are, so that
these can be considered in our judgements or can be eliminated. Some of
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these barriers are :

1. Stereotype:
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It is perhaps one of the most common barriers in accurately perceiving

others. In order to simplify matters, we often tend to classify people and
events into already known or perceived general categories. For Example,
You get into an executives office andnotice a man and a woman talking to
m

each other besides a secretaries desk. Our first reaction would generally
be to assume that the woman is the secretary and the mabn is executive.
This reaction is based on stereotyped impressions that the secretaries tend
to be women and executives tend to men. In our minds we have
developed certain categories with certain characteristics orattributes.

2. Halo Effect:

The halo effect refers to the tendency of judging a person entirely on the
basis of a single trait that may be favourable or unfavourable.
Sometimes we judge a person by our first impression about him or her. A
charming smile will create a favourable impression about the person.
Similarly if we are conscious about dress than a poorly dressed person
will create a negative impression on us and a well dressed person would
impress uspositively.

43
Master In Management Studies 3. Expectancy:

It is a tendency to perceive people, objects or events on the basis of what

we expected them to be in the first place. Through expectancy , you can
create certain things in the work situation that you expected to find to start
with.

4. Perceptual Defense:

It is the mental process by which we tend to protect ourselves from such

objects, situations or stimuli that are emotionally disturbing or
perceptually threatening. We tend to ignore such disturbing part of our
environment that does not require confrontation.

5. Projection:

It refers to the tendency of people to see their own traits in other people,
meaning that when they make judgements about others, they project their
own characteristics into others.. In the case of undesirable or threatening
situation, projection can serve as a perceptual defense.

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3.6 PERCEPTION AND OB
Perception and OB refers to Perception and Attribution, in which people
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interpret the reasons or causes for their behavior. The knowledge about the
causes of behavior brings arder and predictability in certain actions and
events and assists us in knowing how to respond. We observe the
ot

behavior of others and then attribute causes to it. For example if the
supervisor believes that poor productivity is attributed to the
subordinates, he will have a different behavior towards them, than if he
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believes the cause to be beyond their control. Similarlyi9f a person

perceives that his promotion was due to his own efforts and ability , it will
reinforce his efforts to continue working towards improved efficiency and
quality performance, than if he believes that the promotion was just by
m

chance or by political motivation. We have a tendency to judge the

behavior of other people with different standards than our own behavior.
We tend to attribute causes of behavior of other people to their internal
characteristics.
Perception has many implications in organizational situations, in the sense
that biased assessments of ourselves and others can occur in many ways.
There are several areas of performance appraisal where perceptual
distortions can occur.

3.7 ADDITIONAL READINGS

1. Robbins, P. Stephen, Organizational Behavior : Concepts,
Controversies, Applications, 8th Ed. Prentice Hall of India Private
Limited, New Delhi, Revised Edition 2007.
2. Luthans, F, Organisational Behavior, 10th Revised Edition, McGraw
Hill, 2005.
44
3. Aswathappa, K, Organizational Behavior : Texts, Cases & Games, Work Related Attitudes, ValuesAnd
Perception
Himalaya Publishing House, 2005.
4. McShan, Organizational Behavior : Texts and Cases, Tata McGraw
Hill Publication, 2003.

3.8 SUMMARY
Perception can be defined as a process whereby the outside environmental
information as input is selected, received, recognized and interpreted so
that this information becomes meaningful and based upon this perception,
rational and intelligent decisions can be made. The closer our perception is
to reality, the more accurate our decisions would be. Thus perception
plays a very important role in our lives.
We must ascertain whether the behavior of other people is due to some of
their inherent characteristics or whether such behavior is in response to
certain situational characteristics. This would affect our perception about
other people. Perception is important in the study of organizational

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behavior. Simply because peoples behavior is based on their perception of
what reality is, not on reality itself. The world as it is perceived is the
world that is behaviorally important.
es
3.9 QUESTIONS
1. Perception refers to interpretation of sensory data. Explain in detail as
to what we mean by sensory data and how this data is interpreted.
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2. What are the various characteristics of the perceiver, of the perceived

and of the situation that affect the perceptual process? Explain how
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each of these characteristics affects or contributes towards the

formation of perception.
3. Explain how the principle of perceptual grouping applies to our
m

tendency to observe and perceive objects or people around us. Give

examples.
Do learning, Knowledge and experience play a significant role in
developing our perceptual processes? If so, give examples to justify
your answer.

*****

45
 4
MOTIVATION
Unit Structure
4.0 Objectives
4.1 Introduction
4.2 Characteristics of Motivation
4.3 Summary
4.4 Questions

4.0 OBJECTIVE
After the completion of the unit the student will be able to
1. Understand the concept of motivation
2. Understand aims or objectives of motivation and factors affecting

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motivation
3. Understand theories of motivation
4. Motivation techniques
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4.1 INTRODUCTION
Motivation is the willingness to exert efforts in order to achieve a desired
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outcome or goal which will satisfy someone’s needs.

Motivation Theories:
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The term motivation has been defined by many authors.

1. According to Stanley Vence, motivation implies “any emotion or
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desire which so conditions one’s will that the individual is propelled

into action”.
2. Robert Dubin defines it as “the complex of forces starting and keeping
a person at work in an organisations”. According to this definition,
motivation is a force which compels the person to join organisation and
keep on working therein.
3. Carroll Shartle, “Motivation is a reported urge or intention to move in a
given direction or to achieve a certain goal”.
4. E.F.L. Brech, “Motivation is a general inspiration process which gets
the members of the team to pull their weight effectively to give their
loyalty to the group, to carry out properly the tasks that they have
accepted and generally to play an effective part in the job that the group
has undertaken”.
5. Edwin B. Flippo, “Motivation is a process of attempting to influence
others to do their work through the possibility of getting reward”.
46
On the basis of analytical study of above definitions it may be concluded Motivation

that motivation is a process which inspires the human efforts of an

organisation to perform their duties in the best possible manner so that the
pre-determined objectives of the enterprise may be achieved. Motivation is
the emotion or desire of an employee that inspires him to act or not to act
in certain ways

4.2 CHARACTERISTICS OF MOTIVATION

1. Incentive : Motivation is the incentive of employees. It is a personal
and natural feeling of the mind of the employees. This feeling arise in
the mind of an individual. In fact an individual is inspired to make his
efforts to satisfy the needs of his life.
2. Unending Process : Motivation is an unending process. Human needs
are unlimited and a person always feel a need. To satisfy these needs,
the person must always be inspired with the incentives for work.
Satisfaction of one need leads to the feeling of another one and this
process never ends.

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3. Psychological Concept : Motivation is a psychological concept. It
develops the mental and motivation power of an individual and
motivates him to do more and better.
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4. Power to Act : Motivation is a power to act. It inspires an individual
to work. Feeling of a need creates tension and a person wants to work
to satisfy his need. When the need is satisfied, the persons feel
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motivated to work for the achievement of commongoals.

5. Increase in Efficiency: Motivation increase the efficiency of an
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individual. He uses his ability and efficiency to the best possible

extent which increase his efficiency. Motivation increases the quantity
and quality of production.
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6. Increase in Morale: Morale is a group felling. Motivation motivates

the employees to work with the co-operation of others. Thus,
motivation is helpful in increasing the morale of theemployees.

Aims or Objectives of Motivation:

The aims and objectives of motivation may be described as under :
1. To motivate the employees to do more work.
2. To satisfy the economic, social and psychological needs of the
employees.
3. To develop human relations in the enterprise.
4. To increase the morale of employees.
5. To increase the efficiency of employees.
6. To get the co-operation of employees.
7. To establish sweet relations between labour and capital.

47
Management Studies 8. To get the maximum exploitation of human resources.
9. To achieve the objectives of enterprise.

Factors Affecting Motivation:

Factors affecting motivation may be divided into following parts
1. Monetary Incentives: Monetary incentives are direct incentives
provided to the employees of an enterprise. It includes the following
incentives : (1) Proper wage or salary, (2) Bonus, (3) Overtime, (4)
Monetary rewards and (5) Interests on investments. Monetary
incentives satisfy the basic needs of employees.
2. Non-Monetary Incentives: Monetary incentives are not sufficient to
ensure more and better work by employees. Non- Monetary incentives
are also provided to them to motivate them in the right direction. Such
incentives motivate them to do more and more work. Following factors
are included under this category : (1) Safety of work, (2) Appraisal of
work, (3) Honour of Employees, (4) Behaviour with employees, (5)
Opportunities of promotion, (6) Delegation of authorities, (7) To

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increase the feelings and suggestions of employees, (8) To launch
welfare schemes for the employees like housing facilities, medical
facilities, recreation facilities, education facilities, insurance etc. (9)
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Co-partnership in management.

Theories of Motivation:
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Theories of motivation can broadly be divided into two categories:

1. Content Theories, 2. Process Theories.
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Content Theories:
Content theories address the question of what motivates people. These
theories seek to identify the needs which cause individualsto perform in
m

certain ways. Content Theories are :

(a) Maslow’s Theory (c) McGregor’s Theory
(b) McClelland’s Theory (d) Herzberg’s Two Factor Theory

(a)Maslow’s Theory:

Maslow’s need priority model in one of the most widely referred to

theories of motivation. Abraham Maslow, a clinical psychologist, thought
(1943) that a person’s motivational needs could be arranged in a
hierarchical manner, starting in an ascending order from the lowest to the
highest needs, and concluded that once a given level of needs (set of
needs) was satisfied, if ceased to be a motivator. The next higher level of
need to be activated in order to motivate the individual. Although the
hierarchical aspects of Maslow’s theory are subject to question and often
not accepted, his identification of basic needs has been fairly popular.
Maslow identified five levels in his need hierarchy in an ascending order
48
of importance. The five categories of needs ay be described as follows : Motivation

Physiological Needs : These are the basic needs for sustaining human life
itself : needs for food, drink, shelter, clothing, sleep, sex
etc. But once these basic needs are satisfied, they no longermotivate.
1. Safety Needs: Safety or securing needs are concerned with freedom
from physical or psychological (mental) harm, danger, deprivation, or
threat, such as loss of job, property, food, clothing or shelter.
2. Social or Affiliation or Acceptance Needs: These are belongingness
needs emanating from human instinct of affiliation or association with
others. These include owners, love and affection, needs of mutual
relations, identification with some group, etc. These are the needs
more of mind and spirit than of physique.
3. Esteem Needs: This set of needs represents higher level needs. These
needs represent needs for self-respect, respect of others, a general
feeling of being worthwhile, competence, achievement, knowledge,

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independence, reputation, status and recognition.
4. Self-actualisation Needs : This set of higher order needs concerns with
reaching one’s potential as a total human being. It is the desire to
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become what one is capable of becoming i.e., to maximum one’s
capacity and abilities in order to accomplish something appreciable and
self fulfilling. It is a need for being creative or innovative, for
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transforming self into reality.

Characteristics or Salient Features of Maslow’s Needs Model:

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1. The urge to fulfill needs is a prime factor in motivation of people at

work. Human needs are multiple, complex and interrelated.
2. Human needs form a particular hierarchy or priority structure in order
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of importance.
3. Lower-live needs must be at least partially satisfied before higher-
level needs emerge. In other words, a higher-level need does not
become an active motivating force until the preceding lower-order
needs are satisfied.
4. As soon as one need is satisfied, the individual discovers another need
which is still unfulfilled.
5. A satisfied need ceases to be a motivator, i.e., does not influence
human behaviour. Unsatisfied needs are motivators, i.e., they
influence human behaviour.
Various need levels are independent and overlapping. Each higher-level
need emerges before the lower-level need is completely satisfied.
6. All people, to a greater or lesser extent, have the identified needs.

49
Management Studies Criticisms or Maslow’s Model : Maslow’s theory has been criticised on
several grounds :
1. Human needs cannot be classified into clear and only specifies
categories, i.e., their hierarchy cannot be definitely specified. The
determination of higher and lower levels is dependent on people’s
cultural values, personalities and desires.
2. It is not necessary that at a time only one need is satisfied. In other
words, needs of more than one levels may be fulfilled jointly, for
example, physical and esteem needs. Maslow’ model does not
explain this multi-motivation fact.
3. Some of the assumptions of Maslow’s theory are not always found in
practice.
4. It has been found by some scholars like Lawler and Suttle that physical
and safety needs may be probably satisfied, but high- level needs do
not appear to be rather satisfiable.

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(b) McClelland’s Theory:

McClelland (1961) studied using personality tests, the characteristics of

people whom he identified as being achievement oriented. According to
es
him high need achievers were always exhibiting behaviour designed to
better themselves, working harder in order to accomplish their goals. They
shared a number of common characteristics :
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1. Preference for performing tasks over which they had sole

responsibility, to enable them to identify closely with the successful
outcomes of their actions.
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2. They were moderate risk takers, and to maximise their chances of

success they set themselves moderate goals. This does not mean to
say that they avoided challenging situations, but simply that their
m

goals were within an attainable range.

3. They needed continual feedback, since it is only from the knowledge of
success that satisfaction can be derived.
McClelland tried to identify why some people were low achievers and
concluded that the major reasons for this lie in parental influences,
education, cultural background and the value systems dominant in society.
According to him, organisations therefore may be concerned with
selecting high achievers as managers. However, low achievers can be
trained to develop a greater urge to achieve.

(c)McGregor’s Theory X and Y:

We know that there are two types of motivation viz., internal motivation
and external motivation. Internal motivation is made up of the forces
which exist within an individual, i.e., his needs, wants and desires.
External motivation includes the forces which exist inside the individuals
50
as well as the factors controlled by the manager, including job context Motivation

items, such as salaries, working conditions, company policy and job

content items, such asrecognition, advancement and responsibility.
Douglas McGregor’s theory incorporates both internal and external
motivation McGregor sets forth two alternative views (at opposite
extremes) of human nature - the first view is called ‘Theory X’ and the
second view is called ‘Theory Y’.
Theory X: According to Theory X there are following assumptions about
the human nature, on which the manager has to base his motivation efforts
1. Average human being has an inherent dislike of work and will avoid it
if he can.
2. Because of this human characteristic of dislike of work, most people
must be coerced, controlled, directed and threatened with punishment
to get them to put forth adequate effort toward the achievement of
organisational objectives.

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3. Average human being prefers to be directed, wishes to avoid
responsibility, has relatively little ambition, wants security above all.
McGregor felt that Theory X assumptions were used in most industrial
organisation of his time, but they were generally incorrect. Thus, the
es
management approaches that develop from these assumptions will be
inadequate for the full utilisation of each worker’s potential because
they will often fail to motivate people to work for the realisation of
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organisational objectives. Hence he felt the need to revise and correct

these assumptions to conform to the present day organisation set up and
ever-developing personality of the employee.
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Theory Y: Theory Y is McGregor’s modern view of the nature of man. It

contains assumptions which he believed could lead to greater motivation
and better fulfillment of both individual needs and organisational goals.
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The Theory Y assumptions are :

1. The expenditure of physical and mental effort in work is as natural as
play or rest.
2. External control and the threat of punishment are not the only means
for bringing about effort towards organisational objectives.
3. Commitment to objectives is a function of the reward associated with
their achievement
4. The average human being learns, under proper conditions, not only to
accept but to seek responsibility.
5. The capacity to exercise a relatively high degree of imagination,
ingenuity and creativity in the solution of organisational problems is
widely, not narrowly, distributed in the population.
6. Under the conditions of modern industrial life, the intellectual
51
Management Studies potentialities of the average human being are only partially utilised. It
may be noted that the main foundation of Theory Y is
‘integration’, i.e., the establishment of an environment in which
employees can best achieve their own goals by committing
themselves to the organisation’s objectives. In doing so, employees are
expected to exercise a large degree of internal motivation.

Theories of Motivation:
Advocates of need theories strongly believe that it is only the need which
influences human behaviour, and therefore, adequate provisions to satisfy
these needs will motivate employees to behave or act in a particular
manner. The process approach to motivation implies that need is just one
element in the process and the behaviour of an individual is influenced
more by his abilities, role, perception and his understanding what kind of
behaviour he needs to display to achieve high performance and his
expectations regarding the results of specific behaviour.

Vroom’s Expectancy Theory:

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It is also considered as expectancy/valence approach attempting at
overcoming criticism of other motivational approaches. Expectancy
approach aims at differentiating among individuals and situation. It
deviates from the assumption that all employees are alike or all situations
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are alike and therefore there is only one way of motivating them.
Expectancy approach advocates that the behaviour of individual is
influenced by their expectations, perceptions and calculations regarding
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the relationship between performance and rewards. It specifies that the

efforts to achieve high performance is a function of perceived likelihood
that high performance can be achieved and will be rewarded if achieved
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and that the reward will be worth efforts made. This approach has three
basic elements.
1. Performance Outcome Expectancy: In individuals expecting some
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consequences of their behaviour which in turn affects their decision to

behave in a particular manner. For example, the sales executive who is
thinking about exceeding his sales target may expect a praise, a bonus
or no reaction.
2. Valence: Outcome of a particular behaviour has a specificvalence that
is power to motivate which varies from individual to individual.
For example, promotion to higher position may have somewhat
different valence for the manager who gives too much importance to
money as compared to the other manager who attaches more
significance to status, development and growth.
3. Efforts Performance Expectancy: Expectation of individual that
how difficult it will be to perform successfully will affect their decision
about behaviour. For example, if choices are giver, individual will
select the level of performance which have the highest possibility of
achieving outcome which they value.

52
Although this approach has been developed by Victor Vroom, it was Motivation

further refined by Lyman Porter and Edward Lawler who made it more
useful and practical. They base expectancy model of motivation on the
following assumptions : (a) behaviour of an individual is determined by a
combination of factors such as characteristics of individuals and
characteristics of work environment; (b) individuals make decisions
consciously and deliberately regarding their behaviour in organisation; (c)
individuals have different needs, goals, devices to fulfill and (d)
individuals decide from alternative behaviour on the basis of their
expectations that a given behaviour will lead to the desired outcome.
This model has highlighted that the people can differ greatly in how they
size up their chances for success in different jobs. Therefore, to motivate
people it is just not enough to offer them some rewards. They must also
feel convinced that they have ability to get thereward.

Adman’s Equity Theory:

This theory has been developed by JS Adam’s. The essence of this theory
is that employees generally make comparison of their efforts and rewards

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with those of others in similar position and similar work situation. This
approach is based on the basic assumption that employees working in the
organisation should be treated equally in terms of justice, balance and
es
fairness and when they join organisation they carry some qualification,
skill and knowledge with them for performing assigned job. To perform
the job which involves use of these abilities and qualities which are
known as ‘inputs’. And in return of these inputs whatever they get from
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the organisation such as compensation, recognition position and status,

etc. known as outcome.
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Equity approach of motivation seems to be useful for the manager in

determining appropriate level of reward the employees. Because it
emphasises the role played by an individual’s belief in the equity and
fairness of reward and punishment in determining his performance and
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satisfaction.
The Adam’s Equity theory of work motivation is based on the social
exchange process. Adam’s has crystallised it in a more formal way.
Basically, the theory points out that people are motivated to maintain fair
relationship between their performance and reward in comparison to
others. There are two assumption on which the theory works.
1. Individual make contribution (inputs) for which they expect certain
rewards (outcomes).
2. Individual decide whether or not a particular exchange is satisfactory,
by comparing their input and outcomes with those of others, and try to
rectify an inequality.

53
Management Studies Various Types of Inputs and Outcomes:

Inputs Outcome
Efforts Pay
Times Promotion
Education Recognition
Experience Security
Training Personal Development
Ideas Benefits
Ability Friendship Opportunity

Exchange relationship between a person’s inputs/outcomes in relation to

those of other persons may be of three types:
1. Overpaid inequity 2. Underpaid inequity 3. Equity
1. Overpaid Inequity: In this case, the person perceives that his
outcomes are more as compared to his inputs in relation to others. This
relationship can be expressed by

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Person’s Outcomes > Other’s Outcomes
Person’s Inputs Other’s Inputs
es
In this case, the person experiences guilt feeling.
2. Underpaid Inequity: In this case, the person perceives that his
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outcomes are lower as compared to his inputs in relation to others.

This relationship can be expressed as
Person’s Outcomes < Other’s OutcomesPerson’s Inputs
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Other’s Inputs
In such relationship, the person experience dissonance.
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3. Equity: In this case, the person perceives that his outcomes in relation
to his inputs are equal to those of others. This relationship can be
expressed by :
Person’s Outcomes = Other’s Outcomes
Person’s Inputs Other’s Inputs
In this case, the person experiences satisfaction. The impact of inequity on
the person is as follows:
1. Perceived inequity creates tension in the person.

2. The amount of tension is proportional to the magnitude ofinequity.

3. The tension created in the person will motivate him to reduce it.

4. The strength of the motivation to reduce inequity is proportional to the

perceived in equity.

54
ERG Model: Motivation

Glaytan Alderfer worked in the field of motivation and designed need

category model that was more in line with the existing empirical
evidence.
There are basically three groups of core needs namely Existence,
Relatedness and Growth (ERG) which Aldefer identified.
1. Existence Needs: Deals with survival (physiological wellbeing).

2. Relatedness Needs: Deals with importance of interpersonal, social

relationship.
3. Growth Needs: Deals with individual interval desire for personal
development.
Alderfer basically stresses more on continuum of needs, than hierarchical
levels or two factors of prepotency needs.
According to ERG theory the person’s cultural environment or

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background may dictate that the relatedness needs will take precedence
over unfulfilled existence needs and that, the more the growth needs are
satisfied, the more will be the increase in intensity.
es
Maslow’s hierarchy deals with satisfaction progression in which when the
lower need is fulfilled then the person’s moves into the next need to
fulfill. Whereas in ERG theory, it is frustration regression process, in this
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when the higher order growth needs are not satisfied, due to lack of ability
or some other factor, then the person in included to regress back to lower
order needs and feels those needs more strongly.
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Although not much research is done ERG theory, there is some proof to
counter the theory’s predictive value, most contemporary analysis of work
motivation tend to support ERG theory over Maslow’s and Herberg’s
m

theory, but it can be said that ERG theory contains some strong points of
earlier content theories but is less restrictive and limiting
Thus, finally all content theories direct managers to share responsibility
and empower employees in addition to recognising their achievements.
Beyard having flame in content models they provide effective insights of
motivation in management of today’s human resources.

Motivational Techniques:
Role of Job Design in Motivation:
Every individual who joins the organisation he is given some job to
perform. The nature of job its contents and its design have great impact on
the working behaviour and level of performance of the individual. It has
been a practice in the past that jobs to be performed at the lower level are
usually designed in such a way so that the employee can perform it easily.
These jobs are marked by the fact that (a) employees require little training
to perform them, (b) supervision and control become easier, and (c) they
55
Management Studies work with higher efficiency. But such design of job may create some
problems for the employees in long run as with the passage of time such
a job becomes routine and repetitive in nature thereby creating monotony
or boredomness for the individual performing them. In such case the
employees start losing their interest on the job and jobs also lose their
meaning and significance to the employee. Therefore, such jobs are to be
restructured and redesigned as to make them more meaningful, interesting,
thrilling and motivating. Jobs are set of tasks which provide various
stimuli to job holders. By redesigning them more stimuli can be offered to
job holder to motivate him. Jobs can be redesigned in the following two
manners.
1. Job Enlargement
2. Job Enrichment

1. Job Enlargement:
If the jobs become too specialised it is bound to create monotony and
boredom for the job holders. Job holders feel alienated and it results in
high level of absenteeism, turnover and tardiness. Under such situations,

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jobs are got to be enlarged. An enlarged job would offer greater variety of
operations to job holders. As a result of job enlargement they get the
following opportunities.
es
1. Use a variety of skills for performing variety of operations.
2. Exercise control over how and when the work is to be completed.
3. Be responsible for entire piece of work, and
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4. Get geed back of information.

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As a result of job enlargement, job cycle becomes lengthier and frequency

of repetition of jobs is reduced. In simple term, job enlargement implies
adding more variety of operation to the existing job and enabling job
holders to utilise range of abilities on his part. Though by enlarging job
m

number of operations performed by job holder increases but he gets

more satisfaction out of it and his motivational level goes up. In fact job
enlargement is a procedure of redesigning jobs or modifying work so that
employees can feel more involved and responsible for what they do.
Though there is always scope for enlarging various types of jobs such as
clerical, administrative and technical jobs, the need of job enlargement
becomes more pressing, specially for the jobs which are very simple,
routine type and too much specialised such as assembly line jobs. For
example, a typist in the office may be given some other operations such as
drafting letter, putting them into notice board, filing them and forwarding
them to his superior. It will reduce repetitiveness and too much
specialisation of typing job which must have been creating monotony.

2. Job Enrichment:
It is a process of designing job to increase its motivation potentials. It is
done by building several inducements and attractions in the job as to
make it more meaningful and interesting. In job enrichment the job holder
56
is allowed to exercise more influence over the several aspects of his job. Motivation

Regarding job- related problems he is granted enough operational

autonomy so that he can solve the problems when they arise. Job
enrichment makes a job more meaningful and complex by introducing
planning and decision-making responsibilities in it. Some jobs are
enriched in a manner so that the job holders get opportunity to use and
develop his skills in more meaningful and satisfying manner and also
develops initiative and innovativeness for his career development.
Successfully enriched job would satisfy need of achievement, and self-
fulfillment and offers an opportunity of self- direction and control.
Herzberg described job enrichment as job context or motivator which may
give workers more of a challenge, more of a complete task, more
responsibility, more opportunity for growth.
Jobs can be enriched by upgrading the following aspect of it.
1. Skill Variety: This provides opportunity to job holders to perform a
variety of operations and use a variety of equipment and procedures.
2. Task Identity: This allows job holders to perform entire or whole
piece of work so that he can identify results of their efforts clearly.

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3. Task Significance: This makes job holders to feel that jobs
performed by them has a substantial impact on the lives of other
people both inside and outside the organization.
es
4. Autonomy: This provides substantial freedom independence and
discretion to the job holders for scheduling their work, and selecting
equipment and procedure to be used for performing work.
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5. Feedback: The job holders must receive useful and reliable

information regarding job performance. Feedback of such
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information may come from job itself, or from the supervisor or

other persons.
How to Enrich Jobs ? Job enrichment in organisation is to be undertaken
m

by the managers with the help of some management consultants and

behavioural scientists. Generally, it is done by analysing the existing
contents of the jobs. Further, jobs are redesigned and restructured in such
a way as to reduce monotony and boredom and make them more
interesting, meaningful and paying. Although there is no one way of
enriching a job the following techniques may be used for it.
1. Rotation of task, giving more responsibility and reducing supervision
and broadening qualifications and skills of the job holders.
2. Giving job holders more scope to change the method, sequence and
pace of their work.
3. Allowing more say and influence of job holders in setting standards of
performance.
4. Adding new and more difficult tasks not handled by the job holders
earlier.
5. Supplying necessary information to the job holders which they need to
monitor their performance.
57
Management Studies 6. Assigning job holders or groups more specific projects which give
them more responsibility and help them to increase their expertise.
For example, the job of conductors (crewmen) in DTC can be enriched by
giving them more operational freedom as to decide work schedule for a
day as a whole, to handle daily cash, to check passenger without tickets, to
attain the complaint of commuters on that route. By doing this supervision
is reduced, the conductors determine standard of performance at their own
get more responsibility and more opportunities are provided to them for
increasing their expertise.
Merits of Job Enrichment: Job enrichment offer the following
advantages.
1. Job becomes more interesting, meaningful and paying for the job
holders.
They get motivated to work more efficiency because boredom and
monotony have been reduced by redesigning the jobs.
2. Job holders can get opportunity to develop and increase their expertise
which may further help them in getting promotion to higher position.

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3. Operational cost of job performance is reduced because cost involved
in supervision and control is saved.
4. Job redesign also helps in satisfying various higher order needs such
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as ego needs and need of self-actualisation.
5. It increases commitment, contribution and motivation of the job
holders.
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Limitations job enrichment has the following limitations.

1. Job redesign has limited application because usually only those jobs are
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redesigned which have become too specialised too simple and too
boring for the job holders.
2. In order to redesign job, many administrative and organisational
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changes are to be made such as relation of superior and subordinate is

to be redefined, degree of centralisation and decentralisation of
authority is to be changed. Jobs are redefined and many other changes
are to be made. These changes may further limit the usefulness of job
redesign.
4.4 QUESTIONS
1. Examine the Maslow’s Needs Hierarchy Theory of Motivation. How
does this theory help Managers in Motivating Employees ?
2. How does McGregor’s Theory X and Y of Human Behaviour help
Motivation of Employees? Do you think an Integral Approach an
Amalgam of these two Theories may be more effective in our Country
? Comment.
3. Hursey Blanclcard’s situational Model is based on limited number of
variables but these variables are quite significant.Comment
*****

58
 5
GROUPS AND ORGANISATIONS
Unit Structure
5.0 Objectives
5.1 Introduction
5.2 Principles Of Group Dynamics
5.3 Meaning And Definition Of Group
5.4 Types Of Groups
5.5 Reasons Responsible For Formation Of Groups
5.6 Team Development
5.7 Determinants Of Group Behavior
5.8 Summary
5.9 Questions

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5.10 Additional Readings

5.0 OBJECTIVE
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After the completion of the unit the student will be able to:
1. Understand the concept of Group Dynamics operating within the
social system.
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2. Know the types of groups and their importance.

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3. Understand the Concept of Team and Five Stages of Team

Development.
4. Understand the determinants of group Behavior and
interpersonal relationships.
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5.1 INTRODUCTION
Group dynamics is concerned with the interactions and forces between
group members in a social situation. When the concept is applied to the
study of organizational behavior, the focus is on the dynamics of members
of formal or informal groups in the organization, i.e. it is concerned with
gaining knowledge of groups, how they develop, and their effect on
individual members and the organizations in which they function.
Group Dynamics describes how a group should be organized and
conducted. Another view of group dynamics is that it consists of a set of
techniques. Third view of Lewin is that group dynamics is viewed
from the perspective of the internal nature of groups, how they form,
their and structure and processes and how they function and affect
individual members, other group and the organization.
Group dynamics is a social process by which people interact face- to
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Management Studies face in small groups. It encompasses the dynamic of interaction patterns
within the group, the subtle and the non-subtle pressures exerted by group
members the manner in which decisions are made in the group. How
work gets and how member needs are satisfied.
The importance of group dynamics to a manager lies in the fact that many
people tend to act differently as individuals than as members of a group.
According to Likert, “An organization will function best when its
personnel function not as individuals but as members of highly effective
work groups with high performance goals”, A manager is simultaneously
the leader of his own group and a participating member of the group.

5.2 PRINCIPLES OF GROUP DYNAMICS

A group can work effectively only if its members stick to certain desired
norms, which Cartwright has termed ‘principles of group dynamics’.
These principles are:
i) If a group is to be used effectively as a medium of change, those

.in
who are to be changed and those who are to wield an influence for
change must have a strong sense of belonging to the sane group, i.
e., the barriers between the leaders and the led should be broken
down.
es
ii) The more attractive a group is to its members, the greater the
influence it would exercise on its members. If attitudes, values or
behavior are relevant as a basis of attraction to the group, thegroup
ot

will wield a tremendous influence over them. If a man joins a union

mainly to keep his job and to improve his working conditions, he
may be largely uninfluenced by the unions attempt to modify his
un

attitudes towards national affairs.

iii) The greater the prestige of a group member in the eyes of other
members, the greater the influences he will exercise on them.
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iv) Successful efforts to change individuals or sub-parts of a group

would result in making them conform to norms of the group.
v) Strong pressure for changes in a group can be established by
creating a shared perception by members for the need for change,
thus making the source of pressure for change, thus making the
source of pressure for change lie within the group itself.
vi) Information relating to the need for change, plans for changeand
the consequence of change must be shared by all the members of a
group.
Vii) Changes in one part of a group produce a strain in other related parts
which can be reduced only by eliminating the change or by bringing
about readjustment in the related parts.

60
 Groups And Organisations
5.3 MEANING AND DEFINITION OF GROUP
A group may be defined as the aggregation of small number of persons
who work for common goals, may develop a shared attitude, and are
aware that they are part of a group and perceive themselves as such. Thus
causal aggregations of people do not qualify as a group because they
ordinarily are not aware of one another, or if aware, do not interact with
other individual in a meaningful way.
1. According to Marvin Shaw, “ A group is two or more persons
who are interacting with one another in such a manner that each
person influences and is influenced by each other person”.
2. According to Homans, a group is “ a number of persons who
communicate with one another, often over a span of time, and who are
few enough so that each person is able to communicate with all the
others, not at a secondhand, through other people, but face to face”.
Nature and Features of a Group:

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The following are the salient features of group:
1) Two or More Persons: To form a group, there should be at least
two persons because a single individual cannot interact.
es
There can not be any specific limit on the maximum number of
persons in a group but the size of the group will be determined by
rules and regulation of the organization in this context. There should
ot

be meaningful interaction among the members even in the case of

informal groups.
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2) Collective Identity: Members of the group must be aware about

their membership of the group. Each member of the group must
believe that he is member of, is a participant in, some specific group.
It is the case of aggregation of individual, they are ordinarily not
m

aware of one another or, if aware, do not interact with each other in a
meaningful way.
3) Interaction: Members of the group interact among themselves.
Interaction means that each member shares his ideas with others
through communication and this communication can take place face,
Face to Face in writing, over the telephone, across a computer
network, or in any other manner which allows communication among
group members. However, it is not necessary for all members of the
group to interact simultaneously, but each member must interact
atleast occasionally with one or more members of the group
4) Shared Goal Interest: Members of the group should subscribe to the
attainment of some common objectives. However, It is not necessary
that each member subscribes to or agrees with the objectives of the
group. If a group has a variety of objectives or interest, each member
of the group must share atleast one of the group’s concerns. The
shared goal interest binds the group member together.
61
Management Studies
5.4 TYPES OF GROUPS
Groups may be classified into different types. The basis of
differentiation may be purpose, extent of structuring, process of formation,
and size of the group membership.
i) Primary and Secondary Groups: Primary Groups are those
characterized by intimate, face-to-face association and co- operation.
For example – family and peer group.
Secondary group are characterised by large size and individuals
identification with values and ethnic group.
ii) Membership Groups and Reference Group: Membership group are
ones to which the individual actually belongs. For example–Co-
operative societies, Workers union, etc. Reference group are the ones
with which an individual identifies or to which he would like to
belong.
iii) Ingroup and Outgroup: Ingroup represents a clustering of

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individuals holding prevailing values in a society or atleast having a
dominant place in social functioning. For example – Members of a
team, family members, etc.
es
Out group are the masses or conglomerate viewed as subordinate or
marginal in the culture. For example – Street performers, or an office
worker, a hawker or a surgeon.
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iv) Interest Vs Friendship Group: Interest group involves people who

may come together to accomplish a particular goal with which they
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are concerned.
Friendship group are formed by people who have one or more
common features. People coming from a particular region or
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holding a particular viewpoint or speaking a particular language tend

to form Friendship groups.
v) Formal and Informal Groups: Formal group is said to be any social
arrangement in which the activities of some persons are planned by
others to achieve a common purpose. Basically formal groups assist in
i. The accomplishment of goals
ii. Facilitate the co-ordination of activities or functions
iii. Aid in establishing logical relationships among people andpositions

iv. Assist in the application of specialization and division of labour

v. Create group cohesiveness

Formal groups are created with structural associations and are formed to
accomplish specific goals and carry specific tasks.

62
Informal groups exist within the confines of the formal authoritystructure. Groups And Organisations

Informal organisation consists of a group of people who relate to each

other spontaneously for the purpose of mutual benefit and achievement.
The interactions that occur informally are neither prescribed by the formal
structure, nor can they be completely controlled by formal authority.
There are several informal groups in an organisation, namely,
i. Interest group: They come into being for the purpose of achieving
some common objective.
ii. Friendship group: These are socially oriented groups which
frequently extent outside a work place. These are based on same age,
views, interests.
iii. Membership Groups: a membership group is one to which a person
consciously belong but which he has no more than a minimal
relationship.
iv. Reference Group : These are groups to which one may belong and

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allow oneself to be influenced by its members behavior

Distinguish between Formal and Informal groups:

es
1) Formal groups are deliberately designed, structured and managed in
preplanned manner, while informal groups emerge spontaneously and
naturally out of formal structure.
ot

2) The main purpose of formal group is to seek achievement of pre-

determined common goals, but informal groups are aimed at
satisfying social and personal needs of members.
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3) Leadership in a formal group is backed by formal authority and

power position held by individual member, but in informal group it is
based on competition, personality, abilities, and acceptance by group
m

members.
4) Formal groups are invariably larger in size as against informal
groups which tend to be smaller in size.
5) Pattern of relationship in a formal group is strictly based on
rationality, legality and contract but personal, social and emotional
elements govern the pattern of relationship in informal groups.
6) Since formal groups are created in a planned manner they last long
and enjoy high degree of stability and certainty as compared to
informal groups which are prone to uncertainty and instability.
7) Members in a formal group communicate through chain of command
while an informal channel is based on personal and social relations
are used by members in informal group to communicate with each
other.
8) Formal groups tend to be well structured and meticulously planned in
63
Management Studies every respect but informal group remain loosely structured and even
disappear at slightest pretex.

5.5 REASONS RESPONSIBLE FOR FORMATION OF

GROUPS
1. Companionship and friendship: A group gives a person a feeling of
belonging and makes it possible for him to socialize with his friends.
It enables him to give a let to his feelings, get advice and eliminate
the monotony of work.
2. Security and protection: A group can be a source of security and
protection against management, especially if a member of the group
has made mistakes and needs to keep the foreman from discovering
them.
3. Advance their own interest : A group may try to secure benefits
such as better and higher piece rate, or in the case of office workers,
larger desks, longer lunch hours or other symbols of status, including

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favourable working conditions.
4. Need for Assistance: A group may want assistance or advice on
one’s job.
es
5. Group as Means of Communication: Group serves as the means of
communicating information about the company or organisation which
does not come through official channels or comes faster on the
ot

grapevine.

5.6 TEAM DEVELOPMENT

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Team is a small group with members in regular contact. When groups do

operating tasks they do as a team and try to develop a cooperative
circumstance known as team work. A work team generates positive
m

synergy through coordinated effort. Their individual efforts results in a

level of performance that is greater than the sum of those individual
inputs.
According to Katzenbach and Smith, team is defined as, “a small number
of people with complementary skills who are committed to a common
purpose, performance goals, and approach for which they hold themselves
mutually accountable.”

Reasons for the Popularity of Teams:

i) Teams typically out perform individuals when the tasks being done
require multiple skills, judgment, and experience.
ii) To compete more effectively and efficiently organizations have
turned to teams as a way to better utilize employee talents.
iii) Management has found that teams are more flexible andresponsive
to changing events.
64
iv) Teams have the capability to quickly assemble, deploy, refocus and Groups And Organisations

disband.
v) Teams facilitate employee participation in operating decisions.
vi) Teams are an effective means for management to democratize
their organizations and increase employee motivation.
Five Stages of Team Development or Life Cycle of a Team

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es
When a number of individuals begin to work at interdependent jobs, they
ot

often pass through several stages as they learn to work together as a

team. These stages are:
un

1) Forming: At the first stage of the life cycle team members get
introduced to each other if they have not interacted earlier. They share
personal information, start to accept others, and begin to turn their
attention towards the group tasks. At this stage, interaction among
m

team members is often cautious especially when they are new to one
another.
2) Storming: After the forming stage which is mostly related to
perceiving and assessing each other, members start interaction among
themselves in the form of competing for status, jokeying for relative
control, and arguing for appropriate strategies to be adopted for
achieving team’s goals. Because of individual differences, different
members may experience varying degree of tension and anxiety out of
this interaction pattern.
3) Norming: After storming stage team members start settling. The team
begins to moving in a co-operative fashion, and a tentative balance
among competing forces is struck. At this stage, group norms emerge
to guide individual behavior which form the basis for co-operative
feelings and behavior among members.
4) Performing: When team members interact among themselveson the
65
Management Studies basis of norms that have emerges in the team, they learn to handle
complex problems that come before the team. Functional roles are
performed and exchanged as needed, and tasks are accomplished
efficiently.
5) Adjourning: Adjourning is the end phase of life cycle of a team.
Sooner or later, each team has to be adjourned, even the most
successful teams as they have completed their mission. The
adjournment phase takes place in the case of those teams whichare
created for some special purposes like task force, committee, etc.
Other types of team like a department is an organization run on the
basis of some permanency though there may be changes in team
members. After the adjournment of the team, intense social
relationship among members comes to an end.
6) It is not necessary that all teams follow the rigid pattern prescribed
hare and the similar problems they fact at each stage because each
team is different in some respect based on the type of members,
problems and functions assigned. However, concept of stages is

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significant in the context of the nature of problem which team
members are likely to face in a team work.

5.7 DETERMINANTS OF GROUP BEHAVIOR

es
Team work or group behavior is reflected when the members know their
objectives, contribute responsibly towards the tack allotted to them and
ot

support each other. The determinants of group behavior. are :-

1. A supportive environment
2. Association of skills and role requirements
un

3. Application of goals
4. Application through team rewards.
m

There is a model of work group behavior, which contains the “why”,

“How”, and “when”, questions related to the groups. The figure below
shows the reasons for group formation, the types of groups, the
characteristics of group membership, and the end results. It also shows
the feed-back cycle. It all shows the groups that achieve or are moving
towards success (goal attainment) have the greatest attraction
(cohesiveness) within the group.

Typical Teams In Organizations:

The figure below explains the determinants of group behaviour

Self- Esteem- Social Economic Physical Contributing

Actualisation Needs Needs Motive Proximity factors to
Group
Membership
Appeal

66
 Groups And Organisations
Mutual Decision Acceptance
Making Control Motivation
Development
stages of Group
Growth

Command Types of Work

Friendship Force Groups
Task Interest

Emergent Status
Hierarchy
Control Leadership Some
Communication Norms Characteristics of
Network Groups

Cohesive Qualities

Membership Satisfaction
A. Participation One of many

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end results
B. Goal Attainment
C. Status Consensus
es
Each informal group characteristically establishes group behavior
ot

standards or norms, beliefs, traditions and attitudes to which it expects its

members to conform. According to Luthens, “norms are the ought’s of
behavior. They are prescriptions for acceptable behavior determined by a
un

group, institution or society”. The goals of an industry may be to provide

a pleasant, enjoyable work place forits members, the group may establish
maximum and minimum production standards- these may take the form of
units produced, sales quotas achieved, time required to do a certain
m

job, etc. Inorder to remain a member in good standing every worker must
adhere to the production guidelines. Groups have typical behavior but
have norms for absenteeism, promptness or tardiness at work. Though
distinct in qualities, teams form set of norms which are accepted by its
members. This brings about cohesiveness in the group.
Three specific social processes bring about compliance with the
group norms, namely, group pressure, group review and enforcement and
the personalization of norms. Team building encourages team members to
examine how they work together identify their weaknesses and develop
more effective ways of Co-operating. The goal of team building is to
make teams more effective. An effective team accomplishes its task,
solves problems and have satisfying interpersonal relationships

Group Structure:
Group structure is defined as the layout of a group. It is a combination of
group roles, norms, conformity, workplace behavior, status, reference
67
Management Studies groups, status, social loafing, cohorts, group demography and
cohesiveness.

Reference Groups:
It is a group to which a person or another group is compared. Reference
groups are used in order to examine and determine the nature of a person
or other group's features and sociological attributes.
It is the group to which a person relates or aspires to link himself or
herself psychologically. It becomes the individual's frame of reference and
source to derive his or her experiences, perceptions, needs, and ideas of
self.
These groups act as a benchmark and contrast needed for comparison and
evaluation of group and personal characteristics.

Status:
Status is a socially defined position or rank given to groups or group

.in
members by others. A group structure status includes group norms,
culture, status equity. All these factors when combined presents the status
of members of the group.
es
Social Loafing:
It is the phenomenon of people exerting less effort to achieve a goal when
they work as a group than when they work alone.
ot

This is one of the main reasons why groups are sometimes less productive
than the combined performance of their members working as individuals,
un

but should be recognized from the accidental coordination problems that

groups sometimes experience.
Many of the causes of social loafing arise from an individual feeling that
m

his or her effort will not matter to the group.

Cohorts & Group Demography:

Individuals who, as a part of a group, share a common attribute are known
as cohorts. Group demography is the level to which a member of a group
can share a common demographic attribute with his fellow team members.
Group demography is a successful ploy in increasing the efficiency of a
team in the long run.
For Example − Age, sex, religion, region, length of the service in the
organization and the impact of this attribute on turnover.

Cohesiveness:
Extent to which group members are attracted towards each other, and are
encouraged to stay in the group. Group cohesion is the aggregate of all the
factors causing members of a group to stay in the group or be attracted to
the group. Group cohesion acts as the social glue that binds a group
68
together. Some people think that work teams illustrating strong group Groups And Organisations

cohesion will function and perform better in achieving work goals.

Group cohesion is not attributed to one single factor, but is the interaction
of more than one factor. While group cohesion may have an impact on
group performance, group performance may create or increase group
cohesion. Thus, group cohesion can actually have a negative impact on
group task performance.
The most influential factor that creates a positive relationship between
group cohesion and group performance is the group members'
commitment towards the organization's performance goals and norms.
Group Roles − The different roles a person plays as a part of the group.
Group Roles are the different roles a person plays as a part of the group.
Roles are a set of expected behavior patterns associated to someone
occupying a given position in a social unit. There are three broad types of
roles people play in small groups they are task roles are roles that focus on

.in
completing group’s goal. The different task roles of a group are
Coordinator − Links statements made by one group member to another.
Energizer − Provokes group to take action. Elaborator − Extends upon
another’s ideas. Evaluator-critic Evaluates the group’s work against higher
es
standards. Information-giver − Gives helpful information. Information-
seeker − Questions for clarification. Recorder − Keeps notes regarding the
meeting. Procedural Technician − Takes accountability for tasks. Group-
ot

Building / Maintenance Roles- It focuses on building interpersonal

relationships and maintaining harmony. The various maintenance roles in
a group are − Encourager − Gives positive feedback. Follower − Obtains
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ideas of others in the group. Compromiser − Attempts to reach a solution

acceptable by everyone.Gatekeeper − Assists participation from everyone
in the group. Harmonizer − Limits conflict and tension. Observer −
Examines group progress.
m

Norms:
Norms are the acceptable standards of behavior within a group that are
shared by the group members. Every group develops its own customs,
values, habits and expectations for how things need to be done.
These patterns and expectations, or group norms as they're called
sometimes, direct the ways team members interact with each other.
Norms can help or block a group in achieving its goals.

Types of Norms:
There are four different types of norms that exist in a group

Performance Norms:
These are centered on how hard a person should work in a given group.
They are informal clues that help a person understand how hard they
69
Management Studies should work and what type of output they should give.
For example − Team leader puts various posters in the firm to motivate
employees to work efficiently and give their best performance.

Appearance Norms:
Appearance norms updates or guides us as to how we should look or what
our physical appearance should be, like what fashion we should wear or
how we should style our hair or any number of areas related to how we
should look.
For example − There is a formal dress code we need to follow while
working in a organization, we cannot wear a wedding gown to a board
meeting.

Social Arrangement Norms:

This norm is basically centered on how we should behave in social
settings. Again here, there are clues we need to pick up on when we are

.in
out with friends or at social events that help us fit in and get a closer
connection to the group.
For Example − We cannot take our official work to a friend’s birthday
es
party just for the sake of completing it.

Resource Allocation Norms:

ot

This norm focusses on the allocation of resources in a business

surrounding. This may include raw materials as well as working overtime
or any other resource found or needed within an organization.
un

For Example − If the client needs the project by tomorrow then anyhow it
has to be completed by using available resources or doing over time.
m

Conformity:
Conformity can be stated as “accommodating to group pressures”. It is
also called as the majority influence or we can say the group pressure.
It is widely used to indicate an agreement to the majority position, brought
about either by a desire to fit-in or be liked or because of a desire to be
correct, or simply to conform to a social role.

Types of Social Conformity:

Three types of conformity can be identified:

Normative Conformity:
Yielding to group pressure because an individual wants to fit in with the
group. Conforming usually takes place because the individual is scared of
being rejected or neglected by the group.
This type of conformity usually includes compliance like where a person
70
publicly accepts the views of a group but privately rejects them. Groups And Organisations

Informational Conformity:
This usually happens when a person lacks knowledge and looks to the
group for guidance. Or when a person is not clear about a situation and
socially compares one’s behavior with the group.
This type of conformity includes internalization like where a person
accepts the views of the groups and adopts them as an individual.

Ingratiational Conformity:
Where a person conforms to gain a favor or acceptance from other people.
It is relative to normative influence but is encouraged by the need for
social rewards rather than the threat of being rejected.
In other words, group pressure is not always the reason to conform.
Harvard psychologist, Herbert Kelman, identified three different types of
conformity

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 Compliance: Socially changing behavior in order to fit in with the
group while disagreeing privately. In simple words, conforming to the
mass, in spite of not really agreeing with them.
es
 Internalization: Socially changing behavior to fit in with the group
and also agreeing with them privately.
ot

 Identification: Agreeing to the expectations of a social role. It is

similar to compliance, but there is no change in private opinion.
un

5.8 SUMMARY
A group consists of persons being together so that they have common goal
m

with mutual interaction and each person in the group influences and is
influenced by each other person. Groups form because people have a basic
need for love, affection, respect and affiliation. Also group has more
power to achieve individual goals for its members than the individual by
himself.
There are two types of groups. Formal groups are formed purposely via
formal authority in order to accomplish an organizational objective or
task. Informal groups are formed naturally in response to some common
interests of organizational members. Team members establish some
degree of closeness resulting into cohesiveness despite there are typical
team behaviors among members.

5.9 QUESTIONS
1. Define Group Dynamics and explain the Principles of Group
Dynamics of Indian Organizations ? Give Examples.

71
Management Studies 2. Do you think Group dynamics work in organizations ? How are the
group goals integrated with the organizational goals ?

3 What are the types of Groups? How do formal groups differ from
informal groups?

4 What are the determinants of group behavior? Explain themin brief

5.10 ADDITIONAL READINGS

1. Shaw, Marvin E, Group Dynamics : The Psychology of small Group
Behavior, McGraw Hill, !981.

2. Robbins, P. Stephen, Organizational Behavior : Concepts,

Controversies, Applications, 8th Ed. Prentice Hall of India Private
Limited, New Delhi, Revised Edition 2007.

3. Luthans, F, Organisational Behavior, 10th Revised Edition, McGraw

Hill, 2005.

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4. Aswathappa, K, Organizational Behavior : Texts, Cases & Games,
Himalaya Publishing House, 2005.
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5. Greenberg, J and Baron R. A. Behavior in Organizations 6th Ed.
Prentice-Hall International Inc,1997.
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*****
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m

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 6
ORGNISATIONAL DESIGN
Unit Structure
6.0 Objectives
6.1 Introduction
6.2 Key Factors in Orgnisational Design
6.3 Summary
6.4 Questions

6.0 OBJECTIVE
After the completion of the units the student will be able to
1. Understand key factors in Organisation design.

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2. Know types of organizational design.
3. Study need and significance of a sound organistional design.
es
4. Understand Organisational structure – Traditional and contemporary
structures.

6.1 INTRODUCTION
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The term organization is derived from the word “organism” which

means a structure of body divided into parts that are held together by a
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fluoric of relationship as one organic whole.

Organizational design is the structure which indicates the pattern of
relationship among the components parts of an enterprise.
m

Orgnisational design is represented as a form of a graph which becomes

the Orgnisational chart. As the human beings have organs that defines
their parameters and coordination of different organs of a body. Similarly
Orgnisational design has structure that specifies various positions groups
dimensions etc. and their necessary coordination in order to achieve well
established objectives.
Thus the Orgnisational design establishes the responsibility of each
department, section, individual and their scope of authority as well as their
inter-personal relationships. It promotes coordination among the functions
and ensures that every part work as per pre- established plan in proper
relation it parts in the orgnisation.
This lesson will include the discussion on the following topics:
a. Key factors in Orgnisational design.
b. Types of Orgnisational design
c. Need & significance of a sound Orgnisational design
73
Management Studies d. Orgnisational structure- Traditional and contemporary structures.

6.2 KEY FACTORS IN ORGNISATIONAL DESIGN

Key factors in Orgnisational design of an enterprise are divided into two
types:
1. Internal factors
2. External factors
Internal factors: There are many internal factors affecting
an Orgnisational design. The most important are:

a. Orgnisational Objectives:
Every Orgnisation is supposed to be an economic Orgnisation as well as
asocial Orgnisation. Therefore any business enterprises have to fulfill the
needs of social groups like customers, employees. Distributors, investors
the society and the government. So the enterprise sets up various goals
and objectives which are capable of satisfying these groups.

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These objectives can be achieved only when Orgnisational design is
flexible and adaptable to the situation and requirement. Sometimes
the issues like flexibility, adaptability and technical superiority play
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important role in achieving Orgnisational goals. These issues are based an
Orgnisational design.

b. Size of the Orgnisation:

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Size of the Orgnisation is another important factor which influences

the Orgnisational design. E.g. If the enterprises is small in size,
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design will be very informal. Actions and decisions are made on personal
relationship.
But as the Orgnisation grows the Orgnisational design moves from
m

informal to the formalized structure. Because operations are spread

geographically and people are assigned roles on the basis of their
specialization. Thus Orgnisation becomes bureaucratic.

c. Nature of employees:
Employees differ in nature and their characteristic. So some of them
prefer formal orgnisation and some prefer informal structure. This
difference is because of their age, education, intelligence, and
experience etc. e.g. Old people feel safe in bureaucratic model but
younger ones prefer more dynamic and informal Orgnisational design and
they are against rules & regulations i.e. bureaucratic model.
Similarly educated employees like interactive and Participant model of
decision making process as well as flexible Orgnisational design and
informal cooperation of people to get the work done.

74
Further more intelligent employees are against the bureaucratic rules Orgnisational Design

and prefer short cut ways to get the work done more
efficiently.
Employee experience also influences Orgnisational design.
E.g. a newly hired employee seeks guidedance and need
close control.
But better experienced employees need less control and prefer more
flexible orgnisation.
External Factors: External Factors also play important role
in Orgnisational design. These include:
a. Environment: Since the Orgnisation are open systems they must
respond to their external environments. The environment may be of
two types:
i) General Environment: This includes demographical, physical,
political, legal, social, cultural, technological economical etc. All
these environment affect the Orgnisational design.
ii) Task Environment: This includes competition, customers and

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suppliers etc. these are more specific and therefore are highly
relevant in designing Orgnisational structure.
b. Technology: In highly- technology units operating on the frontiers
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of technical development. Orgnisational design should facilitate
problem solving and risk taking. Conversely operating with more
well-known and stable processes should consider structures that
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facilitate efficiency. As the range of products and services increases

the structure of the Orgnisation should accommodate differences
across product and services.
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Types of Orgnisational Design:

Orgnisational design takes different forms. These forms can be broadly
divided into following types:
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Supervisor
Workers
General
Manager

Production
Responsibility

manager
Authority

Works
manager

Foreman

Supervisor

Workers

75
Management Studies Responsibility:
It is oldest & simplest form of Orgnisational design. It
is used even today in small manufacturing unit.
In line Orgnisation the line of authority moves directly from top to
bottom in a step by step manner.
According to Jame Stoner “Line authority is represented by the standard
chain of command, starting with the Board of Directors
and extending down through the point where the basic activities of the
Orgnisation are carried out.”
Works Manager

Asstt. Works Manager Asstt. Works Manager

(planning) (production)

the routine clerk the gang boss

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The Instruction Clerk speed boss

The time & cost clerk repair boss

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The shop Disciplinarian the Inspector

WORKER
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2. The Functional Orgnisation:

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It is a way of putting specialists to work. It was developed by F.W.Taylor

who introduced specialization at the plant level. He divided the plant
work into planning and shop floor jobs. His main idea was that the
direction of work must be decided by functions and not by mere
m

authority. He divided work on the basic of specialization. Each worker

had four supervisors who were specialized in 1 different function, each
workman is held responsible to many bosses. He pointed out that
under this structure, each worker comes in contact with many member
of management for directions rather than just one member the foreman.

3. The Line staff Orgnisation:

It is nothing but the combination of two Orgnisational design line and
functional. This design trees to retain the advantages of both the line and
functional Orgnisation and tries to remove the limitation of both.
In this case Orgnisation structure is divided into 2 parts, line executives
who are also called “doers” and staff execut who are also called
“thinkers”. The line executives are concerned with the execution of
plans and policies. The staff concentrates their attention on research and
planning activities. They only suggest or recommend but have no power
to command the line executives.
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According to Louis Allen, Orgnisational Design

“Line refers to those positions and elements of the Orgnisation, which

have the responsibility and authority and are accountable to
accomplishment of primary objectives. Staff elements are those which
have responsibility and authority for providing advice and service to the
line in attainment of objectives.”

Board of Directors

General Manager
Economist Economist
Production manager

PA Works manager Labour A

Foreman
PA Cost AC

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Supervisor
Shop Clerk Inspector
Shop Supervisor
Workers Workers
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Effect of line & staff on behaviour:
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One behavioral implication of line & staff Orgnisational design is its

potential for conflict between line offices and staff experts.
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Other behavioral problems can be traced to the unity of command

principle. Theoretically the line- staff structure is designed to preserve this
principle in the light of the existence of primary & secondary
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Orgnisational objectives, However because people do not act as

mechanically as the Orgnisational chart , the system becomes lader with
power struggle, influence systems, policies and confrontation over
authority relationship.

Need & significance of a sound Orgnisational design:

A sound Orgnisational design is capable of surviving many functions at
the same time but can not serve all function equally well all the time.
Design developed for one purpose may not serve other purposes well.
Therefore, it is important for manager to determine the outcomes derived
from Orgnisational design and to match the structure with changing needs.
With multiple needs and roles of Orgnisational design a balance will have
to be struck and priorities established in the operation the Orgnisational
mechanism.
In general there may be following significances of a Sound Orgnisational
design:

77
Management Studies 1. Facilitating Management Action:
In every enterprises a group of people work together. Their functions are
interdependent and interrelated. Therefore some sort of structural design is
required to place everyone as per the needs of the Orgnisation.
Orgnisational design is the mechanism through which management
directs, coordinates and controls the Orgnisational activities. Management
actions take place with certainty and continuity only when properly
designed Orgnisational structure is developed. The grouping and
arrangement of activities directly affect operating results. Thus a need for
updated Orgnisational structure can be ganged from the fact that many
Orgnisation create separate unit for Orgnisational analysis which looks
after the various aspects affecting the Orgnisational structure such as
delegation of authority communication,control,coordination etc.,

2. Emerging Efficiency:
With the sound Orgnisational design , members of the enterprises try to
maximize to output from available input of resources. So there is a need to

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develop some measure of systematic , orderly, rational, and coordinated
effort and to control waste & loss. In this way all the models of
Orgnisational design try to achieve efficiency in Orgnisational operations.
es
3. Communication:
Orgnisational design establish reporting relationship i.e. who will
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communicate with whom. Simiralarly a communication process is

involved with its environment. This will develop various focuses of
communications horizontal, vertical, and lateral etc. All these
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communications are effective only when sound Orgnisational structure is

designed properly, so that various lines of communications can be
provided in all the directions.
m

4. Optimum use of Resources:

The activities of an Orgnisation are arranged according to their
importance. Activities which are more important to achievement of
objectives are placed at higher level and vice versa. This provides
guidelines for resources allocation. This will improve the efficiency
resulting to Orgnisational growth and optimum allocation of resources.

5. Stimulating creativity:
A sound Orgnisational structure based on specification stimulates creative
thinking by providing well-defined area of work with provision of
development of new and improved ways of working. Orgnisational
structure tries to put people of places where they are required. When they
work on a job for long lime they get specialized and they are in a position
to suggest some thing new. Many management people have contributed to
the development of management thinking which shows the results of their
creativity because of a sound Orgnisational structure.

78
6. Job satisfaction: Orgnisational Design

Orgnisational structure provides for each person a place of status which

gives respects among the group of people. This is a motivating factor for
them. Nature of job promotion and use of authority and responsibility
during the long period of time the people are associated in an Orgnisation.
This provides a reasonable degree of job satisfaction. This is possible only
through sound frame work in the Orgnisational design.
All above mentioned roles of Orgnisational design can be performed only
when it is properly designed. Further the Orgnisational structure should be
viewed as a means towards specific ends. As such it can be used as a tool
not an end. Like any tool, result depend on the skill with which it is used.
Manager need not go out of their way to equip themselves with out of date
or inadequate Orgnisational tools.
Orgnisational structure- Traditional and contemporary structures:
Orgnisational structure has been changed recently which influenced the
shape of an Orgnisation. This topic will discuss the different structural

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changes and their affects in decision making and behaviour.
TALL v\s FLAT Orgnisational structure: for example the shape of an
Orgnisation has direct influence of the span of control. An Orgnisation
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may have a “TALL” or “FLAT” structures.
Tall structure has many hierarchical level and few workers reporting to
each manager. In his case the span of control is small or narrow.
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Flat structure may be another shape of Orgnisation in which span of

control may large or wide. It has few hierarchical levels and many workers
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reporting to each manager.

FLAT Structure (30employees & 3levels) TALL structure (30 employees
& seven levels)
m

As shown in above fig. two companies with an equal number of

employees may have differently shaped structures. Holding the no. of
employees constant, an increase in the no. of levels decrease the span of
control while decreasing the no. of levels increase the span of control.
Comparison of TALL & FLAT Structures:
TALL Structure FLAT Structure
Needed When: Needed When:
1. Closer control monitoring is 1. More Autonomy & Self-
required. control is required.
2. Mistakes are likely to be 2. Flexibility & innovation are
costly. required.
3. Tasks are clear and require 3. Ambiguous task & roles,
specialization. specialization does not work.
4. Routine Technology. 4. Non-routine technology.
5. In experienced subordinates. 5. Experienced subordinates.
6. Placis, stable environment 6. Unstable environment.
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Management Studies Trend towards FLAT structures:
The management guru Peter Drveker in his book “The Need Relation” has
emphasized that only flat structures would survive in 1990’s. His
prediction has come true is our Country. The divining force is competition
within and without. A business Today (Dec 7- 21-1993) survey revealed
that more than two dozen of the biggest companies were busy reducing the
no. of management grades and eliminating layer in their org…ITC, HLL,
Godrej & Boyce, RPG enterprises, Raymond Woolen Mills, Shaw
Wallace, etc. are some companies which have exercised to form flat
structures. The survey claimed the following benefits and Pitfalls of
FLAT structure.
Benefits Pitfalls
1. Increased growth options for 1. Reduced promotion options
performances. for employees.
2. faster decision making and 2. Increased work load as
market response. layers get trimmed.
3. Upgradation of skills within 3. Increased Training &
ranks. development needs.

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4. Better internal communication & 4. Low staff morale during the
interaction transition phase.
5. Perceptible decline in overall 5. Strictness of manpower
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man power costs. attrition.

Mechanistic v/s Organic structure:

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In the concept of Orgnisational structure flexibility plays an important

role. Flexibility refers to the operating freedom available to an
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Orgnisational member to perform the tasks assigned to him.

With reference to flexibility, there are 2 distinct structures:” Mechanistic”
& “Organic”. Out of these 2 Mechanistic structure is characterized as
m

highly rigid, and Organic structure has the main feature of flexibility.
a. Mechanistic or Bureaneratic structure:

The German sociologist Max Weber(1864-1920) developed the

Bureaneratic model of Orgnisational structure. This model stresses the
need for clearly defined hierarchy governed by clear rules and regulations.
He argued Bureaneratic as the most efficient form of org. This model
has following characteristics :
1. Division labor.
2. Well defined hierarchy of authority.
3. Clearly defined responsibilities & authority.
4. More dependence on formal rules & regulations.
5. employment decisions based on merit
6. Formal relation among members.
7. Promotion on Technical qualification.
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8. Centralisation of Authority: Orgnisational Design

Best e.g. of this model is Indian railways(Largest network in the world)

with its tracks covering a stretch of 62,000 kms, transports about 1 crore
people everyday and 300 million tones of freight transport every year and
employees 1.62 million people.
It has 11 functional departments and 9 operational zones. Complexity of
the structure can be ganged from the fact that there are about 700 jobs
categories in railways, which are spread over its 58 divisions
Bureaneratic model often has host of attributes like inefficiency red
tapism, paper shuffling, rigid application of roles and redundancy of
efforts.
Although the term Bureaneratic is not liked by contemporary management
thinkers and practitioners many of its char. Are found in most modern
org...If you study the structure of any large org. you will find the attributes
of perfect department able centralized authority, high formalization which
are the parts of Bureaneraticstructure conceived by Max Weber.

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b. Organic or Matrix Organisation:

Matrix Organisation which took its birth during 1970’s is just contrast to
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the Bureaneratic structure and shows the structure flexibility. It is the
combination of two type of Org. structure in which2 chain of command is
directing individual employees. It begins with the functional structure on
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which another structure organized by the “Project” is overlaid. As a result

employees are assigned to a basic functional department and, at the same
time are assigned to work on a particular project. When the project is
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completed theemployees go back to their parent departments.

Thus one chain of command in the matrix structure is exercised by the
functional managers and the second line of command is exercised by the
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project manager. In this way authority flows vertically and horizontally

respectively making a matrix model which is also called the “multiple
command” system.

81
Management Studies Critical Analysis of Matrix Organisation:
Positive Aspect:
1. It may improve the motivation of employees due to focus on
completion of a project i.e. gives excitement, visit to new places, extra
income and perks etc.
It may improve communication by encouraging direct contact and
reducing formal communication and ranks.
2. Matrix Organisation contribute to the development of employee skills
by exposing to new challenges and responsibilities.

Negative Aspect:
1. It gives rise to an intense power struggle, feelings of insecurity and
conflict among the people involved.
2. Due to over involvement in groups and committee meetings, dual
staffing of mgt. positions and unnecessary complexity there may be

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stress and pressure among the employees.
3. There may be tendency towards hierarchy i.e. conclusion about
reporting which is against the principle of unity of command.
4. There may also be the problem of performance appraisal.
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Performance evaluation is done by their functional bosses but major
inputs for appraisal are provided by the project managers.
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Contemporary Structures (Emerging Dimensions in Org.

Designs):
As we move forward to new millennium, the business enterprises will
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have the views of new dimensions in Org. design

Important structures are as follows:
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1. Virtual orgnisation:

Virtual means real. So in this org. a temporary network of companies is

created which tries to exploit fast- changing opportunities by sharing cost,
skills and access to global markets. This org. tries to have max. Flexibility.
Virtual org. contract out manufacturing, distribution, marketing or any
other business activity where mgt. feels that others can do better or more
cheaply. In this way a virtual org. outsource many of its functions and
concentrates on what it can do best.
Small org. can do better in this respect. But in real sense virtual org. are
created by large companies such as IBM, APPLE, Ford and Toshiba. IBM,
APPLE and Japanese partnership are working on multimedia software that
will work on any machine. Intel works with two Japanese org. to
manufacture flash memory chips for computers.

82
So virtual org. may be another mgt. crazes for future org. structure to Orgnisational Design

capitalise certain types of projects. Mgt. scholars have mixed opinions on

the effectiveness of much arrangement. Therefore this approach can
produce substantial benefits is some situations.
1. Boundaryless orgnisation:

In this case vertical and horizontal boundaries within the orgnisation are
removed and also external barriers between the company its customers and
suppliers are abolished.
Removal if these boundaries minimizes the status and ranks of employees
and communication is made easy and faster. This simplifies formation of
cross hierarchical to teams, participative decision making and 360 degree
appraisal techniques.
By making multi-disciplinary terms and discussion new products can be
developed easily.
In the same way external barrier can be removed by globalization strategic

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alliances, supplier orgnisation and customer orgnisation linkages. e.g.
Coca-Cola seeks to project itself as a global corporation and not just a US
based multinational.
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2. Technology (Mechanistic Structure):

It is the systematic application of scientific or other organises knowledge

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to perform work. So technology has significant impact orgnisational

design.
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Those firms which use large batch (mass) production technology start their
manufacturing cycle with product development. They prefer organic
designs. The key o success is the ability to discover a new product that can
be manufactured by already existing facilities or by new facilities. The
m

product development production and marketing functions demand

scientific staff and specialized competence at the highest levels in the
orgnisation.
Therefore mechanistic structure is effective for the companies that use
mass production technology. The market exists for a standardized product
and the task is to manufacture the product efficiently and economically
through fairly routine means. Workers tend machines designed and placed
by engineering standards. Actual control of the work flow is separated
from supervision of the workforce. In such orgnisation, the ideas of
scientific management and mechanist designs are applicable.

Learning orgnisation:
A learning orgnisation is one that has developed the capacity to adapl and
change. In modern competitive environment only a learning orgnisation
will survive. Abilities to learn, create, codify and utilize knowledge faster

83
Management Studies than its rivals and quicker than environment changes will provide
tomorrow is corporation a competitive edge.
In a learning orgnisation old pattern are demolished and a new order is
created that not only encourages managers to lok at their people
differently, but actually teaches then to look at the world a fresh.

FEATURES:
1. A learning orgnisation is an active philosophy not merely an
orgnisation system.
2. It believes that its only competitive advantage is learning.
3. It encourages people to learn to produce the results they desire.
4. It nurtures creative and innovative patterns of collective learning.
5. It develops fresh orgnisational capabilities all the time.
According to Chris Argyris there are 2 types of learning orgnisations.
Single loop learning and double loop learning.

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Single loop learning involves improving the orgnisation. Capacity to
achieve known objectives. It relates to routine and behavioral learning.
Double loop learning evaluates the nature of orgnisations objectives and
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the values and beliefs surrounding there. This types of learning orgnisation
involves change of orgnisations culture. When any error is taken place
they are detected and corrected by the modification of objectives, policies
and standard routine.
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Elements of the learning orgnisation:

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1. Openness: Learning orgnisation must be open to new ideas, and

anticipate changes.
2. Creativity: i.e. A. personal flexibility so that no opportunities are
missed. B. Risk taking and not to be conservative. E.g. One person
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went to US and found that there is no scope of sleepers in US as

everyone puts on shoes. Another person said that there is 100% scope
of sleepers as no one is using so everyone will start using it in future.
This is risk taking.
Personal Efficiency: It means that one can influence significantly the
world in which he lives. This can be achieved by teaching employees self-
awareness and active problem solving.
Organizational structure refers to how individual and team work within an
organization are coordinated. To achieve organizational goals and
objectives, individual work needs to be coordinated and managed.
Structure is a valuable tool in achieving coordination, as it specifies
reporting relationships (who reports to whom), delineates formal
communication channels, and describes how separate actions of
individuals are linked together. Organizations can function within a
number of different structures, each possessing distinct advantages and
disadvantages. Although any structure that is not properly managed will
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be plagued with issues, some organizational models are better equipped Orgnisational Design

for particular environments and tasks.

Centralization is the degree to which decision-making authority is
concentrated at higher levels in an organization. In centralized companies,
many important decisions are made at higher levels of the hierarchy,
whereas in decentralized companies, decisions are made and problems are
solved at lower levels by employees who are closer to the problem in
question.

Formalization is the extent to which an organization’s policies,

procedures, job descriptions, and rules are written and explicitly
articulated. Formalized structures are those in which there are many
written rules and regulations. These structures control employee behavior
using written rules, so that employees have little autonomy to decide on a
case-by-case basis. An advantage of formalization is that it makes
employee behavior more predictable. Whenever a problem at work arises,
employees know to turn to a handbook or a procedure guideline.
Therefore, employees respond to problems in a similar way across the

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organization; this leads to consistency of behavior.

Organizations using functional structures group jobs based on similarity in

functions. Such structures may have departments such as marketing,
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manufacturing, finance, accounting, human resources, and information
technology. In these structures, each person serves a specialized role and
handles large volumes of transactions. For example, in a functional
ot

structure, an employee in the marketing department may serve as an event

planner, planning promotional events for all the products of the company.
The degree to which a company is centralized and formalized, the number
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of levels in the company hierarchy, and the type of departmentalization the

company uses are key elements of a company’s structure. These elements
of structure affect the degree to which the company is effective and
m

innovative as well as employee attitudes and behaviors at work. These

elements come together to create mechanistic and organic structures.
Mechanistic structures are rigid and bureaucratic and help companies
achieve efficiency, while organic structures are decentralized, flexible, and
aid companies in achieving innovativeness.

6.4 QUESTIONS
1. Explain in brief the importance of a sound organizational design.
2. Explain the determinants of sound organizational design.
3. What are the internal and external factors in organizationaldesign?
4. What are the types of organizational design? Examine the need and
significance of sound organization design.
Explain traditional and contemporary structure. How does tall
structure differs from flat structure?
*****
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 7
LEADERSHIP
Unit Structure
7.0 Objectives
7.1 Introduction
7.2 Trait Theory Of Leadership
7.3 Managerial Grid
7.4 Hursey Blanclcard’s Situational Model
7.5 Summary
7.6 Questions

7.0 OBJECTIVES
After the completion of the unit the student will be able to

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1. Understand the essentials of leadership
2. Study importance and need for leadership
es
3. Examine the Possible differences between managers andleaders
4. Study Formal and informal leaders and their functions
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5. Study Competencies of leadership

6. Understand leadership theories and approaches
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7. Know transactional leadership and transformational leadership

7.1 INTRODUCTION
m

Effective leadership is of great importance in an enterprise to enable the

enterprise in achieving its objectives. Leadership is the most important
means of direction. It is a process by which an executive directs his
subordinates and influence the work and behaviour of others for the
common benefit of the organisation as well as its members. To lead means
to guide, to direct and to integrate the efforts of people of an organisation
towards a common goal. An effective leader directs the activities of his
followers and integrates their activities for the accomplishment of some
pre- determined objectives. He motivates them to work more and better.
The success of an enterprise largely depends upon the quality of its
leadership.
Definitions:
The term ‘leadership’ has been defined by many authors as under :
1. Mooney & Reiley, “Leadership is regarded as the form which the
authority assumes when it enters into process”.

86
2. Chester I. Koontz & O’Donnell, “Leadership may be defined as the Leadership

influence, the art or the process of influencing people so that they

will strive willingly towards the achievement of group goals”.
3. R.T. Livingston, “Leadership is the ability to awaken in others the
desire to follow a goal or objective”.
4. Ordway Tead, “Leadership is that combination of qualities by the
possession of which one is able to get something done by others,
chiefly because, through his influence they become willing to do
so”.
5. Alford & Beatly, “Leadership is the ability to secure desirable
actions from a group of followers voluntarily, without the use of
coercion”.
Theo Haimann, “Leadership can be defined as a process by which an
executive directs, guides and influences the work of others in choosing
and attaining specified goals by mediating between the individual and the
organisation in such a manner that both will obtain maximum

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satisfaction”.
On the basis of analytical study of above definitions, it may be concluded
that leadership is an ability to direct and motivate other persons of an
es
organisation so that they may contribute their efforts towards the success
of organisation.
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Characteristics of Leadership :
1. Followers : The success of leadership depends upon the number of
followers. Larger the number of followers, more successful will be
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the leadership. Leadership cannot be thought of in the absence of

followers.
2. A Personal Quality: Leadership is a personal quality of character and
m

behaviour, which enables him to influence his men to follow and the
followers follow his order and direction.
3. A Common Goal: Leadership clusters around the achievement of
common goals. There must be some common goals before the leader
and his followers. All the activities must be oriented to achieve these
goals.
4. Active Relations: Presence of active relations between a leader and
his followers is essential for effective leadership. The leader must
himself initiate the work as he want it to be done by his followers.
5. Practical Approach: An effective leader is one who adopts practical
approach towards the problems of enterprise. He should not be rigid.
He should change his behaviour according to the need of time. He
should follow the democratic method of leadership through wide and
flexible approach.

87
Management Studies 6. It is a Process: Leadership is a continuous process of directing,
guiding, presenting examples and influencing the people to make
their best efforts for the attainment of pre-determined objectives.

Essentials of Leadership:
Leadership is a quality which enables a person to direct other persons of
the organisation and by that other persons become his followers. A leader
directs and guides the activities of his followers and influences them to
contribute their whole hearted efforts to achieve the common objectives of
the enterprise. Therefore, it becomes essential that there must be follower
of a leader. He must have a complete and clear knowledge of his
organisation. He must have the clear knowledge of his abilities and
limitations. He must have the clear knowledge of objectives of his
organisation also. Only then he may direct, guide and regulate the
activities of his followers. However, it is important to note that an
effective leader is not necessarily a good manager also.

Leadership may be viewed variously as:

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Leadership as a Status Group: It refers to a situation where a person
acquires leadership by reason of his heredity (as when he is a descendant
of a royal family), or election, or appointment to a position.
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1. Leadership as a Focal Person : According to this view, leadership
vests the in people who are traditionally regarded as leaders by virtue
of managerial positions held by them, such as in the case of directors,
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executives, administrators, managers, chiefs, etc.

2. Leadership as a Function: The leadership function consists in
facilitating the achievement of group goals. The person who
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performs this function is regarded as the leader. As a result, while

there are several people involved in working towards accomplishment
of group goals and many complex factors, including a sheer luck,
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which may affect the outcome, the credit or discredit for success or
failure of the collective endeavor is attributed to the leader of the
group.
3. Leadership as a Process : According to this view, leadership is an
interactive process in which leaders and followers exchange
influence, i.e., the leader influence the followers by his ideas,
direction and support, and the followers influence the leader bytheir
contribution to the achievement of group goals.
Importance and Need for Leadership:
1. Determination of Goals: A leader performs the creative function of
laying down goals and policies for the followers. He acts as a guide in
interpreting the goals and policies.
2. Organisation of Activities: A good leader divides organisation
activities among the employees in a systematic manner. The
relationships between them are clearly laid down. This reduces the
chances of conflict between them.
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3. Achieving Coordination: A leader integrates the goals of the Leadership

individuals with the organisational goals and creates a communityof

interests. He keeps himself informed about the working of the group.
He shares information with the group for the coordination of its
efforts.
4. Representation of Workers: A leader is a representative of his
group. He takes initiative in all matters of interest to the group. He
also attempts to fulfill the psychological needs of his followers.
5. Providing Guidance: A leader guides the subordinates towards the
achievement of organisational objectives. He is available for advice
whenever a subordinate faces any problem.
6. Inspiration of Employees: A good leader inspires the subordinates
for better performance. Motivation is necessary for getting the desired
work from the subordinates. The leader motivates the employees by
providing them economic and non-economic rewards.
Building Employees’ Morale: Good leadership is indispensable for

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high employee morale. The leader shapes the thinking and altitudes of
the group. He develops good human relations and facilitates
interactions among the members of the group. He maintains voluntary
cooperation and discipline amongfollowers.
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7. Facilitating Change: Leadership is the mechanism to convince
workers about the need for change. Dynamic leadership is the comer-
stone of organisational change. An effective leader is able to
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overcome resistance to change on the part of workers and thus

facilitates change.
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Thus, leadership is a part of management, but not all of it.

This implies that a strong leader can be a weak manager because he is
weak in planning or some other managerial duty.
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Reverse to this, manager can be a weak leader and still be an acceptable

manager, especially if he happens to be managing people who have
strong inner achievement drives.
Functions of a Leader:
(i) Setting Goals: A leader provides guidance to the group by setting
goals to his subordinates. He acts as a guide of his followers by
setting objectives of the group.
(ii) Representation: A leader represents the group to his superiors. A
good leader is the guardian of the interests of the subordinates. He is
the personal embodiment of the impersonal organisation inside and
outside the organisation.
(iii) As a Counselor: A leader may render advice and tries to overcome
barrier, real or imaginary and instills confidence in the employees.
Leadership creates a cooperative attitude among the employees.
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Management Studies (iv) Develops Team Spirit: A leader develops a sense of collectivism in
the employees to work as a team. Individuals within the group may be
shown varied interests and multiple goals. A leader has to reconcile
their conflicting goals and restore equilibrium.
(v) Strives for Effectiveness: A leader provides an adequate regard
structure to improve the performance of employees. He delegates
authority and invites participation from the employees to achieve
better results. He provides imagination, foresight and initiative to
group members and forces them to have an identity of interests,
outlook and action.

Competencies of Leadership:
1. Diagnosing: Understanding the situation you are trying to influence.
It is understanding what the situation is now and knowing what you
can reasonably expect to make it in the future. The discrepancy
between the two is the problem to be solved. This discrepancy is what
the other competencies are aimed at resolving. Thus, diagnosing is a
cognitive - or cerebral - competency.

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Adapting: Altering your behaviour and the other resources you have
available to meet the contingencies of the situation. It involves
adapting your behaviours and other resources in a way that helps
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close the gap between the current situation and what you want to
achieve. Thus, adapting is a behavioural competency.
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2. Communicating: Interacting with others in a way that people can

easily understand and accept. Even if you are able to understand the
situation, even if you are able to adapt behaviour and resources to
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meet the situation, you need to communicate effectively. If you

cannot communicate in a way that people can understand and accept,
you will be unlikely to meet your goal. Thus, Communicating is a
process competency.
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Differences between Manager and Leadership: Manager is not the

same as leader. The main differences between manager and leader are
follows:

Factors Affecting Choice of Leadership:

As a manager works with his organisation, his choice of a leaders is
governed by certain forces. These are:
(1) Forces Acting on the Manager: In any given situation, the behaviour
of the manager is influenced by his own personality; that is,
leadership is perceived on the basis of his background, knowledge
and experience. The important forces affecting him are :
(a) His value system; that is, the relative importance he attaches to
organisational efficiency, the personal growth of his subordinates, and
company profits.

90
(b) His confidence in his subordinates, which is influenced by the Leadership

knowledge and competence they have.

(c) His own leadership inclination; that is, whether he can function
comfortably and naturally or whether he is uncomfortable when
operating in a team.
(d) His feeling of security in an uncertain situation. In other words, his
tolerance of ambiguity is taken as an important variable in his dealing
with problems.
(2) Forces Acting on the Subordinates: The leader needs a knowledge
of the factors which influence’ his employees’ personality. The
manager may grant greater freedom to his subordinate if he is assured
that :
(a) The subordinate has a relatively high need for independence;

(b) He is ready to assume responsibility for decisions;

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(c) He is interested in the problem which is important;

(d) He has a relatively high tolerance of ambiguity;

(e) He understands, and identifies himself with, the goals of the

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organisation;
(f) He has the necessary knowledge and experience to deal with
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problems; and
(g) He has learnt to expect that he would share in the decision-
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making process.

Leadership Theories and Approaches of Leadership:

Various leadership models have been presented by different authors, but
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important among them are trait, behavior, contingency and neocharismatic

models. These models are also known as theories. Effective leadership is a
function of the characteristics of the leader, the style of leadership, the
characteristics of a followers and the situation surrounding the
organisation. It clearly indicates that the leadership models can be
respectively a trait model (theory), behavioural model, contingency model
and neocharismatic models. None of them can be a supreme model. A
combination of all these models makes an appropriate leadership model.

7.2 TRAIT THEORY OF LEADERSHIP

Trait is defined as relatively enduring quality of an individual. According
to this theory, it was felt that leaders are born and not made. Trait
approach leadership studies were quite popular between 1930 and 1950.
The trait theory is basically concerned with identifying personality traits
of the leaders. It was the hypothesis that the persons having certain traits
could become successful leaders.
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Management Studies Some of the important Traits of an Effective Leader are discussed below:
(a) Intelligence: This trait seems to hold up better than any other.
Leaders generally have somewhat higher level of intelligence than the
average of their followers. They possess the ability of think
scientifically, analyse accurately and interpret clearly and precisely
the problems before them in terms of different aspects and
perspectives.
(b) Physical Features: Physical characteristics and level of maturity
determine personality of an individual which is an important factor
in determining success of leadership. Height, weight, physique,
health and appearance of an individual are important for leadership to
some extent.

7.3 MANAGERIAL GRID

The concept of managerial grid was created by Robert R. Blake and
Janes S. Mouton of U.S.A. This theory by Blake and Mouton (1978) has a
popular application of both tasks and person orientation. According to

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this theory leaders are most effective when they achieve a high and
balanced concern for people and for tasks. Each leader can be rated
somewhere along each of axes from 1 to 9 depending on his orientations
as shown in figure.
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m

Fig. 2 : The Managerial Grid Leadership Styles

The graphic representation in grid form displays concern for production
along the X-axis on a scale from 1 through 9. The ordinate or Y-axis
expresses concern for people and is also on a scale of 1 through 9. A
management theory that exhibits a maximum concern for production and
a minimum interest in people (9.1) is characterised by a high-pressure
authoritarian style.
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The converse of 9.1 management is 1.9 which shows a low concern for Leadership

production and a high concern for people. Leadership that evidences a

high concern for both people and production is labelled 9.9.

Contents of Organization Development Programme:

A typical programme will begin with a day or two of discussions,
preferably away from the plant, between the senior executives and an
outside adviser who has experience in this field. A plan will be devised to
clarify the objectives to be achieved and to carry out any necessary
analyses of the situation. The importance of this “Diagnostic” stage cannot
be over-emphasised. You cannot cure a patient if you cannot diagnose
the disease.
A typical organization development (O.D.) programme may include the
following phases :
Phase 1 consists of studying the managerial grid as a theoretical
framework for understanding human behaviour in the organization. The
participants are pointed toward a full comprehension of 9.9management as

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a basis of Organizational excellence.
Phase 2 of the programme is concerned with team development using the
grid as a framework for discussion. Focus is upon a single team and the
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manager to whom it directly reports. A plant manager and his immediate
subordinate could constitute one seminar team. Each member's perception
of the team's culture of the actual problems faced on the job.
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Phase 3 is concerned with intergroup development to reduce conflict

among groups. This phase tries to improve ways of resolving differences.
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In this phase, departments or groups that normally interrelate on the job

are brought together, two at a time to identify features of an idealised
relationship. The participants then recommend measures for improving the
interworkings of their departments.
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Phase 4 involves the creation of an ideal strategic model for the

organization. The participants are primarily the chief executive and his
immediate subordinates. They formulate an idealised corporate strategy.
Phase 5 seeks to apply strategies developed by the management in the
previous phase.
Phase 6 provides evaluation of the programme. This provides a systematic
critique of progress achieved using as a guide generalized criteria that
Blake and Mouton have devised.
The technique of Grid training is used for improving managerial
effectiveness. It suggests that the leaders in the organization must be high
on both concern for people and concern for production. Recent studies
support the success of grid training, specially in developing effective
managers, or effective leadership style. Thus grid training is one of the
effective technique of improving quality of leadership within the
organization and increasing efficiency of the organization.
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Management Studies
7.4 HURSEY BLANCLCARD’S SITUATIONAL MODEL
Hursey Blanclcard’s situational Model is different from Fiedler’s
Model.According to them Leadership style should be in accordance with
needs of maturity of subordinates which moves in stage.
Other name of this theory is “Life Cycle Theory of Leadership”.
Leadership Styles : Based on two consideration and thus classified into
4 groups.
(i) Rational Behaviour: Has socio-emotional support provided by
Leader.
(ii) Task Behaviour: Seen in terms of amount of guidance and
direction provided by leader.

Subordinate’s Maturity:
Maturity has been used in the form of ability and willingness of the people
for directing their own behaviour and is not strictly in accordance with the

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inmaturity - maturity theory of Argysis. Job Maturity is that ability which
refers to the knowledge and skills of an individual to do the job.
Willingness refers to the psychological maturity and how much to do with
the confidence and commitment of the individual. These variables of
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maturity should be considered only in relation to a specific job to be
performed when both components of maturity ability and willingness are
combined we can get 4 combinations.
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1. Low Ability and Low Willingness Low Maturity

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2. Low Ability and High Willingness Low to Moderate Maturity

3. High Ability and Low Willingness Moderate to High Maturity
4. High Ability and High Willingness High Maturity Combining Leadership
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Styles and Maturity:

The Leadership style is appropriate at a given level of maturity. If we
combine Leadership style 4 maturity we may arrive at the relationship
between there two :
Hursey-Blanchard’s Model of Situational Leadership Styles There are
four Leadership styles, each being appropriate to a specific Level of
Maturity the four leadership styles are :
1. Telling: Those subordinates who have low maturity, i.e., neither they
have ability nor they are willing to do, they require telling leadership
style. It involves high task behaviour and low relationship
behaviour.
2. Selling: Those subordinates who have high willingness but lack
ability, selling leadership style is appropriate.

94
The subordinates require both supportive and directing behaviour which is Leadership

marked by high task and high relationship behaviour.

3. Participating: Subordinate with moderate to high maturity who have
ability to do but lack willingness require high external motivating
force. In such case we require participating leadership style with low
task behaviour and high relationship behaviour.
4. Delegating: In this stage, subordinate with high maturity have both
ability and willingness to work hardly require any leadership support.
The most appropriate leadership style is delegating which involves
low task behaviour and low relationship behaviour in this situation.

Implication of the Model:

This model suggests that the maturity level of the subordinates and the
group has an important bearing for leadership behaviour. Means when
the maturity level changes, there must be corresponding change in
leadership behaviour.

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This model has provided training ground for developing people in the
organisation.
There are some shortcomings also in this model. There has not been
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much research evidence to support or reject the applicabilityof model as
it could not are use enough interest in researchers. That’s why it has not
become much popular.
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Leadership Style:
The term ‘leadership style’ refers to the pattern of behaviour which a
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leader adopts in directing the behaviour of the followers towards the

attainment of organisational goals. The nature and form of leadership style
is affected by the following factors : existing circumstances, time-period,
personality of the leader, his experience, attitude and orientation, nature
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of followers, external environment and so on. Most of the managers use

several styles at one or the other point of time, but in which category
a managerfalls, is decided by the style that is mostly used by him.

There are three important leadership styles as follows:

1. Autocratic or Authoritarian Styles :

This is a traditional method of leadership. An autocratic leader centralise

power and decision making in himself and exercises complete control over
the subordinates. He dominates and drives his group through coercion and
command. He uses both positive and negative motivations, for example,
reward, praise, fear of criticism or punishment. When he used positive
motivations, that is called ‘benevolent autocratic style’ and when he uses
negative motivations, that is known as ‘dictatorial or oppressive
autocratic style’. The autocratic leader likes Theory X-undemocratic
thinking.

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Management Studies The autocratic leader himself decides all policies. He gives orders to the
subordinates and expects them to follow such orders completely without
any grudge or question. Under this style, subordinates are thought to be
inexperienced and wisdomless and therefore they are given no freedom
and the course of action are decided by the autocratic leader. Hence the
future action is not known to any one except the leader.
Autocratic style permits quick decision making; provides strong
motivation and satisfaction to the leader centralise power and dictates
terms; yields positive results when great speed is required; and need less
competent subordinates at lower levels. Its major disadvantages are : It
leads to frustration, low morale and conflict among subordinates.
Subordinates are induced to avoid responsibility, initiative and innovative
behaviour. Full potential of subordinates and their creative ideas are not
utilised.

2. Democratic or Participative Style :

The democratic leader decentralises power. He involves subordinates in

the decision making. Decisions are made in consultation and participation

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with the subordinates. This style emphasises group-discussion and group
decision making. The democratic leader likes Theory Y- fairness, equity
and human relation. He emphasises both work and worker. The
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subordinates are encouraged to utilise their full latent potential and
capacities, and assume greater responsibilities. The democratic leader
shares power with subordinates, delegate adequate authority to them, keep
them well informed about matters of their interest and concern, and allow
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adequate freedom for thinking, discussing, expressing and making

suggestions.
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The major advantage of this style is to improves job satisfaction and

morale; develops positive attitudes; reduces resistance to change;
generates self-motivation due to participative decision making and
freedom of thought and impression; increases productivity; and develops
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better subordinates.
The major disadvantages of this style is time-consuming and causes
delays in decision making may fail when the communication pattern and
skill are not strong enough; is not workable where subordinates do not
want to take extra responsibility of sharing in decision making and
becoming part of every decision; decreases productivity in some cases
especially when decisions are diluted to appease or please everybody.

3. Free-rein or Laissez-faire or Permissive Style:

There are several forms of this style. For example, in some cases the
subordinates are given a goal to achieve in their own way, whereas in
some other cases, they themselves decide their group goals. In fact, there
is almost complete delegation of authority; and the path leading to the
goals is decided by the subordinates themselves. The leader behaves
primarily as a member of the group and play the role of a member only.
He gives his opinion or suggestion only when it is demanded from him.
96
Under this style, the group members are educated and motivated by Leadership

themselves; the leader is not required to educate but he acts, as a link

primarily for arranging adequate resources needed for attaining the goals,
for establishing contact between employees and the outside world, for
collecting necessary information from external sources, and for
establishing coordination.
The major advantages of this style is to increases subordinates
freedom, develops their expression, compels them to work as group
members, increases job satisfaction and morale, utilises subordinates
potential to the maximum possible extent, and promotes creativity or
innovation.

Choosing a Leadership Style:

Which leadership style is best or which to choose ? Different scholars
make different suggestions in this regard. The choice of a style will
depend upon several factors, such as suggested by Tannenbaum and
Schmidt :

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1. Forces in the Manager: Manager’s value system, confidence in
subordinates, own leadership inclinations and feeling of security inan
uncertain situation.
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2. Forces in the Subordinates: Their need for independence, readiness
to assume responsibility for decision making, tolerance for
ambiguity (or strangeness), interest in problem at hand, understanding
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and identification with the goals of the organisation, knowledge and

experience to deal with the problem, and learned expectation of
sharing in decision making process.
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3. Forces in Situation: The type of organisation, group effectiveness,

the complexity of the problem itself, pressure of time on the situation
etc.
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Effective manager should be expert enough to adapt or modify their

leadership style as per the need of the moment. Sticking to on “best”
considered style at all times in all situations with all people may not work
well to be a good leader. Most suitable leadership style is that which
“fits” with the situation, the followers and the leader.

Transactional Leadership:
A transactional leader is one who guides and motivates his follows in
the direction of established goals by clarifying role and task requirements.
Transactional leadership involves exchangerelationship between the leader
and the followers. Traditional theory of leadership, Ohio State Studies,
Fielder’s model, and Path- Goal theory are all transactional in nature. On
the basis of his research findings, Bass concluded that in many instances
(such as relying on passive management by exception), transactional
leadership is a prescription for mediocrity and that transformational
leadership leads to superior performance in organisations facing demands

97
Management Studies for renewal and change. He suggested that fostering transformational
leadership through policies of recruitment, selection, promotion, training
and development will pay off in the health, well-being and effective
performance of today’s organisation.
Managers of the future will continue to face the challenge of a changing
their organisations, primarily because of the accelerating trend to position
organisations to be more competitive in a global business environment.
Therefore, transformational leadership will probably get increasing
attention in the leadership research by the behavioural scientists.

Characteristics of Transactional and Transformational Leaders

(i) Contingent Reward: Contracts exchange of rewards for effort,
promises rewards for good performance, recognises accomplishments.
(ii) Management by Exception (Active) : Watches and searches for
deviations from rules and standards, takes corrective action.
(iii) Management by Exception (Passive) : Intervenes only if standards

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are not met.
(iv) Laissez Faire: Abdicates responsibilities, avoids making decisions.
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Transformational Leadership:
Leader who inspires followers to transcend their won self interests for
the good of the organisation, and who is capable of having a profound and
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extraordinary, effect on his or her followers is knownas transformational

leader.
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For example, Leslie Wexner of the Limited Retail Chain and Jack Welch
at General Electric pay attention to the concerns and developmental needs
of individual followers; they change followers’ awareness of issues by
helping them to look at old problems in new ways; and they are able to
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excite, arouse and inspire followers to put out extra effort to achieve
group goals. Thus, transformational leaders are the leaders who provide
individualised consideration and intellectual stimulation, and who possess
charisma.

Characteristics of Transformational Leaders:

(i) Charisma: Provides vision and sense of mission, instills provide,
gains respect and trust.
Inspiration: Communicates high expectations, uses symbols to focus
efforts, and expresses important purposes in simple ways.
(ii) Intellectual Stimulation: Promotes intelligence, rationality, and
careful problem solving.
(iii) Individualised Consideration: Give personal attention, treats each
employee. Individually, coaches, advices.

98
Transformational leadership is built on top of transactional leadership Leadership

(leaders who guide or motivate their followers in the direction of

established goals by clarifying role and task requirements). It produces
levels of subordinate effort and performance that go beyond what would
occur with a transactional approach alone. Moreover, transformational
leadership is more than charisma. “The purely charismatic (Leader)
may want followers to adopt the charismatic’s world view and go no
further, the transformational leader who attempt to instill in followers the
ability to question not only established views but eventually those
established by the leader”.
The evidence supporting the superiority of transformational leadership
over the transactional variety is overwhelmingly impressive. For instance,
a number of studies with U.S. Canadian, and German military officers
found at every level, that transformational leaders were evaluated as more
effective than their transactional counter parts.
In summary, the overall evidence indicates that transformationalleadership
is more strongly correlated than transactional leadership with low turnover

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rates, higher productivity and higher employee satisfaction.
Guidelines for Transformation Leadership: There are some tentative
guidelines for leaders who seek to inspire and motivate followers:
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1. Articulate a Clear and Appealing Vision :

Transformational leaders strengthen the existing vision or build

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commitment to a new vision. A clear vision of what the organisation could

accomplish or become helps people understanding the purpose, objectives
and priorities of the organisation. It gives the work meaning, serves as a
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source of self-esteem, and fosters a sense of common purpose. Finally, the

vision helps guide the actions and decisions of each member of the
organisation, which is especially important when individuals or groups are
allowed considerable autonomy and discretion in their work decision.
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Explain How the Vision can be attained:

It is not enough to articulate an appealing vision; the leader must also
convince followers that the vision is feasible. It is important to make a
clear link between the vision and a credible strategy for attaining it. This
link is easier to establish if the strategy has a few clear themes that are
relevant to shared values of organisation members. Themes provide labels
to help people understand issues and problems. The number of themes
should be large enough to focus attention on key issues, but not so large as
to cause confusion and dissipate energy. It is seldom necessary to
present an elaborate plan with detailed action steps.

1. Act Confidently and Optimistically :

Followers are not going to have faith in a vision unless the leader
demonstrates self- confidence and conviction. It is important to remain
optimistic about the likely success of the group in attaining its vision,

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Management Studies especially in the face of temporary roadblocks and setbacks. A manager’s
confidence and optimism can be highly contagious. It is best to
emphasise what has been accomplished so far rather than how much more
is yet to be done. It is best to emphasise the positive aspects of the vision
rather than the obstacles and dangers that lie ahead. Confidence is
expressed in both words and actions. Lack of self-confidence is reflected
in tentative, faltering language (for example, “I guess, may be, hopefully”)
and some nonverbal cues (for example, frowns, lack of eye contact,
nervous gestures, weak posture).

2. Express Confidence in Followers :

The motivating effect of a vision also depends on the extent to which

subordinates are confident about their ability to achieve it. People
perform better when a leader has high expectations for them and shows
confidence in them. There is more need to foster confidence and optimism
when the task is very difficult or dangerous or when team members lack
confidence in themselves. If appropriate, the leader should remind
followers how they overcame obstacle to achieve an earlier triumph. If

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they have never been successful, the leader may be able to make an
analogy between the present situation and success by a similar team or
organisational unit. Review the specific strengths, assets and resources
that they can draw on to carry out the strategy. List the advantages they
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have relative to opponents or competitors. Tell them that they are as good
as or better than an earlier team that was successful in performing the
same type of activity.
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3. Use Dramatic, Symbolic Actions to Emphasise Key Values:

Concern for a value or objective is demonstrated by the way a manager

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spends time, by resource allocation decisions made when there are trade-
offs between objectives, by the questions the manager asks, and by what
actions the manager rewards. Dramatic, highly visible actions are an
effective way to emphasise key values.
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Symbolic actions to achieve an important objective or defend an important

value are likely to be more influential when the manager risks substantial
personal toss, makes self-sacrifice, or does things that are
unconventional. The effect of symbolic actions is increased when they
become the subject of stories and myths that circulate among members of
the organisation and are retold time and again over the years to new
employees.
Lead by Example: According to an old saying, actions speak louder than
words. One way a leader can influence subordinate commitment is by
setting an example of exemplary behaviour in day-to-day interactions with
subordinates. Leading by example is sometimes called “role modeling”.
It is especially important for actions that are unpleasant, dangerous,
unconventional, or controversial. A manager who asks subordinates to
observe a particular standard should also observe the same standard. A
manager who asks subordinates to make special sacrifices should set ana
example by doing the same.
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2. Empower People to Achieve the Vision : Leadership

Empowerment means delegating authority for decisions about how to do

the workto individuals and teams. It means asking people to determine for
themselves the best way is to implement strategies or attain objectives,
rather than telling them in detail what to do. It means encouraging
subordinates to suggest solutions to problems if they come to you for help,
and it means supporting subordinates who assume responsibility for
resolving problems on their own, even though they do not do it the same
way you would. Empowering also means reducing bureaucratic
constraints on how the work is done so that people have more discretion.
Finally, empowering means providing adequate resources for subordinates
to carry out a task for which they are being held accountable.
Leadership in Decision Making Process:
It would be wise to say that leadership is important to an organisation’s
success. Leadership refers to the quality of behaviour of the individual
whereby they guide people on their activities in organised effort.

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Successful leaders anticipate change, vigorously exploit opportunities,
motivate their followers to higher levels of productivity, correct poor
performance and lead the organisation toward its objectives. Leadership
contributes towards integrating various job activities, coordinating
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communication between organisational submits, monitoring activities and
controlling deviations from standard. No amount of rules and regulations
can replace the experienced leader who can make rapid and decisive
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decisions. Thus, successful leader represents the organisation initiates the

action necessary to keep the organisation dynamic and progressive
administers the organisation and arranges for planning, organising,
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directing and coordinating and interprets the organisational philosophy to

internal and external groups in satisfying manner.
Leadership plays a vital role in decision-making process.
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Specific Objectives:
The need for decision-making arises in order to achieve certain
specific objective. Every action of human being is goal directed. This is
true for decision-making also which is an action. Leadership here plays
a key role as leadership is the ability of influencing people to strive
willingly for mutual objectives. In other words, leadership helps in
setting objectives and goals which has to be achieved by the collective
efforts of the subordinates by giving up their maximum potentialities.
However, since the objective setting is an outcome of earlier decision,
this may not be considered truly as the first step of decision process but
provides framework for the decision.
1. Problem Identification: Here, leadership helps in identifying the
real problem. A problem is a felt need, a question thrown forward
for solution. It is the gap between present and desired state of affairs
on the subject - matter of decision. A problem can be identified much
clearly, if leaders go through diagnosis and analysis of the problem.
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Management Studies (i) Diagnosis: Diagnosing the real problem implies knowing the gap
between what is and what ought to be, identifying the reasonsfor the
gap, and understanding the problem in relation to higher objectives of
the organisation. So, here a good leader diagnoses the real problem.
(ii) Analysis: The analysis of the problem requires to find out who would
make decision, what information would be needed, and from where
the information is available.
Thus, diagnosis and analysis of problem done by a leader requiring
decision will clarify what is needed and where the alternatives for doing
the things can be sought.

7.6 QUESTIONS
1. What do you understand by Leadership ? Discuss its Nature and
explain its Importance in Business Administration ?

2. “The success of an Industrial Enterprise depends upon the Quality of

.in
its Leadership”. Explain this statement by specifying the Type of
Leadership commonly used in an Industry.

3. Briefly discuss various Leadership Styles and also refer to their

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disadvantages and conditions of use which is the best style in your
opinion.

4. Explain in brief the Adam’s Equity Theory of Motivation.

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5. Hursey Blanclcard’s Situational Model is based on Limited Number

of variables but these variables are quite significant comment.
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6. In your own words, briefly describe Alderfes’s ERG Model.

m

*****

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 8
ORGNISATIONAL CULTURE
Unit Structure
8.0 Objectives
8.1 Introduction
8.2 Characteristics of Motivation
8.3 Questions

8.0 OBJECTIVE
After the completion of the unit the student will be
able to understand.
1. Basic concept of organizational culture.

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2. The various cultural dimensions.
3. Role of fundamental values and vision in creating and sustaining
culture.
es
4. Types of organizational culture.
5. Impact of organizational culture on the performance of the
ot

organization.

8.1 INTRODUCTION
un

Organizational Culture plays an important role in modern business

environment because it has its impact an employee performance and
m

satisfaction. Hence in this chapter we discuss the nature , role , types and
important of Organizational Culture on the performance of the
Organization.
Though the concept of culture and its implications for society have been
studied for long time. In org. behaviour culture became a central concern
only during 1980’s. Several research studies were undertaken during this
period to develop conceptual framework as well as to understand its
impact on the functioning of Organisation.

1. Meaning and definition:

The concept of culture has been derived from anthropology where it is
defined in so many ways. Culture is nothing but the combination of
knowledge belief, art, morals, law, custom and other capabilities and
habits acquired by man in a society.
Orgnisational Culture may also be called corporate culture has been
defined as the philosophies, ideologies, values, assumptions, beliefs,
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Management Studies expectations, attitudes and norms that an Orgnisation together and are
shared by its employees.
Charles O’Reilly has defined Orgnisational Culture is a precise manner as:
“Orgnisational Culture is the set of assumptions beliefs, values, and
norms that are shared by an Orgnisation are members.
Thus Orgnisational Culture is a set of characteristics that are commonly
shared by people in the Orgnisation. Such characteristics may
be in the form of assumptions beliefs, values, 29 and norms
which are known as abstract elements of the culture or externally oriented
characteristics like products, buildings, and dresses etc. which are known
as material elements of the culture.

Characteristics of Organisational Clulture:

There are following characteristics which help to understand the
essence of an Orgnisational Culture.
1. Initiative: The degree of freedom, authority and responsibility

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enjoyed by an individual in an Orgnisation.
2. Risk taking: Employees are encouraged to be aggressive, innovative
and risk taking.
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3. Direction: The degree to which the organisation creates clear
objectives and performance expectations.
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4. Integration: The degree to which units within the org. are

encouraged to operate in an integrated manner.
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5. Management Support: The degree to which managers

provide clear communication, assistance and support to their
subordinates.
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6. Control: The number of rules and regulations and

the amount of direct supervision that is used to control
employee behaviour.
7. Identity: The degree to which members’ identity with the org. as
a whole rather than with their particular work group or field of
professional expertise.
8. Reward system: The degree to which reward allocation are based an
employee performance criteria in contrast to seniority,
favoritism etc.
9. Conflict Tolerance: The degree to which employees are encouraged
to air conflicts and criticisms openly.
10. Communication Patterns: The degree to which org.
communication are restricted to the formal hierarchy of authority.

104
All these characteristics exit in an organization which shows Orgnisational Culture

Organisational Culture. This culture becomes unique for every org. and
distinguishes it from other org. For example while defining Tata groups,
its former chairman, JRD Tata said that:
“I would call it a group of individually managed companies united by two
factors. First a feeling that are a part of large group which carries the
name of tatas and public recognition of honesty and trust
worthiness. The other reason is more metaphysical. There is an
inmate loyalty, a sharing of beliefs. We all feel a certain pride that we
are somewhat different from others.”

8.2 CULTURAL DIMENSIONS

There are various cultural dimensions which have been identified.
Some of them are as below.
1. Mechanistic and organic Cultures:
Mechanistic Cultures represents the bureaucratic model of org. design. In

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this culture, well defined hierarchy of authority and formal relations
among members are found Authority flow from top to bottom and
communication flows through prescribed channels. There is a great deal of
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departmental loyalty and inter-departmental enmity, a strong “we” versus
“they” perception. This sort of culture resists change and innovation.
Organic culture is just opposite to mechanistic culture. In this case formal
ot

hierarchies of authority, departmental boundaries formal rules and

regulations and prescribed channels of communications have less
importance. But emphasis is given on task accomplishment, team work
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and free flow of communication. There is a better understanding among

the staff. If the org. fares problems, or threats there is willingness to take
appropriate steps with full cooperation to solve problem This culture
stresses flexibility, consultation, change and innovation. Central
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Government org. may be one example of organic culture.

2. Authoritarian and Participative Culture:

Authoritarian culture is characterized used by power concentration to
leader and obedience orders and discipline are stressed. Any disbelieves
is punished severely to set an example to others. Main feature is that
manager knows about the org. and decides and in its interest. But he does
not involve subordinates in decision making.
The participative culture is just opposite to above culture. So in this case
people are more committed to the decisions that are participative made.
Such group problem solving leads to better decisions because several
new points and information are shared during discussion. This is suitable
where most org. members are professional or see themselves as equals.

3. Subculture and dominant culture:

Each department of an organization, may have its own culture which
105
Management Studies refers to subculture. A dominant culture emerges where there is an
integration of all departments into an unified whole.

4. Strong & Weak culture:

In strong culture the core values are both intensely held and widely shared
by its members. Such employees develop strong loyalty to the
org... The benefit of this culture is reduced turnover and
positive employee attitude. The danger of this culture is that it leads to
“group think” collective blind pots, and resistance to change and
innovation.
On the other hand weak culture is that in which members of the org. may
be different in values and thinking. So the employees may not be loyal to
the Organisation.

5. National Culture versus Organisational culture:

Orgnisational culture is influenced by the culture of the land, irrespective
of the origin of the company. Go to any company operating in India.

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Indian, Foreign or the local culture is visible. The holidays declared
festivals celebrated functions organized and other cultural activities
reflect Indian culture.
es
Role of Fundamental values and vision in creating and
sustai culture:
Culture is created through environment; beliefs of the group members, as
ot

well as ideologies of the founder of the Organisation Sometimes there are

several models which can explain the culture creation.
un

Therefore one mechanism of culture creation is the

modeling by founder member of the org… who permits group members to
identify with them and internalise their values and assumptions. When
groups or org. First form there are usually dominant figures or
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“founders” who help established the early culture. They have a vision or
mission of what the org. should be. They are unconstrained by
previous customs or ideologies. The small size that typically charities
Any new org. further facilities the founders imposing their vision on all
organisational members because the founders have the original ideas they
also typically have biases or how to get the idea fulfilled.

Thus the org. culture results from the interaction between:

1. the founders biases and assumptions, and
2. what the original members who the founders initially employ learn
subsequently from their own experiences.
One such example of culture creation is expressed by late JRD Tata.
His supportive role, his belief on professionalism and assumption that
only honesty and fair dealing will pay have the next Tata empire what it
is today.

106
Above mentioned approach is not very effective for org. which strategies Orgnisational Culture

are large unit. But it is successful in the org. which

are not large.
Another mechanism to create org. culture is like a process with district
steps as described belong. This is successful when org. starts with a
large size.
Process of creating Org. Culture

Establish Create Operation Socializatio

Values Vision Values n of
employees

Steps:
1. Establish Values: Values simply means what is right
and what is wrong, what is desirable and what is
undesirable etc. This will help the founder to decide what

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business the org. should be in. Foe example, Founders of Bajaj Auto
Limited who were in the business of trading in Auto Parts since 1945
decided to enter manufacturing sector around 1960. They considered
es
several alternatives expect higher and will cloth because of their values
and stomach belief in Guardian ideology. Some of the excellent
companies follow different types of values which are as follows:
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1. A belief in being the best.

2. A belief in the importance of people as individuals.
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3. A belief in superior quality & services.

4. A belief in being innovative
5. A belief in informal communications.
m

2. Create Vision: Vision represents the imagination of future

events and prepares the org. for the same. It implies that the org. should
create projections about where it should go in the future and what major
challenges lai ahead.
On the basis of six- years study by Collins & Porras, they have concluded
that companies may be grouped into two categories. These are Visionary
companies’ ands Comparison Companies.

A Visionary Company is having following features:

1. It holds a distractive set of values from which it does not deviate.
2. It expresses its core purpose in enlightened terms which provides
challenges for actions.
3. It develops a visionary scenario of its future decides
actions accordingly and implement there.
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Management Studies A good vision defined in a proper way helps the org. nal members in
several ways.
1. It inspires and exhilarates them.
2. It creates competitiveness, originality & uniqueness.
3. fosters risk taking and uniqueness experimentation.
4. It fosters long term thinking.

3. Operation Values vision Or Sustaining Culture:

The values & Vision are just a mental process but for putting them into
action following steps can be taken:
a. Prepare written statement of values and vision and communicate to
each member.
b. Design the org. structure that facilitates employees to take action in the
light of values.

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c. Focus on flexibility creativity an innovation to inspire employees to
adage to org. values & vision.
d. Selection of employees should be made in such away that value of
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employees should match with values of the org… There should be
reward system to encourage employee, in their behaviour which
should match with org. values & vision.
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4. Socialization of employees:
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Socialization is for sustaining culture a process that takes place as new

employees attempt to learn and increate values and norms that are part of
the orgnisational culture. It is very important for new employees
because they are not fully adaptable in the org. Culture. So org. norms
m

and values can be transmitted in employees in various ways.

a. Stories: It includes circulation of informal and oral narration of events
about the org. its founder etc. These stories anchor the present in the
part and provide explanation and legitimacy for current practices.
b. Rituals: There are repetitive sequences of activities that express
and reinforce the key value of the org. e.g. in some org. functions
are organized to honor top performers.
c. Material Symbols: Various material symbols used by the orgnisation
convey specific meaning. E.g. status of a person can be
distinguished on to the basis of facilities enjoyed by a person.Simillarly
for developing common culture. Common dress, using same canteen
is to convey the feeling of equality.
d. Language: Use of common language by members attests their
acceptance of the culture.

108
5. Types of Orgnisational Culture: Orgnisational Culture

Recent research by Goffee and Jones provides some interesting

insights on different org. cultures and guidance to prospective
employees. They have identified four distinct culture types. Let’s take
look at their cultural framework and how you can use it to select an
employer where you’ll best fit in.
Goffee and Jones argue that two dimensions underline org. culture. The
1st they call sociability. This is a measure of Friendliness. High
Sociability means people do kind things for one another without expecting
something in return and relate to each other in a friendly, caring way. In
terms of our definition of org. culture presented at the beginning of this
chapter, Sociability is consistent with a high people orientation, high team
orientation, and focus on processes rather than outcomes. The second is
solidarity. Its measure of task orientation. High solidarity means people
can overlook personal biases and rally behind common interests and
common goals. again, referring back to our earlier definition, solidarity
is consistent with high attention to detail and high aggressiveness ,

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exhibit illustrates a matrix with these two dimensions rated as either high
or low. They create four distinct culture types:

Networked culture (high on sociability; low on solidarity):

es
These org. view members as family and friends. People know and like
each other. People willingly give assistants to other and openly share
information. The major negative aspect associated with this culture is that
ot

the focus on friendship can lead to a tolerance for poor performance

and creation of political cliques.
un

Mercenary culture (low on sociability; high on solidarity):

This org. is fiercely goal focused. People are intense and determined to
meet goals. They have a zest for getting things done quickly and a
m

powerful sense of purpose. Mercenary cultures aren’t just about winning;

the’re about destroying the enemy. This focus on goals
and objectivity also leads to a minimal degree of politicking. The
downside of this culture is that it can lead to an almost inhumane
treatment of people who are perceived as low performers.

Fragmented culture (low on sociability; low on solidarity) :

These org. are made up of individualists. Commitment is first and
foremost to individual members and their job tasks. There is little or no
identification with org…In fragmented cultures, employees are judged
solely on their productivity and the quality of their work. The major
negatives in these cultures are excessive critiquing of others and an
absence of collegiality.

109
Management Studies
Four-Culture Typology
E
X
Network Communication
High H
I
Sociability B
Mercenar
Fragmente I
Low T
dLow yHigh
Solidarity

Communal culture (high on sociability; high on solidarity):

This category values both friendship and performance. People have a
feeling of belonging but there is still a ruthless focus on goal achievement.
Leaders of these cultures tend to be inspirational and charismatic, with a
clear vision of the org. future. The downside of these cultures is that they

.in
often consume one’s total life. Their charismatic leaders frequently look
to create disciples rather than followers, resulting in a work climate that
is almost cultivate.
es
Unilever and Heineken are examples of networked cultures. Heineken for
example has over 30000 employees but retains that feeling of friendship
and family that is more typical among small firms. The company’s highly
ot

social culture produces a strong sense of belonging and often a passionate

identification with its product. Are you cut out for a networked culture?
You are if you possess good social skills and empathy; you like to forge
un

close, work-related friendship you thrive in a relaxed and convivial

atmosphere; and you’re not obsessed with efficiency and task
performance.
m

Mars, Campbell Soup, and Japanese heavy-equipment manufacturer

komatsu are classic mercenary cultures. At Mars, for instance, meetings
are almost totally concerned with work issues. There’s little tolerance for
socializing or small talk. You’re well matched to a mercenary culture if
you’re goal oriented; thrive on competition, like clearly structured work
tasks, enjoy risk taking, and are able to deal openly with conflict.
Most top-tier universities and law firms take on the properties of
fragmented cultures. Professors at major universities, for instance, are
judged on their research and scholarship. Senior professors with big
reputations don’t need to be friendly to their peers or attend social
functions to retain their status. Similarly, law patterns who bring in new
clients and win cases need to expend little energy getting to know co-
workers or being visible in the office, You’re likely to fit in well is a
fragmented culture if you’re independent; have a low need to be a part
of a group atmosphere; are analytical rather than intuitive; and have a
strong sense of self that is not easily undermined by criticism.

110
Examples of communal cultures would include Hewlett- Packard, Orgnisational Culture

Johnson & Johnson and consulting firm Bain & Co. Hewlett-Packard is
large and very goal focused, yet it has a strong family feel. The “HP Way”
is a set of values that the company has enumerated that governs hoe
people should behave and interact with each other. The HP Way’s value
of trust and community encourages loyalty to the company. And the
company returns that loyalty to employees as long as they perform well.
Who fits into communal cultures? You might if you have a strong need to
identify with something bigger than yourself enjoy working in terms, and
are willing to put the org. above family and personal life.

6. Impact of culture on image and performance of the orgnisation:

Orgnisation culture being unique and distractive, prescribes some
specific modes of behaviour for its members. These
modes of behaviour affect the entire behavioral processes.
A Impact On Image of the Organization .: Culture makes an org. a
family which leads to groups thinking. In this way its
impact on org. image will be as under:

.in
1. Objective setting: Culture moulds people and people are the basic
building blocks of the org. So it must reflect the
objectives of its members especially those who are key decision
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makers. Thus it helps in objective setting of an org.
2. Work ethic: Ethic is synonymous to moral good right honest etc. work
ot

ethic in an org. is determined from its culture. Thus org. culture

determines the ethical standards for the org. as a whole and its
individual members.
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3. Motivation Pattern: Culture interacts to develop each person a

motivational pattern. Culture determines the way people approach their
jobs and even life in general. If org. Culture is geared towards.
m

achievement people will find it quite motivating and put their

efforts for achievement objectives.
4. Orgnisational Process: Various OP like planning, decision making ,
controlling, etc. are determined by the OC because these processes are
carried out by the people in the org…Bhattacharya has analyzed the
cultures of various professionally-managed companies including
multinationals as well as family-managed companies in India to find
out how cultures affect OP. The Analysis is presented in Table

111
Management Studies Dimensions of Orgnisational culture:
Professionaly-mangedcompanies Family-managed companies

1. Emphasis on professional 1. Emphasis on demonstrated

qualifications and rank. skill depth quality, and
2. Emphasis on conformity to knowledge.
org. values, loyalty and 2. Emphasis on originality of
relative fit with the position. action and thinking ,
3. Emphasis on information innovation and upgradation of
gathering, bureaucratic knowledge and skills.
mode of function, riskaversion 3. Emphasis on selective
and non information usage, intuitive
entrepreneurial decision and qualitative decision
making. making entrepreneurial
4. Emphasis on use of elegant, nature.
scientific, sophisticated, and 4. Emphasis on reliance on
rational system. business sense and no frills,
5. Comprehensive, formal, and system geared to quickaction.

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written reporting. 5. Emphasis on primary use of
verbal reporting and remedial
action.
es
B. Impact on performance of the Orgnisation:
There is relatively strong relationship between culture and satisfaction.
ot

Satisfaction will be the highest when there is proper match between the
individual needs and the culture. E.g. An org. whose culture would be
described as low in structure, having loose supervision achievement need
un

and prefer autonomy.

Similarly culture and performance are interrelated. If the culture is
informal, creative and supports risk taking and conflict performance
m

will be higher. The more formally structured org. that are risk overseen,
eliminate conflict and that are prove to more task oriented leadership will
achieve higher performance. When routine technology is untitled.
Socialization also has influence on performance. If an individual
is properly communicated with the org. culture. His performance tends to
be of employees higher.
A study conducted by John Kotter and James Heskett of Harward
Business School, confirms the positive correlation between culture
and performance.

The study desired four main conclusions:

1. Corporate culture can have a significant impact on an org. long-term
economic performance.

112
2. Corporate culture will probably be an ever more important factor Orgnisational Culture

in determining the success or failures of companies in the next

decade.
3. Corporate culture that inhibits strong long term financial
performances is not race. They develop easily even in an org. that are
full of reasonable and intelligent people.
4. Although tough to change, corporate cultures can be made more
performance enhancing.
Conclusion: It should be also remembered that in order to have a positive
sustained impact on satisfaction and performance culture must be
valuable, rare, and immitigable. If a culture can imitated then adoption
of the culture by competitors will slowly eliminate the competitive
advantages of the culture. So a culture may be positive in an
environmental but a liability in a different economic environment.

Culture as a Liability:

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Though concept of OC is used in normative way as it is used to develop
commitment on the part of employees, in actual practice, sometimes, it
becomes dysfunctional. It, then, becomes a liability of the orgnisation. In
this context, views expressed by Arnavaz, Aga, Chairperson of Thermax
es
Limited are relevant:
“Our culture – once our strength- has in some ways contributed to our
ot

woes. We have also misinterpreted the culture to suit our convenience. In

the name of Thermax culture. We have chosen to opt out of unpleasant
and unpopular decisions relating to business and people. We have justified
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this analysis by arguing that Thermax is a people-oriented company.

Individual comfort is wrongly given higher priority than org. survival
and well-being. The consequence of this inaction at that our better
performances are frustrated and are impatient and non-performers are
m

complacement and there is a general belief that Thermax is a parking

place for anyone who has once entered it.’’
Thermax is not an isolated case. There are numerous such examples.
Culture becomes liability specially when it is low performing. A low-
performing culture is characterized by maintaining status quo, rigid
OP and rules, and centralized decision making power. Usually, such a
culture is the by-product of slow environmental changes and a well-
defined protective market. When an org. operates in this situation for
long tends to develop a kind of complacency which percolates among its
members right from top to bottom. Thus, OC works as barrier to change,
barrier to growth through external means, and barrier to tolerance
of diversity. These phenomena are as follows:
1. Orgnisational Culture works as resistant to change if it is based on the
principle of maintaining status quo. Since environment is
dynamic, org. effectiveness depends on the degree to which it is able

113
Management Studies to align itself with environmental requirements. Because of its cultural
constraints, an org. may not be able to do so.
2. Orgnisational Culture works as barrier to growth through external
means like mergers and acquisitions and joint ventures. In mergers and
acquisitions, the acquiring org. merges in itself the acquired company.
If the culture of the acquiring company differs substantially from that
of the acquired company, the merger will be misfit and is unlikely to
succeed. In joint ventures, 2 or more org. join hands together to
form a new org… If the cultures of this org. are incompatible, joint
venture is unlikely to succeed.
3. Cultural diversity among employees is becoming more and more
common because of economic liberalization and globalization. If
org. culture is not suitable to tolerate this diversity, it will become
ineffective.

8.4 QUESTIONS

.in
1. What are the types of culture and how do employees
know about culture?
2. Define organization culture and explain how it affect the employees of
es
any organization?
3. Explain “strong culture is the foundation of success of any
organization?”
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4. Explain the characteristics making up organizational culture?

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*****
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114
 9
ORGANIZATIONAL COMMUNICATION
Unit Structure
9.0 Objective
9.1 Introduction
9.2 Topics & Subtopics To Be Studied
9.3 Summary
9.4 Questions
9.5 Additional Reading

9.0 OBJECTIVES
After completion of this unit the student will be able to.
1. understand the meaning and concepts of various

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communications tools.
2. know the characteristics of different communication techniques.
es
3. know the process of these techniques.

4. Perceive the usefulness of these techniques in businessorganization.

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5. Differentiate between these techniques of communication.

9.1 INTRODUCTION
un

Communication is one of the common terms being discussed in

organization behavior. It is quite implified because communication plays
m

crucial role in influencing inter-personal behavior in the organization. This

lesson is devoted to discuss the various tools and techniques of
communication to be used in the organization. It will also discuss the
concept, meaning, process of each technique, its uses and effects in the
inter-personal relationship of managers, supervisors and employees of an
organization.
These techniques are mentioned below:
a. Johari Window.
b. Transactional Analysis.
c. Lateral Thinking.
d. Brainstorming
e. Delphi technique
f. Power of grape wine

115
Management Studies And other informal communication techniques.
We will discuss each technique one by one and its significance in modern
environment of organization and its impact on the behavior of the people.

9.2 TOPICS & SUBTOPICS TO BE STUDIED

a. Johari Window:

it is a model developed by Joseph Luft and Harvy Inglium in order

analysis the causes of interpersonal conflict. Thus it suggests the need for
more open communication. Since the model is developed by Joseph &
Harvy, combined together it is called (Johari Window).
This can be clearly explained with following fig.

The person knows The person does not

About himself or her known about himself or
self herself
The person

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1
knows About 2
himself or her Open self
Hidden self
self
es
The person
does not Blind self
known about Under covered self
ot

himself or
herself
Figure : Johari window
un

As it is clear from the figure that there are some parts of us which are
known to ourselves and there are other parts of us thatwe do not know.
Similarly there are some aspects about us that others know and there are
m

other aspects others do not know about us. The same is true in the case of
others.

This can be furthers explained as follows:

1. Open self: It is also called public area, and represents an ideal
situation. Here, the person knows about himself and others. There is
openness and transparency in the behavior of the people. Naturally
there is little or no scope for any conflict.
2. Hidden Self: Also called the private and secret area. This category
describes that the person understands about himself but does not know
about other persons. This means the person remains hidden from
others because of the fear of how others might react. The person may
keep his feelings, attitudes, secrets and will not open up to others. Thus
there may be inter-personal conflict in the quadrant.
3. Blind Self: It is also called as blind area. This quadrant represents the
aspect of self which is not known to himself but which is fairly known
116
 to others. We do many things without being conscious of them, but Organizational Communication:

others are aware of our acts. We may be international hurting others by

our behaviors’ others could tells us but are fearful. The old phrase,
“Even our best friend will not tellyou” is true in this connection.
4. Undiscovered Self: it is also called dark area. In this case a person
does not know about himself and others. This is most explosive
situation which leads to misunderstanding and create conflict.
Importance: The model of Johari Window helps to understand and solve
conflicts among the group members in the organization. It suggest that
the three quadrants i.e. hidden self, blind self, and undiscovered self
should be reduced so that interpersonal conflicts should also be reduced.
This is possible only when there is better communication between the
person and others.

Techniques of removing conflicts in Johari Window:

1. Feedback: subordinates should be encouraged to provide verbal or
written feedback. It is the willingness of others to be open and frank to

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provide fair and correct feedback. The feelings and perceptions of
subordinates should be heard and accepted. This reduces doubts and
misunderstandings. Feedback reduces the blind self of the manager.
es
2. Disclosure: the leader should be willing to share his feelings and
relevant information with others. This reduces the possibility of inter-
personal conflict. However precaution should be exercised while
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disclose the formation as all disclosers are not useful.

Thus above Techniques will reduce inter-personal conflicts and create a
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healthy atmosphere in the organization.

Johari window helps to analyse possible inter-personal conflict situation.
A person may reduce conflicts by being trustful of the other and by
m

revealing information about himself. Through self discloser one may

increase the “open self” and decrease the “hidden self”.

b. Transactional Analysis:

It is an analysis of social transactions. T.A. was developed by Eric

Berne in 1950 and was published in a book as “games people Play” in
1964. T.A. provide a better understanding for the interaction between
members of the organization.
When a conversation takes place between 2 individuals it shows how
they behave with each other. An individual says something to other, other
person responds which stimulates another person to react again such
transaction provides clue to understand the behavior of individuals as well
as groups.
Transactional analysis is a technique to explain why individuals behave in
a specific manner through out their life.

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Management Studies Concept: According to Eric Berne there are three psychological positions
of every individual called Ego estates. These are:
a. Parent ego
b. Adult ego
c. Child ego

Parent ego:
Parent ego state is a way of thinking, acting, feeling, and believing similar
to that of our parents. The parent responds immediately and automatically
to child like behavior and to various situations requiring a take change
response.
One can expect the parent when he hears a commanding tone of voice
such as “you should ”,”you must”. I’m telling you, come siton my lap.

Adult ego:
Adult ego reflects “thought” concept of life. This state reflects maturity,

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objectivity, logic and rational problem solving tendencies. The adult does
two things. First adult act as a responsible person to most of the works like
driving car, solving problem. Second the adult checks both the Parent
and child state whenever any thing goes wrong.
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Child ego:
Child ego state contains a persons basic desires needs and feelings he has
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as a child. Child ego state has two parts:

1. Natural Child: this shows more positive feelings like joy,
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sympathy, love, hope, kindness.

2. Adopted Child: this shows less positive feelings like shame, sorrow,
guilt, fear and anger.
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Transactions:
A transaction is a unit of social interaction comprised of an initiating
message called the stimulus and a reply called the response. The stimulus
and response might be verbal or nonverbal, but they must be received and
acted upon by both parties. In other words a transaction is some
relationship between two people in which one says or does something and
the other reacts. A transaction may involve any combination of ego states.
Transaction match or replay forms of interaction that develops early in
life, such as, Parent-Child, Child-Child, or Adult-adult. For instance,
young children, when ordered about, become frightened or grumpy.
Many years later, as grown-ups, they may get in a rut and reply the same
transaction.
Transactions are diagrammed to show from which ego states the stimulus
and the response originate. For example:

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 Organizational Communication:

P P

S Stimulus: Does anybody know

what time it is?
A A

C C Response: It’s twenty after

twelve

An arrow is drawn from the ego state from which the stimulus originals to
the ego state toward which the message is directed. An arrow in the other
direction shows the response.
There are three basic kinds of transactions: complementary, crossed, and

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ulterior transactions.

Complementary Transactions:
es
A transaction is complementary when someone aims a phrase, gesture or
action at another persons and that person replies in the same ego state, as
parent, Adult or Child. This means that someone trained in Transactional
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Analysis can predict responses in a series of complementary transactions.

The following examples show different kinds of complementary
transactions.
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Adult-to-Adult transactions:
In the Adult-to-adult transactions information is exchanged, problems are
m

analyzed or decisions are made. Adult-to-Adult complementary

transactions make up a large part of any activity. The key toward
recognizing the Adult-to-adult transaction is the rather unemotional
exchange between the individuals

Stimulus: Can someone

P P
define a preposition
S

A A

C C

Response: a preposition shows a relationship between its object and some

other word in the sentence.
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Management Studies Parent-to-Parent transaction are quite common place

P P

A A

C C

Stimulus: Those students sure look terrible with

S their long hair and old patched jeans
Response: They sure do.

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And they don’trespect anything anymore.
In Parent-to-Parent complementary transactions, a judgment is often
made about someone not present (in this case the students), with both
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individuals in agreement. Judgments’ made in general statements and
slogans are the key to identifying the Parent-to- Parent transaction. The
judgment is sometimes positive and sometimes negative and strings of
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these transactions can last for hours in a pastime.

Child-to-Child transactions are popular:

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In this Child-to-Child transaction, both persons were in the natural child.

The stimulus and response spontaneously expressed the joy, the openness
of the Natural Child. While the Child-to-Child transaction might involve
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the Adapted Child-to-Child developed in response to “parenting” it is

unlikely. The adapted Child will tend to how itself in response to
questions, orders, and nurturing from someone’s Parent.

P P

A A

C C

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Stimulus: Hey! I really like you! You’re neat Organizational Communication:

Response: and I think you’re absolutely super.

The Child-to-Person transaction is common.

P P

A A

C C

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Stimulus: May I have some money for a candy bar?
Response: Sure, here it is.
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The Child asked the Parent for something, which was given. Even if the
Parent had said, “No.” the transaction would have been complementary.
The Parent-to-Child transaction is also very common
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un

P P
m

A A

C C

Stimulus: Go to bed! It’s late.

Response: Couldn’t I wait unit the end of the TV program?
The parent spoke directly at the child in the other person. In most such
cases, the stimulus is aimed at the child in order to gain compliance to
some demand. The response came from the Adapted Child. This makes
the transaction complementary by definition.
Sometimes the person in the Parent nurtures the other one:

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Management Studies

P P

A A

C C

Stimulus: You are such a nice little girl.

Response: (nonverbal turn –on : smile, bright eyes)
Parent-to-child complementary transactions are common not only among
parents and their children but also among grown-ups. Supervisor-trainee,
husband-wife, teacher-pupil, doctor-patient, and many other grown-up
relationships take this form. Sometimes the person thrust into the Child

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likes the role; sometimes not.

Crossed Transactions:
es
Crosses transactions are some of the most interesting transactions. When
Sharma asks.” Do you know where the toothpaste is?” and gets the
response.” If you would only take care of things, you wouldn’t have to ask
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me to keep track of them,” he has been “crossed”. The diagram of such a

transaction looks like this:
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P P
m

A A

C C

Stimulus: I need a hall pass so I can go to the restroom.

Response: Sharma, you have five minutes between classes. You should
have used the restroom then.
a crossed transaction occurs when the respondent reacts from a different
ego state than the initiator aimed at. If the stimulus and response lines
in a diagram are not parallel, the transaction is a crossed transaction.
An Adult stimulus started this transaction in away similar to the first
example. The response came from the parent and was aimed at the
Child. The transaction is crossed because the response did not come from
the Adult.
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 Organizational Communication:

P P

A A

C C

Stimulus: How is that job progressing?

Response: Just get off my back, Man! I’ll get it in on time!
The stimulus sought to get a reply from the Adult, but instead received a
Child-to- Parent response. The crossed transactions is interesting and often
leaves the initiator with his mouth hanging open in astonishment, anger,
or pain.

P P

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es
A A
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C C
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Stimulus: Let’s ditched last hour and go school pool.

Response: You should know better than to do that.
m

The Child stimulus aimed at getting a Child response, such as“Okay, let’s
go,” but instead got a Parent response that made the transaction crossed.

P P

A A

C C

Stimulus: John, pick that paper up from underneath your desk

Response: It was placed there by someone from second hour, but I’ll
help out and pick it up.
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Management Studies The Parent-to-child stimulus aimed at and expected a Child response, but
received an Adult response. Another crossed transaction.

Ulterior Transaction:
Ulterior transaction occurs when one or both parties are functioning in two
ego states at the same time. The words send one message while the voice
inflection and gesturing send a different one. Often a statement is made
in order to ask a question or a question is asked in order make a
statement.

P P

A A

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C C

Stimulus: What time is it Kaul? The question was asked of a tardy student
and sent the Parent message. “You shouldn’t be late.”
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Response: Oh, about 10:06 , give or take a few seconds. The answer sent
the Child to Parent ulterior message, “Buzz off it’s not that big a deal.”
ot

P P
un

A A
m

C C

Stimulus: (with a grone) Hey. Sharma, what time is it anyway? The

question sent the Child to Child ulterior message, “Sure wish this class
was over.”
Response: It’s only 10:06. The response sent the Child to Child ulterior
message.”Me, too!”

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 Organizational Communication:

P P

A A

C C

Stimulus: (in a coaxing tone) Mr. Ram is taking his classes outside today.
The statement was made to the teacher and sent the Child to Parent
message, “May we go outside, too?”
Response: Some teachers will do almost anything to win favor with their
students. The response sent the Parent to Child ulterior message. ”No, we
can’t go outside.”

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Life Position:
Thomas Harris in his book “ I’m OK – You’re OK” has developed the
es
concept of life position. This has popularized Transactional Analysis.
According to Harris every person shows any one of four life position.
This life position influences our behaviour when we interact with
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others. The positions are acquired by at very early age i.e. childhood and
stay through out life.
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Life positions develop the perception of an individual which may be

positive or negative. In this way four life positions may be developed:
This can be explained in a figure:
m

1. I am OK – You are OK
2. I am OK -- You Are not OK
3. I am not OK -- You are OK
4. I am not OK -- You Are not OK

Out of these above mentioned positions the ideal one is “ I am OK – You

are Ok”, This is because.
It indicates healthy acceptance of self
It indicates respect for others.
It is likely to result in better communication.
It is likely to result in better performance behaviors.
The other 3 life positions are less mature and less effective.

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Management Studies Usefulness of T.A.
T.A. plays an important role in following areas:
1. Stroking: Stroke means giving some kind of recognisation to a
personal. This may be:
i. Physical ( a part on the bank)
ii. Verbal (a word of praise).

Similarly stroke may be positive or negative.

Therefore by using T.A. the inter-personal communication can be
improved. Employees can be trained to develop positive behaviour and
effective communication.
2. Leadership: Leaders should adopt different ego states for effective
performance, better decision making and controlling etc.
3. Conflict Resolutions: T.A. can also be useful in resolving conflict
among the group members.

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4. performance Approval: T.A. helps to application raise himself and
others through different life positions. This will help to understand the
strengths and weakness of employees
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5. Better Communication: By the knowledge of ego states and life
positions the manager can develop better communication system in the
orgnisation. This helps better understanding and better relations among
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the members of the orgnisation.

Advantages of T.A.:
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However following advantages have been associated with the

transactional analysis:
m

1. The bases of T.A. are simple to learn.

2. The validity of T.A. is demotivable.
3. It provides a means for reducing the amount of bad feelings
experienced by an individual.
4. It increases efficient use of time.
5. Helps promote effective communication.
6. it is applicable at home as it is at work.
7. It reinforces and implements other management development
activities, including communication, conflict resolution and the like.
Limitations:
T.A. has limitations which are not to be improved:
1. Few scientific studies of its outcome are available.
2. Ego states basic to understand and utilize T.A. are difficult to

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 define (although easy to teach and demonstrate operationally). Organizational Communication:

3. If inappropriately applied, T.A. tends to encourage amateur

psychologising.
4. T.A. may lead to more “cuteness” than insight into humanencounter.
5. It can be used as a put down, or a discount is inter-personal
relations.
C. Lateral Thinking:
Lateral thinking shows the result of lateral communication which is also
called horizontal communication i.e. lateral flow of communication take
place between pears.

Meaning:
Lateral or horizontal communication is the flow of information between
persons of the same hierarchical level. It is needed to achieve cooperation
among group members and between work groups. Again lateral flow
provides emotional and serial support to individuals. It also contributes to

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the development of friendship and informal work groups.
Such type of communication may be formal or informal.
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Formal horizontal communication can be made as a right at any level to
consult or work with others in the same hierarchy. This helps in
providing coordination of work. Some this committees are formed for
better horizontal communication in terms of control function in the
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orgnisation.
Informal horizontal communication can be established which provides
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emotional and social support to the individual.

Objectives:
m

1. Task coordination:
Heads of the different departments meet monthly to discuss how each
department contributes to the company goals.

2. Problem Solving:
The members of the department may assemble to discuss how to handle a
budget problem or any other common matters. For better and effective
communications some techniques can be used to solves such problems
like Dolphin Techniques. Nominal Group Technique or Brain Storming
technique etc.

3. Information Sharing:
Lateral or horizontal communication may be used for the purpose
exchanging information, views, ideas, etc. for group member of the
different department may meet periodically for this purpose.

127
Management Studies 4. Conflict Resolution:
Members of an department may meet to discuss and solve a conflict
within the department or with other departments.

Problems in Lateral Communication:

Generally lateral communication is discouraged because it may create
certain problems. These are:

1. Weak Orgnisation Structure:

Too much lateral communication may weaker orgnisation structure.

Because too many manager flowing in all directions would lead to
mismanagement.

2. Rivalry:

Departments do not like to share information with other departments

because of rivalry or jealousy

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3. Isolation:

To much of job specialization results in each department becoming an

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island by itself having little in common to share with other departments.

4. lack of management Support:

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Management may not have encouraged frequent horizontal

communication because of lack of transparency and open mindedness.
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Solution of Lateral communication:

Examine reliance on horizontal communication may undermine the
authority structure of an orgnisation but tool little lateral communication
m

can result in a rigid and inefficient orgnisation.

Therefore the correct way is to balance between vertical and horizontal
communication. This can be accomplished through flexible procedure
that provide guide ness about when and how employees should use
horizontal communication.
How can the problem of rivalry and competition be overcome. Task forces
and committees improved of employees from different departments
working on common problem are often a viable solution. When
employees are working toward common goals, they are more likely to be
cooperative rather than competitive. Another strategy is to conduct
training sessions on team work in which employees gain an application of
horizontal communication.

Brainstorming Technique:
It was developed by Alex Osborn a partner in an agency. The technique
was used originally to develop an add programme, but it can be used any
128
time an orgnisation wants to develop creative or free wheeling ideas. Organizational Communication:

There ideas may departs drastically from generally accepted practice.

The technique involves getting 6 to 10 people together to come up with a
creative solutions to a problem. The idea in brain storming is to create an
atmosphere of enthusiasm and non-judgment in terms of the usefulness of
an idea.
Four rules typically governs the brain storming process:

1. All criticism is ruled out:

Judgment or evaluation of ideas must be with held until the idea

generation process has been completed.
2. Free wheeling is welcome:
It is better if ideas are wilder or radical.
3. Quality is wanted:
The greater the number of ideas, the greater will be the possibility of

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obtaining a superior idea.
4. Combination and improvement are sought:
participants should suggest how ideas of others can be turned into better
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ones or how 2 or more ideas can be combined into still another idea.
Brain storming accepts all the harsh and critical judgment of the
people. Therefore no attempts is made to evaluate responses during the
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session; it is done later. Brain storming sessions that last 40 minutes to one
hour have been formed to be most effective.
Delphi Technique:
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It was developed by the Rand Corporation to allow for the benefits of

group decision making without members sharing to meet face to face. In
fact, it allows group decision making to be accomplished over large
m

distances and widely scattered members.

The difference between brain storming and Delphi Technique is that in
brain storming the members interact face to face and in Delphi
technique members are scattered interact through audio conferencing.
Procedure:
1. a series of questionnaires are distributed over time to a decision
making panel.
2. the first questionnaires states the problem and request potential
situations.
3. There solutions are numarised by the decision coordination.
4. The summary is returned to the panel in a record
questionnaires.
5. panel members respond again and the process is repeated until a
consumers is reached and a clear decision emerges.

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Management Studies Merits:
1. It allows the collection of expert judgment without great costs.

2. brain storming may experts together for a face to face meeting is not
necessary.
In such circumstances where it is physically impossible to concern a
meeting this technique is must suitable

Limitations:
1. It is time consuming process because sending questionnaires waiting
for response and coming to consumes takes long time.
2. Cost of advertising the series of questionnaires is costly and simple
affair.

Grapevine Communication:
Informal communication is popularly known as grapevine.

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The word grapevine originated during the civil war in America during
which period telegraph lines were strong loosely from tree to tree in vine
like fashion. Messages sent over this haphazard system often become
es
grabbed, and any false information or rumor that can along was therefore
ironically said to come from the grapevine.
Thus grapevine exists outside formal communication channels in
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orgnisation and is carried out either in face to face interaction or over the
phone.
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Features:
Following are the characteristics of grapevine:
m

1. Grapevine is found in every orgnisation and they are impossible to

eliminates, because it is natural for employees to discuss matters of
mutual concern.
2. Introduction usually travels more rapidly through the Grapevine than
through official communication channels.
3. The Grapevine is a more spontaneous form of expression and have
intrinsically more gratifying and credible than formal communication.
4. in Situations where official censorship and filtering occur, Grapevine
information is more information.
5. On non-controversial topics related to the orgnisation, most of the
information communicated through the Grapevine(about 75%) is
accurate. Emotionally charged information however is more likely to
be distorted.
6. The number of people who serve as actual links in the Grapevine is
generally small(less than 10% of the group).

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Power of Grapevine: Organizational Communication:

1. It is an effective tool for developing corporate identity, buildingteam

work and motivating people.
2. It supplements formal communication channels to make the total
communication system more effective.
3. the degree of Grapevine activity is a meaner of a company is spirit
and vitality
4. a likely Grapevine reflects the deep psychological need of people to
talk about their jobs and their company as a centrallife interest.
5. without Grapevine the company would literally be sick.

Limitations:
1. It may be used to spread false rumors and destructive information.

2. Speed of Grapevine is so fast that it is difficult to check false rumors.

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Rumour:
Normally 75% of Grapevine information is accurate. The remaining 25%
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which is inaccurate called Rumour.
So rumour is untrue information that is communicated without factual
evidence to back it up.
ot

Merits:
un

1. Helps in reducing anxiety.

2. Helps to make sense of limited or fragmented information.

3. To serve as a vehicle to organize group members and possibly

m

outsiders into coalition also.

4. To signal a sender does status or power that he is the only person
possesses the information.

Why do rumours exist?:

1. The secrecy and competition that typically prevail in the large
orgnisation.
2. wants and expectations creating the uncertainty underlying therumour
are fulfilled or until the anxiety is reduced.
3. Rumours also arise out of wishful dreams of people and out of sheer
maliciousness.

How to eliminate rumours:

The management must learn to live with rumours as it is difficult to
131
Management Studies eliminate. However it should try to minimize the negative consequences of
rumours by limiting their range and impact.

For this purpose some suggestions are given below:

1. Announce time tables for making important decisions.
2. Explain decisions and behaviour that may appear inconsistent or
secretive.
3. Get at the root of the rumour and confront it with facts.
4. Identify rumour managers and discipline them.
5. Take the assistance of the rumour union to fight rumours.

9.3 SUMMARY

Johari Window is a model developed to analyze, the causes of inter-

personal conflict. So in order to have more open communication one has
to understand behaviour. This can be categorized as open self. Hidden

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self, Blind self, and undiscovered self.
Transactional Analysis assumes that a person has three ega states i.e.
parent, adult and child. The study these ego states helps in conflict solving
es
among the members of the group.
Lateral thinking is the result of lateral communication which is also called
ot

horizontal communication. This is needed to achieve cooperation among

group members of the same hierarchy and develop emotional and social
support among them.
un

Brain storming is a technique of group decision making to take the

advantage of the group as a decision making rumours and to minimize its
potential disadvantages.
m

Delphi Technique allows the benefits of group decision making without

member being prevent and meet face to face. In fast members are at large
distances and widely.
Power of grapevine and scattered other informal communication is
identified as effective tool for developing corporate image and building
teamwork. It also helps to put social pressure on efficient employees by
efficient employees.

9.4 QUESTIONS
1. Discuss the Johari Window model for analyzing interpersonal
relationship.
2. What is Transactional Analysis? How does it contribute to
understanding of human behaviour?
3. Discuss the usefulness of T.A. in different areas?
132
4. Differentiate between Brain storming and Delphi Technique of Organizational Communication:

communication?
5. Explain in brief the various tools of communication?

6. Explain the power of Grapevine communication in anorgnisation?

7. What is meant by lateral thinking? Discuss?

9.5 ADDITIONAL READING

1. Orgnisational behavior L.M.Prasad, Sultan Chand.

2. Orgnisational behavior Himalaya publication, Aswathappa
3. James A.F.Stoner, Management, New Delhi.
4. Fred Luthans, Orgnisational behaviour, McGraw Hill.
5. Stephen Robbins, Orgnisational behaviour.

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D.N.Harlow, Orgnisational behaviour, Boston.
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*****
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 10
POWER AND POLITICS

Unit Structure
10.0 Objective
10.1 Introduction
10.2 Summary
10.3 Questions

10.0 OBJECTIVE
After the completion of the unit the student will be able to
1. Understand different views of power and influences

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2. Understand types of power or sources of power

3. Know tactics used to gain political power

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4. Understand various approaches to power

10.1 INTRODUCTION
ot

The term power may be used as the capacity to exert influence over
others. Power is a relational phenomenon and may be defined in a
dynamic sense. From organisational point of view, it may be defined as
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the degree of influence an individual or group has in decision making

without being authorised by the organisation to do so. “Power is the
ability to get things done the way one wants them to be done.” P.M. Blau
observes that “Power is an exchange process—a person who commands
m

services needed by others exchanges them for compliance with his or her
request.” R.M. Emerson states that “Power is a function of ties of mutual
dependence in social relationships.” From the organisational point of
view, power is the ability of one person (or department) to influence the
behaviour of others in the organisation to bring about desired outcomes for
power holders.
From the above discussions, the following points emerge:
(a) Power is based on two-tier concept of influencing others and
being influenced.
(b) Power may be potential or enacted.
(c) Power represents the capacity, ability, etc. to influence the
behaviour of other people.

134
Characteristics of Power: Power And Politics

The following are the characteristics of power:

1. Specific: Power is specific in the sense that it may be exercised by
some people in some circumstances. Power may not be exercised by
all people in all circumstances.
Dependency: The main feature of power is dependency. The greater
the dependence of one person on you, the greater is the amount of
power you can exert on him
2. Expand or Contract: Power is elastic. People who are habituated to
exercise power, may try to acquire more power and expand it. In some
organisations, due to change in position of a manager in the
organisation, that is, shift from one department to the other may
cause contraction in power.
3. Reciprocal Relationship: Power relationships in an organisation are
reciprocal in nature. Power exists due to relationship between two or

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more persons. It is based on two-way concept of influencing others
and being influenced.
Views of Power and Influence: There are different views of power which
es
a manager takes to increase the power of both managers and their
employees.
1. Autocratic View of Power: In autocratic view, the power flows
ot

downward, it basically comes from the authoritative structure from

the management. In autocratic view, someone loses and someone
gains, as it has fixed amount.
un

2. Participative View of Power: In participative view, the power varies

i.e. Power has variable amount. It flows in all directions. The power
comes from both official and unofficial channels and applied by
m

activities in a group.

Types of Power or Sources of Power

John French and Bertram Raven have identified the following five sources
or types of power which may occur at all levels of the organisation :
1. Legitimate Power
2. Reward Power
3. Coercive Power
4. Expert Power
5. Referent Power
1. Legitimate Power:

Legitimate power comes to the leader when the organisation’s authority is

accepted. It comes from the rules of the organisation. For example,
managers, teachers, police, parents etc. have legitimate power only when
their authority is accepted inte positions they hold.
135
Management Studies 2. Reward Power:
Reward power is the present or potential ability to reward for worthy
behaviour. This source of power depend son the persons have the ability
and resources to reward others. Managers have reward powers like pay
increases, promotions, favourable work assignments, more responsibility,
praise, recognition.

3. Coercive Power:
This source of power depends on fear. The person with coercive power
has the ability to inflict punishment. The subordinates may do what their
superiors desire because they fear that the superior will punish them if
they do not follow the superiors instructions. Coercive power is exercised
by the manager against unproductive or disturbing elements and to restore
discipline in the task environment. Coercive power is associated with the
ability to assign distasteful tasks, without promotions, discriminating
subordinates by not rewarding them suitably. Managers threaten the
employees, when exercising this kind of coercive power, with the job-
related punishments such as dismissal, demotion, reprimand, transfer, and

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discourage low performance etc.
In an organization, managers have coercive power. The employees have
an element of fear of punishment if they do not follow the rules,
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directives, or policies of the organization. It is probably this fear that
gets most people to come to work on time and look busy when the boss
walks through the area. In other words, much of organizational behaviour
ot

may be explained in terms of coercivepower rather than reward power.

4. Expert Power:
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Another source of power identified by French and Ravea is based on the

extent to which others attribute knowledge and expertise on the power
seeker. Experts are perceived to have knowledge and understanding only
m

in certain well defined areas. The person must really know what he is
talking about and be able to show tangible evidence of this knowledge. It
is highly selective and has reputation for being honest and straightforward.

5. Referent Power:
This type of power comes from the desire on the past of the other persons
to identity with the agent wielding power. They want to identity with the
powerful person regardless of the outcomes e.g. Managers with referent
power must be attractive to subordinates so that subordinates will want to
identity with them, regardless of whether the managers later have the
ability to rewarding or punish or whether they are legiteriacy. Managers
who depends on referent power must be personally attractive to
subordinates.
Politics is an integral an unavoidable part of organization. In order to
protect self-interest and attain promotion, managers need to adopt a
number of tactics to gain political power. The frequently used technique

136
of organizational politics are social exchange, selective service, control of Power And Politics

information, identification with higher authority, etc. Managers without

basic political skill, will find it difficult to protect self-interest and rise to
the top.

Power vs. Authority:

Power may be described as the ability of imposing one’s will on the
behaviour of others. According to Baron, “powers refers to the ability to
change or control others behaviour even against their will and in the face
of resistance from them.” Authority is different from power. Authority is
delegated by the higher management to make decision where as power is
gained by leader on the basis of his personality, activities.
Tactics Used to Gain Political Power: Leaders adopt different tactics to
influence others and use power to meet personal gains over and above
organizational goals. The frequently used tactics of organizational politics
are :
1. Social Exchanges: It is based on norms of reciprocity. It means placing

.in
people under one’s obligation and is expected to return the favour in
due course. It can be done by inviting people to parties, doing favours
to others, providing financial assistance, helping in times of crisis etc.
es
2. Identification of Authority: Constantly being used political technique
is to attach oneself with some powerful and successful person in the
organization. Thus, establishing close links with a powerful boss is an
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effective method of gaining political power..

3. Selective Tactics: Selective tactic is an ad-hoc strategy where the
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employee extends cooperation selectively to his supporters.

4. Control of Information: It is an important technique to yield power.
The functioning of an organization depends upon availability of
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relevant information. This information can be withheld, falsified,

distorted and so on.
5. Co-operation: It refers to seeking co-operation from those people who
are currently belonging to opposition group.
6. Power and Status Symbols: The employee tries to impress others by
attaching symbols which implies power and status.
Power is the ability to get an individual or group to do something - to
get the person or group to change in some way. The person who possess
power has the ability to manipulate or change others.
Political behaviour is outside one’s specific job requirements. The
behaviour requires some attempt to use one’s power bases. Additionally
our definition encompasses efforts to influence the goals, criteria or
processes used for decision making when we state that politics is
concerned with “the distribution of advantages and disadvantages within
the organization.”
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Management Studies Political behaviour may take Legitimate – illegitimate dimensions
Legitimate-political behaviour refers to normal everyday politics. On the
other hand illegitimate-political behaviour violate the implied rules of the
game. Those who pursue such extreme activities are often described as
individuals who “play hardball”. illegitimate activities include sabotage,
whistle blowing and symbolic protests such as wearing unorthodox dress
or protest buttons and groups or employers simultaneously calling in sick.
Factor influencing political behaviour
Individual Factors : Researchers have identified personality traits, needs
and other factors that are likely to be related to political behaviour.
In terms of traits, we find that employees who are high self-monitors
possess an internal locus of control and need for high power, and more
likely to engage in political behaviour.
The high self-monitor is more sensitive to cues, exhibit higher levels of
social conformity, and is more likely to be skilled in political behaviour
than in social conformity.

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Organisational Factors : Political activity is probably more a function of
the organisation’s characteristics than of individual difference variables,
why? Because many organisations have a large number of employees
with individual characteristics listed, yet the extent of political behaviour
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varies widely. Although, we acknowledge the role that individual
differences can ply in fostering politicking, evidence more strongly
supports that certain situations and cultures promote politics.
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Promotion decisions have consistently been found to be one of the most

political organisations. The less trust there is the organization, the higher,
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the level of political behaviour and the more likely that the political
behaviour will be of the illegitimate kind.
Role ambiguity means that the prescribed behaviours of the employee are
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not clear.

Contingency Approaches to Power

Pfeffer says that power comes from being in the ‘right’ place. He
describes the right place or position in the organisation as on where the
manager has :
1. Control over resources such as budgets, physical facilities and positions
that can be used to cultivate allies and supporters.
2. Control over or extensive access to information about the organisations
activity about the preferences and judgement of others about what is
going on and who is doing it.
3. Formal authority.

There are three ethical decision criteria-utilitarianism, rights and justice.

The first question you need to answer addresses self- interest versus
organisational goals. Ethical actions are consistent with the organisation’s
138
goals. Spreading untrue rumours about the safety of a new product Power And Politics

introduced by your company, in order to make that product’s design team

look bad, is unethical. However, there may be nothing unethical if a
department head exchanges favours with her decision’s purchasing
manager in order to get in critical contract processed quickly.

The second question concerns the rights of other parties. If the department
head described in the previous paragraph went down to the main room
during her lunch hour and read through the mail directed to the purchasing
manager—with the intent of “getting something on him”. So he’ll expedite
the contract—she would be acting unethically. She would have violated
the purchasing manager’s right to privacy.

The final question that needs to be addressed relates to whether or not the
political activity conforms to standards of equity and justice. The
department head that inflates the performance evaluation of a favoured
employee—then uses these evaluations to justify giving the former a big
raise and nothing to the latter—has treated the disfavoured employee
unfairly.

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Unfortunately, the answer to the question are often argued in ways to
make unethical practices seem ehtical.
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10.2 SUMMARY
Power refers to a capacity that A has to influence the behaviour of B, so
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that B acts in accordance with A’s wishes. This definition implies a

potential that need not be actualised to be effective and a dependency
relationship.
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Politics is an integral an unavoidable part of organization. In order to

protect self-interest and attain promotion, managers need to adopt a
number of tactics to gain political power. The frequently used technique
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of organizational politics are social exchange, selective service, control

of information, identification with higher authority, etc. Managers
without basic political skill, will find it difficult to protect self-interest
and rise to the top.

Power may be described as the ability of imposing one’s will on the

behaviour of others. According to Baron, “powers refers to the ability to
change or control others behaviour even against their will and in the face
of resistance from them.” Authority is different from power. Authority is
delegated by the higher management to make decision where as power is
gained by leader on the basis of his personality, activities.

Probably, the most important aspect of power is that it is a function of

dependency. The grater B’s dependence on A, the greater is A’s power in
the relationship. Dependence, in turn is based on alternatives that B
perceives and the importance that B places on the alternatives that A
controls. A person can have power on you only if he or she controls
something you desire.
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Management Studies All types or the sources of power are interrelated and interpendent rather
than independent. With the increase in legitimate power, reward power,
coercive power, referent power also increases. Expert power may give
rise to legitimate power. With the change in positions through promotion,
legitimate power creeps in.

10.3 QUESTIONS
1. What are the ethics of behaving politically?

2. What do you understand by Power? What re the types of Power?

Explain.

3. What is politics? What are the factors that influence politicalbehaviour?

*****

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 11
CONFLICTS AND NEGOTIATIONS
Unit Structure
11.0 Objective
11.1 Introduction
11.2 Summary
11.3 Questions

11.0 OBJECTIVE
After the completion of the unit the student will be able to
1. Understand conflicts and its causes
2. Learn different approaches of conflict

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3. Understand the various levels of conflict
4. Conflict resolution
5. Prejudice and its dimensions
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11.1 INTRODUCTION
The concept of conflict is supposed to be an outcome of behaviours and is
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an integral part of human life. The place where people interact there is
every chance of conflict. Conflict can be defined or explain in many ways
as an expression of hostility, negative attitudes, antagonism, aggression
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rivalry and misunderstanding. This also involves situation that involve

contradiction between two opposing groups. In other words, conflicts is
basically a disagreement between two or more individuals or groups, with
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each individual or group trying to gain acceptance of its own view on

others.
Sometimes intense conception among the groups leads to conflicts. But
both competition and conflict should not be confused. Competition is
directed towards obtaining a goal while conflict is directed against another
group and action to frustrate other group members towards goal
achievement.
Conflict can mean many different things to many different people and can
range in intensity from a minor difference of opinion to war between
nations. Argyrols holds that given the mature, adult human being and the
nature of the formal organisation, conflict isinevitable.
Within every individual there are usually (1) a number of competing needs
and roles, (2) a variety of different ways that drives and roles can be
expressed, (3) many types of barriers which can occur between the drive
and goal and (4) both positive and negative aspects attached to the desired
goals. These complicate the human adaptation process and often result in
conflict.
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Management Studies Definitions:
According to S.P. Robbins, “Conflict is a process in which an effort is
purposefully made by one person or unit to block another that results in
frustrating the attainment of the other’s goals or the furthering of his or
her interests.”
Mary Parker Follet defines conflict as, “The appearance of difference,
difference of opinions, of interests.”
Louis R. Pondy defines, “Conflict may be viewed as a breakdownin the
standard mechanism of decision making.”
On the basic of the above descriptions it may be said that conflict is not
confined at the individual level alone but is manifesting itself more and
more in organisations. Employees have become vociferous in their
demands for a better deal. Various departments in an organisation face a
situation full of conflicts on account of a number of reasons like goal
diversity, task interdependence etc.

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Causes of Conflict:
We can categorise the causes of conflict into one of the following three
categories.
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1. Communicational Aspect of Conflict :

Poor communication can also have a powerful effect in causing conflict.

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Any misunderstanding or partial information during the communication

process is another factor supporting it. Due to the improper sending and
receiving of the information conflicts situation. The filtering of
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information is also said to be playing its role at various levels of the

organisation structure. Amount of information is functional upto a point,
beyond which it becomes a source of conflict. Semantic difficulties arise
due to differences in background, training, selective perception and
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incomplete or inadequate information regarding others. In respect of

completion of any job in absence of the senioror supervisor it is essential
that proper information in a correct and understandable form must be
disseminated.

2. Behavioural Aspect of Conflict:

These types of conflicts arise because of human thoughts, feelings,

attitudes, emotions, values, perceptions and reflects basic traits of a
personality. So perceptions of certain people any arise conflicts among
others. On the other hand individuals who are of low self-esteem may feel
threatened by others in simple matters and over-react causing a conflict.
Conflict in the modern society are mostly behavior oriented. They induce
unrealised expectations and complexity of social and organisation system.
Conflict may also arise due to differing views regarding any issue or cause
which is requiring participation. Under privileged and the one having
unrealised expectations also cause conflicting situation. From
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organisational behaviour point of view, there is a conflict between the Conflicts And Negotiations

goals of the formal organisation and psychological growth of the

individual.
3. Structural Aspects of Conflict : These conflicts arise due to issues
related to the structural design of the organisation as a whole as well
as its sub-units. some of the structurally related factor are :
(i) Size of Organisation : The larger the size of the organisation, the
more is the basis for existence of conflict. In a big organisation there
is less goal clarity, more supervisory levels and supervision and
greater chances of information being diluted or distorted as it is
passed along.
(ii) Participation: It is seen that if subordinates are not allowed to
participate in the decision-making process they show resortment
which gives rise to conflict. On the other side, if more participation
of the subordinates are allowed then also chances of conflict
increases as they become more aware of the things in detailed
manner.

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(iii) Role Ambiguity: Role is a certain set of activities associated with a
certain position in the organisation. When the work is ill- defined the
person at that osition fails to perform well. This creates conflict with
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that person and the others who are dependent on that particular
individual. Such conflicts can be reduced by redefining and
classifying roles and their inter-dependencies.
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(iv) Scarcity of Resources: The resources are made available to the

working employees, but when there is an uneven distribution it gives
rise to dissatisfaction and resentment. Specially in declining
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organisation cut back is made on personnel and services so that the

concerned unit shrinking pool of resources and this breeds conflict.
The chances of conflict rise high when resources such as capital
facilities, staff assistance and many other factors start decreasing or
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are in inadequate forms.

Different Approaches of Conflict: There are several Approaches to the
Study of organizational conflict.
According to one school of thought, the human relations view argues that
conflict is a natural and inevitable outcome in any group and that it need
not be evil, but has the potential of being a positive force in determing the
group performance.
But in recent time, the belief is that conflict is absolutely necessary for a
group to perform effectively.
Traditional View:
Earlier it was considered that all type of conflict is bad and harmful for
any organisation. It was also considered to be destructive force. This view
is consistent with the attitude that prevailed about group behaviour and
interaction during 1930’s and 1940’s
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Management Studies Existence of conflict gave a sign that something is wrong or unfavourable
in the existing system. The view held that conflict must be avoided at
any cost. It was even believed that existence of conflict in an organisation
projected the poor management and the deliberate efforts of the trouble
makers.
On the other hand another school of thought expressed that conflict can be
eliminated by creating an environment of goodwill and trust within the
organisation.
Conflict was viewed as a dysfunctional outcome resulting from poor
communication. Lack of openness and trust between people and the
failure of managers to be responsive to the needs and aspirations of their
employees.

The Human Relations View:

The human relations position argued that conflict was a natural occurrence
in all groups and organisation. As conflict is unavoidable, so human
behaviour must start accepting conflicts.They believed that conflict cannot

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be estimated and sometimes come out to be advantageous or fruitful.
The human relations view dominated conflict theory from late 1940’s
through the mid-1970s.
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Interactionist View:
As the earlier view i.e., the human relationship view accepted the need of
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conflict, this interactions view encouraged conflict. According to them

any group where there is no conflict at all it tends to become static,
apathetic, and non-responsive to needs for change or innovation.
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Their main emphasis was on encouraging a mild and average conflict

regularly in the groups on team member. This view keeps the group
viable, self-critical and creative. Whether any conflict is good or bad or it
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is advantageous to an organisation depends upon the nature of the conflict.

Types of Conflicts:
(a) Goal Conflict: Goal conflict arises when two or more motives block
one another. There are three types of goal conflict.
Approach-Approach-Conflict: Where the individual is motivated to
approach two or more positive but mutually exclusive goals. For example,
a young person faced with two excellent job opportunities, or an executive
who has choice between two very attractive offices to work
1. Approach-Avoidance-Conflict: Where the individual is motivated to
approach a goal and at the same time, is motivated to avoid it. The
single goal contains both positive and negative characteristics for the
individual. For example, Managers engaged in Long-range planning
are very confident of a goal they have developed for the future. Yet,
as the time gets near to commit resources and implement the plan, the
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 negative consequences seem to appear much greater than they did in Conflicts And Negotiations

the developing stage. The Managers may reach a point where

approach equals avoidance. The result is a great deal of internal
conflict which may cause indecision, ulcers or even neurosis.
2. Avoidance-Avoidance-Conflict: Where the individual is motivated
to avoid two or more negative but mutually exclusive goals. For
example, the worker who detests his supervisor and has too much
pride to accept unemployment compensation,. This worker cannot
easily resolve his avoidance-avoidance-conflict in a time when jobs
are very scarce.
(b) Role Conflict: A role consists of a pattern of norms and is directly
related to the theatrical use of them. A role is the position that has
expectations evolving from established norms. As a pattern of
prescribed behaviour, a role is a bundle of norms. As a pattern of
actual behaviour, a role is one side of a set of social relationships. An
individual can have many roles simultaneously. Since the individual
has many roles to play in an organisation, role conflict is bound to

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exist. The classic example of role conflict is of a first-line supervisor.
The best approach to resolve this conflict would be to recognise the
existence of role conflict, attempt to understand its causes and
ramifications and then try to manage it as effectively as possible.
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(c) Inter-Personal Conflict : Conflict situations inevitably are made of
at least two individuals who hold polarised points of view, whoare
somewhat indolent or ambiguous and who are quick to jump to
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conclusions. Our popular framework for analysing dynamics of

interaction between self and others is JOHARI WINDOW. This
model has been developed by Joseph Luft and Harry Ingham (this the
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name JOHARI).
Levels of Conflict: Newstrom and Davis refer to conflict as “any situation
in which two or more parties feel themselves in opposition. Conflict is an
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interpersonal process that arises from disagreements over the goals to

attain or the methods to be used to accomplish these goals”.

Conflict can occur in three levels:

1. Inter-Personal Conflict:

If it were true that the sole motive of all activity is the desire to avoid pain
and to secure pleasure, conflict could hardly arise. But neither it is true
nor possible as there are always incompatible motives which impel us to
incompatible goals as individual human being and also as members of
social groups and organisations.
And this is what gives birth to a conflict. When this happens within an
individual, we call it “MENTAL CONFLICT” and when it happen two
individuals or amongst many members of a group or groups, it is known
as “INTER PERSONAL CONFLICT”.

145
Management Studies Conflict is a painful manifestation of energy and by consuming within
the organisation the energy that should be sustaining fruitful work of mind
and body, may reduce and weaken the organism and prepare the way for
disorder.
When applied to the groups or group members, this wasteful use of energy
in “inter-personal conflict” results in simple disagreement to serious
fights.
In an industry, if leads to indiscipline, poor morale, infights, industrial
strife, etc. By the same token, conflict releases energy at every level of
human affairs - energy then can produce positive and constructive results.
It is clear from the above that conflict is natural and inevitable. It is
therefore, in the interest of all of us to understand its genesis and the
methods of resolution so that conflict could be channeled to useful
purposes rather than providing devastating results.
2. Organisational Conflict : Individuals in the organisation have many
conflicting experience is organisational setting as for example (a) The

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boss wants more production, the subordinates want more consideration.
(b) Customers demand faster deliveries peers request schedule days.
(c) Consultants suggest changes, subordinates resist change and (d) The
rule book prescribes a formula, but the staff says it will not work. These
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are four types of organisational conflict.
(a) Hierachial Conflict: There may be conflict between the various
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levels of the organisation. The board of directors may be in conflict

with the top management, middle management may be in conflict
with supervisory personnel, or there may be general conflict between
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management and the workers.

(b) Functional Conflict: There may be conflict between various
functional departments of the organisation. Conflict between the
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production and marketing departments in an industrial organisation

is a classic example.
(c) Line-Staff Conflict: There may be a conflict between the line and
staff. It often results from situations where staff personnel do not
formally possess authority over line personnel.
(d) Formal-Informal Conflict: There may be conflict between the
formal and informal organisations. For example, the informal
organisation’s norms for performance may be incompatible with the
formal organisation’s norms of performance.

Role on Conflict in Today’s Organisations:

Today conflict has become one of the most vital aspects of national,
organisational, group and individual development. As a result, new set of
assumptions have been accepted about conflict. These assumptions are (a)
Conflict is inevitable, (b) Conflict is determined by structural factors such
as the design of a career structure or the nature of a class system, (c)
146
Conflict is integral tothe nature of change, (d) A minimal level of conflict Conflicts And Negotiations

is optimal.

Reduce Organisational Conflict:

Based on these assumptions, the following approaches have been
developed to reduce organisational conflict (a) Buffers can be erected
between conflicting parties. (b) To help the parties in the conflicting
situations, develop insights into themselves and how they affect others.
(c) Redesign the organisational structure in order to reduce the conflict.
It is not always necessary to reduce the conflict as conflicts to help
development in many situations, Conflict can lead to innovation and
change, it can energise people to activity, develop protection for
something else in the organisation and be an important element in the
systems analysis of the organisation. Such factors indicate that conflict can
be managed to work for rather than in the modernorganisation.

Harmony and Conflict in Inter Group Relations:

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Two or more groups, like two or ore individuals, can coordinate their
activities for mutual gain. In this case they’re likely to be an atmosphere of
acceptance and goodwill. We can find such harmonious relations at all
levels, ranging from two couples on a double date to two nations engaging
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in cultural exchange.
Two or more groups, like two or more individuals, can also compete for
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scare resources. In this case they are likely to generate an atmosphere of ill
will, mistrust, and suspicion. This type of relationship can also be
identified at all levels, from feuding families to nations at war
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3. Inter Group Conflict:

Definitions of conflict usually involve an element of competition and an

element of aggression (Coser, 1956; Brickman, 1974). Let’s define inter
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group conflict as the state existing between two or more groups that are
competing over scarce resources when one of the aims of the competition
is to neutralise, injure or eliminate the competitor. The resources under
dispute may be physical (a good home, farmland, oil fields), economic
(money, good jobs, bright prospects), psychological (self-esteem, self-
actualisation), social (prestige, influence) or any combination thereof. By
referring to these resources as scarce, I mean that each contending group
considers them inadequate to fulfill everyone’s needs.
In some ways, conflict between two or more groups is analogous to
conflict between two or more people. In both inter group conflict and
interpersonal conflict, own-gain and relative-gain motivation overpowers
joint-gain motivation, although in the case of inter group conflict we
must refer to “team” rather than “individual” interests. However, inter
group conflicts have at least three very special properties that distinguish
them from interpersonal conflicts. First, the death of one of the
participants ends an interpersonal conflict. The death of one participant

147
Management Studies does not end an inter group conflict. Because new contestants arise to take
the place of the fallen, inter group conflict can persist over generations.
The conflict may even gain the status of a tradition. For the person born
into a long-warring group, knowledge of the conflict will become one
of the earliest memories, and constrictive alternatives will be very hard to
imagine.
Second, inter group conflict is not governed by the same norms that
govern interpersonal conflicts. Whereas, norms may discourage all
violence within a group, they may systematise and organise violence
between groups. An isolated murder represents social disorganisation, or a
failure of norms to regulate individual conduct. The near-annihilation of
an enemy in warfare reflects social organisation, or a success of norms to
regulate individual conduct. Organisation and conformity are required, for
example, to quickly mobilise an army and send it dashing off across the
border.
A third factor that distinguishes individual and group conflict is that inter
group conflict is often accompanied by intra-group (within- group)

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cooperation. People will pull together to subdue the enemy. This intra-
group cooperation can maintain the conflict, since it may provide some
rewards that offset poor outcomes from the competition itself. For
example, fighting units may develop a strong feeling of camaraderie, and
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warfare between societies may mend, or at least temporarily alleviate,
conflicts within societies.

Functions of Conflict:
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Most of the social-psychological literature on inter group conflict is based

on the premise that conflict is harmful to all participants and must be
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eliminated. However, not all writers are reformers, andsome have claimed
that inter-group conflict serves important adaptive and maintenance
functions for the group. Obviously, warfare can be instrumental if it gains
for the group the strip of land, the resources, or the freedom that it seeks.
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(Curiously, the plum of victory has been given scant attention in social
psychology). Coser (1956) has listed a number of other functions or uses
of inter group conflict; here we will consider three of the major
arguments.
First, conflict prevents the stagnation and decay of the social system by
stimulating innovation and creativity. Conflict, my lead to new social
norms and reforms. According to Hare (1969), for example, black
rebellion did more to reduce social inequalities in academia than did
decades of “whimpering for integration”. Conflict can also spur the
economy and technology. World War II ended the Great Depression and
triggered rapid developments in such different fields as pesticides,
medicine, electronics, aviation, nuclear engineering, and manufacture of
rayon stockings. Such expensive inventions become likely when there are
serious challenges to strong vested interests.
Of course, technological advancement, esprit de corps, and the making of
new friends would seem to be rather paltry gains if the ultimate result is
148
annihilation of the society. However, Coser believes that, for three Conflicts And Negotiations

reasons, conflicts will be self-limiting. First, conflict sometimes binds the

contending groups together. In the process of conflict, two previously
unrelated groups form a negative relationship, out of which a positive
relationship can evolve. For example, in an effort to head off war, two
nations may discover a mutually advantageous course of action (such as
splitting a contested weak nation down the middle).
Second, conflict at a low level of intensity may establish and maintain a
balance of power. Paradoxically, conflict on a small scale may be one of
the most effective deterrents to conflict on a large scale, since small-scale
conflict allows each side to show strength and resolve, which deters the
other side from escalatingthe conflict.
Finally, when a war becomes large enough so that other nations enter in,
shifting coalitions and alliances may prevent the conflict from becoming
an all-out war of annihilation.

Functions of Conflict Resolution:

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Most writers who have dealt with inter group relations have emphasised
the negative consequences of conflict. Whether we are dealing with a
battlefield or “merely” with the systematic blocking of alternatives (as in
the case of racial discrimination), conflict involves personal suffering and
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social loss. This loss is measurable not only in terms of material and
money but also in terms of wasted human potential.
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Certainly most of the positive effects of inter group conflict can be

achieved in peaceful ways as well. Negotiation and bargaining can lead to
a favourable allocation of resources. Technological advancements do not
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depend on warfare. For example, the space program led to rapid

technological developments in electronics, plastics, nutrition and
computers and nobody was deliberately killed in the process.
Cohesiveness and solidarity might be brought about through increased
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rewards within the society as well as through external threat. Thus, wars
on poverty, famine, and disease, like wars on neighbours, can raise
society’s cohesiveness. Finally, international alliances may be based on
trade or cultural exchange rather than on a pact of “mutual defense”
against some third party.

Win/Lose Situations:
Historically, a major source of inter-group antagonism has been
employment. (Simpson & Yinger, 1958; Bonacich, 1972). Southern blacks
emigrating north got a hostile reception from unskilled white laborers,
who felt that, their jobs might be in jeopardy. Pressures to exclude
foreigners from our shores may also have represented an attempt to protect
jobs, and there is some speculation that, when Japanese Americans were
stripped of their property and forced into concentration camps during
World War II. This action was motivated by selfish economic
considerations as well as by concern for “national security” (Simpson &
Yinger, 1958). Class struggles and bloody battles between workers and
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Management Studies management are essentially conflicts between the “haves” and the “have
nots”, and, whereas, wars may be waged for “the hearts” of people, it is
amazing how often rubber, oil, tin, and land are at lease peripherally
involved. Among the more recent prizes that contenders have seen as
indivisible are Palestine, Cyprus, and the oil wells of the Middle East.
Of course, not every resource will be disputed. For example, although the
Chamber of Commerce of Niagara Falls, New York, might like to have the
scenic Canadian side of the falls incorporated into the United States, one
hears little discussion these days about the annexation of Canada. For a
win/lose situation to develop, each side must feel that it has claim on the
resource in question. Furthermore, not all disputed resources will spark
open conflict. The lure of specific relative-gain goals such as southern
Ontario may be offset by a recognition that, for the most part, the two
groups have had a cooperative relationship that has yielded a high level of
mutual gains. Besides, the anticipated rewards of victory may be offset
by the anticipated costs of the conflict. In many cases, both parties
recognise that negotiated solutions provide the best outcomes.

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A particular kind of win/lose situation is the exploitative relationship, in
which one side does all the winning and the other side does allthe losing.
According to Blauner’s (1970) controversial theory of internal
colonialism, discord between blacks and whites in the United States is
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caused by an exploitative relationship in which whites control all the
resources. Traditionally, colonialism refers to conditions, whereby, one
country exerts economic and political domination over another country,
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which is populated by people of a different race or culture. The colonisers

exploit the land, the natural resources and above all, the people.
According to Blauner, the black ghettos in our cities are ruthlessly
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exploited colonies within our national boundaries. Many groups of

immigrants have settled into ghettos in the United States, but three
features give black ghettos colonial status. First, whereas most other
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ghettos were voluntarily formed, black ghettos were enforced. Second,

whereas most ghettos represented for the occupants astopping point on the
way to becoming one more indistinguishable mineral in the big melting
pot, black ghettos have persisted over generations and have provided
dead-end streets for many black families. Third, and most important,
although in most ghettos it took only a brief time for ghetto dwellers to
become landlords, merchants, and entrepreneurs within the ghetto, this
was not true in the case of blacks. Greek Americans, Chinese Americans,
and Polish Americans came to own their own laundries, banks and
restaurants, but the ghetto black has remained a captive patron of white-
dominated businesses.

Own-Group Bias:
The attitudinal effects of win/lose competition noted in the Sherif camp
studies have also been repeatedly noted in-groups of conflicting adults.
Specifically, there have been numerous reports of an own-group bias such
that everyone within one’s own group is favourably evaluated and
150
everyone in the other group in unfavourably evaluated. A number of Conflicts And Negotiations

recent experimental studies have been aimed at pinpointing the causes of

own-group bias.

Super-Ordinate Goals:
A third theme in the camp studies that recurs in discussions of inter-group
conflict is that, if by the imposition of super-ordinate goals a win/lose
situation can be transformed into a situation in which both groups can win,
conflict will be reduced or eliminated. For example, in the organisational
setting, super-ordinate goals have been used to resolve internal conflicts
(Blake & Mouton, 1962; Blake, Shepard & Mouton, 1964). In workshop
settings, where small groups were encouraged to come up with better
solutions than those offered in competing groups, there was evidence of
inter-group antagonism. When common interests were highlighted and the
groups were encouraged to work together for the good of the
organisation, inter-group hostilities were overcome.
Inspecting the history of international relations, one can find numerous
illustrations of super-ordinate goals reducing inter-group tensions.

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Unfortunately, the super-ordinate goal in these cases usually involves the
vanquishing of some third group. For example, during the 1930s many
Americans considered both the Russian Communists and the German
es
Nazis threatening and loathsome, but, despite the Communists’ initial
edge, the Nazis eventually proved the more hateful of the two. With the
super-ordinate goal of defeating the Axis powers, the United States and
the U.S.S.R. became allies-at least until that super-ordinate goal was
ot

reached. Although, this kind of historical event certainly conforms to

Sherif’s theory, it does little to help us with the problem of conflict
resolution, since, as Sherif points out, such alliances usually result in a
un

widening of the conflict.

It may still be possible to discover super-ordinate goals (other than the
subjugation of some third party) that could reduce the antagonisms
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between traditionally conflicting social groups. This is no easy job, for

glib pronouncements such as “Let’s pull together for peace” will not
work. According to Sherif and Sherif (1969), a super-ordinate goal must
require cooperation, cannot be based on words alone, and may not be
imposed by one group on another.

Conflicts within Society:

Let’s move up scale from the small groups studied by Sherif and consider
relationships among groups that constitute large identifiable segments of
the U.S. population. An ethnic group is a collection of people who are
considered by themselves and by others to have common racial origin (as
revealed by physical factors such as skin tone and facial features). A
common national origin, a common language and cultural tradition, or
some combination of these factors (Harding et. al., 1969). Although
reference will be made to several different ethnic groups, attention will
focus on the conflict between black and white Americans, because this
conflict has been one of the most serious and also one of the most
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Management Studies carefully studied. A discussion of inter-group relations forces the use of
generalities. However, this should not obscure the fact that within any
given ethnic group it is possible to find represented a wide spectrum of
attitudes and behaviours toward the members of other ethnic groups.
This section begins with a discussion of prejudice, that particular form of
in-group bias characterised by strong negative views of the out-group. We
will then consider the functions of discriminatory activity and will see
that prejudice and discrimination tend to be self-perpetuating. Finally, we
will look at two views concerning the best way to ensure good outcomes
for one’s own ethnic group.

Prejudice:
Prejudicial attitudes are negative feelings that, depart from one or more of
three ideal norms: the norm of rationality, the norm of justice, and the
norms of human heartedness. The norm of rationality suggests that we
should be accurate and factually correct, logical in our reasoning, and
cautious when making judgments. A prejudiced attitude is likely to be
inaccurate, incorrect and illogical. The norm of justice suggests that all

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people should be treated equally, except with respect to their objective
abilities. A prejudiced attitude includes the belief that differential
treatment should be based on group membership, rather than on individual
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ability. The norm of human heartedness prescribes tolerance and
compassion. A prejudiced attitude often advocates kicking, rather than
rooting for, the underdog. A fully prejudiced attitude, then, is one that is
irrational, unjust, and cold hearted.
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First, the arrival of a group of unskilled blacks raises the possibility that
there will be more workers than jobs and thus can result in lowered wages
un

and less job security for the equally unskilled white. Prejudicial activity
aimed at preventing the blacks from obtaining jobs can have the
utilitarian function of increasing the whites’ job security. Second, the “I
am better than you” attitude can serve the ego-defensive function of giving
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people with little going for them a sense of superiority. Third, prejudice
against blacks can serve the value-expressive function for any person who
has been indoctrinated in a heritage of white supremacy. Finally, the
whites can make some sense out of their observation that blacks are
treated shabbily if they draw the conclusion that “They must be bad to
deserve this treatment”. In this way prejudicial attitudes can serve the
knowledge function.

Dimensions of Prejudice:
Campbell (1947) sought to determine whether prejudice is a general
attitude or factor (such that different measures of prejudice would inter-
correlate highly) or whether it is actually a number of independent
attitudes that are only loosely related. In the former case we would expect
that, if an individual believed that Croatians were immoral, he or she
would also believe that Croatians were lazy. In the latter case it would not
be possible to predict ratings of industriousness given ratings of morality.

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Campbell’s study involved five “subtopics” or prejudice : (1) Liking or Conflicts And Negotiations

disliking of a particular group, (2) Beliefs about the degree of blame that
should be accorded the group, (3) Beliefs about the extent to which the
group should be avoided, (4) Beliefs about the intelligence of the group,
and (5) Beliefs about the morality of the group. Five-item scales were
prepared dealing with each of these subtopics, and subjects rated five
ethnic groups on each of the five scales. College students and high school
students completed the scales, and inter-correlations were computed. The
average inter- scale correlation’s for a given ethnic group was in the mid-
50s, which suggests a certain generality of prejudice. That is, if an ethnic
group was disliked, it was also likely to be seen as blame-worthy,
unintelligent, and immoral, and representatives were likely to be avoided.
In a later series of three studies aimed at understanding prejudice toward
blacks, Woodman-see and Cook (1967) different facets of prejudice are to
some extent independent. They identified 11 dimensions of prejudice
toward blacks:
1. Position on segregation and integration.

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2. Acceptance of blacks in intimate relationships.
3. Belief in the inferiority of blacks.
4. Belief in the superiority of blacks.
es
5. Feelings of ease in interracial situations.
6. Expression of “derogatory beliefs” about blacks, such as “Blacks are
educationally backward” or “Some blacks are so touchy about their
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rights that they are difficult to get along with”.

7. Position on the role of local autonomy in desegregation and civil-right
un

legislation.
8. Position on the role of individual choice in doing business with blacks
or renting to blacks.
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9. Acceptance of blacks as status superiors (such as a boss or as a

teacher).
10. Sympathy for victimised blacks.
11. Position on how quickly desegregation should take place.

Prejudice and Discrimination as Self-Perpetuating:

Prejudicial attitudes may lead to discriminatory behaviour. Discrimination,
in turn, may bring about behaviours on the part of the victim that serve
to justify or support the original prejudices. That is, if we expect
another person to display certain behaviour, we may act in such a way as
to bring about the anticipated performance. This phenomenon is referred
to as a self-fulfilling prophecy. As we smugly that the other person acted
as we expected, we minimise our own role in bringing it about.
Self-fulfilling prophecies can also affect academic performance. For
example, a teacher might expect a Chicano (Mexican American) child to
do poorly in class. He or she then decides that helping this student would
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Management Studies be a waste of time, whereas, helping a middle-class white student would
pay rich dividends in the form of intellectual growth for the child. The
teacher thus encourages the middle-class student but discourages the
Chicano. Then, when the Chicano student fails and the middle-class white
student flourishes, the teacher’s expectations are strengthened. This kind
of thing can happen even if the two students are equal in motivation and
ability. Rosenthal and Jacobsen (1968) led teachers to expect that certain
students would show unusually little intellectual development, whereas,
others would show unusually great improvement, in the course of an
academic year. In fact, these two groups of students were of equivalent
promise and ability. Yet the group that the teachers expected to improve
showed a leap in performance thatthe other group did not match.

Conflict Resolution Strategies:

Conflict is a rift between the worker and the management which must be
managed effectively in the organization. Conflict can also result in poor
working relationships. If hard feelings and resentment persist, they may
spoil organisational climate. Conflict can be managed in several ways.

.in
The parties may agree about how to solve the conflict. They might take
steps to prevent such conflict in the future. Conflict can also be resolved
when one party defeats another. Sometimes there is suppression of the
conflict. This happens when the parties avoid strong reactions or try to
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ignore each other when they disagree.

Conflicts can be managed successfully as follows:

ot

1. Avoidance:

Some people attempt to avoid certain types of conflict situations or avoid

un

conflict situations altogether. These people tend to repress emotional

reactions, look the other way, or withdraw from a situation entirely. For
example, one may resign from a job, leave school, or become divorced.
The person either cannot face the situation effectively or does not have the
m

skills to resolve the conflict situation effectively.

Although avoidance strategies have survival value in those instances in
which escape is possible, they usually do not providethe individual with
a high level of satisfaction.

2. Diffusion:

Diffusion strategies attempt to tone down and cool off the situation, at
least temporarily, or to keep the issues so unclear that attempts at
confrontation are unlikely. Resolving minor points while avoiding or
delaying discussion of major issues, postponing issues underlying the
conflict all are examples of diffusion tactics. As with avoidance
strategies, diffusion tactics often work when delay is possible. However,
such tactics typically result in feelings of dissatisfaction, anxiety about
the future, concerns about oneself, and decreased self-esteem.

154
3. Confrontation: Conflicts And Negotiations

The third major conflict-resolution strategy is confrontation.

Confrontation may arise due to power and negotiation strategies. Power
strategies include the use of physical force (i.e., a punch in the nose);
bribery (i.e., money and favours); ad punishment (i.e., withholding love,
money). Power tactics often are very effective from the point of view of
the “winner” or “successful” party in the conflict.

Negotiation strategies, unlike power confrontations, present opportunities

for both sides to win. The objective of negotiation is to resolve the conflict
with a compromise solution that is mutually satisfying to all parties
involved in the conflict. Of the three conflict- resolution strategies,
negotiation seems to provide the most positive and the least negative
outcome.

There seems to be an endless list of proposals for eliminating inter- group

conflict within our society. In one group we find people who favour
conflict resolution through defeat of one side by the other. In another

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group we find those who advocate some kind of mixture of competitive
and cooperative activities. Many “black power” writers, for example,
suggest that blacks should develop, through competitive and, if necessary,
aggressive activities, a position of strength, which can then be use to
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induce cooperation and, ultimately, full integration. In a third group we
could find people who favour purely cooperative means for educing inter-
group tensions and merging the conflicting groups into a larger, cohesive
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entity. This third group, which operates on the assumption that it is

possible to move directly from inter-group conflict to inter-group
cooperation, would seem to include nine out of ten social psychologists!
un

4.Techniques, approaches or mechanisms to deal with conflict:

Managers have to realise that conflict is a natural ingredient in every
organisation. Practically, there are three main strategies, techniques,
m

approaches or mechanisms to deal with conflict which can be discussed

as follows :

(I) Conflict Encouragement:

A manager may find some situations where conflict needs to be

encouraged. This is so when certain types and amounts of conflict are
found to stimulate satisfaction and performance of individuals or groups.
The principal ways or techniques to encourage constructive conflict may
be outlined as follows:

(a) Bringing and outside expert or consultant for the purpose of

shaking up people and thereby stimulating constructive conflict.

Personally encouraging creative and innovative thinking and action

processes among people.

(b) Fostering competitive situations in inter-personal and group relations.

155
Management Studies (c) Discouraging avoidance of conflict, compromises and compatibility
on goals and performance standards and also discouraging mild
acceptance of assigned roles and responsibilities.

(d) Expressly criticising mediocrity, low levels of skills, lack of honesty

and commitment, misuse of resources, blocked communication, poor
performance, etc.

(II) Conflict Reduction:

Sometimes conflicts rise to alarming levels and thereby adversely affect

the work performance in the organisation. In such situations, the question
of conflict encouragement does not at all arise. Hence, they need to
reduce, i.e., minimise them and bring down to some tolerance level. Some
techniques of conflict reduction may be summarised as follows :

(a) In complex and dynamic organisations, conflict may be reduced by

enhancing coordination activities and better communication flows.

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(b) If the conflict stems differences over distribution of scarce or deficient
resources, the manager can reduce it by increasing the amount of
available resources.
es
(c) In case the excessive conflict stems from differences in goals, the
manager can reduce the conflict by focusing everyone’s attention on
a subordinate goal, such as common objective of survival, major
financial crisis, or defending against an external threat.
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(d) The managers can facilitate compromises to reduce especially the

lahour-management conflict.
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(III) Conflict Resolution:

Conflict in organisation is inevitable. Sometimes even the best managers

m

find themselves in the middle of dysfunctional conflict, whether it is

due to inattention or due to the circumstances which are beyond their
control. In such situations managers have two options open to them : (a)
avoidance, or (b) resolution. Avoidance means to choose to do nothing,
i.e., staying neutral at all costs, downplaying disagreement, or failing to
participate in the conflict situation, by pretending that there is no conflict
and hoping that time will take care of all conflicts. Conflict resolution
means a situation in which the underlying reasons for a given conflict are
eliminated. Managers can use a number of techniques or strategies for
resolving conflict as follows:

(IV) Diffusion: Diffusing strategy attempts to buy time until the

conflict between two parties becomes less emotional or less crucial. The
following methods are classified as diffusion strategy:

(a) Smoothing: Smoothing or accommodation involves (i) playing down

differences and dissensions (i.e., making them seem less important)

156
 among the conflicting parties and highlighting similarities and areas Conflicts And Negotiations

of agreement, and (ii) peaceful coexistence through a recognition of

common interests in the goal, in the hope that the parties would
eventually realise that they are not as far apart as they initially
believed. With this approach, problems are rarely permitted to come
to the surface and thus superficial harmony is maintained but the
potential for conflict remains.

(b) Compromise: Compromise is a ‘give-and-take’ exchange, resulting

in neither a clear winner nor loser. Compromise can be used when
the object, goal or resource in conflict, can be divided up in some
way between the competing parties. In other cases, one party may
yield on one point if it can gain something in exchange from the other
party. Compromise is the most typical way of dealing with labour-
management conflict. However, compromise takes time which
management may not be able to afford always. Moreover, since party
gains its full desires, the antecedent conditions for future conflicts
are probably established; and the conflict which appears to be settled
for a while, may well reappear at some time.

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2. Power Intervention:

Power interventions is a frequently used resolution approach. It involves

es
the use of power to end conflict. This includes the following:
(a) Hierarchical Intervention or Forcing: Especially when time is
important, higher level management steps into a conflict and orders
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the conflicting parties to handle the situation in a particular manner.

This is forcing.
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(b) Use of Mediation or Arbitration: A consultant or an arbitrator may

be employed to hear and settle the dispute.
(c) Politics: Political resolution of conflict generally involves the
m

distribution of power between the conflicting parties. If one party

can accumulate sufficient power through resources accumulation or
the formation of a coalition, that party can exert considerable
influence over the outcome of the decision or solution to the
problem.

Organisational Interactions:
When work needs to be coordinated, when resources must be shared, and
when other work-flow interdependencies exist, conflict often arise.
Managers have a number options available to reduce conflicts by
adjusting the organisation design of such friction points as follows:
(a) Buffering approach can be used when the inputs of one group are the
outputs of another group. Under this approach, an inventory is built
up between the two groups so that any output slowdown or excess is
absorbed by the inventory and does not directly pressure that target
group.
157
Management Studies (b) Illogically sequenced procedures should be changed to remove
unnecessary difficulties.
(c) Groups, especially those which are prone to conflict, may be
separated by reducing contact between them.
(d) Training programmes may be designed and implemented for
improving interpersonal and group relationships, and for socialisation
of new members.
(e) Monetary and non-monetary incentives may be installed for the
group as a whole, instead of on an individual basis, for higher
performance and productivity.
(f) Communication systems may be redesigned so as to resolve conflict
situations.
(g) Work-group may be established with overlapping memberships.
(h) Better coordination may be effected through a liaison-group, which
will prevent destructive clashes. Such a group may be given formal

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authority to resolve conflict.
(i) Changes in the design of physical workplace may be used effectively
to resolve conflict - such as office space, desks, etc.
es
3. Confrontation : Three methods or techniques may be used under
confrontation strategy as follows :
ot

(a) Problem Solving: It involves bringing together the conflicting parties

to conduct a formal confrontation meeting, so as to have the parties
present their views and opinions to each other and work through the
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differences in attitudes and perceptions. An atmosphere of trust and

openness has to be built, where neither party feels that it has to win
every battle to maintain self-respect. Instead, conflicting parties
m

recognise that something is wrong and needs attention. When success

is achieved through problem solving, it may be believed that true
conflict resolution has occurred.
(b) Mutual Personnel Exchange: It involves increasing the
communication and understanding between groups by exchanging
personnel for a period of time-it is assumed that the exchanged
personnel can learn about the other group and communicate their
impressions back to their original group.
(c) Superordinate Goals: Superordinate goals are common, more
important or highly valued goals on which the conflicting parties are
asked or appealed to focus their attention. Such goals are unattainable
by one group or individual alone and generally supersede all other
goals of each group or individual.

Traditional and Modern Approaches to Conflict:

Traditionally, the approach to conflict in organisations was very simple
158
and optimistic, it was on certain assumptions, such as: Conflicts And Negotiations

(i) Conflict is by nature avoidable.

(ii) Rules, policies and procedures are to be emphasised.
(iii) Conflict is caused by trouble-makers, enviers of the good and
comfortable situations, and excitable self-important persons who are
always changing their minds and expect everyone to do as they which.
(iv) Scapegoats are accepted as inevitable.
The individual managers often pretended to become critical in order to
avoid conflicts. They tried to ignore conflict. At other times, they tried to
rationalise it away with the position that there was nothing which could be
done about it.
However, in modern times, the approach towards conflict is somewhat
different. Behavioural scientists believe that there is incongruence
between individual and organisational goals. This has caused the overall
societal concern with conflict in organisations. Some of the new
assumptions about conflict may be enumerated as follows :

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(i) Conflict is inevitable.
(ii) Conflict is integral to the nature of change - conflict goes with every
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change.
(iii) Conflict is determined by structural factors, such as the physical
shape of a building, the nature of a class system, and the design of a
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career system.
(iv) A minimum level of conflict is optimum, desirable for growth and
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development.

11.2 SUMMARY
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Conflict is a dynamic concept and it is to be understood as a state of real

difference between two or more persons where overt behaviour is
characterised by differing perceptions towards goal that, in turn, create
tension, disagreement and emotionality between/among those involved.
Conflict can be defined : as a condition of objective incompatibility
between values or goals, and/or Conflict is also define as the behaviour of
deliberately interfering with another’s goal achievement, and emotionally
in terms of hostility.
Keeping in view that people, consider ‘conflict resolution’ a topic of
growing importance, it is essential that the relevant management
development activity should be to help people to ‘Manage Conflict’.
Some of the methods of inter-personal conflict resolutions are :
1. Withdrawal: Retreating from an actual or potential conflict situation.
2. Smoothing: Emphasising areas of agreement and de- emphasising
areas of difference over conflicting areas.
159
Management Studies 3. Comprises: Searching for solutions that bring some degree of
satisfaction to the conflicting parties.
4. Forcing: Ederting one’s viewpoint at the potential expense of
another-often competition and win-lose situation.
5. Confrontation: Addressing a disagreement directly and in a problem-
solving mode - the affected parties work through their disagreements.
Conflict is inevitable. It is, therefore, essential to learn to resolve rather
than running away from it. Conflict if resolved properly can lead to better
understanding and harmonious relations. Understanding of one’s own self
and of others will help reduceconflict areas. Individuals must make efforts
to cultivate/develop some attributes which make an individual successful
in conflict management. It is possible to improve one’s ability to handle
conflict more creatively and effectively - especially if one can view
“Conflict” not as a process to be feared and suppressed, but as one to be
understood and managed.

11.3 QUESTIONS

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1. What do you mean by organisational conflict? What are different
types of conflicts situations?
es
2. What are the various causes of conflict?
3. What are the different approaches of conflict?
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4. What are the main stages to deal with Conflict? Explain them in
brief.
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5. How would you manage Conflict in your Organisation? Explain.

“Modern Approach to Conflict is quite different from Traditional
Approach”? Explain.
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*****

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 12
STRESS
Unit Structure
12.0 Objective
12.1 Introduction
12.2 Summary
12.3 Questions

12.0 OBJECTIVE
After the completion of the unit the student will be able to
1. Understand causes and symptoms of stress
2. Study type A and type B individuals

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3. Known approaches to stress management
4. Understand effects of stress
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12.1 INTRODUCTION
The term ‘Stress’ refers to the body’s physical, mental, and chemical
ot

reactions to circumstances that confuse, endanger, frighten or irritate the

individual. In fact, stress is concerned with the branch of Engineering. But
this word has been used in the field of social science by Hans Selye in
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1936. Many words are used to denote work pressure like stress, strain,
conflict and pressure, but stress is the most common.
Stress may be defined as “a state of psychological and/or physiological
m

imbalance resulting from the disparity between situational demand and the
individual’s ability and/or motivation to meet those demands”.
According to Beehr and Newman job stress as a condition arising from the
interaction of people and their jobs and characterised by changes within
people that force them to deviate from their normal functioning.
Stress is an adaptive response to an external situation that results in
physical psychological and/or behavioural deviations for organisational
participants. Stress is not :
1. Stress is not simply anxiety.
2. Stress is not simply nervous tension.
3. Stress is not necessarily something damaging bad or to beavoided.

Symptoms of Stress: Symptoms of stress are generally classified into the

following two categories:

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Management Studies Physiological Symptoms: Some of the physiological symptoms of
stress are: (i) Increase in blood pressure, (ii) Increase in cholesterol, (iii)
Frequent cold and fever, (iv) Increase in biochemical substances such as
uric acid and catecholamine
Psychological Symptoms: Psychological symptoms of stress are
(a) Anger, (b) Frustration, (c) Irritation, (d) Depression, (e) Fatigue,
(f) Lower job satisfaction, (g) Loss of self-esteem.
Causes of Stress: The isolation and loneliness are responsible for
domestic stress and mental illness. Dirt, smell, chemical pollution and
cigarette smoke can be stressful. The chemicals in our foods, drinks and
drugs contribute to stress. In modern times alcohol helps the body and
mind relax but taken in excess it acts, damaging the liver and impairing
brain.
The various causes that led to stress are as follows :
1. Extra-organizational Stressors: It refers to factors outside the

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organization which lead to stress. These factors do affect the
organization and are affected by the organization as well. Some of
these factors are as follows :
es
(a) Social and Technological Changes: The speed at which changes are
taking place results in stressful condition. It is difficult to get adjust
quickly to such rapid changes which make life disrupted.
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(b) Financial Problems: In a city like Mumbai, where accommodation is

expensive and the standard of living is high, then financial problem
can be a cause of stress, wherein a person needs to earn extra money
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for that needs to work additional or the wife has to earn some
money, which reduces domestic family life and increases the potential
for stress.
m

(c) Family Problems: Family problem may be something serious such as

strained relationship between the spouses or parents and the children.
Another problem could be mentally retarded children, handicapped
child etc.
(d) Race, Religion and Sex of a Person: Factors such as sex, religion
can be stressors. Women have more stress then men because the
world is dominated by men.
(e) Civic Amenities : The area where one lives, the water supply, air
pollution, noise pollution, electricity supply etc. all these are extra-
organizational factors which can cause stress.
2. Organizational Stressors: Stressors inside the organization.
Occupational Demands: Some jobs are monotonous and complex, some
are highly repetitive and require constant vigilance are more stressful. For
example, job of a fire fighter, policeman, air pilot etc.

162
(a) Personal v/s. Organizational Life: When the family and personal STRESS

needs interfere with organizational demands, it leads to stressful

conditions. For example, a manager is promoted and given
prestigious posting abroad but need to resume on duty immediately at
the same time one of the family member is very sick and needs him at
home.
(b) Career Concern: If an employee is too much concerned about his
own career and feels that there are no opportunities for self- growth,
he might feel stagnant and experience stress.
(c) Role Conflict: Different people do have different expectation which
results in role conflict, i.e. a manager in the organization is a link
between management and workers and often faces role conflict.
(d) Role Ambiguity: Employees experienced stress when they are
provided with ambiguous idea or information about their work which
creates confusion in minds of the workers and results in stress.
(e) Work Overload and Under load: Work overload refers doing too

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much of work in allotted time. Work overload can be of two types :
(i) Quantitative Overload: In which the employee is asked to do more
work as compared to he can complete in a specific period of time.
es
(ii) Qualitative Overload: Wherein employee feels that he do not
possess required skills or abilities to perform the job.
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Work under load refers to too little work to do can also result in
stress.
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(f) Responsibility for Others: It observed that people who are

responsible for other people experience higher level of stress.
(g) Organizational Process: Office, politics, lack of information, poor
m

communication etc. results in organizational stressors.

(h) Organizational Policies: Frequent transfers, inflexible rules, pay
inequity, work shift, unfair performance appraisals systems can also
cause stress.
(i) Working Conditions: Excessive heat or cold, distracting noise, poor
lighting, inadequate safety measures, unpleasant smells and such
conditions do affect the employees and lead to stress.
(j) Lack of Cohesiveness and Social Support: Lack of togetherness i.e.
no unity between the members can result in stressors. Lack of social
support within the members may also lead to stressors.

Coping with Stress:

It is perhaps impossible to eliminate stress altogether, but by controlling or
reducing stress on the job, an organization can become a more productive
an healthy workingplace.
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Management Studies (i) Measures at Individual Level:

(a) Regular Exercise: Regular exercising such as walking, jogging etc.

reduces the chances of heart disease and keep oneself physically fit.
(b) Relaxation Training: A type of training which makes relaxed or
release from tension.
(c) Meditation: It is a form where an individual takes a sitting position,
closes his eyes and concentrates on some mantra again and again
helps to reduce stress.
(d) Social Support: Gaining social support from family members and co-
workers often helps to reduce stress.
(e) Behavioural Self-control: This strategy involves the individual to
control the stressful situation instead of allowing the situation to
control him.
(f) Bio-feedback: It is a technique where a stress victim, under medical

.in
guidance, learns to influence symptoms of stress such as headache.
(g) Personal Well-being: Some preventive measures such as self-
assessment, time management can also be taken to minimise the
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effects of stressors.

(ii) Organizational Strategies to Combat Stress:

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(a) Change in Organizational Structure: Proper means of

communication, making rules that are flexible, helps in combating
stress.
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Working Environment:
Appropriate working environment should be provided such as sufficient
lighting, ventilation facilities, adequate safety and security measures,
m

facilities for rest and recreation can be provided to reduce the impact of
stress
(b) Decentralisation of Authority: Another strategy used is
decentralisation of authority i.e. increasing the active participation
of subordinates in decision making and reducing the involvement of
seniors.
(c) Changing the Nature of Job : The redesigning of the nature ofsome
job can helps to solve the problem of stress i.e.
1. Boosting employee morale and enhancing motivation of
employee.
2. Minimising work overload and under load.
3. Removing unpleasant and risky elements from the
organizations.
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4. Increasing qualitative features of the job. STRESS

5. Encouraging the employees in active participation in decision

making etc.

Causes of Stress:
1. Extraorganisational Stressors: There are outside forces which have
tremendous impact on the job. Like societal/technological change, the
family, relocation economic and financial conditions, race and class
and residential or community conditions.

2. Group Stressors:

Group Stressors are divided into three areas.

(a) Lack of group cohesiveness or togetherness. If an employee is denied
the opportunity for this cohesiveness because of the task design
because the supervisor does things to prohibit or limit it or because
the other members of the group shut the person out, the resulting lack

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of cohesiveness can be very stress productivity.
(b) Lack of social support.

(c) Intra individual, interpersonal and intergroup conflict.

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3. Individual Stressors:

Individual Stressors may affect stress outcomes like role conflict,

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ambiguity, individual dispositions such as Type A personality patterns,

personal control, learned helplessness, self-efficiency and psychological
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hardness may all affect the level of stress someone experience.

Type A employee (managers, salespersons, staff specialists, secretaries or
rank and file operating employees) experience the following stress.
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(a) Work long, hard hours under constant deadline pressures and
conditions for overload.
(b) Often take work home at night or weekends and unable torelax.

Constantly competes with themselves, setting high standards of

productivity that they seem driven to maintain.
(c) Tend to become frustrated by the work situation.

Characteristics of Type A and Type B individuals:Type A :

(i) More aggressive, competitive, hardworking, busy, impatient and
restless.
(ii) Seek challenges, workaholic and are successful.

(iii) Set very high goals for themselves and compete with themselves to
maintain those high goals.
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Management Studies (iv) Make excessive demands on themselves and others.

(v) Get excited very quickly even with the slightest stimulation.

(vi) Work for long hours and under constant time pressure.

(vii) Unable to relax and enjoy free time, become restless if they have
nothing to do.
(viii) Suffer from coronary heart diseases, high blood pressure,ulcer etc.

(ix) As they are perfectionist, they achieve the target but become
hostile and frequently get angry with others.
(x) Other employees do not prefer to work with them.

Type B:
(i) React with more effective behaviour strategies.

(ii) Accept the situation and work on it.

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(iii) Relaxed, easy going and enjoy leisure.

(iv) Set those goals to attain about which they are confident and
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complete them without any time pressure.
(v) Have knowledge of their limitations and work accordingly.
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(vi) Does not get excited quickly.

(vii) Does not prove to serious health problems.

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(viii) Other employees prefer to work with them.

Approaches to Stress Management: There are several ways to manage

stress. It may be possible to change the objective environment to remove a
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stressor or to alter the psychological environment that the person

experiences. Perhaps it is possible to alter the stress symptoms in some
way so that they will not have adverse effects.
Personal Approach Stress Management: Stress can be managed in the
sense that a person can avoid stressful conditions, change them, or learn to
cope more effectively with them.
Psychological Approaches to Stress Management: Psychological
approaches to managing stress attempt to do one or more of the following:
Change the environment in which the stressor exists
1. Change the cognitive appraisal of the environment.
2. Change some activity or behavior to modify the environment.
Suppose you are experiencing high stress from work. One way to resolve
the problem may be by changing jobs within the companyor leaving the
firm. Or you may change your cognitive appraisal of the situation. You
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may tell yourself that the situation is not as destructive as when you felt STRESS

stress from it. You can also change your behavior at work, perhaps by
performing your job in a different way.
Counseling and psychotherapy have long been used to solve stress-
induced problems. A second party, trained in mental health intervention,
works regularly with the person to determine the sources of stress, help
modify his or her outlook, and develop alternative ways to cope. Often
this is done by helping a person gain enough self-confidence and self-
esteem to try a different wayof coping with stress.
Organisational Approaches to Stress Management: Organizations
realize that if it is possible to reduce the number and intensity of stressors
or to help employees cope more effectively with them, there should be
increased performance, reduced turnover and absenteeism, and
substantial reductions in costs. This problem can be attacked through the
implementation of employee wellness programs and by management
practices which modify the work environment.
Employee Welfare Programs: An increasing number of organizations

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have instituted some type of employee welfare program. These programs,
along with stress management, include health risk assessments, exercise
facilities and programs, individual counseling when employees feel job or
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personal strain, and regular seminars and lectures.
Welfare programs are effective in reducing work stress. They are also very
cost-effective when they have the support of top management and are
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accessible to a large number of employees.

Effects of Stress: Some of the important effects of stress are described
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below:
1. Effect on Individual: Stressful situations which are prolonged
produce serious physical and psychological disorders.
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Physical Health: Individual experiencing prolonged stress situation

suffers from heart disease. It also gives rise to high-blood pressure,
ulcers, arthritis, headache etc. It has been found that more than 50%
of the physical illnesses are partly caused by stress.
(i) Psychological Health: Stress has an adverse effect on employee’s
attitude and behaviour. It has effects such as anxiety, nervousness,
anger, depression, boredom etc. The change in employee’s behaviour
has an adverse effect on job performance. It affects self-esteems,
reduces job satisfaction.
(ii) Alcoholism and Drug Addiction: Many people gets addicted to
alcohol or drug in order to escape from the ill effects of high level
stress. It may lead to negative effects on the health of that particular
individual. It may also lead to increased absenteeism, loss of
production, increased work accidents.
(iii) Burnout: A syndrome of emotional, physical and mental exhaustion
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Management Studies resulting from prolonged exposure to intense stress. The symptoms
of burnout are loss of energy, a person looks tired, experiences
frequent headaches, nausea, backpain, sleeplessness, feeling of
depression, holds negative attitude towards job, loss of self-
confidence.
2. Effect of Stress on Organization Behaviours:
(a) It affects the performance level of an employee.
(b) Person experiencing high level of stress result in low level of
performance, loss of self-confidence.
(c) It leads to increase in absenteeism and turnover.
(d) It leads to alcoholism, drug abuse, smoking etc.
The Consequences of Stress:
The consequences of work stress are felt by individuals, their families, the
organisations they work for, and the economy as a whole. Indeed, it is

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even possible through absenteeism and performance - related measures to
calculate the effects of stress. It runs into many hundreds of billions of
dollars, points and marks.
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For the individual, the effects of work stress classically occur in three
areas, although there may be strong individual differences.
Attempts to “manage” (control and reduce) stress essentially happen at
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two levels. Firstly, some organisations focus on individual employees,

trying to help them learn better techniques to prevent or reduce their
personal stress levels. Secondly, others focus on the job or the
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organisation as a whole in attempting to reduce stress.

Two approaches commonly used to cope stress are personal and
organisational approaches.
m

A. Personal Approaches:
The most commonly used techniques include the following :
Life-Style (Diet and Exercise) Change:
A healthy mind (psyche) is supposedly found in a healthy body. Hence,
organisations attempt to help people through better living. This includes a
better diet (less salt, fat, sugar) and the reduction or elimination of alcohol.
Relaxation and Meditation:
A rather more Eastern or mental approach to stress is to teach potentially
stressed workers how to meditate and relax. The former involves clearing
one’s head of external thoughts and concentrating on inner stillness.
Relaxation techniques can be physical, involving such things as stretching,
deep breathing, and even laughing. People tend to select techniques they
feel most suitable to them, although indeed they may not be.

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Cognitive Self-Therapy: STRESS

Sports psychologists as well as clinicians have shown how effective

certain cognitive or thinking strategies are. Most emphasise the way we
conceive a stressor can be very maladaptive but can be changed. Thus,
people are often asked to describe stressors and think about them in
different terms. Thus, stressful becomes challenging, impossible becomes
possible. Often, emphasis is placed on making people feel that stressors
are temporary and controllable, not stable and eternal. People who have
tendencies to perfectionism often need this type of therapy.
Behaviour Therapy:
This approach attempts to overcome stress by focusing on behaviours that
reduce it. Just as people who are socially phobic or have panic attacks can
be taught ways to overcome that very specific type of stress, so all people
can be taught “little tricks” that help them overcome the stress. Certainly,
one focus is on out-of- work activities such as leisure and vacations. The
impact of the personal life on the working life should not be
underestimated.

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B. Organisational Approaches:
The most commonly used strategies are as follows :
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Changes in Organisation Structure/Function:
The way the organisation is structured may be a cause of stress, but
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indeed changing it can cause stress. Right-sizing, re- engineering, and

reprocessing has changed many organisations for the better, because they
are flatter and more decentralised. Learning new procedures and indeed
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worrying about security, may increase stress, but the hope for many
managers is that productivity, may increase stress, but the hope for
many managers is that productivity will increase and stress will decrease
as function of the changes.
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Job Redesign:
Jobs can be enlarged, enriched, divided, shared and redefined. Some are
too large for one person, others too small. As processes and technology
have changed, some jobs have not, and current holders are often under
various stresses. Few organisations consider carefully the issue of job
redesign enough as a majorstress reducer.

12.2 SUMMARY
Stress is a state of psychological and/or physiological imbalance resulting
from the disparity between situational demand and the individual’s ability
and/or motivation to meet those demands. However, a prolonged presence
of intense stress is certainly not beneficial to individual as well as
organization.
A potential for stress exists when an environmental situation is perceived
as presenting a demand which threatens to exceed the person’s capabilities
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Management Studies and resources for meeting it, under conditions where she/he expects a
substantial differential in the rewards and costs for meeting the demand
versus not meeting it.
In many ways, this definition incorporates what most theorists seeas the
main ingredients in stress, namely, subjective appraisal of a demanding
environment, a realisation that demands may outstrip resources, and that
the consequences of not coping are important. In the absence of a
universally agreed definition of stress, the widely accepted protocol of
describing environmental factors as “stressors”, individual responses as
“strains”, and the vast gamut of mediating activity in the form of cognitive
processing and personality dispositions as “intervening variables” can
usefully be adopted.
Common Symptoms of StressPhysiological Symptoms
1. A noticeable decline in physical appearance.
2. Chronic fatigue and tiredness.
3. Frequent infections, especially respiratory infections.

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4. Health complaints, such as headaches, backaches, stomach and skin
problems.
5. Signs of depression, change in weight or eating habits.
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Emotional Symptoms
1. Boredom or apathy: Lack of affect and hopelessness.
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Cynicism and resentfulness.

2. Depressed appearance, sad expressions, slumped posture.
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3. Expressions of anxiety, frustration, tearfulness.

Behavioural Symptoms
1. Absenteeism, accidents.
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2. Increase in alcohol or caffeine consumption; increased smoking.

3. Obsessive exercising.
4. Irrational : quick to fly off the handle.
5. Reduced productivity; inability to concentrate or complete a task.

12.3 UNIT END QUESTIONS

1. What are the causes and symptoms of stress? How can stress be
reduced? Discuss.
2. What is stress? Make a list of Type A and Type B
characteristics. Discuss the approaches to stress management.
Describe in details the effects and causes of stress.
*****

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 13
CASE STUDY
Case Study : 1
Read the following Case and answer the questions given below:-
Saroj and Parag, both young bright MBAs from a reputed Management
Institute were working as Junior Finance Executives in a huge
organisation having 3,000 employees. In the Finance Department, there
were hundred employees out of which twenty were ladies. The working
hours were 10.00 a.m. to 6.00 p.m.
There was an upcoming vacancy for the post of Finance Executive and
both Saroj as well as Parag were being considered for this promotion.
Both of them had an equally good record of past performance.
On Thursday afternoon, Saroj went to the records room to fetch some data.

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When she came back, she orally reported to the officer that Parag
molested her in the records room which was unmanned.
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Friday morning, the lady activists in the organisation protested that the
environment was no more safe for ladies to work and the management
should take immediate action. However, the Personal Manager had not
received any written complaint and there was neither any proof nor any
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witness in this particular case. Parag was denying having misbehaved in

any manner with Saroj. He was insisting that probably no male employee
on duty is likely to misbehave in this fashion especially when he is being
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considered for promotion. Saroj was emphasising that perhaps no married

woman like her could make such accusations and allegations unless the
matter is true. On Saturday morning, she handed over a written complaint
to the Personnel Manager, Mr. Patwardhan.
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During the history of past twenty years it was the first complaint of this
nature received by the Personnel Manager, and Mr. Patwardhan did not
have any past record for reference so as to determine under what
circumstances and in which conditions the case can be considered as
either genuine or malicious.
Mr. Patwardhan wanted to ensure that he took the right courseof action.

Questions:
1. What course of action should Mr. Patwardhan take ?
2. What measures should Mr. patwardhan take so as to avoid such
problems in the future ?
(Mumbai, M.Com. April 2008)

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Management Studies Case Study:2
Mr. Babar has been working in Cello (India) Ltd. as a finance manager for
the last two years. Though he had a very long and rich experience of
working in finance department of the same company and dealing with
various types of financial problems faced by the company, he is facing
many new problems on this new assignment. he has a heavy work load of
the departmental activities and some time he has to stay in the office upto
10 pm. In addition to it, he has been unable to cope with the problem
which he is facing with regard to vice-president finance, because vice
president finance assumes that Mr. Babar is well versed in finance
functions and therefore new kind of job through related to finance that is
evaluation of finance and investment projects has been assigned to him. In
view of this situation, Mr. Rama Krishnan, who is chartered accountant
working at the lower level of finance department has been appointed as a
staff specialist to Mr. Babar as to help, guide and advise him on
specialised matters such as project evaluation, etc. since then the
efficiency level of Mr. Babar has further come down and he is not feeling
comfortable with Rama.

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Questions:

1. Why is Mr. Babar not comfortable with his staff specialistRama?

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2. How can he cope with the situation of overwork load requiring
variety of skill and expertise?
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3. Give your suggestions for making the situation healthy and

comfortable for Mr. Babar.
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Case Study:3

Mr. Subhash Shirodkar has been working as a senior foreman at Zeeta

automobile company manufacturing two wheeler scooters. He has a long
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experience of assembly line operations. There are 1200 skilled and semi-
skilled workers working in two shifts withassembly line. Due to increasing
demand of scooters in the market, Mr. Shirodkar has been asked by
production manager to increase the per day production by raising
efficiency level of the workers. In this connection production manager is
of a opinion that to increase the level of efficiency minor adjustments and
changes should be made in the production process. But senior foreman
Mr. Shirodkar is not convinced with the suggestion of production
manager. Rather he firmly believes that in addition to changes to be made
in production on process it is more important to develop team spirit among
the workers by providing monetary incentive to them. Read the above case
and answer the following questions.

Questions:

Why Shirodkar differs with the production manager? Is difference based

on approach? If so, explain those approaches.
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1. What considerations should be taken into account for making Case Study

monetary incentive scheme more effective?

Case Study:4
Lalwani Industries Ltd., is a Thane (Maharashtra) based company
producing a variety of products such as electric goods, chemicals,
footwear’s and detergent powder, washing soaps, etc. These products are
being produced in Thane and distributed throughout the country with the
help of dealers. The company is facing many problems which are but
natural in the process of growth and development. moreover, company is
facing cut-throat competition from the local manufactures of these
products in a different part of the country. As a result of which total sales
volume has come down. In view of this, the managing director of the
company feels that for making products of the company more competitive
in term of price, quality and consumer’s needs the manufacturing
operations of the company should be decentralisedto various parts of the
country as to get the benefits of localised product. Study whole case
carefully and answer the following questions.

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Questions:
1. Is the proposal of decentralising production operations
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feasible? Give reasons.
2. Which form of decentralisation or combination of many forms
should be adopted by the company?
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Case Study:5
Praveen Paul is a financial manager in Blue Lotus Company producing
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and distributing consumer goods. he has been heading finance department

for the last five years. The finance department consists of more than 100
employees working therein. he has two deputy and four assistant finance
m

managers to help him in day to day functioning of the department.

Recently the company has diversified its operations into the production
and distribution of consumer durables. The workload of finance
department has increased tremendously in term of quality and quantity.
Besides performing managerial functions with regard to finance
department, the financial manager has to attend various meetings at the
higher level. He is also given a responsibility of preparing project reports,
conducting feasibility study of various meetings at the higher level. He is
also given a responsibility of preparing project reports, conducting
feasibility study of various proposals brought to him from higher level.
He feels overburdened and consequently his efficiency is on the decline.
he is unable to cope with increased multidimensional workload. To help
him directly, a chartered accountant having an experience of 10 years has
been appointed as his staff specialist. But the financial manager due to
many reasons is not feeling comfortable with the specialist. Often
they have disagreement with each other. Study the case carefully and
answer the following questions.

173
Management Studies

Question:
1. What may be the possible reasons that financial manager downs not
feel comfortable with chartered accountant?
2. Why do they may disagree, explain the various causes of it?
3. How to resolve disagreement between them? Give yoursuggestions.

Case Study:6
Subhash has been working as an operator in assembly-line of automobile
company, manufacturing two-wheeler scooters and bikes for the last 10
years. he has been working very honestly and sincerely and meets
standard of performance determined for him.he is of a creative mine and
even at home he discusses various work related matters with his wife. He
tells her that he is capable of making certain improvement in the over al
functioning of motor bike. But when he takes his ideas to his superior he

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makes fun of it and does not give serious thought to it. Gradually the level
of efficiency of Subhash came down. Though he knows it yet he is unable
to cope with situation. Some time he feels frustrated inspire of getting
good monetary jumps every year. But he is finding it difficult to meet
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standard of performance. he has already started losing his interest in the
job.
You are required to study the whole case and answer the following
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questions.

Questions:
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1. What are the possible cause of Subhash’s changing pattern of

working behaviour?
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2. How is it possible for superior to make him more efficient and

maintain his existing level of efficiency?
3. What exact scheme the superior should introduce in the assembly line
for tapping creativity of operators.

Case Study:7
A firm having a roaring business of leather goods is intended to
decentralise its operations at various places. In this regard six
manufacturing plants of more or less similar nature have been installed in
different places within the country. But the board of directors of the
company is indecisive on the matters that how much authority should be
delegated to the plant managers heading the plant. More specifically the
board of director seeks your advice on the question whether the power to
appoint supervisory and middle level managerial staff should be at the
plant level or with the head office.
You are required to study the care case answer the following questions.
174
 Case Study

Questions:
1. How the head office should share authority with each plantmanager?
2. On which matter head office should retain the authority and which
matters should to left to plant managers?
3. Give your suggestions for maintaining coordination between head
office and plants located at different places.

Case Study:8
Managing director of the company is very serious and worried about
increasing cost of production and resultant losses. He is intended to
appoint some management consultant to enquire intothe matter. For this
purpose he has asked his private secretary to type a letter. It was at around
5 p.m., in hurry the private secretary could into file and put it to managing
director, rather he left it at his table itself. Next day morning, messenger

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from branch office came to head office for delivering some letter. He saw
the letter and went through it When he came back to branch office he
narrated all contents of the letter to his superior. Soon the news spread
over among middle level managerial, clerical and lower level staff that
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the company is likely to retrench the employees. Immediately after that
union office-bearers held the meeting on the matter. By thetime letter
was dispatched it was known to every one on the organisation.
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You are required to study this case and answer the following questions.

Question :
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1. What is ‘grapevine’ and how does it help in communication?

2. Through informal relation only half truth or rumors are spread. Do
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you agree with it give reasons.

3. How to make informal communication more effective? Give your
suggestions.

Case Study:9
A public sector consultancy organisation recruited Mr. Alok an expert in a
particular field of technical specialisation with Ph.D. and other high
qualifications at a senior level, one level below that of a director of the
board. The company had a managing director and three functional
directors on its board apart from government directors.
Mr. Alok at the time of recruitment to the company was working as No.2
in a Central Government research organisation. Since he failed to get
selected to the No.1 slot in that organisation for ‘political reasons’,
according to him. He chose to join the publicsector company at one grade
higher than that held by him in the government.

175
Management Studies After joining the company, Mr. Alok represented to the Management that
he should be granted at least three advance increments since in the
government research organisation where he had worked, he used to get
extra honorarium to the extent of Rs. 50,000 per anum for undertaking
outside consultancy work. The management of the company refused to
grant the advance increment to him since they felt that Mr. Alok’s request
cannot be dealt with in violation and it will lead to similar requests from
other senior managers in the company.

After waiting for a few months, Mr. Alok submitted his resignation from
the company. His superior, viz., the functional director concerned (Mr.
Rajeev), advised the managing director that Mr. Alok was resigning
because his request for higher salary has not been agreed to and that the
matter needs review because it would be difficult to recruit another
expert of the same caliber asMr. Alok. The Managing Director however,
accepted the resignation of Mr. Alok and ordered that the post be
advertised for fresh recruitment.

As the recruitment process was on, Mr. Alok on his own chose to

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withdraw his resignation and rejoined the company apparently on a tacit
undertaking given by Mr. Rajeev that his request for higher salary would
be reconsidered. The managing director reconsidered the request and
approved the grant of three advance increments to Mr. Alok provided he
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would serve the company at least till the date of his superannuating,
which was two years away. The decision was communicated to Mr.
Alok.
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Mr. Alok once again felt insulted by being asked to agree to an

unacceptable condition, viz., undertaking to continue in the company for
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two more years for the grant of additional increments to his salary, he
thought he was fully justified in his case. He did not agree to the condition
and after two months again submitted his resignation.
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Mr. Rajeev discussed the matter with the managing director. The
managing director stated that in return for the additional salary being
granted to Mr. Alok which was not being given to any other senior
manager of his status, he should display some commitment, to serve the
company. Without such a commitment Mr. Alok might wait for an
opportunity to look for greener pastures and leave the company after
gaining a higher salary, vis-a-vis his other senior colleagues in the
organisation. The other employees would feel that Management can be
blackmailed by the so-called experts into granting more benefits with
the threat of resignation and themanagement would lose its credibility.

The managing director, therefore, decided to accept the resignation of Mr.

Alok. But Mr. Rajeev and other functional directors of the company were
not happy with the decision as they felt that competitors of the company
would gain by Mr. Alok’s departure and, therefore, allowing Mr. Alok to
quit would jeopardize the company’s business interests.

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Questions: Case Study

1. Do you agree with the Managing Director’s appraoch to the

problem?
2. Do you think that Mr. Alok had reasons to be aggrieved or was he
trying to exploit his expertise?
3. What would be your solution to this case.
Case Study:10
Hi-Tech Electronic Limited was established in 1998 in Faridabad. It
produces and markets all type of electronic goods. It has been one among
the top five companies as for the level of technology and one among the
top three companies regarding marketing of the products. The company’s
policies and practices concerning human resource management are top in
the country. The company’s salary administration policies and practices
were taken as guidelines not only by the other companies but also
various wage boards and pay commissions in the country. But this
company has been struggling of salary and benefits. The problem is

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started hereunder.
The company employed nearly 400 young graduate and post- graduate
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engineers just three years back. These employees form the cream of the
company’s present human resource. Of course, the older generation of
company’s employees also formed the cream of company’s human
resource while they were young. The older employees also formed the
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cream of company’s human resource while they were young. The older
employees occupied higher positions in all the departments including
Human Resource Department. The company’s salary policy and benefits
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policy were formulated five years back mainly on the basis of the older
employees desires. As such, salaries are fixed as very low level compared
to other similar industries and the benefit schemes include an exhaustive
list of benefits including all types of retirement benefits. The cost of
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retirement benefits would be nearly 25% of the cost of the present staff to
the company.
The young employees demanded the management to pay immediately
whatever it can pay rather than providing extensive fringe benefits.
According to them, the pay pocket motivates them much more than
benefits which they get mostly in kind. But the older employees view
that fringe benefits much rather than currency which taxes them heavily.
The company asked the human resource manager to settle the issue.
Questions
1. What is the crucial issue in this case?
2. If you are the human resource manager of the company, whom do you
satisfy?

*****

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