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Introduction to Organizational Behavior

Organizational Behavior:
OB can be defined as the understanding, prediction and management of human
behavior in Organization.

The relationship of organizational behavior to other related fields:

OT OB
(Organization (Organizational
Theoretical
Theory) Behavior)

OD HRM
(Organization (Human
Applied
Development) Resource
Management)
Macro Micro

The above mentioned figure shows the relationships between and phases of
organizational behavior and the related disciplines of organization theory,
organization development and human resource management. Organization Theory
tends to be more macro oriented than OB and is concerned primarily with
organization structure and design. Organization development tends to be both
more macro and more applied than OB. On the other hand, HRM tends to have a
more applied focus than OB.

Theoretical Frameworks of OB:

The three most popular frameworks to develop an overall OB model are:

1) Cognitive Framework
2) Behavioristic Framework
3) Social Cognitive Theoretical Framework

(1) Cognitive Framework:

The cognitive approach emphasizes the positive and freewill aspects of human
behavior and uses concepts such as expectancy, demand, and intention.
Cognition, which is the basic unit of the cognitive framework, can be simply
defined as the act of knowing an item of information.

Under this framework, cognitions lead behavior and constitute input into the
person's thinking, perception, problem solving and information processing.
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(2) Behavioristic Framework:

This framework contains classical conditioning experiments to formulate the
stimulus-response (S-R) explanation of human behavior. A Stimulus (S) elicits a
Response (R.). They concentrated mainly on the impact of the stimulus and felt
that learning occurred when the S-R connection was made.

(3) Social Cognitive Framework:

The cognitive approach has been accused of being mentalisic, and the
behavioristic approach has been accused of being deterministic. The Social
Cognitive Approach tries to integrate the contributions of both approaches.

The social cognitive approach emphasizes that the person, the environment, and
the behavior itself are in constant interaction with one another and reciprocally
determine one another.

Some Important points:

• An organization = some physical entity.
• Factors of Productions are :
X land (Mental Talent)
X Labor (Mental Labor)
X Capital
• OB is a combination of individual behavior and group
behavior.
• S-R --> Answer when Asked.
R-S --> Money after work.
Stimulus and response action can be understood by the
following question: " Who does what to whom for what
Purpose?"

• B= [ O = organization; E = Environment ]
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Environment Context: Information Technology &

Globalization

Environment is the sum of factors, circumstances etc. in and around an

after having varying degree of influence on the success and failure of the action.

There have been some amazing breakthroughs in information technology

in recent years. We cannot even think of our daily life without technology like; cell
phones, e-mail; computers, internet; e-business, internet, knowledge management,
human/intellectual capital, etc.

E-business is dominated by business-to-business transactions now and will be

even more so in the future. Knowledge management is concerned with both
tangible knowledge assets and intangible, tacit knowledge or intelligence possessed
by employees and stakeholders.

Globalization is another important environment context. Globalization and

cultural differences must be recognized in the study and understanding of
organizational behavior.

Although it is difficult to make generalizations because of individual

differences and the many subcultures operating in societies and countries, there are
several dimensions of culture that pretty well describe societal orientations. These
dimensions are identified as follows: how people see themselves; people’s
relationship to their world; individualism vs. collectivism; the time dimension; and
public and private space. Theses dimensions lead to organizational behavior
differences across cultures.

Environmental Context: Diversity

Diversity in organizational behavior has traditionally emphasized the

differences among people in a group or organization. Now that the demographic
projections of a few years ago have become a reality (the workforce is older and has
an increasing percentage of women and racial/ethnic minorities), there is an
emerging perspective on diversity as an all-inclusive mixture of differences and
similarities.

Specific Demographic Characteristics of Diversity:

The most widely recognized demographic characteristics contributing to diversity

are:

• Age • Ethnicity

• Gender • Education
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• Other characteristics: language, disabilities act, marital status, single

parents, dual-career couples, and gay & lesbians.

Changing
Changing
workforce
workforce
Demograp
Demograp
The hics.
The hics.
Recognitio
Recognitio Legislation
n and Legislation
n and Increasing and
Increasing and
Desire forfor Diversity
Desire Diversity Lawsuits
Diverse Lawsuits
Diverse in in
today’s
today’s
Viewpoints Organizati
Viewpoints Organizati
ons
ons Rapidly
Rapidly
Competitiv Growing
Competitiv Growing
ee Increase in
Increase in
Pressures Internationa
Pressures Internationa
l Business
l Business

THE RESONS FOR INCREASING DIVERSITY

Personality and Attitudes

Personality means how people affect others and how they understand and view
themselves, as well as their pattern of inner and outer measurable traits and the
person-situation interaction.

How people affect others depends on their trait and external appearance such as,
height, weight, facial features, color, and other physical aspects.

Personality is a product of a person what he or she gets from environment and

heredity. Personality can be Introvert and extrovert.

“Big Five” Personality traits are:

1. Conscientiousness 4. Extraversion

2. Emotional Stability 5. Openness to experience

3. Agreeableness

Attitude is a person’s disposable against something. It is used in describing people

and explaining their behavior.

Attitude can be broken down into three basic components:

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1. Emotional 2. Informational 3. Behavioral

Emotional component involves the person’s feelings or affect – positive, neutral, or

negative- about an object. Informational component consists of the beliefs and
information the individual has about the object. Behavioral component consists of a
person’s tendencies to behave in a particular way toward an object. Human attitude
can be influenced by structuring the work place.

Organizational Context: Design and Culture

Organizational Theory deals with structure, functions, people, technology, and
behavior.

Organizational Structure or Design starts with differentiation and ends with

integration.
Organizationa
l Structure/
Design

Classical/
Horizontal Virtual
Traditional

-The environment
- The is highly unstable
-The environment
and highly
environment is is semi-stable and
unpredictable.
stable & semi predictable.
predictable. -Modern Org.
-Horizontally
Design:
- Vertically align. align.

Edgar Schein defines Organizational Culture as “a pattern of basic assumptions-

invented, discovered, or developed by a given group as it learns to cope with its
problems of external adaptation and internal integration- that has worked well
enough to be considered valuable and therefore, to be taught to new members as
the correct way to perceived, think, and feel in relation to those problems.”

Organizational culture has a number of important characteristics:

 Observed behavioral regularities – participants interact with one another; use

common language, terminology and rituals related to deference and
demeanor.
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 Norms – Standards of behavior exist, including guidelines on how much work

to do.

 Dominant Values – there are major values that the organization advocates
and expects the participants to share.

 Philosophy – organization’s beliefs about how employees and/or customers

are to be treated.

 Rules – strict guidelines related to getting along in the organization.

 Organizational climate – this is an overall feeling that is conveyed by the

physical layout in the organization.

Motivational needs and processes

The term motivation came from the Latin word “movere”, which means “to move”.
Motivation is a set of forces that causes people behave in certain way. Thus,
Motivation is a process that starts with a physiological or psychological deficiency or
need that activates a behavior or a drive that is aimed at a goal or incentive. The
key to understanding the process of motivation lies in the meaning of, and
relationships among: needs, drives, and incentives.

Needs  Drives  Incentives

Three most popular Motivation Theories are:

1. Maslow’s Hierarchy of Needs, 3. Alderfer’s ERG Theory.

2. Herzberg’s Two-Factors,

Alderfer'sERG Maslow'sHierarchyof Herzberg'sTwo

Theory Needs Factor
Self-ActualizationNeed
Growth
Motivators
Self-EsteemNeed

Relatedness LoveNeed

SafetyNeed
HygieneFactor
Existance
Physiological Need
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Maslow’s Hierarchy of Needs:

• Physiological Needs are – basic needs like: hunger, thirst, sleep, sex, money,
etc.

• Safety Needs are – physical safety, work safety.

• Love needs are – belongingness.

• Self-esteem needs are – the need for power, achievement, and status.

• Self-actualization needs are – realizing his/her potential. Self-actualization is

the person’s motivation to transform perception of self into reality.

Herzberg’s Two Factors:

• Motivators: Achievement, recognition, works itself, responsibility and

advancement.

• Hygiene Factors: Company policy and administration, supervision, technical,

salary, interpersonal relations, supervisor and working conditions

Alderfer’s ERG Theory:

• Existence: concerned with survival like physiological well-being.

• Relatedness: stresses the importance of interpersonal, social relationships.

• Growth: concerned with the individual’s intrinsic desire for personal

development.

The most popular process theory of work motivation is Vroom’s Expectancy

Theory.

Expectancy Theory can be defined by asking, how much we want something and
how likely we think we are to get it. It can be described as:

F = sum of [valence x Expectancy]; where F stands for motivational force.

Another popular Motivation Theory is Equity Theory, according to which, contends

that people are motivated to seek social equity is the rewards they receive for
performance. Equity is an individual belief that the treatment he/she is receiving is
fair relative to the treatment received by others.
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Outcomes (self)/inputs (self) = Outcomes (others)/inputs (others).

Reward Systems
Organizations provide rewards to their personnel in order to try to motivate their
performance and encourage their loyalty and retention. Rewards can be in number of
different forms; money (salary, bonuses, incentive pay), recognition, and benefits. Money
proved to be the most dominant reward system in today’s organization.

New Pay Techniques

 Commissions beyond sales to customers: The commissions paid to sales

personnel are aligned with the organization’s strategy and core competencies. As a
result, besides sales volume, the commission is determined by customer satisfaction
and sales team outcomes such as meeting revenue or profit goals.

 Rewarding leadership effectiveness: This pay approach is based on factors

beyond just the financial success of the organization. It also includes an employee-
satisfaction measure to recognize a manager’s people-management skills.

 Rewarding new goals: Rewards under this approach are aimed at all relevant
employees (top to bottom) contributing to goals such as customer satisfaction, cycle
time, or quality measures.

 Pay for knowledge workers in teams: pay is given based on the performance of
knowledge workers involved in reengineering, product development, interfunctional,
or self-managed teams.

 Skill pay: This approach recognizes the need for flexibility and change by paying
employees based on their demonstrated skills rather than the job they perform.
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 Competency pay: This approach goes beyond skill pay by rewarding the more
abstract knowledge or competencies of employees, such as those related to
technology, the international business context, customer service, or social skills.

 Broadbanding: This approach has more to do with the design of the pay plan than
do the others. Broadbanding is the practice of collapsing the traditional large
number of salary levels into a small number of salary grades with broad pay ranges.

Recognition vs. Money

• Enterprises typically have pay systems that are designed to review performance and
give incentive payments only once or twice a year; whereas nonfinancial rewards
such as genuine social recognition can be given at any time.

• Recognition gives social identity and the effects stays longer, whereas giving money
as a reward doesn’t.

• Recognition can lead to enhance performance and loyalty.

• In some occasions, an employee’s getting recognized in company values more than

how much money he gets as a reward.

• By giving recognition means to increase the employee’s self-esteem, and

responsibilities, which results in more productivity than that does money.

POB (Positive Organizational Behavior)

POB is the study and application of positive oriented human resource strengths and
psychological capacities that can be measured, develop, and effectively managed
for performance improvement in today’s workplace.

POB construct criteria:

I. Based on theory and research IV. Open to development

II. Valid measures V. Managed for performance

improvement.
III. Unique concept

The positive psychological capacities that best meet these five criteria are
optimism, hope, happiness/subjective well-being (SWB), resiliency, emotional
intelligence and self-efficacy.

Optimism is the power of positive thinking. In a personal bad events, an optimist

person take it as external (not their fault), unstable (temporary setback) and
specific (problem only in this situation) attributions, whereas, a pessimist person
take it as internal (their own fault), stable (will last long time), and global (will
undermine everything they do) attributions.
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According to C. Rick Snyder and his colleagues, hope is “a positive motivational

state that is based on an interactively derived sense of successful agency
(willpower/goal-directed energy), and pathways (planning to meet
goals/waypower).” The components needed to recognize the comprehensive nature
of SWB (subjective well-being/happiness) are:

• Life Satisfaction: the global judgments of one’s life.

• Satisfaction with important domains: example can be work satisfaction.

• Positive affect: experience of many pleasant emotions and moods.

• Low levels of negative affect: experience of few unpleasant emotions and

moods.

Resiliency is defined as a class of phenomena characterized by patterns of positive

adaptation in the context of significant adversity of risk. In one words “bouncing
back” capacity involves flexibility, adjustment, adaptability, and continuous
responsiveness to change and uncertainty that can otherwise represent a source of
psychological strain and challenge one’s well-being over the long term. Emotional
intelligence is made with two components: emotion and intelligence. Emotion is
how a person feels about something. And on the other hand intelligence is known as
IQ, which we are born with. The synergy created by combining these two
components into emotional intelligence, which becomes a very powerful positively
oriented construct for the understanding and application approach to OB. Self-
efficacy is a person’s knowing himself, discovering his/her own talent and
capability and gaining self-confidence.

Managing Performance through Job

Design
Job Design can be defined as the methods that management uses to develop the
content of a job, including all the relevant tasks, as well as the processes by which
jobs are constructed and revised.

The various Approaches to Job Design are:

Job Design’s Various Approaches

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Job Engineering
Job Engineering
Scientific
Scientific
management,
management,
industrial
industrial
engineering
engineering
approach, job Quality of Work
approach, job Quality of Work
Job Enrichment rotation, job Life
Job Enrichment rotation, job Life
enlargement.
Vertically loading enlargement. A broad-based
Vertically loading A broad-based
approach suggesting
the job toto
provide approach suggesting
the job provide the importance of
the importance of
more overall climate,
more overall climate,
responsibility sociotechnical design,
responsibility sociotechnical design,
Job Design
Job Design and teams.
and teams.
Job
Job
Characteristics Social Information
Characteristics Social Information
Processing
Building skill Processing
Building skill
variety, task A Complex theoretical
variety, task A Complex theoretical
identity, task model suggesting the
identity, task model suggesting the
significance, importance of social
significance, importance of social
autonomy, and information or cues
autonomy, and information or cues
affecting jobholders.
feedback into the affecting jobholders.
feedback into the
job
job

The job Characteristics approach to task design can be summarized as follows:

CRITICAL
CORE JOB PERSONAL AND
PSYCHOLOGICAL
CHARACTERISTICS WORK OUTCOMES
STATES

Variety of skill
High internal work
motivation
Identity of the task Experienced
meaningfulness of the High-quality work
Significance of the work. performance
task

Experienced
High Satisfaction with
Autonomy responsibility for work
the work
outcomes

Knowledge of results Low Turnover and

Feedback
from work activities. absenteeism

Moderated by employee growth-need strength

The Critical psychological states can be summarized as follows:

• Meaningfulness: This cognitive state involves the degree to which employees

perceive their work as making a valued contribution as being important and
worthwhile.
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• Responsibility: This state is concerned with the extent to which employees

feel a sense of being personally responsible or accountable for the work
being done.

• Knowledge of results: Coming directly from the feedback, this psychological

state involves the degree to which employees understand how they are
performing in the job.

The formula for Motivating Potential Score (MPS) is:

MPS = {(skill variety + task identity + task significance)/3} X

autonomy X feedback.

Personal engagement occurs when organizational members place themselves in the

role physically, cognitively, and emotionally during job performance.

Psychological disengagement occurs in situations where the individual

psychologically uncouples from the job, withdrawing in order to defend one’s self
physically, cognitively, and emotionally during a role/job performance.

From a social information processing perspective, three major causes of employee

perception, attitudes, and behaviors on the job are:

1. Cognitive perceptions of the real task environment.

2. Past action, reinforcements received, and learning experiences.

3. The information provided in the immediate social context.

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Leadership:
Leadership is an appropriate behavior of the person in the leader role, who has
ability and motivation to manage one’s own performance, and gain trust, respect
and mutual obligation that generates influence between parties. A leader needs to
be in touch, needs to be empathetic, and he/she needs to be with people. Leaders
need to be a part of what’s going on. He must have the ability to find meaning in
negative events and to learn from even the most trying circumstances. One cannot
be a great leader if he or she does not have great followers.

HISTORICAL THEORIS OF LEADERSHIP

According to The Iowa Leadership studies, there are three types of Leaders:

1. Autocratic/Authoritarian: Autocratic leaders are very directive and allowed

no participation. This leader tended to give individual attention when praising
and criticizing, but tried to be friendly or impersonal rather than hostile.

2. Democratic: Democratic leader encourage group discussion and

decision making. This leader tried to be “objective” in giving praise or
criticism and to be one of the groups in spirit.

3. Laissez-faire: This type of leader gives complete freedom to the group.

This group’s individual are highly qualified and knows how to make their own
decision. Not a significant source of leadership;

According to the Early Michigan Leadership studies, there are four types of
Leaders:

1. System 1: Autocratic Exploitative.

2. System 2: Autocratic benevolent.

3. System 3: Consultative.

4. System 4: Democratic.

TRADITIONAL THEORIES OF LEADERSHIP

According to Trait Theories of Leadership, attention was given to the search for
universal traits possessed by leaders, traits like; conscientiousness, emotional
stability, agreeableness, extraversion and openness to experience. “From Traits to
States and Skills Development”, competencies that are related to leadership
effectiveness:

 Drive or inner motivation to pursue  Leadership motivation.

goals.
 Integrity.
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 Self-confidence.  Knowledge of the business.

 Intelligence.  Emotional intelligence.

Leadership trait theory states that people are born with certain leadership traits. As
some traits are found in effective leadership, the theory states that if you could find
people with the above traits, you will be able to identify leaders. It is important to
identify the characters found in a leader. It is more important to know what
characters the followers search for in leaders. Ideas pertaining to this theory were
present even prior to the emergence of leadership theories. The basic presumption
in this theory is that the leadership qualities and characteristics of a person are
either inherited or developed in the early stage of a life of a person.

These are the 3 assumptions of the Trait Theory:

1. Individual should have certain personal characteristics to become a leader.

2. Such a person has fixed characteristics hence he can function as a leader in

any situation.

3. Characteristics are identifiable and measureable so the leadership ability of a

person can be predicted in advance.

Validity of Trait Theory

Though treated as defective and invalid, even the critics of the trait theory accept
that there is some usefulness in this theory:

 Ability to identify accurately the requirement of a given situation.

 Having the ability and the flexibility to decide a behavioral pattern

appropriate to the given situation.

Fiedler’s Contingency Model of Leadership Effectiveness describes the

relationship between leadership style and the favorableness of the situation.
According to him there are three dimensions of situational favourablenesses:

1. Leader-Member Relationships: It’s the strongest of the situational

variables. It goes from good to poor. A good relationship is said to be
cooperative and friendly. On the other hand, a poor relationship is
antagonistic and difficult.

2. Task Structure: It’s the second strongest of the situational variables. It goes
from structured to unstructured. A structured task is repetitive, routine and
unambiguous, while an unstructured task is at the opposite.

3. Position Power: It’s the weakest variable. It goes from strong to weak. A
leader has a strong position power, if he has the right to assign work, reward
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or punish, hire and fire, give raises, promotions to his employees. On the
other extreme of the scale is the weak position power.

PATH-GOAL LEADERSHOP THEORY

A person may perform these by adopting a certain leadership style, based on the
situation:

1. Directive leadership: Specific advice is given to the group and ground rules
and structure are established. For example, clarifying expectations,
specifying or assigning certain work tasks to be followed.

2. Supportive leadership: Good relations are promoted with the group and
sensitivity to subordinates' needs is shown.

3. Participative leadership: Decision making is based on consultation with

the group and information is shared with the group.

4. Achievement-oriented leadership: Challenging goals are set and high

performance is encouraged while confidence is shown in the groups' ability.

CHARISMATIC LEADERSHIP THEORY

The Charismatic Leader gathers followers through dint of personality and charm,
rather than any form of external power or authority. Charismatic Leaders use a wide
range of methods to manage their image and, if they are not naturally charismatic,
may practice assiduously at developing their skills. They may engender trust
through visible self-sacrifice and taking personal risks in the name of their beliefs.
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They will show great confidence in their followers. They are very persuasive and
make very effective use of body language as well as verbal language. A charismatic
leader must have these following characteristics:

 Vision and articulation;  Personal risk taking;

 Sensitivity to the environment;  Performing unconventional

behavior.
 Sensitivity to member needs;

TRANSACTIONAL/TRANSFORMATIONAL LEADERSHIP THEORY

James MacGregor Burns identified two types of political leadership: Transactional

and Transformational. Transactional leadership is more traditional, involves an
exchange relationship between leaders and followers. Transformational
leadership is based more on leaders shifting the values, beliefs, and needs of their
followers.

TRANSACTIONAL TRANSFORMATIONA
LEADERS L LEADERS
1. Contingent reward 1. Charisma

2. Management by 2. Inspiration
exception (active)
3. Intellectual
3. Management by stimulation
exception (passive)
4. Individual
4. Laissez-faire consideration

Effective Transformational Leaders shares the following characteristics:

1. They identify themselves as change agents.

2. They are courageous.

3. They believe in people.

4. They are value driven.

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5. They are lifelong learners.

6. They have the ability to deal with complexity, ambiguity, and uncertainty.

7. They are visionaries.

A SOCIAL COGNITIVE APPROACH

The Social Cognitive Approach emphasizes understanding. A leader has to

understand himself, his needs, and his behavior and also has to understand the
environment that includes followers, their needs and behaviors. Leadership is
coming out with plans and actions that are acceptable to followers and achieve the
objectives of the group.

The steps in this approach can be described as:

1. The leader identifies the environmental variables that control his behavior.

2. The leader spares his time to work with the subordinate to discover the
personalized set of environmental contingencies that regulate the
subordinate’s behavior.

3. The leader and subordinate jointly attempt to discover ways in which they
can manage their individual behavior to produce more mutually reinforcing
and organizationally productive outcomes.

4. The leader enhances the efficacy of subordinates through setting up

successful experiences (coaching), modeling, positive feedback, and
persuasion, and psychological and physiological arousal. The increased
efficacy leads to performance improvement. The success of the subordinates
can in turn lead to leadership efficacy through the increased confidence in
leader as well as appropriate subordinate behavior to reward his leader.

LEADER
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LEADER BEHAVIOR ENVIRONMENT

A Social Cognitive Approach

LEADERSHIP STYLE
Leadership style is the manner and approach of providing direction, implementing
plans, and motivating people. Kurt Lewin (1939) led a group of researchers to
identify different styles of leadership. This early study has been very influential and
established three major leadership styles. The three major styles of leadership are:

1. Authoritarian or autocratic style. 3. Declarative or Laissez-faire

style.
2. Participative or democratic
style.

Types of Charismatic Leadership styles are:

1. Envisioning: Creating a picture of the future with which people can identify
and that can generate excitement.

2. Energizing: Directing the generation of energy, the motivation to act, among

members of the organization.

3. Enabling: Psychologically helping people act or perform in the face of

challenging goals.

Boss Centered Employee Centered

Theory X Theory Y

Autocratic Democratic

Production Centered Employee Centered

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Close General

Initiating Structure Consideration

Task Directed Human Relations

Directive Supportive

Directive Participative.

CLASSIC SYLE: MANAGERIAL GRID

The managerial grid model (1957) is a

behavioral leadership model
developed by Robert Blake and Jane
Mouton. This model originally
identified five different leadership
styles based on the concern for people
and the concern for production.

The model is represented as a grid with concern for production as the X-axis and
concern for people as the Y-axis; each axis ranges from 1 (Low) to 9 (High). The
resulting leadership styles are as follows:

1. The indifferent (previously called impoverished) style (1, 1): evade

and elude. In this style, managers have low concern for both people and
production. Managers use this style to preserve job and job seniority,
protecting themselves by avoiding getting into trouble. The main concern for
the manager is not to be held responsible for any mistakes, which results in
less innovative decisions.
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2. The accommodating (previously, country club) style (1, 9): yield and
comply. This style has a high concern for people and a low concern for
production. Managers using this style pay much attention to the security and
comfort of the employees, in hopes that this will increase performance.

3. The dictatorial (previously, produce or perish) style (9, 1): control and
dominate. With a high concern for production, and a low concern for people,
managers using this style find employee needs unimportant; they provide
their employees with money and expect performance in return. Managers
using this style also pressure their employees through rules and punishments
to achieve the company goals. This style is often used in case of crisis
management.

4. The status quo (previously, middle-of-the-road) style (5, 5): balance

and compromise. Managers using this style try to balance between company
goals and workers' needs. By giving some concern to both people and
production, managers who use this style hope to achieve suitable
performance but doing so gives away a bit of each concern so that neither
production nor people needs are met.

5. The sound (previously, team) style (9, 9): contribute and commit. In this
style, high concern is paid both to people and production. Managers choosing
this style to encourage teamwork and commitment among employees.

Another classic approach to management-style training and development is the

Life-cycle Approach to leadership, which identifies two major styles:

1. Task Style: The leader organizes and defines roles for members of the
work group.

2. Relationship Style: The leader has close, personal relationships with

the members of the groups, and there is open communication and
psychological and emotional support.

Employee’s level of maturity is defined by three criteria:

1. Degree of achievement motivation.

2. Willingness to take on responsibility.

3. Amount of education and/or experience.

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The Four key style for leadership effectiveness:

Low-relationship Telling Style Delegating Style

High-relationship Selling Style Participating Style

High Task Low Task

Leader/Manager Roles involves the following steps:

Formal Interperson Informatio Decision

Authority al Roles. nal Roles al Roles
and Status
Figurehead Monitor Entrepreneur

Leader Disseminator
disturbance handler

Liaison Spokesperson
Resource Allocator

Negotiator

What do managers Do?

Manager’s activities are given below:

Exchanging information
Communicat
ion Handling paperwork

Planning
Traditional
Decision Making
Management
Controlling

Interacting with outsiders

Networking
Socializing/politicking
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Motivating/Reinforcing

Disciplining/Punishing
HRM
Managing Conflict

Staffing

Training/Developing

What skills do Leaders Need?

1. Cultural flexibility 4. Creativity

2. Communication skills 5. Self-management of learning

3. HRD skills

Effective Manager’s 10 skills:

1. Verbal 6. Delegating

2. Managing time and stress 7. Setting goals and articulating a

vision
3. Managing individual decision
8. Self-awareness
4. Recognizing, defining and
solving problems 9. Team building

5. Motivating and influencing 10.Managing conflict

others

Effective Leader’s 4 Skills:

1. Participative and human 3. Innovativeness and

relations entrepreneurship

2. Competitiveness and control 4. Maintaining order and

rationality

Personal Leadership Skills: a. Determining values and

priorities
1. Developing Self-awareness:
b. Identifying cognitive style
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c. Assessing attitude toward a. Coaching

change
b. Counseling
2. Managing Stress:
c. Listening
a. Coping with stressors
5. Gaining power and
b. Managing time influence:

c. Delegating a. Gaining power

3. Solving Problems Creatively: b. Exercising influence

a. Using the rational c. Empowering others.

approach
6. Motivating others:
b. Using the creative
approach a. Diagnosing poor
performance
c. Fostering innovations in
others. b. Creating a motivating
environment

c. Rewarding
accomplishments

7. Managing conflict:

Interpersonal Leadership a. Identifying causes

Skills: b. Selecting appropriate
strategies
4. Communicating
Supportively: c. Resolving confrontations

GROUP AND TEAM

Group is an entity composed of at least 2%. A comprehensive definition would say
that if a group exists in an organization, its members:

 Are motivated to join

 Perceive the group as an unified unit of interacting people

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 Contribute in various amounts to the group processes

 Agree and disagree through various forms of interaction.

Types of Group:
There are numerous types of groups:

1. Dyad Group: A dyad (from Greek dýo, "two") in sociology is a noun used to
describe a group of two people. "Dyadic" is an adjective used to describe this
type of communication/interaction. A dyad is the smallest possible social
group. The pair of individuals in a dyad can be linked via romantic interest,
family relation, interests, work and so on. The relation can be based on
equality, but may be based on an asymmetrical or hierarchical relationship
(master-servant). The strength of the relationship is evaluated on the basis of
time the individuals spend together, as well as on the emotional intensity of
their relationship. Dyadic friendships refer to the most immediate and
concrete level of peer interaction, which is expanded to include new forms of
relationships in adolescence - most notably, romantic and sexual
relationships.

2. Small Groups: A small group has to meet only the criterion of small size.
Usually no attempt is made to assign precise numbers, but the accepted
criterion is that the group must be small enough for face-to-face interaction
and communication to occur. In addition to being small, a primary group
must have a feeling of comradeship, loyalty, and a common sense of values
among its members.

3. Large Groups: Where face-to-face interaction is not possible with all the
members of the group at the same time.

4. Primary Groups: A primary group is a typically small social group whose

members share close, personal, enduring relationships. These groups are
marked by members' concern for one another, and shared activities and
culture. Examples include family, childhood friends, and highly influential
social groups. Primary groups play an important role in the development of
personal identity. Relationships formed in primary groups are often long-
lasting and goals in themselves. They also are often psychologically
comforting to the individuals involved and provide a source of support and
encouragement.

5. Secondary groups: People in a secondary group interact on a less

personal level than in a primary group, and their relationships are temporary
rather than long lasting. Since secondary groups are established to perform
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functions, people’s roles are more interchangeable. A secondary group is one

you have chosen to be a part of. They are based on interests and activities.
Secondary groups are groups in which on exchanges explicit commodities,
such as labor for wages, services for payments, and such. Examples of these
would be employment, vendor-to-client relationships, and such.

6. Coalitions: A coalition is an alliance among individuals or groups, during

which they cooperate in joint action, each in their own self-interest, joining
forces together for a common cause. This alliance may be temporary or a
matter of convenience.

Coalitions Characteristics:

i. Interacting group of individuals

ii. Deliberately constructed by the members for a specific purpose

iii. Independent of the formal organization’s structure

iv. Lacking a formal internal structure

v. Mutual perception of membership

vi. Issue-oriented to advance the purposes of the members

vii. External forms

viii. Concerted member action, act as a group.

7. Membership Groups are those to which the individual actually belongs.

8. Reference Groups are those to which an individual will like to belong—

those he or she identifies with.

9. In and out groups: In groups are those who have or share the dominant
values, and out groups are those on the outside looking in.

10. Formal Groups: This kind of group lasts several days to several
weeks, requires more planning as to the size and composition of the group,
has greater structure, has a specific purpose (e.g., a particular task to
accomplish), and has the same group members throughout its existence.

11. Informal Groups: Informal groups form for political, friendship, or

common interest reason.

GROUP DYNAMICS
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Group Dynamics describes how a group should be organized and conducted and it
consists of a set of techniques. Group Dynamics are viewed from the perspective of
the internal nature of groups, how they form, their structure and processes, and
how they function and affect individual members, other groups and the
organization.

GROUP FORMATION

There are many theories that attempt to explain group formation. One of the more
comprehensive is Theodore Newcomb’s classic balance theory of group formation.

The balance Theory of Group Formation states that persons are attracted to one
another on the basis of similar attitudes toward commonly relevant objects and
goals.

INDIVIDUAL X INDIVIDUAL Y

COMMON ATTITUDES AND VALUES

Authority

Religion
THE BALANCE THEORY
Politics
OF GROUP
FORMATION Lifestyle

Marriage

Work

Some generally recognized identifiable stages of group development:

1. Forming: (uncertainty and confusion) Group members are not sure about
the purpose, structure, task, or leadership of the group.

2. Storming: (conflict and confrontation) The stage of development. May have

considerable disagreement and conflict among the members about roles and
duties.

3. Norming: (cooperation and collaboration) Have a “we” feeling with high

cohesion, group identity, and camaraderie.

4. Performing: Group is fully functioning and devoted to effectively

accomplishing the tasks agreed on in the norming stage.

5. Adjourning: (end of the group, ongoing) it is ongoing, permanent groups will

never be reached. For project teams or task forces with a specific objective,
once the objective is accomplished, the group will disband or have a new
composition, and the stages will start over again.
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Group Formation Techniques:

 Roll playing  Group therapy

 Brain storming  Team building

 Focus  Transactional Analysis

 Leadership

Differences between Work Group and Team:

Work Group Team

1. Has a strong, clearly focused 1. Has shared leadership roles.
leader.
2. Has individual and mutual accountability
2. Has individual accountability
3. Has a specific purpose
3. Purpose is the same as the
organization 4. Has collective work-products

4. Has individual work products 5. Measures performance directly by assessing

collective work-product.
5. Work group measures
effectiveness indirectly 6. Discusses, decides, and does real work.

6. Discusses, decides, and 7. Encourages open-ended, active problem-

delegates. solving meetings.

7. The work group runs efficient

meetings.

TYPES OF TEAMS

There are three major types of Teams:

1. Cross-functional Teams

2. Virtual Teams

3. Self-managed Teams

Cross-functional teams are made up of individuals from various departments or

functional specialties. The key to ensuring successful performance of cross-
functional teams is found in two sets or criteria:
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1. Inside the team 2. In the organization at large

To improve coordination with cross-functional teams, organizations can carry out

five steps:

1. Choosing the membership carefully

2. Clearly establishing the purpose of the team

3. Ensuring that everyone understands how the group will function

4. Conducting intensive team building up front so that everyone learns how

to interact effectively

5. Achieving noticeable results so that morale remains high and the

members can see the impact of their efforts.

Virtual teams are groups of people who work interdependently with shared
purpose across space, time, and organization boundaries using technology to
communicate and collaborate. Virtual teams can be effective because they are
flexible and are driven by information and skills rather than time and location.

Self-managed teams can be defined as a group of employees who are responsible

for managing and performing technical tasks that result in a product or service
being delivered to an internal or external customer.

Self-managed team’s ineffectiveness involves some individual problems include:

• Team members aren’t willing to give up past practices or set aside power and
position.

• Not all team members have the ability, knowledge, or skill to contribute to
the group.

• As team members, workers often face conflicts or challenges to their own

personal beliefs.

Effective team making involves four ways:

1. Team building: Team building succeeds when individuals share

collective intelligence and experience a sense of empowerment.

2. Collaboration: The process of collaboration involves learning how to

improve interpersonal interactions in group settings while committing to a
common agenda.
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3. Leadership: Leaders need to use two key ways which may affect
performance of groups: (a) How they select members; and (b) The tactics
they use to affect those members.

4. Understanding of cultural issues in global situations:

- Adapting to each culture. - Respecting local laws.

- Changing implementation of teams for each culture.