Organization Behavior

Organization Behaviour
UNIT 1: Organization Behaviour

Organisation: Concept, Nature, Importance and Benefits:
The term ‘Organising’ and ‘Organisation’ are given a variety of interpretations.
In the first sense, ‘organising’ refers to a dynamic process and a managerial
activity by which different elements or parts of an enterprise are brought

together to obtain a desired result.
The organization structure is also viewed differently -
Organisation as a network of relationships, a blueprint of how the managers will
assign the various activities and connect them together. Some others look upon it
as a social system, consisting of human relationships existing among the people

performing different activities.
Definitions:-
Louis A. Allen:
“Organisation is the process of identifying and grouping the works to be
performed, defining and delegating responsibility and authority and establishing
relationship for the purpose of enabling people to work more effectively together
in accomplishing objectives.”
Theo Haimann:
“Organising is the process of defining and grouping the activities of the
enterprise and establishing the authority relationships among them. In
performing the organising function, the manager defines, departmentalizes and

assigns the activities so that they can be effectively executed.”
K S S PG CENTRE VIDYANAGR HUBLI Page 1

Nature of Organisation:
There are some common features of organisation through which a clear idea
about its nature can be obtained. These are indicated below:
1. Process:
Organisation is a process of defining, arranging and grouping the activities of an
enterprise and establishing the authority relationships among the persons
performing these activities. It is the framework within which people associate for
the attainment of an objective.
The framework provides the means for assigning activities to various parts and
identifying the relative authorities and responsibilities of those parts. In simple
term, organisation is the process by which the chief executive, as a leader, groups
his men in order to get the work done.
2. Structure:
An organisation as a structure contains an “identifiable group of people
contributing their efforts towards the attainment of goals.” It is an important
function of management to organise the enterprise by grouping the activities
necessary to carry out the plans into administrative units, and defining the
relationships among the executives and workers in such units.
3. Dividing and Grouping the Activities:
Organising means the way in which the parts of an enterprise are put into
working order. In doing such, it calls for the determination of parts and
integration of one complete whole on the other. In fact, organisation is a process

of dividing and combining the activities of an enterprise.
Activities of an enterprise are required to be distributed between the

departments, units or sections as well as between the persons for securing the
benefits of division of labour and specialisation, and are to be integrated or
combined for giving them a commonness of purpose.

4. Accomplishment of Goals or Objectives:
organisation structure has no meaning or purpose unless it is built around
certain clear-cut goals or objectives. In fact, an organisation structure is built-up
precisely because it is the ideal way of making a rational pursuit of objectives.
Haney defines organisation as: “a harmonious adjustment of specialised parts for
the accomplishment of some common purpose or purposes”.
5. Authority-Responsibility Relationship:
An organisation structure consists of various positions arranged in a hierarchy
with a clear definition of the authority and responsibility associated with each of
these. An enterprise cannot serve the specific purposes or goals unless some
positions are placed above others and given authority to bind them by their
decisions.
6. Human and Material Aspects:
Organisation deals with the human and material factors in business. Human
element is the most important element in an organisation. To accomplish the
task of building up a sound organisation, it is essential to prepare an outline of
the organisation which is logical and simple. The manager should then try to fit
in suitable men. Henry Fayol says in this connection: “see that human and
material organisations are suitable” and “ensure material and human order”.
Importance and Significance of Organisation:
No institution or enterprise—whether business, educational, cultural or
governmental—can function properly and successfully without sound

organisation. And herein lies the need for and significance of organisation.

1. Efficient Administration:
A properly designed organisation facilitates administration. Proper division of
work with systematic and specific fictionalization of duties and consistent
delegation of authority with well-defined inter-relationship will not only ensure
better utilisation of the personnel and their abilities but also smooth the
management of business activities.
It avoids confusion and misunderstanding, eliminates delay and inefficiency in
the performance of work; it removes all bottlenecks in the flow of work and
facilitates quick and correct decisions. It secures optimum use of physical,

mechanical and human resources.
2. Prompt Accomplishment:
It adds definiteness to the activities to be accomplished by allocating the duties
and responsibilities to the individual members of the enterprise. It, thus, secures
certainty and promptness in accomplishment of the task.
3. Growth and Diversification:
It promotes growth and facilitates diversification. Expansion of business and
diversification of production process depend on sound organisation. Giant

businesses are the outcome of organisational ability of the managers.
4. Optimum Use of Advanced Technology:
Present technical development greatly influences the need for more adequate
organisation structure and for understanding the proper form of organisation
best designed to accommodate the new factors. The high cost of installation,
operation and maintenance of new equipment call for proper organisation.
5. Stimulating Creativity:
Good organisation stimulates independent creative thinking and initiative by
providing well-defined areas of work with provision for development of new and
improved ways of doing things.

In short, the organisation structure demands creative result from creative
people. By establishing clear-cut accountability it provides recognition for the

professionals and the specialists in terms of their achievements.
Steps in Organisation Process:
The management function of organising consists in making a rational division of
work and integration of the activities into specific groups to achieve a well-co-
ordinated and orderly structure for the accomplishment of work.
The various steps involved in this process are the following:
1. Determination of Activities:
The first step in organising is to divide the total job of an enterprise into several
essential activities such as—production, financing, purchasing, sales, personnel,
and so on. Identification of work enables the managers to concentrate attention

on important activities, to avoid duplication of work, and eliminate overlapping
or wastage of effort.
2. Grouping or Classification of Activities:
The various activities identified under the first step are then classified into
appropriate departments, divisions, sections, sub-divisions etc. on the basis of

functions, products, territories or customers.

For example, the various activities connected with production may be grouped
and classified as ‘production department activities.’ This will facilitate

specialisation. Such grouping of activities is called ‘ Departmental ion.’
3. Allocation or Assignment of Duties to Individuals:
After the creation of departments or divisions, the next step will be to fix suitable
and qualified persons into the activities of each department. Each person in the
department will be given a specific part of the job to do and will be made
responsible for it.
4. Establishment of Relationships:
Through the assignment of tasks to individuals superior-subordinate
relationships between various positions are established in the enterprise. The
superior manager commands his subordinates and the subordinate manager
gives him the reports of his performances. Such relationships and channels of
communication should be clearly defined.
Each and every individual should know clearly from whom he is to take orders
and to whom he is accountable for his performance.
5. Delegation of Authority:
Appropriate amount of authority is delegated to people to enable them to
perform the assigned duties with confidence. No one can discharge his respon-
sibilities regarding a particular work in the absence of requisite authority to do
the same. So the manager will have to pass on authority for completing the
assigned work to the sectional managers and the sectional managers to others
below them.

Organisation Theory:
Organisation Theory: Concept, Importance and Classification!
Concept of Organization theory:
An organization theory furnishes a general frame of reference for explaining
understanding behavior patterns in organizations. It also furnishes a scientific
base for managerial actions for predicting, controlling and influencing behavior
with a view to increase efficiency of the organization.
Classification Organization Theories:
The evolution of organization and management can be divided into three broad
classifications as follows:
1. Classical Organisation Theory:
The classical theory represents the traditionally accepted views about
organisations i.e. organisation was viewed as machine and human beings as
components of that machine. The classical theory is the beginning of the

systematic study of the organisations.
The classical theorists concentrated on organisation structure for the
achievement of organisational goals, thus, focusing on input-output mediators
and giving less or no attention to facilitating and constraining factors in the

external environment.
These are :
(i) Scientific Management introduced by F.W. Taylor
(ii) Administrative or Process management introduced by Henry Fayol and
(iii) Bureaucratic model introduced by Max Weber.

The scientific management group was mainly concerned with the tasks to be
performed at the operative levels. Henry Fayol studied for the first time the
principles and functions of management. Max Weber introduced bureaucracy as

a form of rational organisation.
2. Neo-Classical Organisation Theory:
The classical theory of organisation focused its main attention on physiological
and mechanical variables of organisational functioning. The testing of these
variables does not show positive results. The Neo-classical writers tried to
remove the deficiencies of the classical school.
This theory consists of two schools of thought viz:

(i) Human Relations propounded by Elton Mayo and Roethlisberges
(ii) Behavioural Science Approach introduced by A. Maslow, D. McGregor, F.

Herzberg and V. Vroom.
The Hawthorne studies conducted by Elton Mayo and associates discovered that
real cause of human behaviour was somewhat more than mere physiological
variables. These studies revealed the importance of social and psychological
factors in determining workers’ productivity and satisfaction. The pioneers of
Behavioural Approach reasoned that in as much as managing involves getting
things done with and through people the study of management must be centered
around people and their inter-personal relations. The advocates of this theory
concentrated on motivation, individual drives, group relations, leadership, group

dynamics and so forth.
3. Modern Organisation Theory:
Modern organisation theory is of recent origin, having developed in early 1960s.

This theory has tried to overcome the drawbacks of earlier theories.

They theory may be understood in two approaches:

(i) Systems Approach and
(ii) Contingency Approach.
The systems approach studies the organisation in its totality. The mutually
dependent variables are properly analyzed. Both internal and external variables
are studied in analyzing the nature of organisation.
The contingency approach suggests that there is no best way to handle all of the
management problems and there is no organisational structure to suit all the
situations. A structure will be suitable only if it is trailer made for an enterprise.
This approach suggests that needs, requirements, situations of a particular

concern should be considered while designing an organisational structure.
Types of Organization
An organization can be classified on the basis of authority relationships or on the

basis of its departments.
Organizations based on Authority Relationships :
Line Organization
Matrix Organization
Committee Organization
Functional Organization
Line and Staff Organization
Line Organization: - Line organization also called military or scalar

organization. It is said to be the oldest and most traditional type of
organization, which is widely used even today.

Merits Demerits
A. It sets clearly the direct lines of A. It is likely that the line manager is
authority and overburden
responsibility of a line manager with all tasks relating to a particular

section
B. It is simple to understand B. There no scope for specialization
C. Each section are department can be C. There is more scope for favoritism
treated as a unit for control purposes and nepotism
D. It is flexible D. It may lead to low morale in the

organization
E. It facilitates quick decisions and E. Instability is likely, due to lack of

prompt actions continuity
1. Line and Staff Organization: - The word “staff” means a stick for support.
The staff members are specially appointed to give advice, and suggest, or
assist the line managers in their day to day matters. The line manager can
take the support of their staff mangers to get a full view of the issue under
consideration.

Merits Demerits
A. It enhances the quality of A. It may create more friction or

decisions conflict between line and staff
managers
B. There is a greater scope for B. Staff suggestions are seldom

advancement implemented
C. It relieves the line managers C. It is expensive to have both staff

and line managers
3. Functional Organization: - Taylor observed that one single foreman was

overburdened with all the operations such as task setting, time recording,
quality inspection, disciplinary jobs and so on.
Merits Demerits
A. Planned specialization A. Ineffective controls as workers

have more than one boss
B. Separates activities related to B. Very costly

planning and control

C. Facilitates large scale production C. Calls for more coordination

through standardization
D. The disciplinary controls are well D. No clear line authority

defined
4. Committee Organization: - A committee is formed when two or more persons

are appointed to work as a team to arrive at a decision on the matters referred to
it. It is intended to utilize the knowledge, skills, and experiences of all the
concerned parties. Particularly, in large organizations, problems are too big to be
handled by one expert.
Merits Demerits
A. It pools up the organizational A. Responsibility for decisions cannot

resources in terms of knowledge, be fixed on a particular person
skills and experiences
B. It represents all interested groups B. It calls for high degree of

and thus, facilitates group decision coordination
C. It minimizes the fear of too much C. It involves high cost in terms of

authority vested in one person time and money

D. It motives all the concerned or affected groups to participate
5. Matrix Organization: - This is also called project organization. It is a

combination of all relationships in the organization- vertical, horizontal and
diagonal. It is mostly used in complex projects. It provides a high degree of
operational freedom, flexibility and adaptability for both the line and the staff
managers in performing their respective roles.
Merits Demerits
A. It offers operational freedom and A. It calls for greater degree of

flexibility coordination
B. It Seeks to optimize the B. It violates unity of command

utilization of resources principle
C. It focuses on end results C. It may be difficult to define

authority
D. Maintain professional identity D. Employees may find it

frustrating to work

Organizations based on Departments
Functional departmentation
Product organization
Geographical, regional organization
Customer organization
1. Functional departmentation: - This is similar to the modern view of functional

structure of organizations. Marketing, engineering, production and finance are
the basic functions of a manufacturing organization. So, the departments are
also named accordingly.
Merits Demerits
A. Here, each function or process is A. It delays decisions and

focused implementation
B. Specialization enhances the B. It calls for more coordination

quality of decisions
C. It reduces the load on the senior C. It is expensive in terms of time

executives and resources
D. It offers better control D. It may not be suitable for small

organizations
E. Training needs can be well identified for career progression

F. It is more suitable for large and medium organizations
2. Product Organization: - Here, the departments are based on the products

manufactured or services rendered. It is common in case of organizations
specializing in different products or services. Such as manufacturing, financing,
wholesaling, and the like
Merits Demerits
A. It strengthens the manufacturing A. Adequate number of qualified and

facilities product wise or process- wise professional managers may not be
available
B. It provides for growth and B. Maintaining central services may

diversification not be cost- effective
C. It ensures better customer care C. It tend to increase the problems of

control for top management
D. All facilities are available under D. The organization may yet

one roof disintegrated with increasing focus on
departments

3. Geographical, regional, territorial Organization: - This is further specialized

type of organization, which is used to operate over wide geographic areas. Here,
organization is divided into territories of regions commonly used for the
decentralization of responsibility over certain areas. This is method is popularly
used in sales and production functions.
Merits Demerits
A. Responsibility is fixed at the A. It may be difficult for the top

territory level management to monitor and control
the territory level operations
B. Local facilities and resources can B. It may involve duplication of costs

be well utilized
C. Managers at lower level can be C. It may be difficult to find

made more responsible competent managers to head different
locations
D. It trains managers for senior management positions

4. Customer organization: - Here, all the activities of the enterprise are grouped
on the basis of profile of its customers. Each group is managed by one
department head. This type of organization caters to the different characteristics
and needs of its customers.
Merits Demerits
A. It focuses on the specific needs of A. It calls for focused training

individual customers programs to cater to the specific
customer needs
B. It ensures better customer care B. It may be very costly
C. It develops a competitive C. Frequently changes in the market

advantage through core- competence conditions may render under-
utilization of services
D. It is based on growing and D. It may difficult to specialize in

diversified needs of customers the customer problems if the
customer group is small
E. The customer requirements keep changing and so also the customer

groups

Organizational Behaviour:
Definition of Organizational Behavior:
Organizational behavior is a field of study that investigates the impact that

individuals groups and structure have on behavior within organizations, for the
purpose of applying such knowledge toward improving an organization's
effectiveness.
According to Newstorm and Keith Davis----
"Organizational behaviour is the study and application of knowledge abvout how

people act within organization."
According to fred Luthans----
"Organizational behavior can be defined as the understanding prediction and

management of human behavior in organization."
From the above discussion, we get OB is concerned with the study of what people
do in an organization and how their behavior affects the organization's
performance. OB is concerned specifically with employment related situation,
such as, job, work, absenteeism, employment turnover, productivity, humna
performance and management.
NATURE AND SCOPE (FEATURES) OF ORGANIZATIONAL BEHAVIOUR
Organizational behaviour has emerged as a separate field of study. The nature it

has acquired is identified as follows :
1. A Separate Field of Study and not a Discipline Only
By definition, a discipline is an accepted science that is based on a theoretical

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

2. An Interdisciplinary Approach
Organizational behaviour is essentially an interdisciplinary approach to study

human behaviour at work. It tries to integrate the relevant knowledge drawn
from related disciplines like psychology, sociology and anthropology to make
them applicable for studying and analysing organizational behaviour.
3. An Applied Science
The very nature of O.B. is applied. What O.B. basically does is the application of
various researches to solve the organizational problems related to human
behaviour. The basic line of difference between pure science and O.B. is that
while the former concentrates of fundamental researches, the latter concentrates
on applied researches. O.B. involves both applied research and its application in
organizational analysis. Hence, O.B. can be called both science as well as art.
4. A Normative Science
Organizational Behaviour is a normative science also. While the positive science

discusses only cause effect relationship, O.B. prescribes how the findings of
applied researches can be applied to socially accepted organizational goals. Thus,
O.B. deals with what is accepted by individuals and society engaged in an
organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management
theories.
5. A Humanistic and Optimistic Approach
Organizational Behaviour applies humanistic approach towards people working

in the organization. It, deals with the thinking and feeling of human beings. O.B.
is based on the belief that people have an innate desire to be independent,
creative and productive. It also realizes that people working in the organization
can and will actualize these potentials if they are given proper conditions and
environment. Environment affects performance or workers working in an
organization.
6. A Total System Approach
The system approach is one that integrates all the variables, affecting
organizational functioning. The systems approach has been developed by the
behavioural scientists to analyse human behaviour in view of his/her socio-
psychological framework. Man's socio-psychological framework makes man a
complex one and the systems approach tries to study his/her complexity and find
solution to it.

Scope of Organizational Behaviour
The three internal organizational elements viz., people, technology and structure
and the fourth element, i.e., external social systems may be taken as the scope of
O.B.
1. People
The people constitute the internal social system of the organization. They
consist of individuals and groups. Groups may be large or small, formal or
informal, official or unofficial. They are dynamic. They form, change and
disband. Human organization changes everyday. Today, it is not the same as it
was yesterday. It may change further in the coming days. People are living,
thinking and feeling being who created the organization and try to achieve the
objectives and goals. Thus, organizations exist to serve the people and not the
people exist to serve the organization.
2. Structure
Structure defines the sole relationship of people in an organization. Different

people in an organization are given different roles and they have certain
relationship with others. It leads to division of labour so that people can perform
their duties or work to accomplish the organizational goal. Thus, everybody
cannot be an accountant or a clerk. Work is complex and different duties are to
be performed by different people. Some may be accountant, others may be
managers, clerks, peons or workers. All are so related to each other to accomplish
the goal in a co-ordinated manner. Thus, structure relates to power and duties.
One has the authority and others have a duty to obey him.
3. Technology
Technology imparts the physical and economic conditions within which people
work. With their bare hands people can do nothing so they are given assistance
of buildings, machines, tools, processes and resources. The nature of technology
depends very much on the nature of the organization and influences the work or
working conditions. Thus, technology brings effectiveness and at the same
restricts people in various ways.
4. Social System
Social system provides external environment which the organization operates.

A single organization cannot exist also. It is a part of the whole. One
organization cannot give everything and therefore, there are many other
organizations. All these organizations influence each other. It influences the
attitudes of people, their working conditions and above all provides competition
for resources and power.

O.B. is the study of human behaviour at work in organizations. Accordingly,

the scope of O.B. includes the study of individuals, groups and
organization/structure. Let us briefly reflect on what aspects each of these three
cover.
5)Individuals
Organizations are the associations of individuals. Individuals differ in many

respects. The study of individuals, therefore, includes aspects such as
personality, perception, attitudes, values, job satisfaction, learning and
motivation.
6)Groups of Individuals
Groups include aspects such as group dynamics, group conflicts,

communication, leadership, power and politics and the like.
Limitations of Organizational Behavior:

Behavioral bias: It further causes dependence, dis-contentment, indiscipline, and
irresponsibility.
Law of diminishing returns: It says that beyond a certain point, there is a decline
in output even after each additional good or positive factor.
Unethical practices and manipulation of people: Knowledge of motivation and
communication acquired can be used to exploit subordinates in an Organization
by the manipulative managers.
Contributing disciplines to the OB field
Organizational behavior is an applied behavioral science that is built on

contributions from a number of behavioral disciplines. The predominant areas
are psychology, sociology, social psychology, anthropology, and political science.
Psychology:
Psychology is the science that seeks to measure, explain, and sometimes change
the behavior of humans and other animals. Psychologists concern themselves
with studying and attempting to understand individual behavior. Those who
have contributed and continue to add to the knowledge of OB are learning
theorists, personality theorists, counseling psychologists, and, most important,
industrial and organizational psychologists.

Sociology:
While psychology focuses on the individual, sociology studies people in relation to

their fellow human beings. Specifically, sociologists have made their greatest
contribution to OB through their study of group behavior in organizations,
particularly formal and complex organizations. Some of the areas within OB that
have received valuable input from sociologists are group dynamics, design of
work teams, organizational culture, formal organization theory and structure,
organizational technology, communications, power, and conflict.
Social Psychology:
Social psychology blends concepts from both psychology and sociology. It focuses
on the influence of the people on one another. One of the major areas under
considerable investigation by social psychologists has been change— how to
implement it and how to reduce barriers to its acceptance. In addition, we find
social psychologists making significant contributions in the areas of measuring ,
understanding, and changing attitudes; communication patterns; building trust;
the way in which group activities can satisfy individual needs; and group
decision-making process.
Anthropology:
Anthropology is the study of societies to learn about human beings and their
activities. For instance, anthropologistsâ€™ work on cultures and environments
has helped us understand differences in fundamental values, attitudes, and
behavior between people in different countries and within different
organizations. Much of our current understanding of organizational culture,
organizational environments, and differences between national cultures is the
result of the work of anthropologists or those using their methods.
Political Science:
Although frequently overlooked, the contributions of political scientists are

significantly to the understanding of behavior in organizations. Political science
studies the behavior of individuals and groups within a political environment.
Specific topics of concern here include the structuring of conflict, allocation of
power, and how people manipulate power for individual self-interest.
MODELS OF ORGANIZATIONAL BEHAVIOUR:

The Autocratic Model:
In case of an autocratic model, the managerial orientation is doctorial. The

managers exercise their commands over employees. The managers give orders
and the employees have to obey the orders.

Thus, the employees orientation towards the managers/bosses is obedience.

Under autocratic conditions, employees give higher performance either because
of their achievement drive or their personal liking to the boss or because of some
other factor.
The Custodial Model:
The basis of this model is economic resources with a managerial orientation of

money. The employees in turn are oriented towards security and benefits and
dependence on the organization. The employee need that is met is security. The
performance result is passive cooperation.
While studying the employees, the managers realized and recognized that
although the employees managed under autocratic style do not talk back to their
boss they certainly think back about the system. Such employees filled with
frustration and aggression vent them on their co-workers, families and
neighbors. This made the managers think how to develop better employee
satisfaction and security. It was realized that this can be done by dispelling
employees' insecurities, frustration and aggression. This called for introduction
of welfare programmers to satisfy security needs of employees.
The Supportive Model:
The supportive model is founded on leadership, not on money or authority. In

fact, it is the managerial leadership style that provides an atmosphere to help
employees grow and accomplish their tasks successfully. The managers recognize
that the workers are not by nature passive and disinterested to organizational
needs, but they are made so by an inappropriate leadership style. The managers
believe that given due and appropriate changes, the workers become ready to
share responsibility, develop a drive to contribute their mite and improve
themselves. Thus, under supportive approach, the management's orientation is
to support the employee's job performance for meeting both organizational and
individual goals.
The Collegial Model
The collegial model is an extension of the supportive model. As the literal

meaning of the work 'college' means a group of persons having the common
purpose, the collegial model relates to a team work/concept. The basic foundation
of the collegial model lies on management's building a feeling of partnership with
employee. Under collegial approach, employees feel needed and useful. They
consider managers as joint contributors to organizational success rather than as
bosses.

Evolution of OB:
Robert Owen-(1800):
Young Factory Owner-First to emphasize the human needs of employees and

refused to employ children Taught workers to improve working conditions.
Father of personnel management Andrew Ure-(1935):
The Philosophy of Manufacturers -1835 Value of human factor in manufacturing

Provided welfare facilities to workers J.N. TATA in 1886 Instituted a pension
fund & 1895 began to pay accident compensation.
William Gilbreth-(1914):
“The Psychology of Management”
F.W.Taylor-(1916):
Father of Scientific Management Time & Motion Study Piece Rate Method.
Henry Fayol (1916):
Administrative Management , Principle of Governing Behavior, Management

Quality
Elton Mayo-(1920’s & 1930’s):

Human behavior at Harvard University Hawthorne's Experiments/Plant
Abraham H. Maslow (1954):
Need Hierarchy Motivation model Douglas McGregor (1960): Theory X and

Theory Y Managerial Style
Henry Mintzberg (1960) :
Managerial Roles : Interpersonal, Informational and Decision making.
Peter Drucker (1909 -2005):
Father of modern management
Importance of change How to bring best out of people
Innovation
Entrepreneurship.
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Unit 2: Individual Behaviour

INTRODUCTION
Individual behaviour a complex phenomenon as it is most difficult to define in absolute
terms. An individual's behavior may change due to a change in the same environment or
exposure to a different environment. Different people behave differently in the same or in
different manner.
Factors which influence individual behaviour are………………………
 PERSONAL FACTORS
 ENVIRONMENTAL FACTORS
 ORGANISATIONAL FACTORS
BIOGRAPHICAL CHARACTERISTICS
 Physical characteristics
 Age
 Gender
 Religion
 Marital status
 Experience
 Intelligence
 Ability
LEARNED CHARACTERISTICS
 Personality
 Perception
 Attitude
 Values
BIOGRAPHICAL CHARACTERISTICS:
Physical characteristics: Some of these characteristics are related toheight, skin, complexion,
vision, shape and size of nose, weight etc.
Age: Age is considered to be an inherited characteristic because it is determined by date of

birth.
Gender: Being a male or female is genetic in nature and it is considered as an important

factor.
Religion: The religion and culture also determine attitudes towardsfinancial incentives.
People who are highly religious are supposed tohave high moral values,eg; they are honest
they do not tell lies or talk ill of others.
Marital status: There are not enough studies to draw any conclusion as to whether there is
any relationship.
Experience: Work experience is considered to be a good indicator ofemployee productivity.

Research indicates that there is a positive relationship between seniority and job performance.

Intelligence: It is considered that intelligence is an inherited quality. Intelligence can be

enhanced with efforts, hard work, proper environment and motivation.
.BIOGRAPHICAL CHARACTERISTICS:
Ability: Ability refers to the capacity or capability of an individual to perform the various
tasks in a job.
Abilities are the traits a person learns from the environment around as well as the traits a
person is gifted with by birth. These traits are broadly classified as −
 Intellectual abilities
 Physical abilities
 Self-awareness abilities
In order to understand how these affect a person’s behavior, we need to know what these
abilities are.
 Intellectual abilities − It personifies a person’s intelligence, verbal and analytical

reasoning abilities, memory as well as verbal comprehension.
 Physical abilities − It personifies a person’s physical strength, stamina, body

coordination as well as motor skills.
 Self-awareness abilities − It symbolizes how a person feels about the task, while a
manager’s perception of his abilities decides the kind of work that needs to be
allotted to an individual.
Thus the psychological, physical, self-assurance traits owned by a person defines the
behavior of a person in social and personal life. For ex: Ram has a high IQ level, whereas
Rahul can lift a bike and is a strong guy.
LEARNED CHARACTERISTICS:
Personality: Personality generally refers to personal traits such as

dominance,aggressiveness,persistence and other qualitiesreflected through a person’s
behavior.
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 interactions
(Fred Luthans).
According to Stephen P. Robbins, personality is the sum total ways in which an individual
reacts and interacts with others. It may be defined as those inner psychological characteristics
that both determine and reflect how a person responds to his environment.

Personality can be defined as those inner psychological characteristics that both determine
and reflect how a person responds to the environment.
Determinants
1. Heredity : Human behaviour is partly affected by heredity. The parent's qualities are
passed on to the children through the molecular structure of genes located in the
chromosomes. In our day to day life, so many times we use the term "Like father like son" as
"Like Mother like daughter".
2. Environment : All personality traits are not determined by heredity. Environment also
plays a very important role in the development of personality of a person. Environment
comprises of culture, family, social and situational factors.
(a) Culture : Culture is sum total of learned believes, values and customs. Cultural factors
determine now a person acts whether independently or dependently. Culture establishes

norms, attitudes and values that are passed along from generation to generation.
(b) Family : Families influence the behaviour of a person especially in the early stages. The
nature of such influence will depend upon the following factors :
(i) Socio-economic level of the family
(ii) Family size
(iii) Birth order
(iv) Race
(v) Religion
(vi) Parent's educational level and Geographic location.
(c) Social : Socialization is a process by which an infant acquires customary and acceptable
behaviour. Social life has a considerable impact on the individual's behaviour. A man is
known by the company he keeps. Social groups influence the behaviour of the individuals.
(d) Situational : Situational factors also play a very important role in determining the
personality of a person. Life is a collection of experiences. Some of the events and
experiences can serve as important determinants of his personality.
The Nature of Personality

Three distinct properties are of central importance in the study of the nature of personality:
 Personality is a dynamic whole: The definition of Personality given by Allport reveals

that the personality is the dynamic whole. The constituents of Personality are
organised into units which are not static but active.
 Personality measures behavior: Personality of an individual is more or less stable. It
can be predicted by ones behavior.
 Outcome interaction of heredity and environment: Most of the psychologists review
that Personality is the net result of the interaction of heredity characters and
environment factors. The growth and the development of physical, social, emotional
and moral are affected by environmental factors.
 Motive Force: There are many theories of motivation which contributes to the
understanding of the dynamics of personality. Behavior is affected overall by motives,
ego involvement, incentives, etc.
Personality Development Tips

1. Should be a better listener
2. Good conversation
3. Be positive in outlook and attitude
4. More reading and building interest
5. Should be a good courteous
6. Interaction with new people
7. Helpful to other people
8. Give respect if you want respect
9. Confident about yourself
Five Personality Traits

1. Openness to experience
2. Conscientiousness
3. Extraversion
4. Agreeableness
5. Neuroticism
Perception:
It is a process by which information enters our minds and is interpreted in order to give some
sensible meaning to the world.Perception is an intellectual process of transforming sensory
stimuli to meaningful information. It is the process of interpreting something that we see or
hear in our mind and use it later to judge and give a verdict on a situation, person, group etc.

It can be divided into six types −
 Of sound − The ability to receive sound by identifying vibrations.
 Of speech − The competence of interpreting and understanding the sounds of

language heard.
 Touch − Identifying objects through patterns of its surface by touching it.
 Taste − The ability to receive flavor of substances by tasting it through sensory

organs known as taste buds.
 Other senses − They approve perception through body, like balance, acceleration,
pain, time, sensation felt in throat and lungs etc.
 Of the social world − It permits people to understand other individuals and groups of
their social world. Example − Priya goes to a restaurant and likes their customer
service, so she will perceive that it is a good place to hang out and will recommend it
to her friends, who may or may not like it. Priya’s perception about the restaurant is
good.
Perceptual Process
Perceptual process are the different stages of perception we go through. The different stages
are −
 Receiving
 Selecting
 Organizing
 Interpreting
Receiving
Receiving is the first and most important stage in the process of perception. It is the initial
stage in which a person collects all information and receives the information through the
sense organs.
Selecting

Selecting is the second stage in the process. Here a person doesn’t receive the data randomly
but selectively. A person selects some information out of all in accordance with his interest
or needs. The selection of data is dominated by various external and internal factors.
 External factors − The factors that influence the perception of an individual

externally are intensity, size, contrast, movement, repetition, familiarity, and novelty.
 Internal factors − The factors that influence the perception of an individual internally
are psychological requirements, learning, background, experience, self-acceptance,
and interest.
Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense
of the data received, it is important to organize them.
We can organize the data by −
 Grouping them on the basis of their similarity, proximity, closure, continuity.
 Establishing a figure ground is the basic process in perception. Here by figure we

mean what is kept as main focus and by ground we mean background stimuli, which
are not given attention.
 Perceptual constancy that is the tendency to stabilize perception so that contextual

changes don’t affect them.
Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular
object depending upon the need or interest. Interpretation means that the information we
have sensed and organized, is finally given a meaning by turning it into something that can
be categorized. It includes stereotyping, halo effect etc.
Importance of Perception in OB
We need to understand what the role of perception in an organization is. It is very important
in establishing different role of perceptions like −
 Understanding the tasks to be performed.

 Understanding associated importance of tasks allotted.
 Understanding preferred behavior to complete respective tasks.
 Clarifying role perceptions.
Attitude:
Attitude is just like perception but with a frame of reference. It is a tendency to act in a
certain way, either favourably orunfavourably concerning objects, people or events.
Components of Attitudes:
Attitudes comprise of three basic components: emotional, informational and behavioural.
These three components are described below:
1. Informational or Cognitive Component:
The informational component consists of beliefs, values, ideas and other information a person
has about the object. It makes no difference whether or not this information is empirically
correct or real. For example, a person seeking a job may learn from his own sources and other
employees working in the company that in a particular company the promotion chances are
very favourable. In reality, it may or may not be correct. Yet the information that person is
using is the key to his attitude about that job and about that company.
2. Emotional or Affective Component:
The informational component sets the stage for the more critical part of an attitude, its
affective component. The emotional components involve the person’s feeling or affect-
positive, neutral or negative-about an object. This component can be explained by this
statement.” I like this job because the future prospects in this company are very good”.
3.Behavioural Component:
This component refers to the individual's behaviour that occurs as a result of his or her
feeling about the focal person, object or situation. An individual may complain, request a
transfer, or be less productive because he or she feels dissatisfied with work. The behavioural
component of an attitude refers to an intention to behave in a certain way toward someone or
something.
For example, our attitudes towards women in management may be inferred from an
observation of the way we behave toward a female supervisor. We may be supportive,
passive or hostile depending on our attitude. The behavioural component of an attitude is
measured by observing behaviour or by asking a person about behaviour or intentions.
Values:
Values determine what is right and what is wrong, where rightor wrong is interpreted in terms
of perceived values of the decision.

Values are of two types, both in the personal and organizational domains.
The two types of values are:
INSTRUMENTAL VALUES:
Instrumental Values are core values, permanent in nature, comprise personal characteristics
and character traits.
Instrumental Values refer to preferable modes of behaviour and include values like honesty,
sincerity, ambition, independence, obedience, imaginativeness, courageousness,
competitiveness, and also some negative traits too.
Organisations also have Instrumental Values (which can be ascertained from the
organizational culture) and these are permanent in nature and difficult to change.
For example, the instrumental values of a PSU will differ from that of an MNC though both
may be in the same business.
Instrumental Values are difficult to change.
TERMINAL VALUES:
In our personal lives, Terminal Values are those things that we can work towards or we think
are most important and we feel are most desirable – terminal values are desirable states of
existence.
Terminal Values include things like happiness, self respect, family security, recognition,
freedom, inner harmony, comfortable life, professional excellence, etc
In a nutshell, Terminal Values signify the objectives of the life of a person – the ultimate
things the person wants to achieve through his or her behaviour (the destination he wants to
reach in life) whereas Instrumental Values indicate themethods an individual would like to
adopt for achieving his life’s aim (the path he would like to take to reach his destination).
This applies to organisations as well, and organizations too exhibit Terminal Values.
However, Terminal Values can be changed and this can be seen when there is a change of top
management or CEO.
ENVIRONMENTAL FACTORS
External factors are
1. Economic Factors
2. Socio- cultural Factors
3. Political Factors
4. Legal Environment
ENVIRONMENTAL FACTORS
The behavior of an individual is affected to a large extent by the economic environment. The
economic factors are; Employment Level Wage Rates General Economic Environment
Technological Development Socio- cultural Factors: The social environment of an includes
his relationship with family members, friends, colleagues, supervisors and subordinates.

Political Factors: The political idea logy of a country affects the individual behaviour through
the relative freedom available to its citizens.
Legal Environment: Rules and laws are formalized and written standards of behaviour. Both
rules laws are strictly enforced by the legal system.
ORGANISATIONAL FACTORS:
Physical Facilities: Some of the factors are influence individual behavior are noise level, heat
, light,nature of job etc.
Organization Structure And Design:The behaviour and performance of the individual is

influenced by where that person fits into theorganizational hierarchy.
Leadership: The system of leadership is established by the management to provide direction,

assistance, advice and coaching toindividuals.
Reward System: The behaviour and performance of the individuals isalso influenced by the
reward system established by the organization to compensate their employees.
CONCLUSION:
Behaviour can be considered as an input-output system. This concept assumes that behaviour
is not simply a random phenomenon but is goal directed so that a measurable correlation
exists between the goals behaviour. Behaviour is related to performance and productivity.
ATTITUDES:
Concept: An attitude is a hypothetical construct that represents an individual's degree of like

or dislike for an item.
Attitudes are generally positive or negative views of a person, place, thing, or event this is
often referred to as the attitude object.
Positive attitude: The predisposition that results in desirable outcomes for individuals and
organizations.
Negative attitude: The tendency of a person that result in an undesirable outcome for
individuals and organizations.
Components of Attitudes:
COGNITIVE Opinion or beliefs about attitude object (pos & neg)
AFFECTIVE emotions and feelings the object triggers (pos & neg)
BEHAVIORAL reaction toward the object (pos & neg actions)
Attitude Object:
EMPLOYEE COGNITIONS
My pay is low

My supervisor is unfair.
AFFECTS
I am angry over how little I’m paid.

I dislike my supervisor.
BEHAVIORS:
I am going to look for another job that pays better.

I am looking for another job.
Functions of Attitudes:
• Value-Expressive function
• enable us to express who we are and what we believe in
• Ego-defensive function
• enable us to project internally-held conflicts onto others means protecting self-esteem (e.g.,
homophobia) • Knowledge function
• enable us to know the world
• Utilitarian/Instrumental Function
• Enable us to gain rewards and avoid punishment
TYPES OF ATTITUDES:
There are many types of attitudes. But here we limit to only to the work related issues.
The job related attitudes are classified as :
a) Job involvement
b) Organizational Commitment
c) Job Satisfaction.
a) Job involvement:
Measures the degree to which a person identifies himself psychologically with his job and
considers his perceived performance level important to self worth. Performance of the
employees is directly related to the amount of job involvement.
b) Organizational Commitment:
It’s a state in which an employee identifies himself with a particular organization and its
goals and wishes to maintain membership in the organization. It depicts the level of
attachment of the individual towards the organization.
c) Job Satisfaction:
This is the individual’s attitude towards one’s job. The level of the satisfaction differs from
one job to another and also from one individual to other.
Conclusions:

 Attitudes do not predict single behaviours

 Attitudes are related to multiple behaviours (behavioural patterns)
 Attitudes influence behaviour through characteristics of individuals.
 Influencing intention Intention is the better predictor of behaviour In order to
understand intentions and behaviours, need to know about beliefs and attitudes.
This is essential in relation to attitude change.
The Choice is YOURS:

With a Bad attitude you can never have a positive day.
With a Positive attitude you can never have a bad day.
How can we develop our personality and attitude ?

We can do this through :
Self image and self reformation
Education and hard work
Discipline and organization
Belief in goodness's and truth and many more.

UNIT 3: GROUP BEHAVIOR
WHAT IS GROUP ?
Definition and meaning According to Stephen Robbins, “A group may be defined as two or
more individuals. Interacting and interdependent, who have come together to achieve
particular objectives”.Therefore group includes
• Two or more individuals
• Interacting and interdependent
• Who has come together to achieve organizational goals
CLASSIFICATION OF GROUP:
1. Formal group
2. Informal group
Types of Groups:
One way to classify the groups is by way of formality – formal and informal. While formal
groups are established by an organization to achieve its goals, informal groups merge
spontaneously. Formal groups may take the form of command groups, task groups, and
functional groups.
1. Command Groups:
Command groups are specified by the organizational chart and often consist of a supervisor
and the subordinates that report to that supervisor. An example of a command group is a
market research firm CEO and the research associates under him.
2. Task Groups:
Task groups consist of people who work together to achieve a common task. Members are
brought together to accomplish a narrow range of goals within a specified time period. Task
groups are also commonly referred to as task forces. The organization appoints members and
assigns the goals and tasks to be accomplished.
Examples of assigned tasks are the development of a new product, the improvement of a
production process, or designing the syllabus under semester system.
Other common task groups are ad hoc committees, project groups, and standing committees.
Ad hoc committees are temporary groups created to resolve a specific complaint or develop a
process are normally disbanded after the group completes the assigned task.
3. Functional Groups:
A functional group is created by the organization to accomplish specific goals within an
unspecified time frame. Functional groups remain in existence after achievement of current
goals and objectives. Examples of functional groups would be a marketing department, a
customer service department, or an accounting department.

In contrast to formal groups, informal groups are formed naturally and in response to the
common interests and shared values of individuals. They are created for purposes other than
the accomplishment of organizational goals and do not have a specified time frame. Informal
groups are not appointed by the organization and members can invite others to join from time
to time.
Informal Group:
Informal groups can have a strong influence in organizations that can either be positive or
negative. For example, employees who form an informal group can either discuss how to
improve a production process or how to create shortcuts that jeopardize quality. Informal
groups can take the form of interest groups, friendship groups, or reference groups.
i. Interest Group:
Interest groups usually continue over time and may last longer than general informal groups.
Members of interest groups may not be part of the same organizational department but they
are bound together by some other common interest.
The goals and objectives of group interests are specific to each group and may not be related
to organizational goals and objectives. An example of an interest group would be students
who come together to form a study group for a specific class.
ii. Friendship Groups:

Friendship groups are formed by members who enjoy similar social activities, political
beliefs, religious values, or other common bonds. Members enjoy each other’s company and
often meet after work to participate in these activities. For example, a group of employees
who form a friendship group may have a yoga group, a Rajasthani association in Delhi, or a
kitty party lunch once a month.
iii. Reference Groups:

A reference group is a type of group that people use to evaluate themselves. The main
objectives of reference groups are to seek social validation and social comparison. Social
validation allows individuals to justify their attitudes and values while social comparison
helps individuals evaluate their own actions by comparing themselves to others. Reference
groups have a strong influence on members’ behavior. Such groups are formed voluntarily.
Family, friends, and religious affiliations are strong reference groups for most individuals.
In short………..
Formal group :
• Defined by organisation structure
• Designated with work assignments.
Classification of Formal group
1. Command group
2. Task group

Command group
• Relatively permanent
• Functional reporting relationship such as having both group manager and those who report
to the manager.
• Included in organization chart.
• Ex: A manager and his or her immediate subordinate.
Task group
• Relatively temporary
• Created to do a specific task
• Ex: Search committee for a new school superintendent, Task force on new product quality
• Created by mutual alliances
• Not formally structured • Not organizationally determined
• Appear in response to the need for social contact
Informal group
1. Interest group
2. Friendship group
 Interest group
• Those working together to attain a specific objective with which each is concerned
• Relatively temporary
• Organised around a common activity or interest of its members 10
 Friendship group
• Those brought together because they share one or more common characteristics
• Relatively permanent

• Draws benefits from social relations among its members.
Characteristics of Informal Groups:

1. Creation:
It is not created by the organisation but springs up spontaneously.
2. Satisfaction of Needs:
The needs which cannot be satisfied within the framework of formal organisation, like social
and psychological needs of people, such people create informal groups.
3. Voluntary Membership:
Nobody is compelled to join an informal organization.
4. Multi-Group Membership:
A member of an informal group can be a member of more than one informal group to pursue
different interests.
5. Systems and Processes:

Members of such groups follow their own norms, leadership, communication, etc. to remain
cohesive. The communication channels are referred to as ‘Grapevine’. Grapevine i.e.,
informal channel runs very fast to spread the information across the organization.
6. Leadership:
Every informal group has a leader, selected by the group, and who is capable of helping to
realize their goals. The moment it is realized that the leader is incapable, (s) he is replaced
with a new leader.

Reasons for the Emergence of Informal Groups:

1. People working together may come together.
2. People with similar values, beliefs, attitudes, and interests often feel attraction to come
together.
3. Need satisfaction – to belong, to associate, etc.
4. Removal of monotony of routine tasks – to get rid of monotony and psychological fatigue,
job-related boredom and frustration provides an opportunity to behave in a natural and
relaxed manner.
5. Promotion of other interests and pursuit of goals – People join Rotary or Lions Club to
expand their contacts which may help them to satisfy their personal goals.
Benefits of Informal Groups:

The benefits of an informal group are as follows:
1. Blending with formal group allows people to work for the formal organisation.
2. Informal work group lightens the workload for the formal manager.
3. Brings satisfaction and stability to the organisation as a whole.
4. Provides a useful channel of communication.
5. Encourages managers to plan and act more carefully.
Limitations of Informal Groups:

The limitations are as follows:
1. Resistance to Change because they do not want to deviate from existing norms and learn
new ways.
2. Informal group provides most fertile ground for Rumour Mongering because of
maliciousness, lack of proper communication systems and processes and ambiguous
circumstances.
3. Since a member of an informal group is also a member of a formal group, at times it

creates role conflict.
4. Creativity of group member (s) is restricted because of strong pressure for conformity
applied by the group.

THE FIVE STAGES MODEL or Stages of group development:
a. Forming: - Members first get together during this stage. Individually, they are
considering questions like, “What am I here for?”, “Who else is here?” and “Who am I
comfortable with?” It is important for members to get involved with each other, including
introducing themselves to each other. Clear and strong leadership is required from the team
leader during this stage to ensure the group members feel the clarity and comfort required to
evolve to the next stage.
b. Storming: - During this stage, members are beginning to voice their individual
differences, join with others who share the same beliefs. Therefore, it is important for
members to continue to be highly involved with each other, including to say any uneases in
order to feel represented and understood. The team leader should help members to say their
views, and to achieve agreement (or commonality of views) about their purpose and
priorities.
c. Norming: - In this stage, members are beginning to share a common commitment to the
purpose of the group, including to its overall goals and how each of the goals can be
achieved. The team leader should focus on continuing to clarify the roles of each member,
and a clear and workable structure and process for the group to achieve its goals.

d. Performing: - In this stage, the team is working effectively and efficiently toward
achieving its goals. During this stage, the style of leadership becomes more indirect as
members take on stronger participation and involvement in the group process. Ideally, the
style includes helping members to reflect on their experiences and to learn from them. e.
Adjourning or closing and celebration: - At this stage, it is clear to members and their
organization that the team has achieved its goals (or a major milestone along the way toward
the goal).
e.Adjourning:
In the case of temporary groups, like project team, task force, or any other such group, which
have a limited task at hand, also have a fifth stage, This is known as adjourning.
The group decides to disband. Some members may feel happy over the performance, and
some may be unhappy over the stoppage of meeting with group members. Adjourning may
also be referred to as mourning, i.e. mourning the adjournment of the group.
In short……..
• Forming:
Uncertainty about purpose, structure, and leadership
• Storming:
Intragroup conflict as members resist constraints
• Norming:
Group is cohesive with strong group identity
• Performing:
Group fully functional and working toward goals
• Adjourning:
For temporary groups: breaking up.
Factors Affecting Group Behaviour:
The success or failure of a group depends upon so many factors. Group member resources,
structure (group size, group roles, group norms, and group cohesiveness), group processes
(the communication, group decision making processes, power dynamics, conflicting
interactions, etc.) and group tasks (complexity and interdependence).
1. Group Member Resources:

The members’ knowledge, abilities, skills; and personality characteristics (sociability, self-
reliance, and independence) are the resources the group members bring in with them. The
success depends upon these resources as useful to the task.

2. Group Structure:
Group Size:
Group size can vary from 2 people to a very large number of people. Small groups of two to
ten are thought to be more effective because each member has ample opportunity to take part
and engage actively in the group. Large groups may waste time by deciding on processes and
trying to decide who should participate next.
Evidence supports the notion that as the size of the group increases, satisfaction increases up
to a certain point. Increasing the size of a group beyond 10-12 members’ results in decreased
satisfaction. It is increasingly difficult for members of large groups to identify with one
another and experience cohesion.
Group Roles:
In formal groups, roles are always predetermined and assigned to members. Each role shall
have specific responsibilities and duties. There are, however, emergent roles that develop
naturally to meet the needs of the groups.
These emergent roles will often substitute the assigned roles as individuals begin to express
themselves and become more assertive. Group roles can then be classified into work roles,
maintenance roles, and blocking roles.
Work roles: are task-oriented activities that involve accomplishing the group’s goals. They
involve a variety of specific roles such as initiator, informer, clarifier, summarizer, and reality
tester.
Maintenance roles: are social-emotional activities that help members maintain their
involvement in the group and raise their personal commitment to the group. The maintenance
roles are harmonizer, gatekeeper, consensus tester, encourager, and compromiser.
Blocking roles: are activities that disrupt the group. Blockers will stubbornly resist the
group’s ideas, disagree with group members for personal reasons, and will have hidden
agendas. They may take the form of dominating discussions, verbally attacking other group
members, and distracting the group with trivial information or unnecessary humour.
Often times the blocking behaviour may not be intended as negative. Sometimes a member
may share a joke in order to break the tension, or may question a decision in order to force
group members to rethink the issue. The blocking roles are aggressor, blocker, dominator,
comedian, and avoidance behaviour.
Role conflicts arise when there is ambiguity (confusion about delegation and no specific job
descriptions) between the sent role and the received role which leads to frustration and
dissatisfaction, ultimately leading to turnover; inconsistency between the perceived role and
role behaviour (conflict between work roles and family roles); and conflicting demands from
different sources while performing the task.

Group Norms:
Norms define the acceptable standard or boundaries of acceptable and unacceptable
behaviour, shared by group members. They are typically created in order to facilitate group
survival, make behaviour more predictable, avoid embarrassing situations, and express the
values of the group.
Each group will create its own norms that might determine from the work performance to
dress to making comments in a meeting. Groups exert pressure on members to force them to
conform to the group’s standards and at times not to perform at higher levels. The norms
often reflect the level of commitment, motivation, and performance of the group.
The majority of the group must agree that the norms are appropriate in order for the
behaviour to be accepted. There must also be a shared understanding that the group supports
the norms. It should be noted, however, that members might violate group norms from time
to time.
If the majority of members do not adhere to the norms, then they will eventually change and
will no longer serve as a standard for evaluating behaviour. Group members who do not
conform to the norms will be punished by being excluded, ignored, or asked to leave the
group.
Group Cohesiveness:
Cohesiveness refers to the bonding of group members or unity, feelings of attraction for each
other and desire to remain part of the group. Many factors influence the amount of group
cohesiveness – agreement on group goals, frequency of interaction, personal attractiveness,
inter-group competition, favourable evaluation, etc.
The more difficult it is to obtain group membership the more cohesive the group will be.
Groups also tend to become cohesive when they are in intense competition with other groups
or face a serious external threat to survival. Smaller groups and those who spend considerable
time together also tend to be more cohesive.
Cohesiveness in work groups has many positive effects, including worker satisfaction, low
turnover and absenteeism, and higher productivity. However, highly cohesive groups may be
detrimental to organizational performance if their goals are misaligned with organizational
goals.
Highly cohesive groups may also be more vulnerable to groupthink. Groupthink occurs when
members of a group exert pressure on each other to come to a consensus in decision making.
Groupthink results in careless judgments, unrealistic appraisals of alternative courses of
action, and a lack of reality testing.
Evidence suggests that groups typically outperform individuals when the tasks involved
require a variety of skills, experience, and decision making. Groups are often more flexible
and can quickly assemble, achieve goals, and disband or move on to another set of objectives.
Many organizations have found that groups have many motivational aspects as well. Group
members are more likely to participate in decision-making and problem-solving activities
leading to empowerment and increased productivity.

Groups complete most of the work in an organization; thus, the effectiveness of the
organization is limited by the effectiveness of its groups.
3. Group Processes:
Decision-making by a group is superior, because group generates more information and
knowledge, generates diverse alternatives, increases acceptance of a solution, and increases
legitimacy. But it is also true, that decision making is like ‘munde munde matirbhinna’.
Decisions take longer time, minority is dominated, pressure is applied to conform to group
decisions, and none is responsible for the decisions. Group processes also include
communication, conflict management, and leadership that we shall discuss in details in the
chapters to follow hereafter.
Team Building:
All teams are groups but not all groups are teams. Teams often are difficult to form because it
takes time for members to learn how to work together. People in every workplace talk about
building the team, working as a team, and my team, but few understand how to create the
experience of team work or how to develop an effective team. Belonging to a team, in the
broadest sense, is a result of feeling part of something larger than oneself. It has a lot to do
with your understanding of the mission or objectives of your organization.
In a team-oriented environment, one contributes to the overall success of the organization.

One works with fellow members of the organization to produce these results. Even though
you have a specific job function and you belong to a specific department, you are unified
with other organization members to accomplish the overall objectives. The bigger picture
drives your actions; your function exists to serve the bigger picture.
It is on record that teams are better than groups, because they are more flexible and
responsive to dynamic environment. A work group has no opportunity to involve in collective
works.
It is the work team whose members ‘work intensely on a specific, common goal using their
positive synergy, individual and mutual accountability, and complementary skills’.

Team-building helps to increase intra-group and inter-group effectiveness to bring members

together, make them share their perception of each other and understand each other’s point of
view.
Thus, resolve problems and work together in a cooperative and collaborative mode. Teams
can be of four types – problem-solving teams (only making suggestion), self-managed, teams
(operate without a manager), cross-functional teams (a group of experts from different
specialities), and virtual team (members collaborate online). In terms of size, teams may be
institutional (comprising of hundreds of members) and operational (a small, cooperative
group, in regular contact and contributes responsibly to achieve task at hand).
Eight Cs for Team Building:
To show business results and profitability, ways are explored by the executives to improve
their productivity.
Successful team building, that creates effective, focused work teams, requires attention to
each of the following:
1. Clear Expectations:
The managers must clearly tell the team members of the expected performance and the team
members must understand the reason for its creation. For it the organization must support the
team with resources of people, time and money.
2. Commitment:
Team members must participate in the team, feel that the team mission is important, and
show commitment to accomplishing the team mission and expected outcomes. Commitment
will come if team members perceive their service as valuable to the organization and to their
own careers.
3. Competence:
Team members must have the knowledge, skill and capabilities, the resources, strategies and
support needed to accomplish its mission to address the issues for which the team was
formed.
4. Control:
The team must have not only enough freedom and empowerment to feel the ownership
necessary to accomplish its charter, but also the accountability. There has to be a defined
review process.
5. Collaboration:
The team should understand group processes and work effectively and cooperatively with
other members of the team. For it they have to understand the roles and responsibilities of
team members, team leaders, and team recorders.
6. Communication:
To make team members clear about the priority of their tasks, and receive regular feedback,
team members must clearly and honestly with each other. Diverse opinions be welcome and
conflicts be taken up positively.
7. Creativity:
The team should value creative thinking, unique solutions, and new ideas; and reward
members who take reasonable risks to make improvements. If necessary, it should provide
the training, education, access to books and films, and field trips to stimulate new thinking.
The creative development of new products, new technologies, new services, or new
organizational structures is possible because teams may have variety of skills needed for
successful innovation.
Team members can uncover each other’s flaws and balance each other’s strengths and
weaknesses. Managers should empower the team and make it accountable for the innovation
process.
8. Coordination:
Teams should understand the concept of internal customer to whom they provide a product or
a service. Team efforts need to be coordinated by a central leadership team that assists the
groups to obtain what they need for success.
The cross- functional and multi-department teams must work together effectively. The
organization should develop a customer-focused and process-focused orientation and move
away from traditional departmental thinking.

Spend time and attention on each of these eight tips to ensure your work teams contribute
most effectively to your business success. Your team members would love you, your business
will see new heights, and empowered people will “own” and be responsible to their work
processes
Determinants of Group Behavior:
Organizational behavior is the analysis and application of knowledge about

how people act within organizations, There are three primary determinants of
behavior on which small companies focus when studying organizational
behavior: employee dynamics, available resources and work environment.
People
The first primary behavioral determinant in organizations is people. Small company
employees are inherently different. Their ages and genders vary. They also come from
diverse ethnic backgrounds. Moreover, people bring different skill sets to their companies.
Employees are also different with respect to their goals and ambitions. Some strive to get
promoted more quickly. Others enjoy more tactical functions and are satisfied becoming
more efficient at their present jobs. Managers must understand what motivates employees so
they can adopt the right management styles with them. For example, some workers prefer
closer supervision, while others are more self-directed and thrive on independence.
Employees also exhibit different behaviors in group settings. Some individuals are more
reserved, and group settings almost hamper their capabilities. Others are naturally leaders and
tend to take over group tasks and projects. Managers who correctly identify which employees
work best on their own or in groups stand to gain the most productivity from them.
Technology
Technology also greatly influences working relationships between employees. Companies
that have more updated equipment or computer software usually can expect greater
production from workers. There also tends to be more cohesiveness among employees.
Managers spend less time harping over details when they know employees have the proper
tools. For example, a marketing manager may assign an analyst the task of creating a 10-page
presentation for the department meeting. The manager knows the presentation software
provides tutorials and spends less time explaining how to set up the presentation. Contrarily,
employees who do not have the proper technology and equipment may become agitated.
They may start viewing their job as drudgery and start taking their frustrations out on other
workers.
Group Cohesiveness:
Group cohesiveness can be defined as a group session where in which, group of people
connects them with the help of similar interest and program. Moreover, it is a process where a
group of people for a group or a team consider their similar interest and ability.

1. Similar interest:
Being a part of a group or a team is not that easy as it seems. Some groups and teams
maintain a certain type of ground rules for their group. And those ground rules can be
measured in terms of the common interest of all the group members.
And if anyone wants to join such team considering their common interest, then they should
follow all the ground rules given by the team leader. Therefore, it is necessary to understand
that all the group of team maintains a same level of interest in their team formation.
2. Group dignity:
Every group or a team maintains a certain level of pride and dignity with their team and team
members. And to maintain that dignity and pride of the group the members deliver certain
responsible services in favor of the society and whoever concerned. Moreover, it is an initial
process of every group activity and in that process, they undertake several services according
to the pride and dignity of the group. And every single member of the group takes part in
such activity of the group.
3. Commitment:
Commitment is a word which describes a person loyalty and honesty relating to the group.
Most probably every member of the team needs to show some sort of commitment towards
their work within the group and for that they need to take active participation in the activities
of the group. This can lead in developing high performing teams. Therefore, it is very much
necessary for all the members of the team that without commitment a group cannot survive in
their future activity.
Important Factors of Group Cohesiveness:
o understand the importance of group cohesiveness, one should well understand the group
cohesiveness definition and cohesiveness meaning. Therefore, with this additional info about
group cohesiveness one can have a better clarity on it.
1. Equal mindset:
As people join some group with a thinking that they can be a part of that particular group as
they share a similar kind of interest, then they definitely should go ahead with their decision
and join such team or a group. Most groups which maintain a certain focus element in their
group consider their members’ interest to carry on with their group services. Therefore, most
of the group accepts those candidates who are very much interested in their activity. And
other than that no group accepts a person with different nature of interest.

2. Communication:
As it is explained earlier that communication between the team and its team members is very
much necessary. If there is any sort of mis-communication between the team and its
members, then it is quite clear to everyone that there will be all sorts of doubts between the
team members. Therefore, communication creates a link between the team and their members
point of view as well.
3. Trust:
Sometimes trust holds all the main activity between people, whether it is a company,
organization and the team. And that is why all the people who are in connection with the
team or a group need to maintain a positive trust on their team and their decision. Therefore,
it is very much necessary to understand all the factors of trust in the team and their decision
and moreover handling all the facts relating to that.
4. Objective of the group:
Every group or a team maintains their objective for that particular group and that group
delivers their objective in the form of their services and activity. And that is why objective
holds all the basic need of the group or a team. Therefore, maintaining an objective for a
group or a team is necessary to continue with their positive intention about their social
activity. Eventually, these social activities with a positive objective can bring them a positive
recommendation for their future benefits.
5. Experience:
Experience means their previous group experience. Most of the time these group experiences
creates a difference with the new group. This difference can bring up all the new and creative
ideas within the members of the group and which is the good thing for the overall growth of
that particular group. Therefore, all the things which comes with the help of a previous
experience in group cohesiveness can provide overall growth.
Importance of Group Cohesiveness:1
When it comes to valuing something in one’s life, then people experience some sort of issues
with it. And to understand such importance of that particular thing, a person need to
appreciate its worth, which is possible only by handling all the activities either it is group or
individual.
1. Performance:
As it has been explained earlier that, the factors which brings up all the importance of
cohesiveness of group performance can be measured in terms of their activities. Performance
matters in the group cohesion and especially when it is mattered with the services delivered
by each and every valuable member of the team. Therefore, performance matters with the
activities which is delivered by the group cohesiveness behavior.
2. Satisfaction:
The main issue that every member of the team face while working according to the
expectation of the group that the team members might feel a bit left out other than a team
leader. It is not necessary that all the valuable members of the team needs to be treated well.
It is even expected, especially from the team leader that he or she need to treat all the
members of the team same so that they can feel complete satisfaction with their work
assigned by their team.
3. Emotional factors:
Most of the time while working in a team people used to feel a bit attached to others who are
active members of the team. And it is normal to feel emotional around them. It is even
possible that all the things which comes up or which come along with the help of group
cohesive behavior is quite a result of hard work and team spirit. Therefore, emotional factors
always weigh heavy in terms of group cohesive nature.
4. Pressure of assurance:
It is quite possible with all the element and characteristics of group cohesive behavior that
most of the factors comes up with the help of group working or because of the team task.
Therefore, it is very much necessary to understand all the matters which can bring up with the
help of all group related behavior and eventually this creates a level of pressure with an
assurance of work completion.
Advantages of Group Cohesiveness:
All the factors and study elements relating to the group cohesive behavior is a cover up for
all sorts of benefits of group cohesiveness. Therefore, these advantages or benefits can clear
out all the fogs surrounded and can show a ray of sunshine.
1. Motivational elements:
As it is explained earlier that all the elements which help a person to join or to be part of the
group are the motivational elements which can be bought from the members of the team and
moreover these members can create some sort differentiation between their improvement and
courage in terms of their motivating behavior.
2. Better cooperation:
If it is a group of members who share similar interest and attraction as compared to each
other, then it is quite clear that all the things which can be delivered with the help of group
cohesiveness behavior can definitely produce better cooperation between the team and their
members. Therefore, because of group cohesive behavior the group can embrace better
cooperation with their rest of the team members.

3. Time saving:
A work or a task allotted to a group of persons instead of work allotted to an individual, can
definitely approach a positive side of the work. For instance, when it comes to an individual
person, then the person might take a little longer time to solve the issues, but when it comes
to group of people, then the solution can be better and quicker as compared to the individual
doing the work.
4. Improves communication:
As it is a task of a group or a team, then the team leader might be aware of all the
consequences of work assigned to a person. And because of the group cohesiveness, the
whole team can experience some sort of change in their communication levels. These
communication levels create a difference in their personal and professional life as usual.
Moreover, it also provides good confidence to all the members of the team.
Disadvantages of Group Cohesiveness:
Most parts of the study material with the subject line group cohesiveness can clear all the
doubts among its readers and with their team. Therefore, it is necessary to know more about
the disadvantages of group cohesiveness, and then these disadvantages can help a group of
people with all the growth and success of their daily work.
1. Low level of productivity:
Most of the time, working in a group can not favor a company or an organization with the
help of their own group, and that is because all the teams own their own thinking. And in this
case of production a group cohesiveness brings it down to a low level because most of the
team members available in the team are from the same field of work. Moreover, it is a fast
moving generation and that is why it’s necessary to understand the, low level of productivity
among the team members.
2. Lack of creativity:
As most of the members of the team share a single and simple interest and eventually this
type of similar interest can deliver same sort of results each and every time. Therefore,
because of group cohesive behavior the company can lack behind with their creative
elements. Moreover, all the elements in the group cohesiveness provide a lower level of
creativity among their group or a team.
3. Lack of innovation:
It is quite similar to the topic that one can understand better. At most of the time people
involved in a group can come up with a low level of innovation and that eventually lacks
creativity in their field of work. Therefore, it is necessary to understand all the things within
this group cohesiveness. Moreover, this creates a lack of innovation among their members.

4. Domination:
The domination can be experienced because of the team leaders of each and every group.
Most of the these type of group leader domination can never benefit the company, moreover,
it can damage the unity of the group. Therefore, all the team leaders need to understand that if
they need and want their team members work according to their direction, then they need to
treat as equals in the group
GROUP NORMS:
A norm is accepted by group members. It is a rule of conduct that has been established by
group members. They are standardized generalizations concerning expected behaviour in
matters that are of some importance of the group.
A rule dictates what must be done by another whereas norm refers to what should be done.
Group norm is a standard of behaviour. In other words, group norm is a rule that tells the
individual how to behave in a particular group. Thus, group norms identify the standards
against which behaviour of group members will be evaluated and help the group members
know what they should not do. Norms could be formal or could be informal.
Example
In a group that drinks tea together every evening a norm arises. Every day a different
member buys tea for the other members of the group.
The individuals are expected to comply with group norms.
The factors responsible for the emergence of group norms are of two kinds:
1. Members of the group seek to validate their beliefs.
2. If the group wants to maintain its identity there must be uniformity in attitudes and
actions of the members. While showing problems the interactions of members of the group
must be coordinated. Then only the group can survive.
According to Edgar Henry Schein (born in 1928) there are pivotal and relevant group
norms. While the pivotal norms are confirmed by every member of the group, the relevant
norms are desirable to be confirmed by the members. With increase in the size of the group,
the acceptability of norms tends to lessen. Small deviation of norms is allowable. However,
in case of extreme deviation, the deviator gets punished. For example, when the union is on
strike, its members attending to work punished by being boycotted by the group. Thus, the
group norms have following characteristics :
1. As personality reveals an individual, so group norms do for groups.
2. Norms serve as the basis for behaviour of group members.
3. They predict and control the behaviour of members in groups.

UNIT 4: LINKAGE BETWEEN BEHAVIOR AND MANAGEMENT FUNCTIONS :

Decision making is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions. Using a step-by-step decision-making
process can help you make more deliberate, thoughtful decisions by organizing relevant
information and defining them.
Decision-making is concerned with the selection of one alternative course of action from
two or more alternative courses of action.
Precisely it can be stated as a choice-making activity.
Types of Decisions :
1. Programmed and non-programmed decisions:
Programmed decisions are concerned with the problems of repetitive nature or routine type
matters.
A standard procedure is followed for tackling such problems. These decisions are taken
generally by lower level managers. Decisions of this type may pertain to e.g. purchase of
raw material, granting leave to an employee and supply of goods and implements to the
employees, etc.
Non-programmed decisions relate to difficult situations for which there is no easy solution.
These matters are very important for the organisation. For example, opening of a new branch
of the organisation or a large number of employees absenting from the organisation or
introducing new product in the market, etc., are the decisions which are normally taken at
the higher level.
2. Routine and strategic decisions:
Routine decisions are related to the general functioning of the organisation. They do not
require much evaluation and analysis and can be taken quickly. Ample powers are delegated
to lower ranks to take these decisions within the broad policy structure of the organisation.
Strategic decisions are important which affect objectives, organisational goals and other
important policy matters. These decisions usually involve huge investments or funds. These
are non-repetitive in nature and are taken after careful analysis and evaluation of many
alternatives. These decisions are taken at the higher level of management.
3. Tactical (Policy) and operational decisions:
Decisions pertaining to various policy matters of the organisation are policy decisions.
These are taken by the top management and have long term impact on the functioning of the
concern. For example, decisions regarding location of plant, volume of production and
channels of distribution (Tactical) policies, etc. are policy decisions. Operating decisions
relate to day-to-day functioning or operations of business. Middle and lower level managers
take these decisions.

An example may be taken to distinguish these decisions. Decisions concerning payment of

bonus to employees are a policy decision. On the other hand if bonus is to be given to the
employees, calculation of bonus in respect of each employee is an operating decision.
4. Organisational and personal decisions:
When an individual takes decision as an executive in the official capacity, it is known as

organisational decision. If decision is taken by the executive in the personal capacity
(thereby affecting his personal life), it is known as personal decision.
Sometimes these decisions may affect functioning of the organisation also. For example, if
an executive leaves the organisation, it may affect the organisation. The authority of taking
organizational decisions may be delegated, whereas personal decisions cannot be delegated.
5. Major and minor decisions:
Another classification of decisions is major and minor. Decision pertaining to purchase of

new factory premises is a major decision. Major decisions are taken by top management.
Purchase of office stationery is a minor decision which can be taken by office
superintendent.
6. Individual and group decisions:
When the decision is taken by a single individual, it is known as individual decision. Usually
routine type decisions are taken by individuals within the broad policy framework of the
organisation.
Group decisions are taken by group of individuals constituted in the form of a standing
committee. Generally very important and pertinent matters for the organisation are referred
to this committee. The main aim in taking group decisions is the involvement of maximum
number of individuals in the process of decision-- making.
Importance of decision making:

1. Implementation of managerial function: Without decision making different managerial
function such as planning, organizing, directing, controlling, staffing can’t be conducted. In
other words, when an employee does, s/he does the work through decision making function.
Therefore, we can say that decision is important element to implement the managerial
function.
2. Pervasiveness of decision making: the decision is made in all managerial activities and
in all functions of the organization. It must be taken by all staff. Without decision making
any kinds of function is not possible. So it is pervasive.
3. Evaluation of managerial performance: Decisions can evaluate managerial

performance. When decision is correct it is understood that the manager is qualified, able
and efficient. When the decision is wrong, it is understood that the manager is disqualified.
So decision making evaluate the managerial performance.

4. Helpful in planning and policies: Any policy or plan is established through decision
making. Without decision making, no plans and policies are performed. In the process of
making plans, appropriate decisions must be made from so many alternatives. Therefore
decision making is an important process which is helpful in planning.
5. Selecting the best alternatives: Decision making is the process of selecting the best
alternatives. It is necessary in every organization because there are many alternatives. So
decision makers evaluate various advantages and disadvantages of every alternative and
select the best alternative.
6. Successful; operation of business: Every individual, departments and organization make

the decisions. In this competitive world; organization can exist when the correct and
appropriate decisions are made. Therefore correct decisions help in successful operation of
business.
Steps in decision making OR Process of Decision making:
1. Identification of problems:
the first step of decision making is identification of problems. First of all, managers must
identify the problem. The problem has to be found and defined. Symptoms are identified and
problems should be judged, symptoms are not problems. They are warning signs of
problems. So, managers should search for symptoms for identification of problems. Such
symptoms can be falling of sales, profit etc. It is said that problem identified is half solved is
identification of problem should be effective.
2. Analysis of problem: after identification of problems, the problem should be analyzed

by the decision maker. It is the assembly of fact and clarifying it. Relevant information must
be collected and analyzed according to the complexity and nature of problems.
3. Developing the alternative solution:

after identification and analysis of problems different probable solutions have to be
developed which is known as developing the alternative solutions. there may be many
alternative past experience, expert opinion, discussions etc which may be helpful to develop
the alternative
4. Evaluation of best alternative:

after developing the alternative solution evaluation of best alternative is done. It is
determined that which alternative has how much advantage and disadvantages. in other
words, alternatives are evaluated in so many factors like cost factors, risk , benefits,
facilities etc. therefore it is very important
5. Selection of best alternative:

after evaluating alternative, the best alternative is to be selected from various alternative.
After developing alternative, the managers should taste each of them by imagining things
that he has already put in effect. He should try to foresee the desirable consequences of
adopting each alternative. It is done for best selection. therefore it is very important

6. Implementation of best alternative:

after selection of finest alternative, it must be used in the organization effectively.
Effectiveness of decisions in achieving the desired goals depends upon its implementation. It
they are not implemented effectively then best results can’t be obtained. Therefore proper
implementation of best alternative is necessary.
7. Review of implementation:
it is the last step of decision making process. When the implementation of best alternative is
reviewed, the process of decision making is finished. The result of implementation should be
monitored and evaluated through which effectiveness can be measured.
Leadership:
Meaning of leadership:
Leadership is defined as personal quality of an individual that influence the behavior of

followers. It is an important function of management. Leadership is an act of influencing
people so that the followers follow the path of leader. The successful leader must lead to
stimulate and inspire the followers to achieve organizational goals. In an organization the
manager is a leader and other subordinates are followers. A manager cannot manage
effectively unless he can lead his subordinates effectively. Hence a leader may or may not be
a manager but a successful manager must be a leader.
Leadership is defined as influence, that is, the art or process of influencing people so that
they will strive willingly and enthusiastically towards the achievement of group work.
Leadership style:
1. Autocratic leadership style: – when the authority and decision making power are
concentrated to the leader is known as autocratic leadership style. There is no participation
by subordinates. The leader takes full authority and assumes full responsibility. Planning,
policies and other working procedures are predetermined by the leader alone. The convey
the information about what to do and how to do. He never takes any advice and suggestions
of other people. They structure the entire work situation in their own way and expect the
workers to follow their orders and tolerate no deviation from their order. They are just like
tyrant rulers. The leader who believes and exercised the autocratic leadership style is known
as autocratic leader.
Features:-
I. He/she makes his own decisions and he/she doesn’t not take any advice of others
because he/she thinks he/she is only superior.
II. His/her position gives him/her personal authority and right to lead the members in
any way he/she desires.
III. Reward and punishment is exercised by him/her very strictly. Autocratic
leadership style believes on negative motivational tools.
IV. An autocrat leader does not give full information to the members. There is only
one way communication in order to maintain the position.

V. An autocratic leader describes each job in detail and imposes rigid work
standard on his employees. It means the subordinates are compelled to certain work assigned
for him.
Advantages:-
I. It is useful in emergency or in war,
II. When the workers are undisciplined and uneducated it gives the best results.
III. When the laborers are not organized, it is more effective.
IV. There is no need of trained labor. It may be used for untrained workers.
V. It is a prompt process of decision making as the single person decides for the
whole group.
Disadvantages:-
I. Subordinates are not involved in the process of decision making in autocratic
leadership style
II. It doesn’t emphasize on correct evaluation of employee’s performance
III. The moral of employees is so low.
IV. There is no chance of management development.
V. There is no chance of two-way communication.
VI. Creative ideas and thinking cannot be used in autocratic leadership style.
VII. The employees perform the work with negative motivation.
2. Democratic leadership style: – When the authority and decision making power are
decentralized to the subordinates is known as democratic leadership style. There is
participation by subordinates. The leader delegates authority and provides responsibility
even to the followers. Planning, policies and other working procedures are determined by
the leader along with suggestions of the followers. He conveys the information about what
to do and how to do just as a consultant. He takes advice and suggestions of other people.
They structure the entire work situation in democratic way. They are just like democratic
rulers. The leader who believes and exercised the democratic leadership style is known as
democratic leader.
Features:-
I. A democratic leader delegates the responsibility as per the capability of the
employee
II. There is participation of all subordinates in decision making
III. Human values are also given preference. The leader gives concerns for the
followers
IV. Democratic leader imposes flexible work standard, designs goals with freedom
for the performance of work.
V. A democratic leader emphasizes in results than on action

Advantages: –
I. Good cooperation among employees is made in democratic leadership style.
II. Employees are highly satisfied and their morale is increased
III. Human efforts are highly recognized
IV. It helps in increasing in productivity.
V. Policies, planning and other working procedures become better because different
kinds of logic ideas and creativity are mixed.
VI. Subordinates have grown considerable freedom of action that helps to increase
the personal growth and gets opportunity to utilize their capabilities
Disadvantages: –
I. It takes long time in decision making.
II. It is not suitable for untrained subordinates’
III. A leader may to be responsible in his style
IV. It is not suitable when the followers are undisciplined and untrained
3. Free rein leadership style:

– when all the authority and responsibility are delegated to the subordinates is known as
Free rein leadership style. The leader who believes on this style is known as free rein leader.
The free rein leader doesn’t use the power and leaves the power to the subordinates. He/she
doesn’t provide any contribution to make planning and policies. This type of leadership style
is very useful when group members are intelligent and fully aware of their roles and
responsibilities.
Features
I. Subordinates have complete freedom in decision making
II. The subordinates are self-directed, self-motivated and self-controlled
III. The role of free rein leader is to provide facilities, materials and information to
the employees.
IV. The leader doesn’t interfere in making planning and policies
Advantages: –
I. The employees are satisfied in their job because they are free in decision making
II. The morale of employees is developed.
III. The employees are highly developed because there is maximum possibility for the
development of workers.
IV. The creativity and potentiality of subordinate are fully utilized.
Disadvantages:-
I. Leader contribution is ignored.
II. Sometime the subordinates are not self-directed.
III. Subordinates should not get the guidelines of the leader.

Qualities of leadership:
a. Personal qualities
1. Self-confidence: – a good leader must have self-confidence, must have sufficient

enthusiasm and must be cheerful enough to enjoy the trust of his subordinates.
2. Dynamic personality: – a leader should be dynamic, cheerful and charming, must have
sound health, cool temperament, conversational ability and decent behavior with tremendous
stamina and vigor for hard work
3. Intellectual capacity: – a leader should have the ability to think logically, analyze
accurately and interpret the problems clearly.
4. Take lead and initiative: – a leader should have the ability to take lead and initiative in
times of risk, uncertainties and complexities for prompt decision
5. Emotional stability: – a leader should have balanced temperament to overcome
moodiness, disappointment and inconsistency.
6. Flexibility: – a leader should be flexible enough to accommodate other’s viewpoint and
alter his decisions. Rigidity is only required in autocracy, change in decisions must be made
with change in macro and micro environment.
7. Responsibility feeling: – a leader must feel or should bear responsibilities of all his
decisions himself.
8. Communication skill: – the leader must be able to communicate with subordinates. The
leader must communicate the information from his level to the down level. Communication
must be two way. Sop that both leader and subordinates will exchange Ideas freely
9. Far sightedness: – a leader should develop organizational planning and policies. When
the leader is not far sighted all efforts may be worthless.
b. Managerial qualities:
1. Technical knowledge: – a leader must have technical knowledge to provide the

guidelines about the work of the subordinates which helps the leader to take right decisions
at right time.
2. Organizing abilities: – all the resources, employees, people, business environment,
methods, capital, manpower should be arranged properly by a leader to achieve
organizational goals in a proper way.
3. Power of judgment: – a leader should have the power of judgment which comes from
self-confidence and self-control. Even if there are several followers and several decisions the
leader must judge and decide the case.
4. Enthusiasm: – the leader must be devoted towards the organization. A devoted leader
can conduct the activities successfully.
5. Ability to guide and teach: – it is the task of leader to get the best from others. A
leader must know how to guide and teach the followers to make them convinced.
6. Human relations: – leadership is related to inspire and encourage the people when
there is good relation between leader and follower. The followers are easily influenced. So, a
leader must be able to win the confidence and loyalty of people.

Theories of Leadership:
1. "Great Man" Theories

Have you ever heard someone described as "born to lead?" According to this point of view,
great leaders are simply born with the necessary internal characteristics such as charisma,
confidence, intelligence, and social skills that make them natural-born leaders.
Great man theories assume that the capacity for leadership is inherent – that great leaders are
born, not made. These theories often portray great leaders as heroic, mythic and destined to
rise to leadership when needed. The term "Great Man" was used because, at the time,
leadership was thought of primarily as a male quality, especially in terms of military
leadership.
2. Trait Theories
Similar in some ways to Great Man theories, trait theories assume that people inherit certain
qualities and traits that make them better suited to leadership. Trait theories often identify a
particular personality or behavioral characteristics shared by leaders. For example, traits like
extroversion, self-confidence, and courage are all traits that could potentially be linked to
great leaders.
If particular traits are key features of leadership, then how do we explain people who possess
those qualities but are not leaders? This question is one of the difficulties in using trait
theories to explain leadership. There are plenty of people who possess the personality traits
associated with leadership, yet many of these people never seek out positions of leadership.
3. Contingency Theories:
Contingency theories of leadership focus on particular variables related to the environment
that might determine which particular style of leadership is best suited for the situation.
According to this theory, no leadership style is best in all situations.
Leadership researchers White and Hodgson suggest that truly effective leadership is not just
about the qualities of the leader, it is about striking the right balance between behaviors,
needs, and context. Good leaders are able to assess the needs of their followers, take stock of
the situation, and then adjust their behaviors accordingly. Success depends on a number of
variables including the leadership style, qualities of the followers and aspects of the
situation.
4. Situational Theories:
Situational theories propose that leaders choose the best course of action based upon
situational variables.
Different styles of leadership may be more appropriate for certain types of decision-making.
For example, in a situation where the leader is the most knowledgeable and experienced
member of a group, an authoritarian style might be most appropriate. In other instances
where group members are skilled experts, a democratic style would be more effective.

5. Behavioral Theories:
Behavioral theories of leadership are based upon the belief that great leaders are made, not
born. Consider it the flip-side of the Great Man theories. Rooted in behaviorism, this
leadership theory focuses on the actions of leaders, not on mental qualities or internal states.
According to this theory, people can learn to become leaders through teaching and
observation.
6. Participative Theories:
Participative leadership theories suggest that the ideal leadership style is one that takes the
input of others into account. These leaders encourage participation and contributions from
group members and help group members feel more relevant and committed to the decision-
making process. In participative theories, however, the leader retains the right to allow the
input of others.
7. Management Theories:
Management theories, also known as transactional theories, focus on the role of supervision,
organization and group performance. These theories base leadership on a system of rewards
and punishments. Managerial theories are often used in business; when employees are
successful, they are rewarded; when they fail, they are reprimanded or punished. Learn more
about theories of transactional leadership.
8. Relationship Theories:
Relationship theories, also known as transformational theories, focus upon the connections
formed between leaders and followers. Transformational leaders motivate and inspire people
by helping group members see the importance and higher good of the task. These leaders are
focused on the performance of group members, but also want each person to fulfill his or her
potential. Leaders with this style often have high ethical and morale.
Direction:
Direction is an integration of motivation, leadership, communication and coordination. It is

an important function of management which is related to issue orders to staff.
IMP ASPECTS OF DIRECTION :

1. Motivation: it is the process of inspiring and encouraging the people to do work. It is a
skill of using the capability of manpower for the organization. It is a mental and physical
presence of employee to do work. Effective motivation helps to raise the effective direction.
Therefore, motivation is important aspect of direction
2. Leadership: it is another important aspect of direction. It is defined as the process of
influencing people to perform work effectively. In other words, it influences the behavior of
employees or subordinate. According to time, situation and behavior of followers, a leader
must conduct his followers. therefore, it is an important aspect of direction
3. Communication: communication means transferring information from one person to
another. In other words when the information is transmitted from one person to another and
information receiver easily take the information, it is known as communication. It includes
sending message and receiving message. After sending message receiver receives the
message and understands it. Therefore message receiver responds and reacts about the
message. In an organization manager must develop an effective communication system so
that s/he may give instruction and guidance to the subordinates and motivate them to do the
work to the best of their ability.

4. Coordination: it is also an important aspect of direction. When the coordination activity

is not conducted effectively. Direction is not effective. Coordination is the process of linking
activity of resources and various departments so that desired goal can be achieved easily. It
is inter-related with all managerial function.
5. Supervision: it is another important aspect of direction. Direction is not only to issue
order but also supervising job of subordinates. It is an important function of every manager.
So the manager’s duty is to look after their work and examine that whether they have done
according to the order issued or not and also help in solving their work problems.
Importance of direction:
1. Integrative force: direction integrates the activities of employees. It is mainly concentrated

about what, when, where and who to do the work. Without integration none of the activities
can be fulfilled. Effective operation can be achieved only when the efforts of all employees
are integrated
2. Initiate the action: in direction, a manager motivates the subordinates to perform the
activities. When an employee receives the direction, his or her initiative will be started to do
work.
3. Improves efficiency: direction consists of motivation, leadership and communication.

When all these managerial tools are implemented the potentiality of employees is fully
utilized from which they perform high performance.
4. Facilitates change:
change always comes in an organization. Healthy change is important. Some people do not
want the condition of change. But change is inevitable. Direction is an important function of
management that gives the orders and motivates the personnel for change.
5. Helps in stability and growth:

direction is an integrated activity of motivation, leadership and communication. These
activities help in stability of the organization. When these activities are used, the capabilities
are utilized which helps in flexibility and growth of the organization.
6. Helps to achieve the organizational goals:

the manager gives the direction to do work and it gives knowledge, information and goals
of the organization. When all people know about the goals it helps on achieving the
organizational goals effectively.
7. Means of motivation:
when direction is effective and meaningful, the employees are properly motivated. Direction
works for motivating people to contribute maximum efforts. It brings positive feeling
towards the organization.

Principles of direction:
1. Principle of harmony of objectives:
every organization set the objectives and these objectives are to be fulfilled with the help of
people working in the organization. Therefore managers must try to bring harmony between
individual and organizational goals.
2. Unity of command:
The individual who works in the organization get direction from his/her superior. The
subordinates must get direction from only one superior to reduce conflict and confusion
which is called unity of command.
3. Direct supervision:
When superior direct the subordinates with face to face communication it is known as direct
supervision. It helps to increase the morale of employees and it helps to develop quick
feedback and necessary information.
4. Appropriate leadership style:

proper leadership means the skill of leading that depends upon the characteristics of leader,
features of subordinates and the situation. It is the process of influencing human behavior in
achieving organizational goals without dissatisfaction of any employees.
5. Maximum individual contribution:

The employees’ capacity should be used fully with effective direction by encouragement
not irritation with proper design direction style.
6. Effective communication:
without effective communication, direction is not possible. Mainly, communication may be
downward or upward in an organization. Downward communication carries the order, ideas,
instruction to the subordinates and upward communication carries the order, ideas, and
instruction from the subordinates.
7. Effective control:
without effective control organization can’t be operated. Effective control helps to
coordinate and supervise the activities and other mechanism.
8. Effective motivation:
Motivation is the act of inspiring and encouraging the people to do work. Employees must
be motivated to achieve the goals. Without motivation , direction cannot be complete
9. Flow of information:
information is most important asset in any organization. When information is blocked, then
there can be failure. On the other hand, information is useful to issue the order, ideas, and
instruction.
10. Follow- up:

direction is a continuous managerial process. It involves constant and continuous
supervision, counseling, advice, instructions etc in the employees’ activities. Merely issuing
orders is not sufficient but management should find out whether the subordinate is working
or not.

Discipline:
Definition: Organizational Discipline

Organizational Discipline is the practice of self-restraint and learning to follow the best
course of action which may not be ones’ desire. In team activities, where several individuals
work towards a same goal, discipline is of utmost importance.
The disciplinary actions taken by managers are broadly classified into two types:
Types of Discipline:
Action applied by managers.
1. Positive Discipline
2. Negative Discipline
These are discussed one by one:
1. Positive Discipline:
This is also called ‘self-imposed discipline’. It involves creation of an atmosphere in the

organisation through rewards, appreciation, incentive payment, promotion, constructive
support etc. to motivate employees to work willingly to accomplish the set goals.
In essence, positive discipline emphasises the concept of self-discipline or self-control.

Thus, it reduces the need for personal supervision to make employees conform to
organisational rules, regulations, procedures and standards.
According to William R. Spriegel, “Positive discipline does not replace reason but applies
reason to the achievement of a common objective. Positive discipline does not restrict the
individual but enables him to have a greater freedom in that he enjoys a greater degree of
self-expression in striving to achieve the group objective, which he identifies as his own'”
Evidences suggest that self-disciplined person tends to be a better worker than one who is
not. Self- discipline, when developed from within, leads to building up morale and esprit de
corps that is the desideratum of the time to run organisations successfully.
2. Negative Discipline:
It is also called ‘enforced discipline’. In case of negative discipline, employees are forced to
obey orders and abide by rules and regulations that have been laid down, failing which
penalties and punishment would be imposed on them. Thus, the objective of using punitive
or coercive discipline is to ensure that employees do not violate rules and regulations formed
by the organisation.
In other words, the purpose of negative discipline is to scare other employees and to ensure
that they do not indulge in undesirable behaviour. It is worth mentioning here that negative
discipline cannot eliminate the undesirable behaviour of the employees, but can merely
suppress it.

Punishment is not pleasant. It causes resentment and hostility on the part of employees. That
is why this kind of discipline results in only the minimum standards of performance on the
part of employees. This is precisely the reason why it is rarely used in the organisations.
Because punitive discipline leads to resentment, it needs to be exercised in a progressive,

sequential and chronological manner. A progressive system of discipline generally contains
five steps, viz., an oral reprimand, a written reprimand, a second written warning, temporary
suspension and dismissal or discharge.
The Importance of Discipline in an Organization
Discipline in business is a type of training in which individuals are subject to particular

regulations designed to mold behaviors. It is necessary to instill a disciplining program in
your small business in order to move forward. An effective regimen will help improve
workplace performance, provide a safe and honest environment conducive to production.
Promotes Appropriate Behavior

A disciplined environment helps put both management and employees on their best
behavior. Managers must strictly adhere to the company's protocols in order to effectively
lead those looking to them as examples. Employees who enter this type of administration
know what the expectations are as well as the penalties for committing infractions. This
knowledge promotes appropriate actions and conduct which are essential in a small
company.
Efficiency
Efficiency is tied to a disciplined organization. Staff members must discipline themselves in
working in a timely manner to produce quality output. Small business owners must strive to
cultivate a workplace in which standards are set which everyone in the organization is called
upon to meet. This allows management and workers to get things done. Discipline requires
concentration, time management and orderliness, which all contribute to efficient labor.
Peaceful Environment
Peacefulness ensues when you have a workplace that is committed to values of a
concentrated regimen. The environment that exists in organizations which do not issue
specific guidelines for behavior is frequently impulsive, erratic and uncertain. It is extremely
difficult for management to effectively lead workers under these conditions. A disciplined
facility, however, encourages a pleasant environment that promotes good management and
employee relations.
Fairness
Discipline helps to produce an honest environment in which everyone is treated fairly. An
employee does not have to fear being shouldered with an unfair amount of tasks because set
protocols are in place that call for workers to share the load. Managers are less likely to play
favorites in a disciplined environment as well, as they are subject to the same conduct
requirements as all others in the company. The compliance organization HR.BLR.com states
that employers can ensure fair treatment of all workers by uniformly following their
performance discipline plans.

Ensures Safety
Safety in your small company is of vital importance. You do not want any of your staff or
customers to suffer preventable accidents from which personal harm occurs, which could
also lead to possible legal action. You must abide by all occupational safety regulations and
train your staff appropriately. Kelly Services' Smart Manager website says that a disciplined
environment is necessary to provide a secure workplace. For this reason, it is necessary to
train all employees on safety procedures. Employees who fail to follow safety directives are
subject to disciplinary measures.
Other Types of organizational discipline are as follows. ....

• Self-discipline – This is the ideal situation where the employees themselves are
motivated enough to regulate their actions like time management, priority setting etc. and
the organization does not have to put in any extra effort
• Task discipline – In this situation the employee has to be responsible enough to do
their job in the best way possible by them.
• Group discipline – Group discipline is teamwork. Most jobs in an organization require
to be worked upon by a team, so group discipline is very important.
Motivation:
Meaning of motivation:
Motivation is an inspiration that helps to use the employees’ knowledge and skill for the
growth and development of the organization. It is an act of persuading the people who work
in the organization. It is defines as the psychological process that hell to increase the will to
do work. It is the process of inspiring people from which the people can use their ability. It
is an important function of management,. The employees who are engaged in the
organization must be motivated. Without motivation, their ability and skill can’t be used
properly. Every employee has the capacity to do work. It is the process that helps the
employee to explore their talent.
“The concept of motivation is mainly psychological. It relates to those factors or forces
operating with the individual employee or subordinate which impel him to act or not to act
in certain ways.”
—Delton e. McFarland.
Importance of motivation:
1. Proper utilization of production factor:

Motivation is the mechanism which is used to stimulate the employees. Stimulated
employees are ready to use the production factor properly and efficiently. So it results in
increase in production and productivity.
2. Willingness and interest creation:

Motivation stimulates the employees in an organization. It influences the willingness of
employees to work hard and help to present better performance. It is a process that acts
according to desire of employees and increases the willingness and interest of employees to
do work.

3. High productivity:
When the employees are fully motivated there is better performance. It results high
production and productivity increment.
4. Organizational goals:
The machine, equipment, money cannot be effectively used when the employees are not
motivated to do the work in an organization to the maximum extent .so it helps to achieve
the organizational goals.
5. Readiness for change:

Changes are required in every organization. Such changes may be in technology,
environment etc. when the changes are introduced in the organization there is tendency to
resist them by the employee or hesitate to accept the change. Motivated employees are
already made ready to accept the change.
6. Efficiency in work:
Motivated employees perform their duties according to the goals of the organization. They
perform work efficiently and timely and increase the efficiency.
7. Reduce absenteeism: –
Motivated employees don’t want to be absent frequently. In other words, Motivated
employees stay in the organization more and non Motivated employees are careless for the
organizational goals.
8. Employees’ satisfaction:
Employee’s satisfaction is an important aspect for the managerial point of view. Employees
may be motivated by fulfilling their needs and giving satisfaction in their work. In short
Motivated employees are always satisfied.
9. Less disputes and strikes:

Disputes and strikes are harmful for organizational activities. When the employees are not
motivates they are dissatisfies which creates disputes in the organization.
10. Better human relation:

All employees must be treated as human beings by the organization. Motivation mainly
related to behave the human beings.
Techniques of motivation:
1. Financial incentives:
First techniques of motivation are financial incentives as money is indicator of success.
Therefore it fulfills psychological safety and status need as people satisfy their needs by
money. Wages, salary motivates employees to perform better.
2. Job enlargement:
Under this technique, task assigned to do job are increased by adding simile task. So the
scope of job enlargement is high for the motivation of subordinates. It is also known as
horizontally leading of job.

3. Job enrichment:
Under this technique jobs are made challenging and meaningful by increasing responsibility
and growth opportunities. In such technique of motivation, planning and control
responsibility are added to the job usually with less supervision and more self evaluation. It
is also called vertical leading.
4. Job rotation:
it refers to shifting an employee from one job to another. Such job rotation doesn’t mean
hanging of their job but only the employees are rotated. By this it helps to develop the
competency in several job which helps in development of employees.
5. Participation :
Participation refers to involvement of employee in planning and decision making .it helps
the employees feel that they are an asset of the organization which helps in developing ideas
to solve the problems.
6. Delegation of authority:
Delegation of authority is concerned with the granting of authority to the subordinates which
helps in developing a feeling of dedication to work in an organization because it provides
the employees high morale to perform any task.
7. Quality of work life:

It is the relationship between employees’ and the total working environment of organization.
It integrates employee needs and well being with improves productivity, higher job
satisfaction and great employee involvement. It ensures higher level of satisfaction.
8. Management by objectives:
It is used as a motivation and technique for self control of performance. By this technique
superior and subordinates set goals and each individual subordinates responsibilities clearly
defined which help to explore the sill and use in the organization effectively.
9. Behavior modification:
The last technique of motivation is behavior modification. It develops positive motivation to
the workers to do the work in desired behavior in order to modify behavior.
Types of motivation:
1. Positive motivation:
it is also known as cost approach. It offers some reward for better performance. Such
reward can be of two types i.e. money reward like giving salaries and wages, payment for
higher performance like bonus and pension, payment for holidays and so on. Secondly there
maybe job related reward. In such reward, it focuses on job rather than money like job
enrichment, making participation ion management and decision making, promoting
employees and appraisal.

2. Negative motivation:
It is known as stick approach. It is the process of motivation through punishment for poor
performance. Under this technique employees are motivate through providing monetary
ways like reduction of pay, providing no bonus, taking fine for poor performance and non
monetary ways may be demotion, threat, transfer to remote areas, minimization of
responsibility, loss of job etc.
Process of motivation:
1. Unsatisfied needs and motives:

it is the first process of motivation. This stage involves unsatisfied needs and motives. Such
unsatisfied needs can be activated by internal stimulus such as hunger and thirst. They can
also be activated by external stimulus such as advertisement and window display.
2. Tension:
this stage involves tension. Unsatisfied needs create tension in the individual. Such tension
can be physical, psychological, and sociological. In this situation, people try to develop
objects that will satisfy their needs.
3. Action to satisfy needs and motives:

this stage involves action of people to satisfy needs and motives. Such tension creates strong
internal stimulus that calls for action. Individual engages in action to satisfy needs and
motives for tension reduction. For this purpose, alternatives are searches and choice is made,
the action can be hard work for earning more money.
4. Goal accomplishment:
this stage involves goal accomplishment. Action to satisfy needs and motives accomplishes
goals. It can be achieves through reward and punishment. When actions are carried out as
per the tensions, then people are rewarded others are punished. Ultimately goals are
accomplished.
5. Feedback:
this is the last stage for motivation. Feedback provides information for revision or
improvement or modification of needs as needed. Depending on how well the goal is
accomplished their needs and motives are modified. Drastic changes in environment
necessitate the revision and modification of needs.
Some of the most important theories of motivation are as follows: 1. Maslow’s Need
Hierarchy Theory 2. Herzberg’s Motivation Hygiene Theory 3. McClelland’s Need Theory
4. McGregor’s Participation Theory 5. Urwick’s Theory Z 6. Argyris’s Theory 7. Vroom’s
Expectancy Theory 8. Porter and Lawler’s Expectancy Theory.
From the very beginning, when the human organisations were established, various thinkers
have tried to find out the answer to what motivates people to work. Different approaches
applied by them have resulted in a number of theories concerning motivation.

These are discussed in brief in that order.
1. Maslow’s Need Hierarchy Theory:
It is probably safe to say that the most well-known theory of motivation is Maslow’s need
hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his
clinical experience, he classified all human needs into a hierarchical manner from the lower
to the higher order.
In essence, he believed that once a given level of need is satisfied, it no longer serves to
motivate man. Then, the next higher level of need has to be activated in order to motivate the
man.
These are now discussed one by one:
1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air, water and
necessities of life. These needs relate to the survival and maintenance of human life. They
exert tremendous influence on human behaviour. These needs are to be met first at least
partly before higher level needs emerge. Once physiological needs are satisfied, they no
longer motivate the man.
2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and security
needs. These needs find expression in such desires as economic security and protection from
physical dangers. Meeting these needs requires more money and, hence, the individual is
prompted to work more. Like physiological needs, these become inactive once they are
satisfied.
3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction, companionship,

belongingness, etc. It is this socialising and belongingness why individuals prefer to work in
groups and especially older people go to work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which indicate
self-confidence, achievement, competence, knowledge and independence. The fulfillment of
esteem needs leads to self-confidence, strength and capability of being useful in the
organisation. However, inability to fulfill these needs results in feeling like inferiority,
weakness and helplessness.
5. Self-Actualisation Needs:
This level represents the culmination of all the lower, intermediate, and higher needs of
human beings. In other words, the final step under the need hierarchy model is the need for
self-actualization. This refers to fulfillment.

The term self-actualization was coined by Kurt Goldstein and means to become actualized in
what one is potentially good at. In effect, self- actualization is the person’s motivation to
transform perception of self into reality.
According to Maslow, the human needs follow a definite sequence of domination. The
second need does not arise until the first is reasonably satisfied, and the third need does not
emerge until the first two needs have been reasonably satisfied and it goes on. The other side
of the need hierarchy is that human needs are unlimited. However, Maslow’s need
hierarchy-theory is not without its detractors.
The main criticisms of the theory include the following:
1. The needs may or may not follow a definite hierarchical order. So to say, there may be
overlapping in need hierarchy. For example, even if safety need is not satisfied, the social
need may emerge.
2. The need priority model may not apply at all times in all places.
3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of
behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is also of
doubtful validity.
4. In case of some people, the level of motivation may be permanently lower. For example, a
person suffering from chronic unemployment may remain satisfied for the rest of his life if
only he/she can get enough food.
Notwithstanding, Maslow’s need hierarchy theory has received wide recognition,

particularly among practicing managers. This can be attributed to the theory’s intuitive logic
and easy to understand. One researcher came to the conclusion that theories that are
intuitively strong die hard’.
2. Herzberg’s Motivation Hygiene Theory:
The psychologist Frederick Herzberg extended the work of Maslow and propsed a new
motivation theory popularly known as Herzberg’s Motivation Hygiene (Two-Factor)
Theory. Herzberg conducted a widely reported motivational study on 200 accountants and
engineers employed by firms in and around Western Pennsylvania.
He asked these people to describe two important incidents at their jobs:
(1) When did you feel particularly good about your job, and
(2) When did you feel exceptionally bad about your job? He used the critical incident
method of obtaining data.
The responses when analysed were found quite interesting and fairly consistent. The replies
respondents gave when they felt good about their jobs were significantly different from the
replies given when they felt bad. Reported good feelings were generally associated with job
satisfaction, whereas bad feeling with job dissatisfaction. Herzberg labelled the job satisfiers
motivators, and he called job dissatisfies hygiene or maintenance factors.

Taken together, the motivators and hygiene factors have become known as Herzberg’s two-
factor theory of motivation.
Herzberg's Motivational and Hygiene Factors
According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying

reason, he says, is that removal of dissatisfying characteristics from a job does not
necessarily make the job satisfying. He believes in the existence of a dual continuum. The
opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite of ‘dissatisfaction’ is ‘no
dissatisatisfaction’.
According to Herzberg, today’s motivators are tomorrow’s hygiene because the latter stop
influencing the behaviour of persons when they get them. Accordingly, one’s hygiene may
be the motivator of another.
However, Herzberg’s model is labeled with the following criticism also:
1. People generally tend to take credit themselves when things go well. They blame failure
on the external environment.
2. The theory basically explains job satisfaction, not motivation.
3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a person
may dislike part of his/ her job, still thinks the job acceptable.
4. This theory neglects situational variable to motivate an individual.
Because of its ubiquitous nature, salary commonly shows up as a motivator as well as

hygine.
Regardless of criticism, Herzberg’s ‘two-factor motivation theory’ has been widely read and
a few managers seem untaminar with his recommendations. The main use of his
recommendations lies in planning and controlling of employees work.
3. McClelland’s Need Theory:
Another well-known need-based theory of motivation, as opposed to hierarchy of needs of

satisfaction-dissatisfaction, is the theory developed by McClelland and his associates’.
McClelland developed his theory based on Henry Murray’s developed long list of motives
and manifest needs used in his early studies of personality. McClelland’s need-theory is
closely associated with learning theory, because he believed that needs are learned or
acquired by the kinds of events people experienced in their environment and culture.
He found that people who acquire a particular need behave differently from those who do
not have. His theory focuses on Murray’s three needs; achievement, power and affiliation. In
the literature, these three needs are abbreviated “n Ach”, “n Pow”, and “n Aff” respectively’.

They are defined as follows:
Need for Achievement:
This is the drive to excel, to achieve in relation to a set of standard, and to strive to succeed.
In other words, need for achievement is a behaviour directed toward competition with a
standard of excellence. McClelland found that people with a high need for achievement
perform better than those with a moderate or low need for achievement, and noted regional /
national differences in achievement motivation.
Through his research, McClelland identified the following three characteristics of high-need
achievers:
1. High-need achievers have a strong desire to assume personal responsibility for performing
a task for finding a solution to a problem.
2. High-need achievers tend to set moderately difficult goals and take calculated risks.
3. High-need achievers have a strong desire for performance feedback.
Need for Power:
The need for power is concerned with making an impact on others, the desire to influence
others, the urge to change people, and the desire to make a difference in life. People with a
high need for power are people who like to be in control of people and events. This results in
ultimate satisfaction to man.
People who have a high need for power are characterized by:
1. A desire to influence and direct somebody else.
2. A desire to exercise control over others.
3. A concern for maintaining leader-follower relations.
Need for Affiliation:
The need for affiliation is defined as a desire to establish and maintain friendly and warm
relations with other people’. The need for affiliation, in many ways, is similar to Maslow’s
social needs.
The people with high need for affiliation have these characteristics:
1. They have a strong desire for acceptance and approval from others.
2. They tend to conform to the wishes of those people whose friendship and companionship
they value.
3. They value the feelings of others.

Three Need Theories of motivation:
Maslow refers to higher- lower order needs, whereas Herzberg refers to motivation and
hygiene factors.
4. McGregor’s Participation Theory:
Douglas McGregor formulated two distinct views of human being based on participation of
workers. The first basically negative, labeled Theory X, and the other basically positive,
labled Theory Y.
Theory X is based on the following assumptions:
1. People are by nature indolent. That is, they like to work as little as possible.
2. People lack ambition, dislike responsibility, and prefer to be directed by others.
3. People are inherently self-centered and indifferent to organisational needs and goals.
4. People are generally gullible and not very sharp and bright.
On the contrary, Theory Y assumes that:
1. People are not by nature passive or resistant to organisational goals.
2. They want to assume responsibility.
3. They want their organisation to succeed.
4. People are capable of directing their own behaviour.
5. They have need for achievement.
What McGregor tried to dramatise through his theory X and Y is to outline the extremes to
draw the fencing within which the organisational man is usually seen to behave. The fact
remains that no organisational man would actually belong either to theory X or theory Y. In
reality, he/she shares the traits of both. What actually happens is that man swings from one
set or properties to the other with changes in his mood and motives in changing
.environment.
5. Urwick’s Theory Z:
Much after the propositions of theories X and Y by McGregor, the three theorists Urwick,
Rangnekar, and Ouchi-propounded the third theory lebeled as Z theory.
The two propositions in Urwicks’s theory are that:
(i) Each individual should know the organisational goals precisely and the amount of
contribution through his efforts towards these goals.

(ii) Each individual should also know that the relation of organisational goals is going to
satisfy his/her needs positively.
In Urwick’s view, the above two make people ready to behave positively to accomplish both
organisational and individual goals.
However, Ouchi’s Theory Z has attracted the lot of attention of management practitioners as
well as researchers. It must be noted that Z does not stand for anything, is merely the last
alphabet in the English Language.
Theory Z is based on the following four postulates:
1. Strong Bond between Organisation and Employees
2. Employee Participation and Involvement
3. No Formal Organisation Structure
4. Human Resource Development:
Ouchi’s Theory Z represents the adoption of Japanese management practices (group decision
making, social cohesion, job security, holistic concern for employees, etc.)by the American
companies. In India, Maruti-Suzuki, Hero-Honda, etc., adopted this theory.
6. Argyris’s Theory:
Argyris has developed his motivation theory based on proposition how management
practices affect the individual behaviour and growth In his view, the seven changes taking
place in an individual personality make him/her a mature one. In other words, personality of
individual develops
Argyris's Theory:
Argyris views that immaturity exists in individuals mainly because of organisational setting
and management practices such as task specialisation, chain of command, unity of direction,
and span of management. In order to make individuals grow mature, he proposes gradual
shift from the existing pyramidal organisation structure to humanistic system; from existing
management system to the more flexible and participative management.
He states that such situation will satisfy not only their physiological and safety needs, but
also will motivate them to make ready to make more use of their physiological and safety
needs. But also will motivate them to make ready to make more use of their potential in
accomplishing organisational goals.

7. Vroom’s Expectancy Theory:
One of the most widely accepted explanations of motivation is offered by Victor Vroom in
his Expectancy Theory” It is a cognitive process theory of motivation. The theory is founded
on the basic notions that people will be motivated to exert a high level of effort when they
believe there are relationships between the effort they put forth, the performance they
achieve, and the outcomes/ rewards they receive.
Vroom's Expectancy Model of Motivation
Thus, the key constructs in the expectancy theory of motivation are:
1. Valence:
Valence, according to Vroom, means the value or strength one places on a particular
outcome or reward.
2. Expectancy:
It relates efforts to performance.
3. Instrumentality:
By instrumentality, Vroom means, the belief that performance is related to rewards.
Thus, Vroom’s motivation can also be expressed in the form of an equation as follows:
Motivation = Valence x Expectancy x Instrumentality
Being the model multiplicative in nature, all the three variables must have high positive
values to imply motivated performance choice. If any one of the variables approaches to
zero level, the possibility of the so motivated performance also touches zero level.
However, Vroom’s expectancy theory has its critics. The important ones are:
1. Critics like Porter and Lawler lebeled it as a theory of cognitive hedonism which proposes
that individual cognitively chooses the course of action that leads to the greatest degree of
pleasure or the smallest degree of pain.
2. The assumption that people are rational and calculating makes the theory idealistic.
3. The expectancy theory does not describe individual and situational differences.
But the valence or value people place on various rewards varies. For example, one employee
prefers salary to benefits, whereas another person prefers to just the reverse. The valence for
the same reward varies from situation to situation.
In spite of all these critics, the greatest point in me expectancy theory is that it explains why
significant segment of workforce exerts low levels of efforts in carrying out job
responsibilities.

8. Porter and Lawler’s Expectancy Theory:
In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory.
They posit that motivation does not equal satisfaction or performance. The model suggested
by them encounters some of the simplistic traditional assumptions made about the positive
relationship between satisfaction and performance. They proposed a multi-variate model to
explain the complex relationship that exists between satisfaction and performance.
What is the main point in Porter and Lawler’s model is that effort or motivation does not
lead directly to performance. It is intact, mediated by abilities and traits and by role
perceptions. Ultimately, performance leads to satisfaction.
The Porter and Lawler Motivation Model:
There are three main elements in this model. Let us briefly discuss these one by one.
Effort:
Effort refers to the amount of energy an employee exerts on a given task. How much effort
an employee will put in a task is determined by two factors-
(i) Value of reward and
(ii) Perception of effort-reward probability.
Performance:
One’s effort leads to his/her performance. Both may be equal or may not be. However the
amount of performance is determined by the amount of labour and the ability and role
perception of the employee. Thus, if an employee possesses less ability and/or makes wrong
role perception, his/her performance may be low in spite of his putting in great efforts.
Satisfaction:
Performance leads to satisfaction. The level of satisfaction depends upon the amount of
rewards one achieves. If the amount of actual rewards meet or exceed perceived equitable
rewards, the employee will feel satisfied. On the country, if actual rewards fall short of
perceived ones, he/she will be dissatisfied.
Rewards may be of two kinds—intrinsic and extrinsic rewards. Examples of intrinsic

rewards are such as sense of accomplishment and self-actualisation. As regards extrinsic
rewards, these may include working conditions and status. A fair degree of research support
that, the intrinsic rewards are much more likely to produce attitudes about satisfaction that
are related to performance.

There is no denying of the fact that the motivation model proposed by Porter and Lawler is
quite complex than other models of motivation. In fact motivation itself is not a simple
cause-effect relationship rather it is a complex phenomenon Porter and Lawler have
attempted to measure variables such as the values of possible rewards, the perception of
effort-rewards probabilities and role perceptions in deriving satisfaction.
Communication:
Meaning of communication
Communication is the process of transformation of information from one person to another.

It is a process of exchanging opinions ideas, feelings, information, views and other fast
between or among two or more people. It involves the systematic and continuous process of
telling, listening and understanding. Communication skill means conveying the message to
others and understanding the message from others. Business communication is a bridge of
passing information between the management and the employees.
Definitions :
Merill Lee & Fried Landert:
The word communication is derived from the word “communis” which means to inform or
tell information to others.
-Haimans:
Communications is the person of sending information and understanding from one person to
another
-Narula:
Communication is laws of force through which person create and message social realities.
-Berger:
The term communication is held to involve some kind of transfer of information from one
person to another to a group of other people.
-Allen:
Communication is sum of all acts that acts that a person does to make his or her message
understand by another person mind.
Process of communication:
1. Source or sender: – the first step in the communication process is source or sender. The
source is also called communicator. Communication begins when someone has some idea,
information, view, feeling to transmit. The communicator may be a person, group or an
organization. When the communicator intends to communicate to somebody communicator
prepares the message.

2. Encoding: – the idea or feeling the sender has to be translated into some language or
symbols. This process is called encoding. The sender must choose appropriate words,
symbols, pictures etc to express his/her idea.. While selecting the symbols, the sender has to
pay attention about the receiver understanding the message.
3. Message or medium: – the medium is simply the pathway for transmission of the
message. Some medium must be selected. This channel is chosen by the sender. They can be
formal or informal. Examples are face to face , email, letters, fax. Telephone etc.
4. Decoding to the receiver: – the receiver assigns some meaning to the symbol transmitted
by the source, so the receiver interprets the message and the process is known as decoding. It
is not an easy task because words have different meaning for different people. Problems of
communication break down frequently.
5. Feedback: – this is the final phase. Feedback is the reaction of the receiver. The receiver
has to confirm whether or not the message has been received or not. It is only taken in two-
way communication.
6. Noise: – it is interference with the normal flow of information. It disturbs the

communication system. No matter how well designed is the communication system; if noise
exists the message received is different from message sent. Example: – noise of machines,
vehicles, loud voice etc.
Barriers to effective communication

A. Physical barriers:
Internal structure of the organization and layout of office machines and equipments creates
physical barriers in communication.
a.Distance:communication is found obstructed in long distance. Like communication

between America and Nepal.
b. Noise: – it is from external sources and affects the communication process. Noise
negatively affects the accuracy.
c. Physical arrangement: – the physical arrangement of organizational sources like men,

money, material and machine obstruct the communication process.
B. Semantic barriers:
The use of difficult and multiple use of languages, words, figures, symbols create semantic
barriers.
a. Language: – we can find some words having different meaning. As meaning sent by
the sender can be quite different from the meaning understood by the receiver. Long and
complex sentences creates problem in communication process.
b. Jargons: – technical or unfamiliar language creates barriers to communication that

may be drawn from the literature. So message should be simple and condensed as far as
possible so that no confusion creation will be there to the receiver.

C. Organizational barriers:
It is raised from the organizational goals, regulations, structure and culture.
a. Poor planning: – it refers to the designing, encoding, channel selection and

conflicting signals in the organization.
b. Structure complexities:- difficult organizational structure barrier for free flow of

information. Appropriate communication process must be used.
c. Status differences: – it creates barrier for communication. Superior provides

information to the subordinate about plans and policies. Different information is provided by
different subordinates who create barrier in communication.
d. Organizational distance:- distance between sender and receiver also creates barriers
to effective communication.
e. Information overload: – if superior provides too much information to the subordinate

in short period receiver suffers from information overload which creates barriers to effective
communication.
f. Timing: – communication can be obstructed if not done on time. If the information is

not provided in time it creates barriers to effective communication.
D. Psychological barriers:
It is the barriers to effective communication created from the lack of interest of the people
from whom the communication is meant. People do not pay attention to the communication
which are not interesting to them and which do not fulfill their want.
a. Perception: – it is the process of accepting and interpreting the information by the

receiver. People receive things differently for a various number of reasons.
b. Filtering: – communication some time filters the negative information to make it more
favorable to the receiver. In this process, knowingly or unknowingly some valuable
information may be disposed.
c. Distrust: – superior provides information or message to the subordinates to their own

view, ideas and opinion which create obstruction in communication.
d. Emotions: – emotion also creates barriers to effective communication like anger, het,
mistrust, jealousy etc.
e. Viewpoint: – it also creates barriers to effective communication. It the receiver doesn’t

clear the message and ignore without hearing, the message may create obstructions.
f. Defensiveness: – if the receiver receives the message as threat and interprets that
message in the same way, it creates barriers to effective communication.

Remedies to overcome the communication barriers:
In order to remove hindrances in the way of communication the following steps are worth
consideration:
(1) Clarify Ideas before Communication:
The person sending the communication should be very clear in his mind about what he
wants to say. He should know the objective of his message and, therefore, he should arrange
his thoughts in a proper order.
(2) Communicate According to the Need of the Receiver:
The sender of the communication should prepare the structure of the message not according
to his own level or ability but he should keep in mind the level, understanding or the
environment of the receiver.
(3) Consult Others before Communication:
At the time of planning the communication, suggestions should be invited from all the
persons concerned. Its main advantage will be that all those people who are consulted at the
time of preparing the communication plan will contribute to the success of the
communication system.
(4) Be Aware of Language, Tone and Content of Message:
The sender should take care of the fact that the message should be framed in clear and
beautiful language. The tone of the message should not injure the feelings of the receiver. As
far as possible the contents of the message should be brief and excessive use of technical
words should be avoided.
(5) Convey Things of Help and Value to the Listener:
The subject matter of the message should be helpful to the receiver. The need and interest of
the receiver should specially be kept in mind. Communication is more effective in such a
situation.
(6) Ensure Proper Feedback:
The purpose of feedback is to find out whether the receiver has properly understood the
meaning of the information received. In the face-to- face communication, the reaction on the
face of the receiver can be understood.
But in case of written communication or some other sort of communications some proper
method of feedback should be adopted by the sender.

(7) Consistency of Message:
The information sent to the receiver should not be self- contradictory. It should be in
accordance with the objectives, policies, programmes and techniques of the organisation.
When a new message has to be sent in place of the old one, it should always make a mention
of the change otherwise it can create some doubts.
(8) Follow up Communication:
In order to make communication effective the management should regularly try to know the
weaknesses of the communication system. In this context effort can be made to know
whether to lay more stress upon the formal or the informal communication would be
appropriate.
Similarly, suggestions can be invited in respect of the medium of communication (oral,

written and gestural) to know as to which medium would be more effective and appropriate.
(9) Be a Good Listener:
It is the essence of communication that both the sender and the receiver should be good
listeners. Both should listen to the each other’s point of view with attention, patience and
positive attitude. A sender can receive much relevant information by being a good listener.
Principles of communication:
1. Principle of clarity: – in the process of communication, simple and clear language must
be used. When the word is not familiar the meaning is not clear.
2. Principle of attention: – for good communication of both parties’ receiver and sender
must participate. Without proper attention communication can never be complete. So
receiver should give full attention in the process of receiving.
3. Principle of integrity and sincerity: – messages and information must be integrated to

develop sincerity of the employees.
4. Principle of time: – the data and information must ne communicated at right time to
make it reliable and suitable at the present condition.
5. Principle of consistency: – there must be consistent plans, policies and programs so that
there is no difficulty in communicating the information.
6. Principle of informality: – formal relations must ne developed between managers and

employees but not in all situations. There should also be informal communication.
7. Principle of use of informal organization: – informal groups of organization can be

made in company and they can provide important information.

8. Principle of completeness: – incomplete communication system doesn’t provide the

meaning of information ideas and other facts and incomplete organization and its
department. Therefore, the message which is to be communicated must be adequate and
complete.
9. Principle of feedback: – planning and policies are communicated from top to bottom and
suggestions and complaints from bottom to top. This type of communication is called two
way communications and there is feedback in two-way communication. By feedback, the
sender know reaction of the receiver and have a chance of correct the action.
10. Principle of objectives: – there are two persons involved in communication i.e. sender
and receiver. Both sender and receiver must know about the objectives or purpose of
communication. The objective may be to obtain information, to give information and initiate
then action and so on.
11. Principle of correctness: – actual information must be provided to the receiver.

UNIT 5: Organizational Conflict:

Definition: Organizational Conflict or otherwise known as workplace conflict, is
described as the state of disagreement or misunderstanding, resulting from the actual or
perceived dissent of needs, beliefs, resources and relationship between the members of
the organization. At the workplace, whenever, two or more persons interact, conflict
occurs when opinions with respect to any task or decision are in contradiction.
Causes of Conflict:
1. Differences in perception:
Differences in perceptions, values and attitudes of individuals or groups over the same
problem leads to interpersonal or intergroup conflicts. For example, one group of
individuals may want that all employees use HP computers to maintain standardisation
while another group may promote different brands of computers to maintain individuality.
Differences in views lead to conflicts.
2. Excessive competition:
Organisational resources (men, material, money, space etc.) are scarce and each unit
wants maximum share of it. Competition amongst units for maximum share of resources
leads to conflict.
3. Differences in goals:
Different goals of individuals or groups leads to conflict amongst them. In order to
maximise profits, production department may want to produce limited varieties in large
volume so that costs are minimised. Sales department, on the other hand, may feel that
selling products of different sizes, colours and models can increase sales and, thus,
minimise costs. Differences in group goals leads to conflict between the two. It may even
affect the quality of products.
4. Interdependence of tasks:
When work is passed from one unit to the other, interdependence amongst units can lead
to conflict. Output of first unit becomes input of second unit. If first unit fails to process
its work on time, the second unit will have to wait and stay idle till it receives the process.
This can cause inter-group conflict.
5. Habit patterns:
Some people like to argue and debate. They enjoy conflict as a matter of habit. It acts as a
motivator for them to improve their performance.

6. Personal characteristics:
When group members differ in work attitudes, age, education, temperament and status
levels, the potential for inter-group conflict is high.
7. Ill defined authority – responsibility relationships:

When authority and responsibility of individuals and groups is not properly defined,
people do not understand each other’s role. There is lack of consistency in work activities
and communication distortions take place. This becomes a source for inter-group conflict.
Consequences of Conflict:
Conflict has both positive and negative consequences. Positive conflict is known as
functional conflict and negative conflict is known as dysfunctional conflict.
Positive Conflict (Functional Conflict):

Conflict is not only inevitable, it is also desirable. It is constructive and encourages new
ideas to solve organisational problems. It promotes change and keeps the organisation
going in the desired direction.
It believes that conflict has the following positive consequences:

1. High degree of cohesion:
Inter-group conflict gives rise to commitment and loyalty amongst members of the group.
Group members unite together, take advantage of opportunities, overcome threats and
take strong actions to resolve their problems. All members of the group work together for
a common goal.
It promotes group cohesiveness if people of different groups compete with each other. In
order to do better, members of each group work together. They become loyal and bonded
to each other which promotes organisational performance.
2. Improvement in quality of decisions:

When group members face conflict, they think of all possible solutions to the problem,
evaluate the decisions and use their creative and innovative abilities to arrive at the best
decisions. Inter-group conflict, thus, improves the quality of decisions and stimulates
creativity and innovation. When people have conflicting opinions, they deeply analyse
facts of the case. Deep understanding of concepts promotes new thinking, new ideas and,
thus, fosters innovation.

3. Emergence of leaders:
Everybody does not think alike in conflicting situation. Group members bestow power on
those who can positively contribute to the problem situation to take decisions. Increased
power gives rise to leaders who act as the group captain. This also reduces rivalry
amongst members to become group leaders.
4. Response to change:
Conflict promotes change if people do not readily agree to each other. Differences in
opinions, values and perception introduce new ways of working which is different from
the traditional thinking. Conflicts challenge the existing state of affairs and promote new
ideas and reassessment of current group practices. Conflict signals something wrong with
the present system of working and promotes ability to assess the present and desire for a
better future. Conflict, thus, increases responsiveness of group to change.
5. Increased productivity:
It is empirically proved that productivity of conflicting groups is more than those which
have close agreement amongst the members. Members with different perceptions and
interests produce high-quality solutions to problems. This improves productivity of the
group. Conflicts highlight weaknesses in the existing system of management. These
weaknesses can be removed to improve efficiency of the organisation’s operating system.
6. Releases strain:
If group members do not agree with pre-defined values and norms, conflicts give them a
ground for voicing their reservations. This releases strain that would otherwise remain
suppressed in their minds. In conflicting situations, people openly express their thoughts
and feelings, even if they are against the thought process of other members of the
organisations. This releases strain and provides mental satisfaction to the members.
Negative Conflict (Dysfunctional Conflict):

In positive conflict, differences in opinion do not hurt anyone’s feelings. People respect
each other’s ideas and arrive at new solutions to the problems to develop working
relationships. In negative conflict, on the contrary, people show disrespect for others’
ideas. They aim to promote their interests at the cost of others.
The negative consequences of conflict are as follows:

1. Mental strain:
Excessive conflict creates tension and frustration amongst people. This not only harms
the individuals (as they may enter into a state of depression) but also harms the
organisation (people do not positively contribute to organisational productivity).

2. Discontentment:
Conflict breeds antagonism and discontentment. This reduces power to think creatively
and reduces group effectiveness. If people do not arrive at mutually agreeable solutions, it
results in discontentment. People are not satisfied with their jobs. This lowers the
organisational productivity.
3. Communication breakdown:
When individuals or groups develop conflicting ideas, they avoid interacting with each
other. This reduces communication amongst them leading to inter-group rivalry and loss
of productive ideas.
As conflicts lead to disagreement and communication breakdown, people do not agree

with each other leading to splitting up of groups and units. This diverts energy from
organisational goals and leads to instability in the organisational structure.
4. Resignation:
Discontentment can lead to resignation from jobs. If results are not in favour of people
who strongly oppose certain decisions, they do not wish to work in those organisations
and look for other job outlets. If these people are dynamic and creative individuals, it is
loss for the organisation.
5. Distorted perceptions:
Groups hold strong perceptions about their activities and disregard those of the other
group. They highlight their strong points and competitors’ weak points. This leads to
deviation from organisational goals.
6. Competitive struggle:
Conflict leads to competition. Rather than arriving at consensus, agreement or settlement,
competitive struggle declines group’s ability to think and act positively.
7. Subordination of group goals to individual goals:

Members promote personal goals rather than group goals. They think of ways to promote
their personal interests rather than organisational interests. This reduces organisational
efficiency. People divert energy from constructive to destructive thinking.
They think of how to win over conflicting situations rather than pursuing organisational
goals. Short-term personal problems, thus, supersede long-term interests of the
organisation. People focus on personal goals at the cost of organisational goals. This
results in goal displacement as short-term perspective overpowers the long-term
perspective.

8. Threat to group survival:

In extreme situations, members can stop working. This stops functioning of the group and
threatens its survival.
Management of Conflict:
Conflict cannot and should not be avoided. There is always an optimum level of conflict
at which organisational performance is the highest. When the level of conflict is low, the
organisation will not be adaptive to change. This threatens its long-run survival.
When the level of conflict is too high, it creates chaos and disruptions in the organisation.
This also threatens its long-run survival. There is need, therefore, for managers to resolve
conflict. They should promote functional or constructive conflict and avoid dysfunctional
or destructive conflict.
Management of conflict involves:

1. Stimulation of functional conflict and
2. Resolution of dysfunctional conflict.
1. Stimulation of functional conflict:

The following methods help to stimulate or encourage constructive conflict:
(a) Bring managers with backgrounds, values and styles different from those who are
presently working in the organisation.
(b) Add or delete individuals and groups to the existing network. This will re-distribute
power and, thus, stimulate conflict.
(c) Break old teams and departments and re-organise them. New work, members and
responsibilities will be created requiring adjustment with each other. This will give rise to
conflict and new and improved methods of operation.
(d) Allow members to openly communicate with each other. Members can freely discuss
their problems, disagree with each other and have a wide perspective for decision--
making.
(e) Foster competition by paying financial and non-financial incentives for good
performance. This will promote conflict as each member will try to outperform others.

(f) Replace authoritarian managers with behavioural managers. They promote interaction
amongst group members and bring out their hidden desires thereby, resulting in conflict.
(g) Create an environment of creative and innovative thinking. When members find new
ways for doing the work, it will promote conflict and productive suggestions.
(h) Introduce changes in people, structure and technology.
(i) Allow compromise where each party is concerned about their goal accomplishment
and is willing to engage in ‘give and take’ to reach a reasonable solution.
(j) Allow collaboration where parties try to manage conflict without making concessions
by coming up with new ways to resolve differences.
2. Resolution of dysfunctional conflict:

These methods suppress or resolve conflict rather than promote them.
They are as follows:

(a) Introduce changes in the organisation structure so that conflicting parties are separated
and placed at different positions.
(b) Introduce participative style of management where decisions reflect the opinion of all.
(c) Integrate individual goals with organisational goals so that both individuals and
organisations promote each other’s interests.
(d) Managers should call the conflicting parties, listen to their arguments and try to get
one side into giving in. This is helpful when manger has more information than the parties
and he can satisfy each one of them.
(e) Provide incentives (financial and non-financial) to all rather than those who report
outstanding performance.
(f) Install training programmes for improving relationships amongst individuals and
groups.
(g) Avoiding action or taking no action saying that information is insufficient will
postpone and resolve the conflict on its own.
(h) Conflict can be resolved through compromise. Managers can convince each party to
sacrifice some objectives in order to gain others.

(i) Allow arbitration where conflicting parties submit to the judgement of a third party.
(j) Transfer people from one work unit to the other and allow overlapping of membership.
When one person is a member of two groups, conflict gets reduced.
(k) Obeying rules strictly reduces conflict. Let every conflicting situation be handled
according to rules.
(l) Allow the parties to resolve conflict through consensus. The parties try to find
solutions together rather than winning over each other.
(m) Establish superordinate goals. These are goals set for level higher than that of
conflicting parties and include the conflicting parties’ lower level goals. The parties
deviate from conflicts at their level to higher level goals. Achieving superordinate goals
resolves conflicts at their level.
Five ways of addressing conflict are identified by Thomas and Kilman:

(a) Avoidance:
One should avoid or postpone conflict by ignoring it or changing the subject. Avoidance
can be useful as a temporary measure to buy time or as an expedient means of dealing
with minor, non-recurring conflicts. In more severe cases, conflict avoidance can involve
severing a relationship or leaving a group.
(b) Collaboration:
People should work together to find a mutually beneficial solution to the problem.
Though this is a win-win solution to conflict, collaboration can also be time-intensive and
inappropriate if there is absence of trust, respect or communication amongst participants.
(c) Compromise:
Conflicting parties find a middle ground in which each party is partially satisfied.
(d) Competition:
Both the parties should assert their viewpoint at the potential expense of another. It can be
useful when achieving one’s objectives outweighs one’s concern for the relationship.
(e) Accommodation:
If above measures do not help to resolve conflict, one party surrenders its needs and
wishes to accommodate the other party.

Effective Techniques for Conflict Management:
 Anticipate: Remember conflicts are part of human relationships. Observe the

signs of a conflict arising well before it actually arises and prepare solutions to
handle it. This will help avoid unnecessary problems with co-workers or
employees and safeguard productive working hours.
 Practice Neutral Language: Try your best to communicate in neutral language
while you are interacting with your co-workers or employees. Avoid phrases such
as, “You’re not doing your project correctly.” Instead, use impartial language
while expressing your feelings or reporting any matter that troubles you. The best
way to express would be, “Is there any need to work in this manner? Do you need
assistance in your job?”
 Analyze Conflicts: While dealing with a conflict, analyze its worth beforehand.
Sometimes, it’s best to avoid a discussion or avoid resolving a conflict if it does
not hinder one’s job performance or have a minute impact on running a business.
 Good Listener: While resolving a conflict, it’s important to lend an ear to your
co-workers. Try to understand a problem according to your employee’s
perspective and feelings. As often as possible, give positive feedback and pose
open-ended questions. This helps to trigger a productive conversation. This will
assure your co-worker or employee that you are keen to resolve a conflict rather
than try to isolate him.
 Find a Solution: The ultimate goal of resolving a workplace conflict is to arrive
at a solution. Provide infinite number of options to resolve the problem. Also, ask
your employee’s opinion regarding the best solution to the problem at hand.
Sometimes, compromise to make them know that you are willing to solve the
problem.
Ideally, you can implement a tool which helps meet a particular situation requirement
and resolves a problem, respects the interest of the person involved and mends a
damaged work relationship.

TRANSACTIONAL ANALYSIS :
• It was introduced by Eric Berne
. • Transactional analysis is a technique used to help people better understand their own
and other’s behaviour, especially in interpersonal relationships.
• It is a good method for understanding interpersonal behaviour.
• It offers a model of personality and the dynamics of self and its relationship to others
that makes possible a clear and meaningful discussion .
Dr. Berne defined, Transactional Analysis is the method for studying interactions
between individuals .
When two people interact with each other, they engage in social transactions, in which
one person responds to the other. Study of such ”Social Transactions” is called
’Transactional Analysis’.
What is a Transaction?
A Transaction is an exchange of two strokes between two people. The first stroke is
called ’Stimulus’, the second is called the ’Response’.
To understand Transactional Analysis we must first understand EGO STATES:
EGO STATES:
Each human being has three ego states:
1. Parent ego state
2.Adult ego state
3.Child ego state
Within each human being, several human beings are existing at the same time, depending
upon how the person is behaving at any given time.
1. Parent Ego State
Set of thoughts, feelings, and behaviours learnt from parents or other care takers.
Nurturing Parent Soft, loving and permission giving.This pertains to behaviors, thoughts
and feelings copied during the early years ( roughly , the first 5 years )This pertains to
behaviors, thoughts and feelings copied from parents.

2.Adult Ego State :
Adult during this period is very fragile. It is easily knocked down by commands from
parents. The Adult is a data processing computer. The adult starts testing the Parent data
and updates it. It also updates Child data. The ongoing work consists of checking out old
data, validating or invalidating and refilling it for future use. Oriented towards current
reality and objectivity gathering of information. Data processing centre. This is a role of
care, concern, respect, responsibility and maturity.
3.Child Ego State:
It is a set of behaviors, thoughts and feelings replayed from our childhood. These are
permanent recordings and can’t be erased. Set of emotions , thoughts and memories from
childhood. The happy and pleasurable events are recorded in child. In our Child reside
creativity, curiosity and the desire to know and the urge to touch and feel. These are O.K.
recordings. The ’child’ ego state has the liberty of fun loving and carefree behaviour. It
is a storehouse of Creativity.
Advantages of T.A:
 Improves Interpersonal Communication.

 Simple to learn.
 Applicable to Motivation.
 Helps in Organizational Development.
 Can be used at home as well as in office.
WORK STRESS :
Certain factors tend to go hand-in-hand with work-related stress. Some common

workplace stressors are:
 Low salaries.
 Excessive workloads.
 Few opportunities for growth or advancement.
 Work that isn't engaging or challenging.
 Lack of social support.
 Not having enough control over job-related decisions.
 Conflicting demands or unclear performance expectations.
Taking Steps to Manage Stress:

1. Track your stressors. Keep a journal for a week or two to identify which situations
create the most stress and how you respond to them. Record your thoughts, feelings and
information about the environment, including the people and circumstances involved, the
physical setting and how you reacted. Did you raise your voice? Get a snack from the
vending machine? Go for a walk? Taking notes can help you find patterns among your
stressors and your reactions to them.

2. Develop healthy responses. Instead of attempting to fight stress with fast food or
alcohol, do your best to make healthy choices when you feel the tension rise. Exercise is a
great stress-buster. Yoga can be an excellent choice, but any form of physical activity is
beneficial. Also make time for hobbies and favorite activities. Whether it's reading a
novel, going to concerts or playing games with your family, make sure to set aside time
for the things that bring you pleasure. Getting enough good-quality sleep is also important
for effective stress management. Build healthy sleep habits by limiting your caffeine
intake late in the day and minimizing stimulating activities, such as computer and
television use, at night.
3. Establish boundaries. In today's digital world, it's easy to feel pressure to be available 24
hours a day. Establish some work-life boundaries for yourself. That might mean making a
rule not to check email from home in the evening, or not answering the phone during
dinner. Although people have different preferences when it comes to how much they
blend their work and home life, creating some clear boundaries between these realms can
reduce the potential for work-life conflict and the stress that goes with it.
4. Take time to recharge. To avoid the negative effects of chronic stress and burnout, we
need time to replenish and return to our pre-stress level of functioning. This recovery
process requires “switching off” from work by having periods of time when you are
neither engaging in work-related activities, nor thinking about work. That's why it's
critical that you disconnect from time to time, in a way that fits your needs and
preferences. Don't let your vacation days go to waste. When possible, take time off to
relax and unwind, so you come back to work feeling reinvigorated and ready to perform
at your best. When you're not able to take time off, get a quick boost by turning off your
smartphone and focusing your attention on non-work activities for a while.
5. Learn how to relax. Techniques such as meditation, deep breathing exercises and
mindfulness (a state in which you actively observe present experiences and thoughts
without judging them) can help melt away stress. Start by taking a few minutes each day
to focus on a simple activity like breathing, walking or enjoying a meal. The skill of being
able to focus purposefully on a single activity without distraction will get stronger with
practice and you'll find that you can apply it to many different aspects of your life.
6. Talk to your supervisor. Healthy employees are typically more productive, so your boss
has an incentive to create a work environment that promotes employee well-being. Start
by having an open conversation with your supervisor. The purpose of this isn't to lay out a
list of complaints, but rather to come up with an effective plan for managing the stressors
you've identified, so you can perform at your best on the job. While some parts of the
plan may be designed to help you improve your skills in areas such as time management,
other elements might include identifying employer-sponsored wellness resources you can
tap into, clarifying what's expected of you, getting necessary resources or support from
colleagues, enriching your job to include more challenging or meaningful tasks, or
making changes to your physical workspace to make it more comfortable and reduce
strain.

7. Get some support. Accepting help from trusted friends and family members can improve
your ability to manage stress. Your employer may also have stress management resources
available through an employee assistance program (EAP), including online information,
available counseling and referral to mental health professionals, if needed. If you continue
to feel overwhelmed by work stress, you may want to talk to a psychologist, who can help
you better manage stress and change unhealthy behavior.
CHANGE MANAGEMENT:
1.IdentifyWhatWillBeImproved:
Since most change occurs to improve a process, a product, or an outcome, it is critical to

individuals that will facilitate the process and lead the endeavor. Most change systems
acknowledge that knowing what to improve creates a solid foundation for clarity, ease, and
successful implementation.
2. Present a Solid Business Case to Stakeholders
There are several layers of stakeholders that include upper management who both direct and
finance the endeavor, champions of the process, and those who are directly charged with
instituting the new normal. All have different expectations and experiences and there must be a
high level of "buy-in" from across the spectrum. The process of onboarding the different
constituents varies with each change framework, but all provide plans that
callforthetime,patience,andcommunication.
3PlanfortheChange:
This is the "roadmap" that identifies the beginning, the route to be taken, and the destination. You
will also integrate resources to be leveraged, the scope or objective, and costs into the plan. A
critical element of planning is providing a multi-step process rather than sudden, unplanned
"sweeping" changes. This involves outlining the project with clear steps with measurable targets,
incentives, measurements, and analysis. For example, a well-planed and controlled change
management process for IT services will dramatically reduce the impact of IT infrastructure
changes on the business. There is also a universal caution to practice patience throughout this
process and avoid shortcuts.
4.ProvideResourcesandUseDataforEvaluation:
As part of the planning process, resource identification and funding are crucial elements. These
can include infrastructure, equipment, and software systems. Also consider the tools needed for
re-education, retraining, and rethinking priorities and practices. Many models identify data
gathering and analysis as an underutilized element. The clarity of clear reporting on progress
allows for better communication, proper and timely distribution of incentives, and measuring
successes and milestones.
5.Communication:
This is the "golden thread" that runs through the entire practice of change management.
Identifying, planning, onboarding, and executing a good change management plan is dependent
on good communication. There are psychological and sociological realities inherent in group
cultures. Those already involved have established skill sets, knowledge, and experiences. But they
also have pecking orders, territory, and corporate customs that need to be addressed. Providing
clear and open lines of communication throughout the process is a critical element in all change
modalities. The methods advocate transparency and two-way communication structures that
provide avenues to vent frustrations, applaud what is working, and seamlessly change what
doesn't work.
6. Monitor and Manage Resistance, Dependencies, and Budgeting Risks

Resistance is a very normal part of change management, but it can threaten the success of a
project. Most resistance occurs due to a fear of the unknown. It also occurs because there is a fair
amount of risk associated with change – the risk of impacting dependencies, return on investment
risks, and risks associated with allocating budget to something new. Anticipating and preparing
for resistance by arming leadership with tools to manage it will aid in a smooth change lifecycle.
7.CelebrateSuccess:
Recognizing milestone achievements is an essential part of any project. When managing a change
through its lifecycle, it’s important to recognize the success of teams and individuals involved.
This will help in the adoption of both your change management process as well as adoption of
thechangeitself.
8.Review,ReviseandContinuouslyImprove:
As much as change is difficult and even painful, it is also an ongoing process. Even change
management strategies are commonly adjusted throughout a project. Like communication, this
should be woven through all steps to identify and remove roadblocks. And, like the need for
resources and data, this process is only as good as the commitment to measurement and analysis.

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Organization Behaviour

UNIT 1: Organization Behaviour

The term ‘Organising’ and ‘Organisation’ are given a variety of interpretations.

In the first sense, ‘organising’ refers to a dynamic process and a managerial

activity by which different elements or parts of an enterprise are brought

The organization structure is also viewed differently -

Organisation as a network of relationships, a blueprint of how the managers will

as a social system, consisting of human relationships existing among the people

“Organisation is the process of identifying and grouping the works to be

performed, defining and delegating responsibility and authority and establishing

“Organising is the process of defining and grouping the activities of the

enterprise and establishing the authority relationships among them. In

performing the organising function, the manager defines, departmentalizes and

K S S PG CENTRE VIDYANAGR HUBLI Page 1

about its nature can be obtained. These are indicated below:

Organisation is a process of defining, arranging and grouping the activities of an

enterprise and establishing the authority relationships among the persons

identifying the relative authorities and responsibilities of those parts. In simple

An organisation as a structure contains an “identifiable group of people

contributing their efforts towards the attainment of goals.” It is an important

function of management to organise the enterprise by grouping the activities

relationships among the executives and workers in such units.

3. Dividing and Grouping the Activities:

integration of one complete whole on the other. In fact, organisation is a process

Activities of an enterprise are required to be distributed between the

K S S PG CENTRE VIDYANAGR HUBLI Page 2

4. Accomplishment of Goals or Objectives:

organisation structure has no meaning or purpose unless it is built around

certain clear-cut goals or objectives. In fact, an organisation structure is built-up

precisely because it is the ideal way of making a rational pursuit of objectives.

Haney defines organisation as: “a harmonious adjustment of specialised parts for

the accomplishment of some common purpose or purposes”.

An organisation structure consists of various positions arranged in a hierarchy

6. Human and Material Aspects:

element is the most important element in an organisation. To accomplish the

task of building up a sound organisation, it is essential to prepare an outline of

Importance and Significance of Organisation:

No institution or enterprise—whether business, educational, cultural or

governmental—can function properly and successfully without sound

K S S PG CENTRE VIDYANAGR HUBLI Page 3

A properly designed organisation facilitates administration. Proper division of

work with systematic and specific fictionalization of duties and consistent

delegation of authority with well-defined inter-relationship will not only ensure

It avoids confusion and misunderstanding, eliminates delay and inefficiency in

facilitates quick and correct decisions. It secures optimum use of physical,

It adds definiteness to the activities to be accomplished by allocating the duties

3. Growth and Diversification:

It promotes growth and facilitates diversification. Expansion of business and

diversification of production process depend on sound organisation. Giant

4. Optimum Use of Advanced Technology:

organisation structure and for understanding the proper form of organisation

Good organisation stimulates independent creative thinking and initiative by

K S S PG CENTRE VIDYANAGR HUBLI Page 4

In short, the organisation structure demands creative result from creative

people. By establishing clear-cut accountability it provides recognition for the

Steps in Organisation Process:

The management function of organising consists in making a rational division of

The various steps involved in this process are the following:

essential activities such as—production, financing, purchasing, sales, personnel,

and so on. Identification of work enables the managers to concentrate attention

2. Grouping or Classification of Activities:

appropriate departments, divisions, sections, sub-divisions etc. on the basis of

K S S PG CENTRE VIDYANAGR HUBLI Page 5

and classified as ‘production department activities.’ This will facilitate