• Definition

• Nature of Organizational Behavior

• Historical Background
• Fundamental Concepts of OB
• Different models of OB
“ OB is a branch of the social sciences that seeks to
build theories that can be applied to predicting,
understanding and controlling behavior in work
organizations.”
“ OB is a subset of management activities
concerned with understanding, predicting and
influencing individual behavior in organizational
settings.”
“ OB is the study and application of knowledge
about human behavior related to other elements
of the organization such as structure, technology
and social system.”
 A field of study and not a discipline
 Interdisciplinary Approach
 An applied science
 Normative and value centred
 Humanistic and optimistic
 Oriented towards organizational objective
 A total systems approach
Note:
Dedicated to better understanding and managing
people at work
Is both research and application oriented
“ Historical perspective is the study of a subject in light of
its earliest phases and subsequent evolution. Historical
perspective differs from history, in a sense that the object of
historical perspective is to sharpen one’s vision of the
present, not the past.”
3 significant landmarks in the evolution of understanding
and managing people:-
 The Human Relations Movement
 The Total Quality Management Movement
The contingency Approach to Management
 The
TheHuman
HumanRelations
RelationsMovement
Movement
 Happened
Happened during thethe
during 1930s.
1930s.
 Legalisation
Legalisation ofof union-management
union-management collective
collective
bargaining
bargaining inin the the United
United States
States inin 1935,
1935,
management
managementbegan beganlooking
looking for
for new
new ways
ways ofof
handling
handling employees.
employees.
 Behavioral
Behavioral scientists
scientists conducting
conducting on-the-job
on-the-job
research
researchstarted
startedcalling
callingfor
formore
moreattention
attentiontoto the
the
‘human’
‘human’ factor.
factor.
 Hawthorne
Hawthorne Experiments
Experiments
 Studies
Studieswerewere given
given a a new
new name
name –– ‘human
‘human
relations’,
relations’,‘human
‘humanapproach
approachofoforganisation’
organisation’
Findings of his experiments:
Social factors in output:
• Organisation is influenced by social factors
•He says that the level of production is set by social
norms, not by physiological capacities.
Groups
According to Hawthorne, individuals tend to create
groups in the organisations.
Workers react as members of the group and the
group determines their norms of behavior
Management cannot deal with workers as
individuals but as members of work group
Leadership
Leadership cannot come from superiors only.
According to Hawthorne, there may be some informal
leadership and in some cases it can be more important than the
formal one.
Communication
Communication in the organisation is very important
It is included in both that is decision making and also
feedback or sharing of their opinions
Conflict
`Conflicts generates in the organisation because of the
creation og groups with conflicting objectives
Groups can also be in conflict with the organisation
Supervision
Friendlier, attentive, genuinely concerned
supervision- better productivity.
Turned out to be more myth than fact
The writings of Mayo and Follett:-
Elton Mayo – headed Harvard researchers at
Hawthorne – laid emphasis on the emotional needs of
the employees – wrote “ The human problems of
Industrial civilization” in the year 1933
Mary Parker Follett – 1920’s – laid emphasis on
attitudes, beliefs and needs of employees – focused
on motivating employees’ job performance instead of
merely demanding it.
 McGregor’s Theory X and Theory Y:
 Theory X – pessimistic, negative and typical of
how traditional manager perceived employees.
 Theory Y – modern and positive set of
assumptions about people. McGregor believed
managers could accomplish more through
others by viewing them as self-energized,
committed, responsible and creative beings.
Outdated(TheoryX) Modern (Theory Y)
Assumptions about People atAssumptions about People
work at Work
1. Most people dislike work; they1. Work is a natural activity
avoid it when they can like play or rest.
2. Most people must be coerced2. People are capable of self-
and threatened with punishmentdirection and self-control if
before they will work. Peoplethey are committed to
require close direction whileobjectives.
working.
3. Most people actually prefer to3. People generally become
be directed. They tend to avoidcommitted to organisational
responsibility and exhibit littleobjectives if they are rewarded
ambition. They are interested onlyfor doing so.
in security.
4. The typical employee can
learn to accept and seek
responsibility.
5. The typical member of the
“ An organisational culture dedicated to training,
continuous improvement and customer satisfaction.”
“ TQM means that the organisation’s culture is
defined by and supports the constant attainment of
customer satisfaction through an integrated system of
tools, techniques and training. This involves the
continuous improvement of organisational processes ,
resulting in high quality products and services.”
“ continuous, customer-centered, employee-driven
improvement
The W Edwards Deming Legacy:
Formal training in statistical process control techniques and
team work
Helpful leadership, rather than order giving and punishment
Elimination of fear so employees will feel free to ask
questions
Emphasis on continuous process improvements rather than
on numerical quotas
Teamwork
Eliminations of barriers to good workmanship
85-15 rule: when things go wrong – 85% the system
(including management, machinery and rules) is at fault.
Only 15% of the time is the individual employee is at fault
Principles of TQM:
Do it right the first time to eliminate costly
rework
Listen to and learn from customers and
employees
Make continuous improvement on everyday
matter
Build teamwork, trust and mutual respect.
 The Contingency Approach to Management
 Is a solution to how best to apply the diverse and
growing collection of management tools and
techniques.
 It is nothing but using management tools and
techniques in a situationally appropriate manner;
avoiding the one-best-way mentality.
 It says that ‘do not go according to the hard-and-
fast rules; first carefully read the situation and
then apply lessons learned from published
research studies, observing role models, self-study
and training, and personal experience in
situationally appropriate ways.
“ Models are nothing but a simplified description of a
complex entity or process.”
•Comprise of representation of a set of components of a
process, system, or subject area, generally, developed for
understanding, analysis, improvement and/or
replacement of the process.
•In other words, they are a representation of information,
activities, relationships and constraints.
•In an organisational set-up, models refer to the behavior
pattern of interactions among employers and employees.
•Douglas McGregor’s Theory X and Theory Y laid the
foundation for the models of OB.
OB MODELS:-
 Autocratic Model:-
 Managerial orientation is towards power / authority.
 Employees in turn is are oriented towards
obedience and dependence on the boss.
 Management decides what is best for the
employees.
 The model is based on the Theory X assumptions
of McGregor
 Represents traditional thinking.
 Employees live on the subsistence level
 Performance result is minimal.
 Happens at lower strata of the organisation.
 Custodial Model:-
 Basis of this model is economic resources with a
managerial orientation of money.
 Employees are in turn are oriented towards security
and benefits and dependence on the organisation.
 This model provide security but fails to provide
strong motivation.
 Is similar to patrimonial approach where the basic
assumption is that it is the prerogative of
management to decide what benefits are best suited
to the employees.
 Performance result is passive cooperation
 Not suitable for matured employees.
 Supportive Model:-
 Basis of this model is leadership with a managerial
orientation of support.
 Employees in turn are oriented towards job
performance and participation
 Employees need that is met is status and
recognition.
 Performance result is awakened drives
 Emphasis is not on the economic resources of the
organisation but its human aspect (i.e., self-
motivation)
 This model can be applied more fruitfully for
managerial levels as compared to operative levels.
 Collegial Model:-
 Collegial refers to a body of people having
common purpose.
 Basis of this model is partnership with managerial
orientation of teamwork.
 Employees in turn are oriented towards responsible
behavior and self-discipline, need little direction
and control from the management.
 Employees need that is met is self - actualisation.
 Performance result is moderate enthusiasm.
 Tends to be more useful with unprogrammed work
requiring behavioral flexibility, an intellectual
environment, and considerable job freedom.
Note:-
 Various models of OB are based on the
assumption of human behavior and how can they
work best.
 Models are basically constructed around need
hierarchy
 The need hierarchy changes with the level of a
person in the organisation, level of his education,
level of maturity, personality factors, and the type
of work environment.
 No organisation operates exclusively in one
model
Meaning of Personality
Development of Personality
Nature and Dimensions of Attitude
Job Satisfaction
Organisational Commitment
 Meaning of Personality
“ Per sonnare” – to speak through – Latin
“Personality refers to the relatively stable pattern of
behavior and consistent internal states that
explain a person’s behavioral tendencies.” It
includes:
 External Appearances and Behavior
 The inner awareness of self as a permanent
organizing force.
 87,953 words that describes personality and relates
the personality traits.
 “I” - personality
 Development of Personality
 Erikson’s Theory:
“Saw personality as developing throughout the lifetime of a
person, and looked at identity crises as the focal point for
each stage of human development.”
• Interested in how children socialize and how this affects
their sense of belief.
• Saw ego as driving force in human development and
personality. He believed the ego’s main job was to establish
and maintain a sense of identity.
• Strong ego – sense of uniqueness, belonging & wholeness.
• Weaker ego – encounter trying times;
• poorly developed egos – identity crisis.
• His theory of psychological development has 8 distinct
stages, each with 2 possible outcomes.
Stages:
1. Infancy (Trust versus Mistrust):
 From birth to one year
 Learn the ability to trust others based upon the
consistency of their caregivers.
 If trust develops successfully, the child gains
confidence and security in the world around him
and is able to feel secure even when threatened.
 Unsuccessful completion of this stage can result
in an ability to trust, and therefore a sense of
fear about the inconsistent world. It may result
in anxiety, heightened insecurities, and deep
mistrust of the world around them.
2. Early Childhood (Autonomy vs. Shame & Doubt)
 Between the ages 1 and 3.
 Children begin to assert their independence.
 If encouraged and supported in this stage, they
become more confident and secure in their own
ability to survive in the world.
 If criticized, overly controlled, or not given the
opportunity to assert themselves, they begin to
feel inadequate in their ability to survive, and
may then become overly dependent upon
others, lack self-esteem, and feel a sense of
shame or doubt in their own abilities.
3. Play Age (Initiative vs. Guilt):
 Around age 3 and up to age 6.
 Children assert themselves more frequently.
 If given this opportunity, children develop a
sense of initiative, and feel secure in their
ability to lead others and make decisions.
 Conversely, if this tendency is squelched, either
through criticism or control, children develop a
sense of guilt, remain followers, lacking in self-
initiative.
4. School Age (Industry vs. Inferiority):
 Age 6 – teenage years
 Begin to develop a sense of pride in their
accomplishments.
 Teachers play an important role in the child’s
development.
 If encouraged and reinforced for their
initiative, they begin to feel industrious and
feel confident in their ability to achieve goals.
 If restricted by parents or teacher, then the
child begins to feel inferior, doubting his own
abilities.
5. Adolescence (Identity vs. Role Confusion):
 Transition – most important
 Are becoming more independent, and begin to
look at the future in terms of career,
relationships, families, housing etc.
 Explores possibilities and begin to form their
own identity based upon the outcome of their
explorations.
 This sense of who they are can be hindered,
which results in a sense of confusion (“ I don’t
know what I want to be when I grow up”)
about themselves and their role in the world.
6. Early Adulthood (Intimacy vs. Isolation):
 Begin to share ourselves more intimately with
others.
 We explore relationships leading towards
longer term commitments with someone other
than a family members.
 Successful completion can lead to comfortable
relationships and a sense of commitment,
safety, and care within a relationship.
 Avoiding intimacy, or fearing commitment and
relationships can lead to isolation, loneliness,
and sometimes even depression.
7. Adulthood (Generativist vs. Stagnation):
 Its a middle adulthood stage.
 We establish our careers, settle down within a
relationship, begin our own families and
develop a sense of being a part of the bigger
picture.
 We give back to society through raising our
children, being productive at work, and
becoming involved in community activities and
organisations.
 By failing to achieve these objectives, we
become stagnant and feel unproductive.
8. Mature Adulthood (Ego integrity vs. Despair):
 Senior Citizens
 We tende to slow down our productivity, and
explore life as a retired person.
 It is during this time that we contemplate our
accomplishments and are able to develop
integrity if we see ourselves as leading a
successful life.
 If we see our lives as unproductive, feel guilt
about our pasts, we become dissatisfied with
life, and develop despair, often leading to
depression and hopelessness.
• ATTITUDES AND VALUES
• “ Attitude is the persistent tendency to feel and behave
in a favorable or unfavorable way towards some
object, person, ideas, or situations.”
 Attitude, Opinion and Belief:
• “ An opinion is generally the expression of one’s
judgment of a particular set of facts, an evaluation of
the circumstances presented to him.”
• “ A belief is an ‘enduring organisation of perceptions
and cognitions about some aspects of individual’s
world.”
• Beliefs are stronger than opinions.
• Beliefs are less affected by the pro or con positions
fundamental in attitudes than are opinions.
VALUES
“ Values are convictions and a framework of philosophy of
an individual on the basis of which he judges what is good
or bad, desirable or undesirable, ethical or unethical.”
“ Values are global beliefs that guide actions and judgments
across a variety of situations.”
 Factors in Value Formation:
• Value forming institutions:
– Family, School, State and Religion.
– Value systems are constructed over a lifetime of
experience in which the value-shaping influences of
these institutions predominate.
– Prescribes what is good or bad for an individual.
• Organisational Values:
– Organisations, where the individuals work, also
shape their values though in a lesser degree.
– Since various organisational processes are
designed mostly by managers at comparatively
higher levels, organisational values are more in
tune with the values of these managers.
– Manager values – matching with – organisation
values – easy adapatability
– Manager values – not matching with –
organisation values – either resignation or
adjustment/compromise.
• Peers and Colleagues:
– Develops and applies beliefs, attitudes and values
derived from the groups of peers and colleagues with
whom he is associated.
• Work and Career:
– Work consists of the tasks or responsibilities
associated with a particular job or position in an
organisation.
– Work, is human energy directed at the achievement of
a desired end.
– An individual’s experience over a period of time
constitutes his career.
– Work and career create special values that give unity,
consistency and meaning to persons and groups.
• Professional Codes:
– These are nothing but are the source of ethical norms for
managers in business organisations.
– 3 types of codes are available:
Company creeds or philosophies which cover those
basic philosophies and behavior that govern the
business.
A code is found in company operational policies
which set up guides to action that have an ethical
content like recruitment, selection, quality, selling etc.
Third, since people belong to various professions, they
are also governed by code of conduct framed by their
associations or professional bodies like AIMA,
ICWAI, ICSI, etc.
“ Attitude are not the same as values, but the two are
inter-related.”
 Can be understood by 3 components of Attitudes:
Cognition, affect, and behavior
Belief: “ Discrimination is wrong” - a value statement.
• The given statement is the opinion- is the cognitive
(thought process) part of the attitude.
• Affect is the emotional or feeling segment of an
attitude. – “ I don’t like John because he discriminates
against minorities.”
• Behavioral component of attitude, refers to an
intention to behave in a certain way towards someone
or something. – “ I try to avoid John because of my
feeling about him.”
• In contrast to values, attitudes are less stable.
Types of Attitudes: work related
1.Job Satisfaction:
– Refers to collection of feelings that an
individual holds towards his or her job.
– Employee attitudes – Job satisfaction
– High level of job satisfaction – positive feeling
about the job and the organisation.
– Dissatisfaction with the job – Holds negative
feeling about the job and the organisation.
– Dissatisfied employees – reactions – exit, voice
(complains, suggestion for improvements,
discussion), loyalty, and neglect (absenteeism
or lateness, reduced effort, & increased error
rate.)
2. Organisational Commitment:
– State in which an employee identifies with a
particular organisation and its goals, and wishes
to maintain membership in the organisation.
– High organisational commitment means
identifying with one’s employing organisation.
– There is a positive relationship between
organisational commitment and job productiviy
and is a better indicator of turnover.
 Module 3:
1. MotivesMOTIVATION
2. Characteristics
3. Classification of Motives
4. Morale
5. Morale Indicators
6. Theories of Motivation
 1.Motives
“ Motive is a stimulus that leads to an
action is motivation.”

towards
Motive is directed by the achieving his/her
the energy individual
goal at work

Needs are strong motives and can

make individuals to act and change

Characteristics of motive

It is an inner mental state

Motives are goal directed

Motives are the apparent form

of need or desire

Motives can explain

the cause of behavior and activity
ims of motivation at wor

Helping individuals to look at

better ways of doing tasks

Making people quality conscious

o increase productivity/retention
of employees
lassification of motive
Primary General Secondary

Unlearned and Unlearned but not Learned

Physiological physiological
 Hunger  Curiosity  Power

 Thirst  Manipulation  Achievement

 Pain  Activity  Affiliation

(Relationship)
 Maternal concern  Affection
lassification of motive
Hunger
Primary physiological thirst
or instinctive
motives pain

Power
Secondary Learnt and
achievement
intuitive
motives status
 When
a
goal directed a
drive defense mechanism
is blocked is set up
 Tension
Motives move towards
goals builds
up!
 Frustration
at work

Tension
Provokes
a
defense
mechanism
Different forms of defense mechanisms

OR OR

Aggression With drawl

OR

Fixation Compromise
fense mechanisms in the work conte
Unwarranted
wastages
Excessive
breakages
Symptoms Accidents
Of Extra
talkativeness
Aggression Quick
at rebellion
Poor
work cooperation
Wanting to
finish
work rapidly
Go slow movement
Increasing unplanned discussions
 Lack
of initiative

Sympt Poor
motivation

oms Poor
risk taking
Of Absenteeism

With Late coming

drawl Incoordination

at Addictions
to substances
work Inability
to meet targets
Apathy
towards work
 Reluctance
to take up
Symptoms newer tasks
of Easy disruption
compromise of relationships

at work Inability
achieve
higher targets
The nature of
morale willingness to
work
together

Morale
Satisfaction
derived
by working
together
Factors affecting morale at
work
the
influence
the nature
of the the boss
of the job work
group

the the
organizational general work
culture environment
 Persona
lity
of the
Employe
Inter Level of
e
The

nal intellige
nce
physic
al
health
factors of the
of the
affecting employe
emplo
morale e family
yee
support
to the

employ
ee
 The nature of Organizational goa

The organizational structur

The managerial philosophy

External factors
affecting morale
The working conditions

The compensation
and rewards systems

The work culture

he relationship of Morale and Work productivit

Work
Morale
Directly
related
productivity
There are fo
Low morale High morale
High productivity High productivity

Low morale High morale

Low productivity Low productivity
 job dissatisfaction
Low morale
Occurs
ow productivity
when there is
Lack of commitmen

This situation
cannot be
sustained for a prolonged period
 High morale high motivation

Occurs
High productivity
when there is

under optimal
supervised condition

ds to optimum utilization of reso

 poor employee skil

High morale
Occurs
Low productivitywhen there is

improper supervisio

Work conditions appear satisfactory

because
personal goals are being achieved
 poor employee skil

High morale
Occurs
Low productivitywhen there is

improper supervisio

Work conditions appear satisfactory

because
personal goals are being achieved
Theories of Motivation

1. Maslow’s Theory of need

hierarchy
2. Herzberg’s theory of job
loading
 MOTIVATION THEORY –
Maslow’s Need Hierarchy
Theory
“Defines human effectiveness as a function of matching man’s
opportunity with the appropriate position on hierarchy of
needs”.
SELF-ACTUALISATION NEEDS (a person need to be and
do that which the person was “ born to do”)

SELF-ESTEEM NEEDS

LOVE, AFFECTION AND BELONGINGNESS NEEDS

SAFETY NEEDS

PHSYSIOLOGICAL NEEDS
 Herzberg’s Two Factor
Theory:
• According to Herzberg's the factors
leading to job satisfaction are
separate from those that lead to job
dissatisfaction
• Two categories of needs essentially
independent of each other affecting
behavior in different ways: - Hygiene
factors and motivational factors
• Hygiene/Maintenance /Extrinsic
factors:
• are those factors the presence of
which does not necessarily motivate
but the absence of which,
demotivates.
• Are not intrinsic parts of a job, but are
related to conditions under which a job
is performed.
• Produce no growth in worker’s output,
but prevent losses in worker’s
performance.
• Any increase in the level will not
 • Factors are: company policy and
administration, technical supervision,
interpersonal relationship with
supervisors, interpersonal relationship
with peers, interpersonal relationship
with subordinates, salary, job security,
personal life, working conditions and
status.
• Are also known as dissatisfiers.

• Motivational /Intrinsic Factors:

• Capable of having a positive effect on
job satisfaction often resulting in an
 • An increase in the factor will satisfy
the employee; however, any
decrease will not affect their level of
satisfaction.
• Achievement, recognition,
advancement, work itself, possibility
of growth and responsibility.

Factors is influenced by the

personality characteristics of the
individuals:
• Motivation seekers:
individuals who are primarily
motivated by the ‘satisfiers’.
Contrasting views of satisfaction
and dissatisfaction
Traditional View

Satisfaction
Dissatisfaction

Herzberg's view

Satisfaction
Motivators
no satisfaction
Hygiene factors

No dissatisfaction
Dissatisfaction
 RELATIONSHIP BETWEEN
HERZBERG AND MASLOW
MODELS

SELF
ACTUALIZATI MOTIVATIO
ON NAL
SELF ESTEEM
H
BELONGING Y
G
SAFETY / SECURITY I
E
N
PSYCHOLOGICAL E
 Module 4: GROUP
DYNAMICS AND TEAMS
• Group Dynamics
• Theories of Group Formation
• Formal Organisations
• Formal Organisations and Informal Groups and
their interaction
• Importance of Teams
• Formation of Teams
• Team Work
Group – a collectivity of two or more
persons
Dynamics – operation of force –
‘force’
Group Dynamics – Refers to the
interaction of forces between group
members in a social situation.
Features:
•Two or more persons.
•Collective Identity
•Interaction
•Shared Goal Interest
• THEORIES OF GROUP FORMATION:
1.Propinquity Theory:
• Propinquity – means-nearness
• Individuals associate with another because
of spatial (space)or geographical
proximity.
• It is only a facilitating factor for group
formation and not the reason for it.
2.Homan’s Interaction Theory:
• Is based on activities, interactions and
sentiments.
• This theory explains the basic idea behind
forming groups.
• Interaction not only helps in attaining goals
3. Balance Theory:
• Is based on the similarity of attitudes towards
relevant objects and goals.
• States that “ person are attracted to one
another on the basis of similar attitudes
towards commonly relevant objects and goals.
• There is a symmetrical balance between the
attraction and common attitudes.
4. Exchange Theory:
• Suggests that an individual will join (or will
not) a group on the basis of the outcomes of
reward and cost.
• Reward for joining a group is in the form of
gratifying the needs
• Cost is in the form of anxiety, frustration,
embarassment, and fatigue.
• Formal Organisations/Formal
Groups:
• “Refers to the structure of well-defined
jobs, each bearing a definite authority,
responsibility and accountability.”
• Formal Organisations is built on 4 pillars:
• Division of labor
• functional processes
• Structure
• Span of control
• Formal Organisations/Formal
Groups:
• “Refers to the structure of well-defined
jobs, each bearing a definite authority,
responsibility and accountability.”
• Formal Organisations is built on 4 pillars:
• Division of labor
• functional processes
• Structure
• Span of control
• Characteristics of formal organisations:-
• Organisation structure is designed by the top
management to fulfill certain requirements –
performance of necessary activities thereby
achieving goals
• Is based on the principles of division of labor
and efficiency in operations
• Concentrates more on the performance of
jobs and not on the individuals performing
the jobs.
• Authority and responsibility assigned to each
job have to be adhered to by the job holders.
Based on the concept of authority and
responsibility, people are placed in hierarchy,
• Informal Group/Informal
Organisation:

• “ Refers to the natural grouping of

people on the basis of some similarity in
an organisation.”

• In other words, whenever people work

together, they evolve some sort of
grouping or pattern of relationships
among them which is not according to
what is prescribed by the formal
organisation. This grouping is informal
• Characteristics:
• Natural outcome – not designed and
planned
• Created in the organisation because of
operation and psychological forces
operating at the work place.
• Created on the basis of similarity among
members like age, sex, place of origin,
caste, religion, likes/dislikes etc.
• Membership in an informal group is
voluntary.
• Behavior of members of the informal
Comparison – Formal and Informal
Group
BASIS OF FORMAL INFORMAL
COMAPRISON ORGANISATION ORGANISATION
FORMATION PLANNED and SPONTANEOUS
DSELIBERATE
PURPOSE WELL-SET GOALS SOCIAL
INTERACTION
STRUCTURES WELL STRUCTUREDUNSTRUCTURED

NATURE OFFICIAL UNOFFICIAL

FOCUS POSITIONS PERSONS
LEADERSHIP SUPERIOR ANY ONE
SOURCE OF DELEGATED GIVEN BY GROUP
POWER
GUIDELINES FOR RULES & GROUP NORMS
BEHAVIOR PROCEDURES
• Formal Group and Informal Groups
and their Interaction :-
• Problems due to Informal
organisation
• Dealing with Informal Organisation
• Hierarchical Control and
Communication
 Problems due to Informal organisation:
• Resistance to change:
– since informal groups are bound by
convention, custom, and culture, often they
resist change.
• Role Conflict:
– An individual perceives role conflict when he
has to fulfill conflicting requirements of both
his group as well as of organisation as a
whole.
• Rumor:
– It deals with temporary events in a way that
implies that whatever is said is true even
though there is not much information to
support it. The basic reason for the circulation
Dealing with Informal Organisation:

•Ignoring informal organisations:

Possible only when the informal group does not
interfere strongly in the formal organisational
processes; but still not a desirable action.

•Making use of informal organisations:

Management can treat informal groups as
complementary to formal organisations. This will not
only contribute to the oragnisational performance
positively but also will help in minimising the
negative consequences of informal organisations.
•Influencing informal organisations:
management can influence informal
organisation by taking suitable actions.:-

Manager should let employees feel that

management accepts and understands
informal organisations.
He should consider possible influence upon
informal systems when taking any decision.
He can integrate interest of informal groups
with those of formal organisations.
He can keep formal activities from
unnecessarily threatening informal
organisation in general.
Flexible and accommodating, & recognising
 Hierarchical Control and
Communication:
– Existence of hierarchy creating superior-
subordinate relationships and separating
decision-makers and decision implementers.
– In such hierarchical structures there is a
natural tendency of exercise of control by
superiors.
– If the communication does not carry
message, meaningful from the point of
subordinates, they resort to seek such
information from informal sources.
– Greater the degree of bottleneck in
hierarchical communication, greater is the
 Team
“ Groups are a set of entities classified
together due to certain common
characteristics. Teams in the modern
perspective are the wider dimensions of
groups.”
Two issues involved while working in
teams:
1.The first is the task and the problems
involved in getting the job done.
2.The second is the process of the
teamwork itself; the mechanisms by
Importance of Teams:
• Teams are particularly good at combining
talents and providing innovative solutions to
unfamiliar problems.
• It engenders a fuller utilization of the work
force and can be seen as self-managing unit.
• The range of skills provided by its members
and the self – monitoring which each team
performs makes it a reasonably safe recipient
for delegated responsibility.
• From the individual’s point of view, there is the
added incentive that through belonging to a
team, each can participate in achievements
well beyond his/her own individual potential.
• Responsibility and authority is enhanced,
 Formation /Development of
Teams/Groups:
Has five stages:-
1.Forming – Members share personal
information, start to get to know and accept
one another and begin turning their
attention towards the group’s task. Is the
stage when the tam comes together.
2.Storming- Members compete for status,
jockey fro positions of relative control and
argue about appropriate directions for the
group.
3.Norming- Group begins moving together
in a competitive fashion and a tentative
balance among competing forces is struck.
4.Performing- Group matures and learns to
handle complex challenges.
• GROUP VS. TEAM:
Group Team

1. It has strong, focused, clear leader 1. It has shared leadership roles

2. It has individual accountability 2. It has individual as well as group

accountability
3. It has individual work products 3. It has collective products.

4. It runs efficient meetings. 4. It encourages open ended. Active,

problem solving meetings.

5. It measures effectiveness indirectly5. It measures performance directly

(performance of overall business) (assessing collective work products)

6. It discusses decides and delegates 6. It discusses decides and does the

real work.
• GROUP VS. TEAM:
Group Team

1. It has strong, focused, clear leader 1. It has shared leadership roles

2. It has individual accountability 2. It has individual as well as group

accountability
3. It has individual work products 3. It has collective products.

4. It runs efficient meetings. 4. It encourages open ended. Active,

problem solving meetings.

5. It measures effectiveness indirectly5. It measures performance directly

(performance of overall business) (assessing collective work products)

6. It discusses decides and delegates 6. It discusses decides and does the

real work.
 TEAMWORK VALUES
• If work is interdependent and if you want
to keep costs low and quality high, then
you need to implement actions that will :
– Facilitate people working together
– Minimize waste and rework

• These two go together - teamwork

facilitates the efficient management of
processes and the efficient management
of processes suggests that you have to
get people to really work well with each
• WHY YOU NEED VALUES THAT
SUPPORT TEAMWORK
People behave in ways that are
consistent with their values - values are
beliefs that people hold about what is
right, good, etc. , they serve as
guideposts for behavior in different
situations.
 
• VALUE 1 : WE’RE ALL IN THIS
TOGETHER
This is the foundation value for teams
and teamwork , and comes from the
• VALUE 2: NO SUBORDINATES OR
SUPERIORS ALLOWED
This does not suggest that everyone is
equal in rank and authority. We are talking
about attitude. This has to do with how
people view and interact with one other. It
fosters communication and support.
 
• VALUE 3: OPEN, HONEST
COMMUNICATION IS VITAL
For teams to prosper, teammates need
to be able to speak candidly with one
another. This involves empathy and
listening.
• VALUE 4 : EVERYONE HAS OPEN ACCESS
TO INFORMATION
Limited information means that decisions
will be based on speculation rather than
facts, another reason for sharing information
is that it facilitates cooperation.
It does not mean that everyone needs to
know everything, it only means that they
have access to any and all information as
they need it.
They are aware of what’s available and
are responsible for taking advantage of this
information.
When there are no secrets employees
• VALUE 5 : FOCUS ON PROCESSES
All Employees need to understand
– Their work is vital
– Others depend on them
– They are contributing to delivering
high quality outputs
 
 REQUIRED BASIC TEAM WORK
SKILLS
• Functional / technical skills
• Interpersonal skills
• Problem solving skills
 Module 5: CONFLICT
MANAGEMENT
•Conflict and its Features
•Aspects of Conflict
•Types of Conflict
•Conflict Process
•Stress Management
•Strategies for encouraging constructive conflict
•Strategies for resolving destructive conflict
 Conflict
“ Can be regarded as the disagreement or
hostility between individuals or groups in
the organisation. It may even mean
rivalry or competition or may be viewed
as the perception of disagreement in the
individuals.”
From organisational point of view:
“ It is a process in which an effort is
purposefully made by one person or unit
to block another that results in
frustrating the attainment of the other’s
goals or the methods to furthering of his
or her interests.”
Features:
• Arises because of incompatibility; it may
be goals, interests, methods of working,
or any other feature.
• It occurs when an individual is not able
to choose among the available courses.
• It is a dynamic process
• It must be perceived and expressed by
the parties.
Aspect of Conflicts
• The Traditional View:
– 1930s and 1940s.
– Rejection – violence, destruction etc.
– All conflict is harmful and must be
avoided
– Was seen as a dysfunctional outcome
resulting from poor communications, a
lack of openness and trust between
people, and the failure of managers to
be responsive to the needs and
aspirations of their employees.
•The Human Relations View:
Late 1940s through mid-1970s
Acceptance - inevitable
Conflict is a natural and inevitable outcome
in any group
•The Interactionist View:
Late 1970s onwards
Encouragement – harmonious, peaceful,
and cooperative group is prone to becoming
static, apathetic and nonresponsive.
Conflict is
A positive force in a group
Absolutely necessary for a group to
perform effectively
“whether a conflict is good or bad depends
on the type of conflict.”
• Functional Conflict - GOOD
Constructive form of conflict – supports group
goals and improves performance
• Dysfunctional Conflict - BAD
Destructive form of conflict- hinders groups
performance
Types of Conflicts:
• Task Conflict
relates to the content and goals of work – frequency
- low level to moderate level - functional
• Relationship Conflict
focuses on Interpersonal relationships – Always
dysfunctional
• The Conflict Process:-
Conflict Process : Process with five stages
–Stage 1: Potential opposition or
incompatibility
–Stage 2: Cognition and
Personalization
–Stage 3: Intentions
–Stage 4: Behavior, and
–Stage 5: Outcomes
Anteced
Conflict-
ent Increas
handling
Conditio ed
Intention Vert
ns Group
s Conflict
perfor
Perceive
mance
d
Conflict    
  Competin Party’s
  g behavior
•Commu  
  Collabora
nication  
Felt ting
•Structur Decrea
Conflict Avoiding  
e sed
Accommo Others
•Persona group
dating Reaction
l perfor
Comprom
Variable mance
ising
s
 Conflict-handling Intentions
– Avoiding
• Te desire to withdraw from or suppress a
conflict
– Accommodating
• The willingness of one party in a conflict to
place the opponent’s interest above his or her
own. 
– Competing
• A desire to satisfy one’s interests, regardless of
the impact on the other party to the conflict.  
– Compromising
• A situation in which each party to a conflict is
willing to give up something.  
– Collaborating
• A situation in which the parties to a conflict
CONFLICT MANAGEMENT
STYLES
• Avoidance
• Smoothing
• Forcing
• Compromise
• collaborative
 AVOIDANCE STYLE

I don’t have enough time

I don’t have enough facts
Perhaps the best way is
to proceed as you think
best

Criticism: The conflict is not solved

Example situations where avoidance style

is appropriate
Minor issues
Inadequate facts and power
 SMOOTHING STYLE

If it makes others happy, I wont challenge their

views
I don’t want to hurt the feelings of others
We should not risk our friendship, so let’s not
worry too much about the problem, things will
work out

Criticism: It encourages individuals to cover-up or gloss over

their feelings

Example situations where smoothing style is appropriate

Emotional conflicts
Talented employees
 FORCING STYLE
If you don’t like the way things are run get
out

If you cant learn to cooperate, I am sure

others who will, can be hired

Criticism: The subordinates’ interests are ignored. The

conflict is not analysed

Example situations where forcing style is suitable

Inadequate time
Stopping people from taking advantage of him/her
 COMPROMISE STYLE

I let other people win something, if they let me win

something
I try to find out a position between theirs and mine

Criticism: people may encourage compromise on stated issues

rather than on real issues

Example situations where compromise style is acceptable

It is not possible to achieve a win-win agreement
When conflicts block important agreements
 COLLABORATIVE STYLE

I try to get all view points & issues out in the

open

Best alternatives must be arrived through

analysing

Criticism: It is not suitable when win-win situation is not

possible

Example situations where this style is appropriate

The parties disagree over the best means to achieve the common
goals
When there is a need for high-quality decisions
 BARRIERS TO ADOPT
COLLABORATIVE STYLE
• Inadequate time
• When a manager is expected to be
autocratic