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Unit 1

Introduction
Organization Behavior Concept
Understanding one individual's behavior is a challenging problem in and of itself. The work of
organizations gets done through the behavior of people, individually or collectively, on their own or
in collaboration with technology. Thus, central to the management task is the management of
organizational behavior. To do this, there must be the capacity to understand the patterns of behavior
at individual, group, and organization levels, to predict what behavior responses will be elicited by
different managerial actions, and finally to use understanding and prediction to achieve control.
Organizational behavior is the study of what people do in an organization and how that behavior
affects the performance of the organizations. It is an academic discipline concerned with describing,
understanding, predicting, and controlling human behavior in an organizational environment.

According to S.P. Robbins, "Organizational Behavior (OB) 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."
Like other inputs into an enterprise, the human beings employed by that enterprise constitute a
resource -- in this case, a human resource. Other resources must be managed to ensure both the
efficiency and effectiveness of the organization. It takes economists, accountants, and financial
analysts to understand and utilize the firm's monetary resources. Similarly, technologists, engineers,
and trades people serve to help management utilize the firm's material and production facilities
efficiently. It is the role of the Human Resource Manager, and others, skilled in the analysis of human
interaction with the work environment, to assist management in the proper utilization of human
resources. The study of Organizational Behavior facilitates the process of explaining, understanding,
predicting, maintaining, and changing employee behavior in an organizational setting.

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Figure: Organizational Behavior Elements

In summary, to understand behavior in the organization, we must examine the interaction of
individuals with the various factors the individuals encounter in that organizational setting. The
behaviors encountered in the organization are, of course, very diverse. The diversity of personalities
interacting with varied organizational environments results in considerable variation in associated
behavior. The employees of the firm are resources -- human resources. Just as accountants provide
the expertise the firm requires to best manage its financial resources, so the Organizational Behavior
specialist provides the expertise needed to manage the firm's human resources.

Figure: Individual Behavior in the Organizational Setting

The Historical Evolution of Organizational Behavior

Today, Organizational Behavior is considered as an important aspect in organizational effectiveness.
However, OB as a distinct field of study was emerged at 1940s. Prior to this, before the sixteenth
century, Greek philosopher Plato wrote about the essence of leadership for job satisfaction. Aristotle
addressed the topic of persuasive communication in organization. The writings of 16th century
Italian philosopher Niccol Machiavelli laid the foundation for contemporary work on organizational
power and politics.
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In 1776, Adam Smith advocated a new form of organizational structure which is based on the
division of labour. One hundred years later, German sociologist Max Weber wrote about rational
organizations and initiated discussion of charismatic leadership. Soon after, Frederick Winslow
Taylor, also known as father of scientific management, introduced the systematic use of goal setting
and rewards to motivate employees. In the 1920s, Australian-born Harvard professor Elton Mayo and
his colleagues conducted productivity studies at Western Electric's Hawthorne plant in the United
States.
Although the above contributions traces its roots back to Max Weber and earlier scientists,
organizational behavioral studies is generally considered to have begun as an academic field with the
advent of scientific management of F.W. Taylor. In the Taylorism, rationalizing the organization with
specific sets of instructions and time-motion studies, individual compensation system can lead lead
to the increased productivity and efficiency.
After the First World War, the focus of organizational studies shifted to analysis of how human
factors and psychology affected organizations, a transformation propelled by the identification of the
Hawthorne Effect of Elton Mayo. This Human Relations Movement focused on teams, motivation,
and the actualization of the goals of individuals within organizations, the Prominent scholars for it
were, Frederick Herzberg, Abraham Maslow, David McClelland, and Victor Vroom, those have
contributed in motivational theories.
The Second World War further shifted the field, as the invention of large-scale logistics and
operations research and the management science. Interest grew in theory and methods to the
sciences of management rather that art, including systems theory, the study of organizations with a
complexity theory perspective and complexity strategy. The major contributors were Herbert
Alexander Simon and James G. March.

In the 1960s and 1970s, the field was strongly influenced by social psychology also and the emphasis
in academic study was on quantitative research. An explosion of theorizing, much of it at Stanford
University and Carnegie Mellon, produced Bounded Rationality, Informal Organization, Contingency
Theory, Resource Dependence, Institutional Theory, and Population Ecology theories, among many
others.
Starting in the 1980s, cultural explanations of organizations and change became an important part of
study. Qualitative methods of study became more acceptable, informed by anthropology, psychology
and sociology.

Specific Contributions
Frederick Winslow Taylor (1856-1915):
Taylor was the first person who attempted to study human behavior at work using a systematic
approach. Taylor studied human characteristics, social environment, task, physical environment,
capacity, speed, durability, cost and their interaction with each other. His overall objective was to
reduce and/or remove human variability. Taylor worked to achieve his goal of making work
behaviors stable and predictable so that maximum output could be achieved. He relied strongly
upon monetary incentive systems, believing that humans are primarily motivated by money. He
faced some strong criticism, including being accused of telling managers to treat workers as

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machines without minds, but his work was very productive and laid many foundation principles for
modern management study.
Elton Mayo:
Elton Mayo, an Australian national, headed the Hawthorne Studies at Harvard. In his classic writing
in 1931, Human Problems of an Industrial Civilization, he advised managers to deal with emotional
needs of employees at work.
Mary Parker Follett:
Mary Parker Follett was a pioneer woman management consultant in the industrial world, which was
mainly dominated by males. As a writer, she provided analyses on workers as having complex
combinations of attitude, beliefs, and needs. She told managers to motivate employees on their job
performance, apull rather than a "push" strategy.
Douglas McGregor:
Douglas McGregor proposed two theories/assumptions, which are very nearly the opposite of each
other, about human nature based on his experience as a management consultant. His first theory was
Theory X, which is pessimistic and negative; and according to McGregor it is how managers
traditionally perceive their workers. Then, in order to help managers replace that
theory/assumption, he gave Theory Y which takes a more modern and positive approach. He
believed that managers could achieve more if managers start perceiving their employees as selfenergized, committed, responsible and creative beings. By means of his Theory Y, he in fact
challenged the traditional theorists to adopt a developmental approach to their employees. He also
wrote a book The Human Side of Enterprise in 1960; this book has become a foundation for the
modern view of employees at work.

Organizational Behavior as Interdisciplinary field

OB is considered as an academic discipline. However, it is widely considered as an interdisciplinary
field of study because of covering varieties of academic discipline within it. The filed of studies can
be shown from the figure below.

Psychology
Psychology refers to the science that tries to measure, explain, predict and sometimes change the
behavior of humans. OB focuses on human psychology through learning, perception, personality
emotions, training, leadership, motivation, job satisfaction etc.

Sociology
It is the study of people in the organization in relation with others which includes, group, teams,
communication, power, conflict etc.

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Behavioral Science

Psychology

Sociology

Contribution

Unit of Analysis

Learning
Motivation
Personality
Emotions
Perception
Training
Leadership effectiveness
Job satisfaction
Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress

Individual

Group dynamics
Work teams
Communication
Power
Conflict
Inter group behaviour
Formal organization theory
Organizational technology
Organizational change
Organizational culture

Social Psychology

Anthropology

Group

Behavioral change
Attitude change
Communication'
Group process
Group decision making

Organizational
System

Comparative values
Comparative attitudes
Cross-cultural analysis
Organizational culture
Organizational Environment

Political science

Output

Conflict
Intraorganizational politics
Power
Source: Stephen P. Robbins

Social psychology

Study of
Organizational
Behavior

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It is the combine of both Psychology and Sociology which focuses on influence of people on one
another. The fields of study are: Behavioral change, attitude change, communication, group process
and group decision making.

Anthropology
It is the study about societies to identify about human beings and their activities such as cultures and
environments.

Political Science
Political science primarily focuses on studying the behavior of individuals and groups within the
political environment within the organization which includes conflict, Intraorganizational politics
and power.

Challenges and Opportunities for Organizational Behavior

Organizational behaviour is becoming more important in the global economy as people with diverse
backgrounds and cultural values have to work together effectively and efficiently. The followings are
the points of challenges and how can OB help coping those challenges.
1. Responding to Globalization:
The world is being the global village and organizations are not constrained by national border
in the recent days. To satisfy the customers of the world in highly competitive globalized
market, organizations need to provide the products and service of their choice, preference
and taste. Organizations need working in foreign countries in a multicultural diversity
environment. The management practices need to be modified from countries to countries to
cope with the diversity. In the globalization, the companies tend to establish the business
firms where they can have lower costs of labor to reduce the cost of production for global
competition
2. Managing Workforce diversity
The most important and most emerging challenge for today's managers is workforce diversity
because the focus of globalization is on people from different countries. It is the concept that
the industries have heterogeneity in people regarding the gender, age, race, religion,
language, ethnicity, physical abilities, nationalities, culture and inclusion of diversified
individuals.
3. Improving Quality and Productivity
The business is becoming highly the customer focused in the recent days. The product quality
should continuously be improved to compete in the market and to satisfy the customers.
However, the productivity should not be decreased. The organizational improvement is
needed, the accurate measurement and employee empowerment should be focused to
improve the both, quality and productivity. Total quality management (TQM) (a management
philosophy for the quality improvement) and process engineering (the process of
reconsidering the methods and organization structure) is to be adopted.
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4. Responding to Outsourcing
Outsourcing involves the transfer of the management and/or day-to-day execution of an
entire business function to an external service provider. The client organization and the
supplier enter into a contractual agreement that defines the transferred services. Under the
agreement the supplier acquires the means of production in the form of a transfer of people,
assets and other resources from the client. The client agrees to procure the services from the
supplier for the term of the contract. Business segments typically outsourced include
information technology, human resources, facilities, real estate management, and accounting.
It is the both challenge and opportunity for the organization and responding to it in the
benefit of the firm is certainly the difficult job. Eventhough it has many opportunites to the
firm, it may create problem damaging the local market, low social responsibility, low quality
in product or service, high staff turnover, fraud, security related issues etc .
5. Improving Customer Service:
Customers are treated as the 'god' for the organizations in the recent days. The service to be
rendered by the employees should be pleased by the clients in service industries like teaching,
technical support, fast-food counters, airlines etc. OB can contribute to improving in
organization's performance to the managers through identifying about the employee attitudes
and behavior associated with customer satisfaction creating the customer-responsive culture.
OB can help the managers in creating customer-friendly culture, prompt responding to
customer needs and providing the guidance about pleasing them.
6.

Improving People Skills:

OB helps managers improving the necessary skills required to manage effectively including
the motivational skills, communication and team work. It not only imparts the knowledge
and skills needed to enhance the learning ability but about the perception of individual.

7. Empowering People
Managers are giving up controls to the lower levels , they are becoming highly flexible,
organization encourages the employee participation in decision making and forming selfmanaged teams in modern organizations. Workers are accepting responsibility and managers
are granting them the authority. Empowering changes leadership style, power relationships,
needs skills and abilities about understanding and predicting employees' behavior and for
this, OB is inevitable.
8. Stimulating Innovation and Change
The challenge for the today's managers is stimulating the product and service innovation for
the survival and growth in competitive environment the change to adjust to it. The
employees may resist the change and innovation having the stumbling block to it. OB
provides the adequate ideas and techniques to remove the block and go further ahead.
9. Coping with "Temporariness"

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Globalization, advance in product and services, technology changes make the organization
compelled to change the nature of job, flexibility in structure, jobs are regularly redesigned.
Even the organizations are also changing. The part-time workers, temporary workers or
short-term contractors are increasing especially in developed countries to cope with increased
work pressure, use expert knowledge and reduce labour cost. The developing countries like
Nepal also facing challenges about the part time and temporary workers. However, the
human resource managers are getting challenges to manage such contingent workers. Part
time workers are frequently moving from one job to another. It is very difficult to fully retain
them and keep then in the organization for long time.
Managers need to cope those "temporariness" in job and workers. They need to learn about
flexibility, to predict, creating the organizational culture, overcome the barriers to change,
which can be learnt through OB.

10. Working in Networked Organizations

The use of computer and internet in workplace is increasing day by day. The interlink
between the organizations and workplace using communication technologies is rapidly
expanding, resulting the networked organizations. Organization becomes complex allowing
maximum number of people without any physical distance, like a global village. Motivating,
leading and communicating those virtually connected employees is highly challenging. OB
can be the important insight for getting knowledge to help managing those logically
connected people.
11. Helping Employees Balance Work/Life Conflicts
In recent days, employees often feel that they are unable to create balance between the work
and their personal life. They blame that their job create problem in their family life because of
lacking take care about their family, spouse or children since they almost busy in office work
even in home. The fast growing organizations, these days, have no office hours, specially no
closing hours. It sometimes, creates conflict, bore and interfere in personal life and they are
not happy.
It has been seen that there should be the balance between the work and personal life. They
need flexibility in their work schedules, with equal emphasis on "life" and "job". And if this
happens, it is very difficult to attract the most capable and motivated employees. OB offers
different ideas, suggestions and guidance in maintaining balance between these two and
resolving the conflict.
12. Improving Ethical Behavior
Employees in the organization are finding difficult to differentiate what is right and what is
wrong. They always see people around them are in unethical practices like taking bribe and
padding expense accounts, favoritism and nepotism. It creates decreasing the confidence and
trust in management.

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Managers try to provide in-house advice about DOs and DONTs regarding ethical behavior.
They Create protection mechanisms write and distribute codes of ethics to their employees
and sometimes they also offer seminars, workshops, and training to improving the ethical
behavior

13. Declining Employee Loyalty

Because of global completion, unemployment and inflation, employees are unable to be loyal
and honest although they do not like it. Management can not easily trust to employee, they
do not like delegating authority because of fear of misuse. Officials take bribe for bread and
butter and they increase their expense accounts. Workforce motivation is becoming highly
challenging because of temporariness and brain-drain. OB of course can provide the
techniques to increasing the employee loyalty determining the code of ethics or ethical
behavior, motivating them, communicating effectively.

Emerging Trends in Organizational Behavior

Different writers explained differently about the emerging trends to OB. The following points can be
traced out as the recent trends to OB.
1.Globalization of products and services
2.The revolution in middle level management: Maximum cut in the middle level managers,
restructuring and redefining the roles
3.Decentralization of business, government, political and social institutions
4.High level of diversity among people, groups, institutions and geographic locations
5.Computerization in organizations
6.Use of technologies in communication
7.Priority and reservation opportunities for minorities and women
8.Inclusion of different race, caste, religion, language, region etc.
9.Unionization
10.

Flat structure and wide span of control

11.

Team and Group Approach with dynamic leadership

12.

Virtual team and virtual organizations

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13.

Innovative plan for special career needs: Flexible working hours, reduced hours, quality of
work life

14.

Contingent workforce

15.

Ethical behavioral issues

Unit 2

Perception
Concept
Perception is our sensory experience of the world around us and involves both the recognition of
environmental stimuli and actions in response to these stimuli. Through the perceptual process, we
gain information about properties and elements of the environment that are critical to our survival.
Perception not only creates our experience of the world around us; it allows us to act within our
environment.
"Perception is a process by which individuals organize and interpret their sensory impression in
order to give meaning to their environment." S.P. Robbins
It is the process of becoming aware of something through the senses and achieving understanding of
it; the process of interpretation based on sensation; the psychological ability to process or use
information received through the sense organs
So that perception is the set of psychological processes by which people recognize, organize,
synthesize, and give meaning (in the brain) to the sensations received from environmental stimuli (in
the sense organs)
Why is it Important?
Study about perception is very important because peoples behavior is based on their perception of
what reality is, not on reality itself. The world that is perceived is the world that is behaviorally
important.

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Sensation usually refers to the immediate, relatively unprocessed result of stimulation of sensory
receptors in the eyes, ears, nose, tongue, or skin. Perception, on the other hand, better describes one's
ultimate experience of the world and typically involves further processing of sensory input. In
practice, sensation and perception are virtually impossible to separate, because they are part of one
continuous process.

Perceptual Process
The perceptual process is a sequence of steps that begins with the environment and leads to our
perception of a stimulus and an action in response to the stimulus.
We speak of a 'sense of humor' because different people sense humor in different things. What one
person perceives (senses) to be funny, another person might not.

On the other hand when one has managed to perceive humor in something, laughter (in one register
or another) follows rather automatically. It is the behavioral response to the perception of humor.
The perceptual process involves brain structuring, and how it organizes incoming stimuli,
determines what we experience.
The perceptual process is a sequence of steps that starts with the stimuli that happen in our
surroundings and leads through nerve transmission through peripheral and central nerves and the
brain to our perception of what is going on. It also includes our resulting action to the original
stimulus.
So, the perceptual process involved when we go outside from a room with no windows on a rainy
day is that the stimulus from the environment - the fact that it is raining and cold and we are getting
wet - is recognized by our senses. Our eyes, ears, cold receptors and touch receptors all send signals
to the brain, which works out that its raining.
The cognitive process within the brain then comes up with the decision to go back inside and pick up
a coat and an umbrella before we set out again. This is our response to the stimulus.

Person Perception: Making Judgments About Others

Attribution Theory
Attribution theory is proposed to develop the analysis of the ways in which we judge people
differently. When individuals observe behavior, they attempt to determine whether it is internally
(under the personal control of the individual) or externally (outside causes force you to behave a
certain way) caused.

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Internal factors: The behavior that are believed to be under the personal control of the individual.
(Late: Over slipping)
External factors: The result from outside cause; that is the person is seen as having been forced into
the behavior by the situation. (Late: Traffic Jam)

Distinctiveness:

Whether an individual displays different behaviors in different situations.

(Unusual behavior)

Consensus:

Everyone who is faced with a similar situation responds in the same way

Consistency:

Responding the same way in over a time.

Frequently Used Shortcuts in Judging Others

Selective Perception People selectively interpret what they see on the basis of their interest,
background, experience, and attitudes. (Student asked: Which subject is most
useful? Each teachers reply that their own subject is highly useful and most
important to study)
Halo Effect

Drawing a general impression about an individual on the basis of a single

characteristic. (Students rate the teacher low because of unfriendliness even
though he is knowledgeable, experienced and talented)

Contrast Effects

Evaluations of a persons characteristics that are affected by comparisons

with other people recently encountered who rank higher or lower on the
same characteristics. (In the interview, if the former candidate is strong, you
might get low score, and the former is weak, you get high score.)

Projection

Attributing ones own characteristics to other people. (If you are highly
talented, others too have)

Stereotyping

Judging someone on the basis of ones perception of the group to which that
person belongs. (All Muslims are not terrorists)

Factors Influencing Perception

We see that the same thing is perceived by the individuals differently. When the individual looks at
any thing and tries to interpret what he or she sees, that interpretation is heavily influenced by
personal characteristics like attitudes, personality, interests etc. The following figure explains the
factors that influencing perception

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1. Factors that shape (and can distort perception):

Perceiver
Target
Situation

2. When an individual looks at a target and attempts to interpret what he or she sees, that
interpretation is heavily influenced by personal characteristics of the individual perceiver.
3. The more relevant personal characteristics affecting perception of the perceiver are attitudes,
motives, interests, past experiences, and expectations.
4. Characteristics of the target can also affect what is being perceived. This would include
attractiveness, gregariousness, and our tendency to group similar things together. For example,
members of a group with clearly distinguishable features or color are often perceived as alike in
other, unrelated characteristics as well.
5. The context in which we see objects or events also influences our attention. This could include
time, heat, light, or other situational factors.

Perception and Individual Decision Making

It is the truth that how individuals in organization make decisions and the quality to their final
choices are largely influenced by their perceptions.
The Link between Perception and Individual Decision Making
Decisions = Choosing between two or more alternatives
Problems = A discrepancy between some current state of affairs and some desired state
How should we make decisions in organizations?
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To maximize a particular outcome, try the rational decision making model

Steps in the Rational Decision-Making Model
Define the problem
Identify the decision criteria.
Allocate weights to the criteria.
Develop the alternatives.
Evaluate the alternatives.
Select the best alternative.

Assumptions of the Rational Decision-Making Model

Problem Clarity-: The problem is clear and unambiguous.
Known Options: The decision-maker can identify all relevant criteria and viable alternatives.
Clear Preferences: Rationality assumes that the criteria and alternatives can be ranked and weighted.
Constant Preferences: Specific decision criteria are constant and that the weights assigned to them
are stable over time.
No Time or Cost Constraints: Full information is available because there is no time or cost
constraints.
Maximum Payoff: The choice alternative will yield the highest perceived value.

So, how are decisions actually made in organizations?

1. Bounded Rationality: Individuals make decisions by constructing simplified models that extract
the essential features from problems without capturing all their complexity.
2. Intuitive Decision Making:
Intuition = an unconscious process created out of distilled experience.
Intuition is often used when there is a high level of uncertainty, there is little precedent to go
on, when the variable in question are less predictable, when facts are limited, these facts
dont lead you in one particular direction, data is of little use, when there are several
plausible choices, and there is time pressure
3. Problem Identification
Problems that are visible tend to have a higher probability of being selected than ones that are
important. Why?

It is easier to recognize visible problems.

Decision-Makers want to appear competent and on-top of problems.
Decision-Makers self-interest affects problem selection because it is usually in the DecisionMakers best interest to address problems of high visibility and high payoff. This
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demonstrates an ability to perceive and attack problems.

4. Alternative Development: Decision makers rarely seek optimum solutions but satisfying or
good enough ones.

Efforts made are simple and confined to the familiar.

Efforts are incremental rather than comprehensive.
Many successive limited comparisons rather than calculating value for each alternative.
This approach makes it unnecessary for the decision maker to thoroughly examine an
alternative and its consequences.
Thus the decision makers steps are small and limited to comparisons of the current or
familiar options.

Common Biases & Errors

We tend to take shortcuts in decision making and this allows error and bias to enter our
decisions. Common biases and errors include:

Overconfidence Bias We tend to be overly optimistic (especially when our intellect

and interpersonal abilities are low)
Anchoring Bias Tendency to focus on initial information as a starting point.
Confirmation Bias We tend to seek out info that reaffirms our past choices and we
discount info that contradicts our past judgments.
Availability Bias --or the tendency of people to base their judgments on information
readily available to them.
Representative Bias -- The tendency to assess the
likelihood of an occurrence by
drawing analogies and seeing identical situations in which they dont exist.
Escalation of Commitment --an increased commitment to a previous decision in
spite of negative information (all too often creeps into decision making)
Randomness Error We tend to create meaning out of random events (and
superstitions).
Hindsight Bias We tend to believe falsely that wed have accurately predicted the
outcome of an event, after that outcome is actually known.

Summary and Implications for Managers

Individuals behave based not on the way their external environment actually is but, rather, on what
they see or believe it to be. Evidence suggests that what individuals perceive from their work
situation will influence their productivity more than will the situation itself. Absenteeism, turnover,
and job satisfaction are also reactions to the individuals perceptions.
Individuals think and reason before they act. Under some decision situations, people follow the
rational decision-making model. However, this doesnt happen very often. So, what can managers do to
improve their decision making?

Analyze the situation.

Be aware of biases.
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Combine rational analysis with intuition.

Dont assume that your specific decision style is appropriate for every job.
Try to enhance your creativity

Unit 3

Learning
Concept
Learning is one of the most important mental functions of humans, animals and artificial cognitive
systems. It relies on the acquisition of different types of knowledge supported by perceived information. It
leads to the development of new capacities, skills, values, understanding, and preferences. Its goal is the
increasing of individual and group experience.

According to S.P. Robbins, Learning is any relatively permanent change in behavior that occurs
as a result of experience.
So that learning is the process of acquiring knowledge, skills, attitudes or values through study,
experience or teaching that causes a change of behaviour that is persistent, measurable and specified or
allows an individual to formulate a new mental construct or revise a prior mental conduct. It is an
ongoing process in occurring at all times.

Steps in Learning
The followings four are the steps in learning process:

1. Input: The communication or message, information or any other that you get from the
sensory organs is the input for learning.
2. Response: The response after getting input as an understanding of input It is the acting
shown by the learner, your immediate response whether you motivate or not.

3. Motivation: The drive towards the learning process, showing the activity, interest and attitude
to learn. Individuals need high degree of motivation towards learning

4. Reinforcement: The final outcome of learning determines the reinforcement. It is the process
of forcing the learner to change his or her behavior. The learner is reinforced to learn
something using positive as well as negative ways. For eg., students get punishment if they
became unable to answer.

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Models of Learning
Also known as theories of learning, models of learning explain about how individuals learn in their life.
The scientific investigation of the learning process was begun at the end of the 19th century by Ivan
Pavlov in Russia and Edward Thorndike in the United States. Three models are currently widely used to
explain changes in learned behavior.

1. Classical Conditioning Theory

According to S.P. Robbins, "Classical conditioning is a type of conditioning in which an individual
responds to some stimulus that would not ordinarily produce such a response."
The first model of learning, classical conditioning was initially identified by Pavlov to teach dogs to
salivate in response to the ringing of a bell.
When he presented the dong with a piece of meat, the dog exhibited a noticeable increase in salivation.
When he postponed the presentation of meat and only rang the bell, the dog did not salivate. Then Pavlov
proceeded to link the meat and the ringing of the bell. After repeatedly hearing the bell before getting
food, the dog began to salivate as soon as the bell rang. After some times, the dog started salivating only
on the bell ring without meat. The effect is the dog had learned to respond-that is, to salivate-to the bell.
Salivation is an innate reflex, or unconditioned response, to the presentation of food, an unconditioned
stimulus. Pavlov showed that dogs could be conditioned to salivate merely to the sound of a buzzer (a
conditioned stimulus), after it was sounded a number of times in conjunction with the presentation of
food. Learning is said to occur because salivation has been conditioned to a new stimulus that did not
elicit it initially. The pairing of food with the buzzer acts to reinforce the buzzer as the prominent
stimulus.
So that Stimulus-response theory, referred to as S-R theory, is a theoretical model of behavioral
psychology that suggests humans and other animals can learn to associate a new stimulus- the
conditioned stimulus (CS)- with a pre-existing stimulus - the unconditioned stimulus (UCS), and can
think, feel or respond to the CS as if it were actually the UCS.

2. Operant Conditioning Theory

A second type of learning, known as operant conditioning, was developed around the same time as
Pavlov's theory by Thorndike, and later expanded upon by B. F. Skinner. Here, learning takes place as the
individual acts upon the environment. Operant behavior can be defined as the voluntary or learned
behavior in contrast to unlearned behavior.

Robbins defines that "Operant conditioning is a type of conditioning in which desired voluntary
behavior leads to a reward or prevents a punishment." Operant condition claims that people can
learn to behave to get something they want or avoid something the don't want. While classical
conditioning involves natural/normal reaction, operant conditioning require ticular technique
was responsible for a particular behavior change.

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There is a strong emphasis on accountability for everyone involved in a behavior

modification program.

Techniques of Behavior Modification

a. Positive reinforcement: Positive reinforcement occurs when a behavior (response) is
followed by a favorable stimulus (commonly seen as pleasant) that increases the frequency of
that behavior. Appreciation for well done in job is an example.
b. Negative reinforcement: Negative reinforcement occurs when a behavior (response) is
followed by the removal of an aversive stimulus (commonly seen as unpleasant) thereby
increasing that behavior's frequency. When teacher asks a question to you, you try to see
note book so that teacher would not punish you.
c. Punishment:
Positive punishment (also called "Punishment by contingent stimulation") occurs when a
behavior (response) is followed by an aversive stimulus, such as introducing a shock or loud
noise, resulting in a decrease in that behavior.
Negative punishment (also called "Punishment by contingent withdrawal") occurs when a
behavior (response) is followed by the removal of a favorable stimulus, such as taking away a
child's toy following an undesired behavior, resulting in a decrease in that behavior.

d. Extinction: Eliminating any reinforcement, maintaining the current behavior

In shaping behavior, reinforcement is very important tool rather then punishment or extinction. So that
whether it is positive or negative, you need to apply reinforcement but schedules can be varied. It can be
continuous or intermittent, fixed interval or variable-interval type.

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Unit 4

Personality
Concept
As we meet different people in our daily lives, we talk about their personality. We need to see
personality not at parts of the person, but as a whole. Personality is the different physical and mental
characteristics that reflect how a person looks, feels, decides, acts and reacts which comprises internal
(invisible) and external (visible) character.
Personality can be defined as:

the complex of all the attributes--behavioral, temperamental, emotional and mental--that

characterize a unique individual
A set of qualities that make a person (or thing) distinct from another; An assumed role or
manner of behavior; A celebrity; Charisma, or qualities that make a person stand out from the
crowd; Pertaining to personality
means (1) the sum of the characteristics which make up physical and mental being, including
appearance, manners, habits, tastes and moral character; (2) the characteristics that
distinguish one person from another (this is equivalent to individuality); (3) the capacity for
having mental states
"Personality is the sum total of ways in which an individual reacts and interacts with others."- S.P.
Robbins

Personality is made up the characteristic patterns of thoughts, feelings, and behaviors that make a
person unique. Personality originates within the individual and remains fairly consistent throughout
life.
Personality psychologists are interested in the unique characteristics of individuals, as well as
similarities among groups of people. Personality is displayed through thoughts, feelings, behaviors
and many other ways.

Determinants of Personality
Heredity
Researchers have discovered that almost fifty percent of human behavior and personality
characteristics are genetically inherited. Those are the parental and biological factors, physiological
and psychological factors.
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Environment
The environment the individual grows up, the family background, culture and society, norms and
belief, values and attitude, education, income, employment influences the personality. Positive &
negative aspects of upbringing affect personality.

Environment

Heredity
Physical structure
Facial attractiveness
Temperament (nature)
Muscle Composition
Energy Level
Gender, age, race,
height, weight

Personality Behavior

Family background
Education
Income
Employment
Experience

Society, culture and

friends

Situation
The situational factors
that shows the certain
behaviors (Place,
Function, Position)

Situation
Even though environment and heredity determines the personality, the situation may modify in
individual's personality. The demand of the current situation, the place, function and position greatly
influences in showing the certain behavior. Some situations are: in temple, at employment interview,
at Picnic, Public Park.

Personality Traits
Personality traits are the bearing or enduring characteristics that describes the behavior of an
individual like shy, aggressive, lazy, ambitious, loyal, timid (fearful) etc.. Individuals show those
traits repetitively in a noticeable form and those characters become personality traits. Researchers
believe that the personality traits could help in employee selection, placement and career
development.
Different scientists tried to identify the common personality traits and they spent many years . The
two popular models of Personality Traits are explained below.

A. The Myers-Briggs Type Indicator (MBTI)

Personality Type or Psychological Type are terms most commonly associated with the model of
personality development created by Isabel Briggs Myers the author of the world's most widely
used personality inventory, the MBTI or Myers-Briggs Type Indicator.

The Basic Model: 2 Kinds of Mental Processes, 2 Kinds of Mental Orientations

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2 Kinds of Mental Processes

a) The first set of mental preferences relates to how people "Perceive" or take in information.

Those who prefer Sensing Perception favor clear, tangible data and
information that fits in well with their direct here-and-now experience. They
like practical and prefer routine and order.
In contrast, those who prefer Intuition Perception are drawn to information
that is more abstract, conceptual, big-picture, and represents imaginative
possibilities for the future.
Sensing Characteristics

Mentally live in the Now,

attending to present
opportunities
Using common sense and
creating practical solutions is
automatic-instinctual

Memory recall is rich in detail of

facts and past events

Best improvise from past

experience

Intuitive Characteristics

Mentally live in the Future, attending to

future possibilities
Using imagination and
creating/inventing new possibilities is
automatic-instinctual

Memory recall emphasizes patterns,

contexts, and connections

Best improvise from theoretical

understanding

Comfortable with ambiguous, fuzzy

data and with guessing its meaning.

Like clear and concrete

information; dislike guessing
when facts are "fuzzy"

b) The second set of mental preferences identifies how people form "Judgments" or make
decisions. In the Myers MBTI Type Code, this is the third letter.

Those who prefer Thinking Judgment have a natural preference for making
decisions in an objective, logical, and analytical manner with an emphasis on tasks
and results to be accomplished.
Those whose preference is for Feeling Judgment make their decisions in a
somewhat global, visceral, harmony and value-oriented way, paying particular
attention to the impact of decisions and actions on other people.
Thinking Characteristics

Feeling Characteristics

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Instinctively search for facts and

logic in a decision situation.
Naturally notices tasks and work
to be accomplished.

Easily able to provide an

objective and critical analysis.
Accept conflict as a natural,
normal part of relationships with
people.

Instinctively employ personal feelings

and impact on people in decision
situations
Naturally sensitive to people needs
and reactions.

Naturally seek consensus and popular

opinions.

Unsettled by conflict; have almost a

toxic reaction to disharmony.

2 Kinds of Mental Orientations

a) Introversion vs Extroversion

Those who prefer Introversion draw their primary energy from the
inner world of information, thoughts, ideas, and other reflections. When
circumstances require an excessive amount of attention spent in the
"outside" world, those preferring Introversion find the need to retreat to a more
private setting, they are very quit and shy.
In contrast, those who prefer Extraversion are drawn to the outside
world as their elemental source of energy. Rarely, if ever, do extraverted
preference people feel their energy batteries are "drained" by excessive
amounts of interaction with the outside world. They must engage the things,
people, places and activities going on in the outside world for their life force, they
are sociable and outgoing
Extraverted Characteristics

Act first, think/reflect later

Feel deprived when cutoff from
interaction with the outside
world

Usually open to and motivated

by outside world of people and
things

Enjoy wide variety and change

in people relationships

Introverted Characteristics

Think/reflect first, then Act

Regularly require an amount of
"private time" to recharge batteries

Motivated internally, mind is

sometimes so active it is "closed" to
outside world

Prefer one-to-one communication and

relationships

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b) Judging vs Perceiving

Those who prefer Judging typically leads to a style oriented towards closure,
organization, planning, or in some fashion managing the things and or people
found in the external environment. The drive is to order the outside world.
They want control, to be ordered and well structured.
Those who prefer Perceiving typically results in an open, adaptable, flexible
style of relating to the things and people found in the outside world. The drive
is to experience the outside world rather than order it; in general lack of closure
is easily tolerated.

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Judging Characteristics

Plan many of the details in

advance before moving into
action.
Focus on task-related action;
complete meaningful segments
before moving on.

Work best and avoid stress when

keep ahead of deadlines.

Naturally use targets, dates and

standard routines to manage life.

Perceiving Characteristics

Comfortable moving into action without a plan;

Like to multitask, have variety, mix work and

play.

Naturally tolerant of time pressure; work

best close to the deadlines.

Instinctively avoid commitments which

interfere with flexibility, freedom and variety

plan on-the-go.

B. Big Five Personality Traits

The "Big Five" personality traits are five broad factors or dimensions of personality discovered
through empirical research by John Bearden.
The five factors are as follows:
1. Openness to experience - appreciation for art, emotion, adventure, unusual ideas,
imagination, curiosity, and variety of experience.
Openness is a general appreciation for art, emotion, adventure, unusual ideas, imagination,
curiosity, and variety of experience. The trait distinguishes imaginative people from down-toearth, conventional people. People who are open to experience are intellectually curious,
appreciative of art, and sensitive to beauty. In compared to closed people, they tend to
be,more creative and more aware of their feelings and unconventional beliefs.
Sample Openness items

I am full of ideas.
I am quick to understand things.
I have a rich vocabulary.
I have a vivid imagination.
I have excellent ideas.
I spend time reflecting on things.
I use difficult words.
I am not interested in abstract ideas. (reversed)
I do not have a good imagination. (reversed)
I have difficulty understanding abstract ideas. (reversed)

2. Conscientiousness - a tendency to show self-discipline, responsible, act dutifully, and aim for
achievement; planned rather than spontaneous behaviour.
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Conscientiousness is a tendency to show self-discipline, act dutifully, and aim for

achievement. The trait shows a preference for planned rather than spontaneous behaviour. It
influences the way in which we control, regulate, and direct our impulses. Conscientious
individuals avoid trouble and achieve high levels of success through purposeful planning and
persistence. They are also positively regarded by others as intelligent and reliable.
Sample Conscientiousness items

I am always prepared.
I am exacting in my work.
I follow a schedule.
I get chores done right away.
I like order.
I pay attention to details.
I leave my belongings around. (reversed)
I make a mess of things. (reversed)
I often forget to put things back in their proper place. (reversed)
I shirk my duties. (reversed)

3. Extroversion - energy, positive emotions, surgency, and the tendency to seek stimulation and
the company of others.
Extraversion, also called "extroversion," is characterized by positive emotions, surgency, and
the tendency to seek out stimulation and the company of others. Extraverts enjoy being with
people, and are often perceived as full of energy. They tend to be enthusiastic, action-oriented
individuals who are likely to say "Yes!" or "Let's go!" to opportunities for excitement. In
groups they like to talk, assert themselves, and draw attention to themselves. Introverts lack
the exuberance, energy, and activity levels of extraverts. They tend to be quiet, low-key,
deliberate, and less involved in the social world. Their lack of social involvement should not
be interpreted as shyness or depression. Introverts simply need less stimulation than
extraverts and more time alone.
Sample Extraversion items

I am the life of the party.

I don't mind being the center of attention.
I feel comfortable around people.
I start conversations.
I talk to a lot of different people at parties.
I am quiet around strangers. (reversed)
I don't like to draw attention to myself. (reversed)
I don't talk a lot. (reversed)
I have little to say. (reversed)

4. Agreeableness - a tendency to be compassionate and cooperative rather than suspicious and

antagonistic towards others.
Agreeableness is a tendency to be compassionate and cooperative rather than suspicious and
antagonistic towards others. The trait reflects individual differences in concern for social
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harmony. Agreeable individuals value getting along with others. They are generally
considerate, friendly, generous, helpful, and willing to compromise their interests with others.
Agreeable people also have an optimistic view of human nature. They believe people are
basically honest, decent, and trustworthy.
Disagreeable individuals place self-interest above getting along with others. They are
generally unconcerned with others well-being, and are less likely to extend themselves for
other people. Sometimes their skepticism about others motives causes them to be suspicious,
unfriendly, and uncooperative.
Sample Agreeableness items

I am interested in people.
I feel others emotions.
I have a soft heart.
I make people feel at ease.
I sympathize with others feelings.
I take time out for others.
I am not interested in other peoples problems. (reversed)
I am not really interested in others. (reversed)
I feel little concern for others. (reversed)
I insult people. (reversed)

5. Emtional Etsbility (Neuroticism) - a tendency to experience unpleasant emotions easily, such

as anger, anxiety, depression, or vulnerability; sometimes called emotional instability.
Neuroticism is the tendency to experience negative emotions, such as anger, anxiety, or
depression. It is sometimes called emotional instability. Those who score high in neuroticism
are emotionally reactive and vulnerable to stress. They are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. Their negative
emotional reactions tend to persist for unusually long periods of time, which means they are
often in a bad mood. These problems in emotional regulation can diminish a neurotic's ability
to think clearly, make decisions, and cope effectively with stress.
At the other end of the scale, individuals who score low in neuroticism are less easily upset
and are less emotionally reactive. They tend to be calm, emotionally stable, and free from
persistent negative feelings. Freedom from negative feelings does not mean that low scorers
experience a lot of positive feelings.
Sample Neuroticism items

I am easily disturbed.
I change my mood a lot.
I get irritated easily.
I get stressed out easily.
I get upset easily.
I have frequent mood swings.
I often feel depressed.
I worry about things.
I am relaxed most of the time. (reversed)
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I seldom feel depressed.(reversed)

Major Personality Influencing Organizational Behavior

The followings are the major personality traits which influences organizational behavior
1. Locus of Control: The locus of control is the belief of the indivudla whether they are the
master of their fate. It can either be internal (meaning you believe that you control yourself
and your life) or external (meaning you believe that your environment, some higher power or
other people control your decisions and your life). It was developed by Julian B. Rotter in 1954
as an important aspect of personality.
Internals tend to attribute outcomes of events to their own control. Externals attribute
outcomes of events to external circumstances. For example, college students with a strong
internal locus of control may believe that their grades were achieved through their own
abilities and efforts, whereas those with a strong external locus of control may believe that
their grades are the result of good or bad luck, or to a professor who designs bad tests or
grades capriciously; hence, they are less likely to expect that their own efforts will result in
success and are therefore less likely to work hard for high grades.
Researches have shown that individulas who are externals are less satisfied with their jobs,
they have higher abseentism, do less effort and they are more dissatisfied because they
perceive as having little control by them in success and outcomes and vice versa for internals.
2. Machiavellianism
Machiavellianism is primarily the term some social and personality psychologists use to
describe a person's tendency to deceive and manipulate others for personal gain. The trait is
named after Niccol Machiavelli, propounded the theory in using power and gaining, can
also refer to the doctrine of Machiavelli who described about the politics of sixteenth
century's political leaders who used to deceive people to influence others. We can categories
into two: High Mach and Low Mach personality.
High Machs: They tend to take a more detached, calculating approach in their interaction
with other people. They tend to believe most people are concerned only with their own wellbeing, selfish and to depend too much on anyone else is foolish. They believe some of the
most efficient ways to achieve a goal are to use deception, rewards, promises, flattery (sweet
talk) and even punishments to manipulate others into doing their bidding.
Low Machs: They tend to take a more personal, empathic approach in their interaction with
other people. They tend to be more trusting of others and more honest. They believe humans
are essentially good natured. At the extreme, low Machs are passive, submissive, and highly
agreeable. They also tend to believe that everyone has a good and bad side.

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3. Self-Esteem
Self-esteem is a person's overall self-appraisal of his or her own worth. It is the degree they
like or dislike themselves. Self-esteem encompasses beliefs (for example, "I am
competent /incompetent") and emotions (for example, success/failure, pride/ humiliation).
Self-esteem can apply specifically to a particular dimension (for example, "I believe I am a
good writer, and feel proud of that in particular") or have global extent (for example, "I
believe I am a good person, and feel proud of myself in general").
4. Self-Monitoring
The theory is proposed by Mark Snyder in 1974. The theory refers to the process through
which people regulate their own behavior in order to "look good" so that they will be
perceived by others in a favorable manner. It disintinguishes between high self-monitors,
who monitor their behaviour to fit different situations, and low self-monitors, who are more
cross-situationally consistent.

Some people are sensitive to how other sees them, and they always adjust their behavior to
external situational factors. People who are high self-monitors constantly watch other people,
what they do and how they respond to the behavior of others and will hence usually adapt
well to differing social situations. On the other hand, low self-monitors are generally unaware
to how other see them and hence show to their own different style.
5. Risk Taking
It is the willingness to take risk or chances. Some people want to take high risk for gaining
something while others do not like taking risk. Such personality highly influences the
managerial decision making and information needed for it. High risk taking managers make
more rapid decisions and use less information in making their decisions than do the low risk
taking managers.
6. Type A Personality
The Type A and Type B are a personality type theory that describes a pattern of behaviors of
the individuals.
Type A individuals can be described as impatient, excessively time-conscious, insecure about
their status, highly competitive, aggressive, and incapable of relaxation. Type B individuals,
in contrast, are described as patient, relaxed, and easy-going.
Type A's
1. Are always moving, walking and eating rapidly
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2. fell impatient with the rate at which most events take place
3. strive two think or do two o more things at once
4. cannot cope with leisure time
5. are obsessed with numbers, measuring their success in terms of how many or how
much of everything they acquire
Type B's
1. Never suffer from sense of time urgency with its accompanying impatience
2. feel no need to display or discuss either their achievements or accomplishments unless
such exposure is demanded by the situation
3. play for fun and relaxation, rather than to exhibit their superiority at any cost
4. can relax without guilt (fault)
Source: S.P. Robbins and Seema Sanghi, 2007 p.p 105

7. Proactive Personality
Proactive personality is the trait of the individual who identify opportunities, show initiative,
take action and preserve until meaningful change occurs. They create a positive change in
environment to remove obstacles and go forward. These people are highly suitable for
entrepreneurship, management and they are likely to be success. Nevertheless, they may
leave the organization to establish their own business. They are very clever in maintaining
relationship, influencing work situations and career planning.

Matching Personality and Jobs

Matching the individual's personality and his or her job is a great challenge not only for the
managers but also the individuals who seek their career. The best fit between the personality and
their occupation of course leads to success in their life.

1. Person-Job Fit
In this context, John Holland Development Personality-Job Fit Theory. He explained it
Holland presents six personality types and proposes that satisfaction and the propensity to
leave a job depend on the degree to which individuals successfully match their personalities
to an occupational environment.

Each one of the six personality types has a congruent occupational environment.

The theory argues that satisfaction is highest and turnover lowest when personality and
occupation are in agreement.
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Type

Personal Characteristics

Congruent Occupation

Realistic: Prefers physical activities Shy, genuine, persistent, stable,

that require skill, strength and conforming, practical
coordination

Mechanic,
drill
press
operator,
assembly-line
worker, farmer

Investigative: Prefers activities that Analytical, original, curious,

involve thinking, organizing and independent
understanding

Biologist, economist,
mathematician news
reporter

Social: Prefers activities that involve

helping and developing others

Social worker, teacher,

counselor, clinical
psychologists

Sociable, friendly, cooperative,

understanding

Conventional: Prefers rule-regulated, Conforming, efficient,

practical, unimaginative,
orderly, and unambiguous activities
inflexible

Accountant, corporate
manager, bank teller, file
clerk

Enterprising: Prefers verbal activities Self-confident, ambitious,

in which there are opportunities to energetic, domineering
influence others and attain power

Lawyer, real state agent,

public relation specialist
small business manager

Artistic: Prefers ambiguous and Imaginative, disorderly,

unsystematic activities that follow idealistic, emotional,
impractical
creative expression

Painter, musician, writer,

interior decorator

2. The Person-Organization Fit

The Person-Organization Fit argues that people leave organizations that are not compatible with their
personalities. Organizations need to use Big-Five Personality Traits to make the organizational
environment favorable to the employees so that they can keep the individuals for long.

Most important for an organization facing a dynamic and changing environment, and
requiring employees who are able to readily change tasks and move fluidly between teams.
It argues that people leave jobs that are not compatible with their personalities.

Matching people to the organizational culture at the time of hiring should result in higher employee
satisfaction and reduced turnover.

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Unit 5

Motivation
Concept and Process
Since motivation influences productivity, supervisors need to understand what motivates employees
to reach peak performance. It is not an easy task to increase employee motivation because employees
respond in different ways to their jobs and their organization's practices.
Motivation is the set of processes that moves a person toward a goal. Thus, motivated behaviors are
voluntary choices controlled by the individual employee. The supervisor (motivator) wants to
influence the factors that motivate employees to higher levels of productivity.
Factors that affect work motivation include individual differences, job characteristics, and
organizational practices. Individual differences are the personal needs, values, and attitudes,
interests and abilities that people bring to their jobs. Job characteristics are the aspects of the
position that determine its limitations and challenges. Organizational practices are the rules,
human resources policies, managerial practices, and rewards systems of an organization.
Supervisors must consider how these factors interact to affect employee job performance.
"The process that account for an individual's intensity direction and persistence of effort toward
attaining a goal." - S.P. Robbins
"Motivation is the set of forces that causes people to behave in certain ways." R.W. Griffin
On any given day, an employee may choose to work as hard as possible at a job, to work
just a hard enough to avoid a reprimand (warning), or to do as little as possible. The Level
of motivation varies both between individual and within individuals at different times
which lead to show the aforementioned behavior.

The Motivation Framework (Process of Motivation)

Need
(Deficiency)

Search for ways

to satisfy need

Determination of future needs

and search/choice or
satisfaction

Choice of behavior to
satisfy need

Evaluation of Need
Satisfaction

Motivation
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Importance of Motivation
1.
2.
3.
4.
5.
6.
7.
8.

Optimum use of resources

Productivity improvement
Efficiency and effectiveness
Understand Employee behaviour
Employee retention
Creativity promotion
Job Satisfaction
Other employee factors
- Low employee turnover
- Reduce absenteeism
- Reduce rate of accidents
- Better employee discipline
- Reduced employee grievances
- Harmonious labour relation

Motivation Theories
Early Theories
The theories which have not held up well under examination
1. Maslow's Need Hierarchy Theory
2. Hertzberg's Motivation Hygiene Theory
3. Theory X and Theory Y

Contemporary Theory
There are number of contemporary theories that have one ting in common-each has a reasonable
degree of valid supporting documentation.
1.
2.
3.
4.

Expectancy Theory
ERG Theory
Equity Theory
McClelland's Need Achievement Theory

1. Maslow's Hierarchy of Needs Theory

There is a hierarchy of five needs-physiological, safety, social, esteem an self actualization; each need
is substantially satisfied, the next need becomes dominant.
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Achievement

Challenging job

Self Actualization
Needs

High order
needs

Status

Esteem Needs
Respect of others, and ego
or status needs

Friendship

Social needs
Belongingness, affection, friendship
Safety needs

Stability
Bodily needs

Physiological needs
Hunger, thirst, the activity, sleep, sex

Job Title

Friends at work
Pension Plans

Low order
needs

Base Salary

Criticisms
1.
2.
3.
4.

Theoretical difficulties
Not research based
Superfluous classification scheme: The model is based more on wisher of what an 'SHOULD BE' rather
than what he 'ACTUALLY' is.
Individual difference

2. Theory X and Theory Y (Douglas McGregor)

Theory X
The assumptions that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform.
Theory Y
The assumption that employees like work, are creative, seek responsibility and can exercise self direction.

Assumption of Theory X
1.
2.
3.
4.

Employees inherently dislike work and, wherever possible, will attempt to avoid it.
Since employee dislike work, they must be coerced, controlled, or threatened punishment to achieve
goals.
Employees will avoid responsibility and seek formal direction whenever possible
Most workers place security above all other factors associated with work and will display little
ambition.

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Assumption of Theory Y
1.
2.
3.
4.

Employees can view work as being a natural as rest play

People will exercise self-direction and self-control if they are committed to the objectives.
The average person can learn to accept, even seek responsibility.
The ability to make innovative decision is widely dispersed throughout the population and is not
necessarily the sole province of those in management positions.

3. Hertzberg's Motivation-Hygiene Theory (Duel Factor Theory)

Hygiene Factors (Intrinsic)

(dissatisfiers)
- These factors are necessary to avoid dissatisfaction.
a.
b.
c.
d.
e.
f.
g.
h.

Company policy and administration

Technical supervision
Interpersonal relations with superiors, peers and subordinates
Salary
Job Security
Personal life
Work conditions
Status

Motivational Factors
a.
b.
c.
d.
e.
f.

Achievement
Recognition
Work itself
Responsibility
Advancement
Growth

Contrasting views of Satisfaction

Traditional View
Satisfaction

Dissatisfaction
Herzberg's view
Motivators

Satisfaction

No satisfaction
Hygiene Factors

No dissatisfaction

Dissatisfaction

Criticisms
1. The procedure that Hertzberg used is limit by its methodology. When things are going well, people
tend to take credit themselves. They blame failure on the extrinsic environment.
2. The reliability of Hertzberg's methodology is questioned.
3. No overall measure of satisfaction was used.
4. The theory is inconsistent with previous research. It ignores situational variables.
5. No relationship between satisfaction and productivity.

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Comparisons between Hierarchy of Needs Theory and Motivation-Hygiene Theory

4. ERG Theory (Clayton Alderfer)

-

There are three groups of core needs: existence, relatedness and growth.

Growth

(Esteem, Self actualization

needs)

Relatedness

(Social needs)

Existence

(Physiological and
safety needs)
ERG Theory argues that satisfied lower-order needs lead to desire to satisfied higher-order needs; but multiple
needs can be operating as motivators at the same time, and frustrations in attempting to satisfy a higher-level
need can result in regression to a lower level need.

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5. McClelland's Need Achievement Theory (David McClelland)

1.
2.
-

Need for achievement( nAch)

The desire to accomplish a goal or task more effectively than the past-personal responsibility etc.
Need for affiliation (nAff)
The desire for human companionship and acceptance (social interaction, offer opportunities to make
friends

3.
-

Need for Power (nPow)

The desire to be influential in a group and to control one's environment. (supervisory positions)

6. Equity Theory (J Stacy Adams)

Equity theory suggests that people are motivated to seek social equity in the rewards they receive for
performance.
An employee selects adds to the complexity of equity theory. There are four referent comparisons that an
employee can use:

1. Self-inside : An employee's expectations in a different position inside his or her current organization
2. Self-outside : An employee's experiences in a situation or position outside his or her current
organizations.

3. Other-inside : Another individuals or group of individuals inside the employees organization.

4. Other-outside : Another individual or group of individuals outside the employee's organization.

The equity comparison process

Outcomes (Self)
Inputs (Self)

?
=

Outcomes (Others)
Input (Others)

When employees perceive an inequity, they can be predicted to make one of six choices:
1) Change their inputs-effort
2) Change their outcomes-result (product)
3) Distort perception of self
4) Distort perception of others
5) Choose different referent
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6) Leave the field/quit job

7. Expectancy Theory (Victor Vroom)

A theory of motivation that suggests that motivation depends on two things, how much we want
something and how likely we think we are to get it.
EP
Individual
Effort

PO
Individual
Performance

Valence
Organization
al Resources

Personal
Goals

Motivation = Expectancy X Valence

1. Effort-to-performance expectancy relationship
2. Performance -to-outcome (Reward) relationship
3. Rewards -to-personal goals relationship
Valence = Outcome

Recap of Motivational Theories

Theory

Summary

Individual

Hierarchy of
Needs

Abraham
Maslow

Five needs in an hierarchical order from lowest to highest: physiological, safety, social,
esteem, self actualization.
An individual moves up the hierarchy and, when a need is substantially realized,
moves up to the next need.

Theory XTheory Y

Douglas
McGregor

Proposes two alternative sets of assumptions that managers hold about human beings'
motivation-one basically negative, labeled Theory X; and the other basically positive,
labeled Theory Y.
McGregor argues that Theory Y assumptions are more valid that Theory X and that
employee motivation would be maximized by giving workers greater job involvement
and autonomy

MotivationHygiene

Frederick
Hertzberg

Argues that intrinsic job factors motivate whereas extrinsic factors only placate
employees.

ERG Theory

Clayton
Alderfer

Need
Achievement

David
McClelland

There are three groups of core needs: existence, relatedness and growth.
Existence: Physiological and safety needs
Relatedness: Social needs
Growth: Esteem, Self actualization needs
Proposes that there are three major needs in workplace situations: achievement,
affiliation and power: A high need to achieve has been positively related to higher work
performance when jobs provide responsibility, feedback, and moderate challenge.

Equity Theory

J. Stacey
Adams

An individual compares his or her input/outcome ratio to that of relevant others. If

there is a perceived inequity, the individual will change his or her behaviour or
compare themselves with someone else.

Expectancy
Theory

Victor Vroom

Proposes that motivation is a function of valence (value) of the effort performance and
the performance reward relationships.

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Unit 6

Groups in Organization
Concept
Group can be defined as two or more humans that interact with one another, accept expectations and
obligations as members of the group, and share a common identity. A true group exhibits some
degree of cohesion and is more than a simple collection or aggregate of individuals, such as people
waiting at a bus stop. Characteristics shared by members of a group include interests, values, ethnic
or social background, and kinship ties. According to Paul Hare, the defining characteristic of a group
is social interaction.
So that group can be defined as two or more freely interacting individuals who share a common
identity and purpose.
"Group is defined as two or more persons who interact regularly to accomplish a common purpose
or goal." - Gary Dessler
"A work group is a collection of two or more people who interact with each other, share similar
interests and come together to accomplish some work activity." - Arnold & Feldman
"Two or more individuals, interacting and interdependent, who have come together to achieve
particular objectives."- S.P. Robbins

Characteristics of group
a)
b)
c)
d)
e)
f)
g)
h)
i)

Two or more people

Interaction and interdependence
Similar interests
Common identity
Common purpose or goals
Informal leadership
Individual accountability
Behavioural norms
Cohesiveness

Why do People Join Group?

Security. By joining a group, individuals can reduce the insecurity of "Standing alone."
People feel stronger, have fewer self-doubts, and are more resistant to threats when
they are part of a group.
Status. Inclusion in a group that is viewed as important by others provides recognition
and status for its members.

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Self-Esteem. Groups can fulfil social needs. People enjoy the regular interaction that
comes with group membership. For many people, these on-the-job interactions are
their primary source for fulfilling their needs for affiliation.
Power. What cannot be achieved individually often becomes possible through group
action. There is power in numbers.
Goal Achievement. There are times when it takes more than one person to accomplish
a particular task-there is a need to pool talents, knowledge, or power in order to
complete a job. In such instances, management will rely on the use of a formal group.
(Source: S.P. Robbins and Seema Sanghi, 2007 p.p. 229)

Types of groups
1) Formal group:
Formal group is a collection of people created to do something productive that contributes to
the success of the larger organization. Formal group is defined by organizational structure
and established under formal authority.
a) Command group: A group created by the organization that report directly to the
specified manager and are controlled by him/her.
b) Task Groups: A group with cross command relationship who are not limited to their
hierarchical form and work together to complete a job or task. They need high
coordination among the group members and are responsible for specific non-routine
activities.

2) Informal group: A group created by its members for purpose that may or may not be relevant
to the organization's goals. It is not defined by organizational structure and it does not have
formal authority. It is a collection of people seeking friendship and acceptance that satisfies
esteem needs.
a) Interest group: Those who form a grouping to fulfil the certain interest which is
concerned by each member.
b) Friendship group: The group which is formed for social alliance and they come
together that have common characteristics for fostering friendship. (Ethnic
groups/Religious Groups of other )

Nature and Significance of Informal Group

Nature of Informal Group:
-

Influenced by personal goal (rather than organizational goal)

Not defined by organizational structure

No formal reporting relationship and authority

Personal interest

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Common characteristics of the group members

- Temporary in nature
(Ethnic groups, politics affiliated unions are some examples)

Significance of Informal Group

-

To fulfill relatedness needs

To enhance affiliation among organizational members

To increase social identity of the group members

To accomplish tasks that are not possible individually through formal relations alone

To influence people outside the group

Group Formation Process

A well functioning group does not just form in ad hoc. It needs to follow a systematic process and
takes time to develop to a point where it can be effective and where all members feel connected to it.
There are popular five stages of group development which is explained below:

Forming
This is the initial stage when the group comes together and members begin to develop their
relationship with one another and learn what is expected of them. This is the stage when team
building begins and trust starts to develop and individuals test themselves whether they can be
the part of group. Group members will start establishing limits on acceptable behavior through
experimentation. In this stage, it is uncertain about the purpose, structure of group and leader.

Forming
Test which
interpersonal
behaviors ate
acceptable and which
are unacceptable to
the other members

Storming

Storming

Norming

Performing

Develop
group structure
Group's
agenda
Recognizing
leader
Pattern of
interaction

Acceptance of
roles and
understand others
role
Sense of unity

Enacting roles
Direct effort
toward goal
attainment and
performance

During this stage of group development, interpersonal conflicts arise and differences of opinion
about the group and its goals will surface. If the group is unable to clearly state its purposes and
goals or if it cannot agree on shared goals, the group may collapse at this point. It is important to
work through the conflict at this time and to establish clear goals. It is necessary for there to be

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discussion so everyone feels heard and can come to an agreement on the direction the group is to
move in.

Norming
Once the group resolves its conflicts, it can now establish patterns of how to get its work done. In
this stage, we find the close relationship and cohesiveness among the group members.
Expectations of one another are clearly articulated and accepted by members of the group.
Formal and informal procedures are established in delegating tasks, responding to questions, and
in the process by which the group functions. Members of the group come to understand how the
group as a whole operates.

Performing
It is the final stage for the permanent work group. During this fourth stage of group
development, issues related to roles, expectations, and norms are no longer of major importance.
The group is now focused on its task, working intentionally and effectively to accomplish its
goals. The group will find that it can enjoy its accomplishments and that members will be
learning new skills and sharing roles.
After a group enters the performing stage, it is unrealistic to expect it to remain there
permanently. When new members join or some people leave, there will be a new process of
forming, storming, and norming engaged as everyone learns about one another. External events
may lead to conflicts within the group. To remain healthy, groups will go through all of these
processes in a continuous circle.

Adjourning
The final stage of group development is adjourning which is only for the temporary groups. In
this stage, the temporary group members who has specific goal enclose all their activities and
formally end the group.
When conflict arises in a group, do not try to silence the conflict or to run from it. Let the conflict
come out into the open so people can discuss it. If the conflict is kept under the surface, members
will not be able to build trusting relationships and this could harm the groups effectiveness. If
handled properly, the group will come out of the conflict with a stronger sense of cohesiveness
then before.

Group Structure:
Concept
Group structure is the process of shaping the behavior of the individual members to make it
possible to explain and able to predicting their behavior for increasing the group performance.
We study the different variables of those group structure which helps understanding and
shaping the behavior.
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The structural variables

There are different variables that structure the group which are: roles, norms, group size,
composition and cohesiveness. Those individual variables are explained below.

Leadership
Leadership is a process by which a person influences others to accomplish an objective and
directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this
process by applying their leadership attributes, such as beliefs, values, ethics, character,
knowledge, and skills. To be an effective leader, your followers must have trust in you and they
need to be sold on your vision.

Some leadership attributes:

Beliefs are what we hold dear to us and are rooted deeply within us. They could be assumptions
or convictions that you hold true regarding people, concepts, or things. They could be the beliefs
about life, death, religion, what is good, what is bad, what is human nature, etc.
Values are attitudes about the worth of people, concepts, or things. For example, you might value
a good car, home, friendship, personal comfort, or relatives. Values are important as they
influence a person's behavior to weigh the importance of alternatives. For example, you might
value friends more than privacy, while others might be the opposite.
Skills are the knowledge and abilities that a person gains throughout life. The ability to learn a
new skill varies with each individual. Some skills come almost naturally, while others come only
by complete devotion to study and practice.
Traits are distinguishing qualities or characteristics of a person, while character is the sum total of
these traits. There are hundreds of personality traits, far too many to be discussed here. Instead,
we will focus on a few that are crucial for a leader. The more of these you display as a leader, the
more your followers will believe and trust in you. Some traits of leadership are: Honest, ForwardLooking, Competent, Inspiring, Intelligent etc.
Leaders have clear visions and they communicate these visions to their employees. At another
word, leadership means working with and through people by providing them with a vision of
the future which is meaningful to them and motivating. Leadership is both strategic and
pragmatic (realistic) and encourages all members of a team to deliver their best as an individual
and as a team member.
In contrast to individual leadership, some organizations have adopted group leadership. In this
situation, more than one person provides direction to the group as a whole. Some organizations
have taken this approach in hopes of increasing creativity, reducing costs, or downsizing. Others
may see the traditional leadership of a boss as costing too much in team performance. In some

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situations, the maintenance of the boss becomes too expensive - either by draining the resources
of the group as a whole, or by impeding the creativity within the team, even unintentionally.

Roles
A role is a set of connected behaviors, rights and obligations as conceptualized by actors in a social
situation. It is mostly defined as an expected behavior in a given individual social status and social
position. A set of expectations govern the behavior of persons holding a particular role in group; a
set of norms that defines how persons in a particular position should behave.
According to S.P. Robbins, Role is a set of expected behavior patterns attributed to someone occupying
a given position in a social unit.
Role Identity: It is the certain behaviors and attitudes of the individual which are consistent with a
role. Individuals have the ability to shift or change their roles rapidly when the situation or
environment changes. For Example, employee changes his or her role rapidly after the promotion.
Role Perception: Role perception is the view of the individuals how they need to act while playing
roles in a given situation. We perceive to act in different situations by the friend, society, teachers,
videos or other source. An employee perceives managerial roles observing the activities of seniors.
Role Expectation: It is the expectation from others how should you act in a given situation.
Psychological contract is an example in which management and employees do unwritten contract
what management expects and vice versa.
Role confusion is a situation where an individual has trouble determining which role he/she should
play. For example, one could be a college student who would attend a convention of a particular
recreational interest and find his or her teacher there. Conflict between behaving as a student and as
an enthusiast who shares the same interest emerges, leading to confusion.
Role conflict characterises a situation where fulfilling a certain role has a conflict with fulfilling
another role. For example, you found your teacher made a mistake and should you report that? If
you did, you might disgrace him and if you didn't, you might not fulfil your role as student. While
role conflict takes place across different role sets, role strain happens within the same role set.

Every member of a group plays a certain role within that group. Some roles relate to the task aspect of
the group, while others promote social interaction. Here are the examples of some roles that group
members play.
Task-Oriented Roles

Roles which relate to the completion of the group's task:

Initiator-contributor: Generates new ideas.
Information-seeker: Asks for information about the task.
Opinion-seeker: Asks for the input from the group about its
values.
Information-giver: Offers facts or generalization to the group.
Opinion-giver: States his or her beliefs about a group issue.
Elaborator: Explains ideas within the group, offers examples to
clarify ideas.
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Social Roles

Recorder: Keeps a record of group actions.

Groups also have members who play certain social roles:

Encourager: Praises the ideas of others.
Harmonizer: Mediates differences between group members.
Compromiser: Moves group to another position that is favored
by all group members.
Gatekeeper/expediter: Keeps communication channels open.
Standard Setter: Suggests standards or criteria for the group to
achieve.
Group observer: Keeps records of group activities and uses this
information to offer feedback to the group.

Individualistic Roles

Coordinator: Shows the relationships between ideas.

Orienter: Shifts the direction of the group's discussion.
Evaluator-critic: Measures group's actions against some
objective standard.
Energizer: Stimulates the group to a higher level of activity.
Procedural-technician: Performs logistical functions for the
group.

Follower: Goes along with the group and accepts the group's
ideas.

These roles place the group member above the group and are
destructive to the group.
Aggressor: Attacks other group members, deflates the status of
others, and other aggressive behavior.
Blocker: Resists movement by the group.
Recognition seeker: Calls attention to himself or herself.
Self-confessor: Seeks to disclose non-group related feelings or
opinions.
Dominator: Asserts control over the group by manipulating the
other group members.
Help seeker: Tries to gain the sympathy of the group.

Special interest pleader: Uses stereotypes to assert his or her

own prejudices.

Status
Status is a position or rank given to groups or group members by the organization. It can be the
job title, benefits and services, facilities etc. which differentiates the status from one to another.
Status plays a dominant role in organizational behavior since it affects motivation, leadership, job
satisfaction and other behavioral consequences.
In organization, people who control the group using their power tend to be in high status. The
leader or manager of a group will be in high status than the members or employees. Besides this,
status also depends upon to the contribution to the group. For instance, in a playgroup, the
individual who has extra performance can have higher status event though they are in same
group.
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Norms
Norms are the standards (degrees of acceptability and unacceptability) for conduct that helps
individuals judge what is right or wrong and good or bad in a given social setting. They:

Are culturally derived and vary from one culture to another.

Are usually unwritten, yet have a strong influence on individual behavior.

May go above and beyond formal rules and written policies.

According to S.P. Robbins, Norms are acceptable standards of behavior within a group that are shared
by the groups members.
Reasons that groups enforce norms

To facilitate the survival of the group.

To simplify or clarify role expectations.

To help group members avoid embarrassing situations.

To express key group values and enhance the groups unique identity.

Norms are effective guides for social behavior. Norms must be activated before they can guide.
Individuals are expected to fulfill their role in society. Society regulates the behavior of different
roles on a reward or punishment system. Individuals primarily attempt to fulfill their roles for
their own succession.
Rewarded- Individuals are rewarded for living up to their roles (i.e. students getting an "A" on
their exam)
Punished- Individuals are punished for not completing the duties of their role (i.e. a salesman is
fired for not selling enough product)

Size
Size does matter at least as far as groups are concerned. In very small groups, the addition or
loss of one member can of course make a radical difference to the group process. Larger groups
need to be managed in quite different ways from smaller ones. So let's tackle this systematically:
"Formal" features refer to necessary properties of the group, and are functions of the number of
people and "Process" features are more empirically determined. Those formality and process are
more important as the size gets greater.
Smaller groups are faster to complete the tasks and making decisions than the larger one. But if
the purpose of group is problem solving and fact finding, they can get better result because of
more inputs. Generally, seven members of group are found to be effective and here should be odd
number in group size.
Social loafing

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The term social loafing is one important finding about the group size. Social loafing is a
tendency of the individuals to make less effort in group than individually. So it claims that
the sum total productivity of the individuals always less than that of group. It indicates that
increase in group size inversely related to individual performance.

Composition
The group members should have the variety of abilities. The dissimilar abilities, inclusive and
participative group can be effective than the similar and homogenous. There should be different
personalities, gender, race, age, academic background and level, skills, experience. But there can
be different compositional factors according to the group objectives and types. If there is high
level of diversity, it creates conflict and competition in group leading to high productivity if the
leader is very able to manage conflict.

Cohesiveness
Cohesiveness is the degree of being attractive, motivated and committed in the group. It is the
level of mutual understanding, cooperation and belongingness within the members.
The group which are cohesive can spent hours of time in interaction, they can stay together and
collectively defend the external threats. It is the factor that keeps its members within the group
for long duration.
Relationship between Group Cohesiveness, Performance Norms and Productivity

Performance Norms

Cohesiveness
High

Low

High
Productivity

Moderate
productivity

Low
Productivity

Moderate to
Low
Productivity

High

Low

Suggestions for improving group cohesiveness:

1. Make the group smaller
2. Encourage agreement with group goals
3. Increase the time members spent together
4. Increase the status of the group and the perceived difficulty of attaining membership in the
group
5. Stimulate competition with other groups
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6. Give rewards to the group rather than to individual members

7. Physically isolate the group
(Source: S.P. Robbins)

Group Decision Making

In most organizations, decisions are made by groups, teams or committees. It is the process of
making collective decision.
The common characters of group decision making are:
Decision making with a common decision making problem
Shared interest in a collective decision
All members have an opportunity to influence the decision

Advantages and Disadvantages of Group Decision Making

A major advantage of group decision making is that more information is brought to bear
identifying and evaluating alternatives. The more diverse the group's composition, the more
likely it is that creative ideas will be forthcoming
Advantages
1. More information and knowledge are
available
2 More alternatives are likely to be
generated
3 More acceptance of the final decisions
is likely
4 Enhanced communication of decision
making may result
5 Better decision generally emerge

Disadvantages
1 The process takes longer, so it is costlier
2 Compromise decision resulting from
indecisiveness may emerge`
3 One person may dominate the group
4 Group think may occur

Issues relating to group decision making

The two popular issues about group decision making are as follows:
a) Groupthink: Groupthink is the situations in which group pressures for consensus and
conformity discourage the group from critically appraising or realistic appraisal of alternative
course of actions. It weakens the efficiency of the individual because of pressure from group
members and may go beyond the reality and moral judgment.

Symptoms of the group think:

1. Group members rationalize any resistance to the assumptions they have made. No
matter how strongly the evidence may contradict their basic assumptions, members
behave so as to reinforce those assumptions continually.
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2. Members apply direct pressures on those who momentarily express doubts about \any
of the group's shared views or who question the validity of arguments supporting the
alternative favored by the majority.
3. Members who have doubts or hold differing points of view seek to avoid deviating from
what appears to be group consensus by keeping silent about misgiving and even
minimizing to them shelves the importance of their doubts.
4. There appears to be an illusion of unanimity (harmony or agreement). If someone
doesn't speak, its assumed that he or she is in full accord. In other words, abstention
(non-participation) becomes viewed as a Yes vote.
Source: S.P. Robbins and Seema Sanghi, p. p. 247

b) Groupshift: It is change in decision risk between the group's decision and the individual
decision that members within the group would make; can be with towards conservatism or
greater risk - S.P. Robbins. Group shift, also known as a special case of group think, is a
change in decision risk between the groups decision and the individual decision that
members within the group would make, can be either toward conservatism (traditional or
popular) or greater risk decision in comparison to the decision by the individual alone. In
group decision, the initial positions of individual members of a group are exaggerated toward
a more extreme position

What Causes Groupshift?

Discussion creates familiarization among group members

Group discussion motivates individuals to take risks

Group diffuses responsibility

Improving Group Decision Making

To make the group decision effective, there are some techniques to be followed which are explained
below.

1) Brainstorming: A decision making group in which members openly discuss, argue

about and agree on the best alternative. It is an idea generation process that specifically
encourages any and all alternatives, while withholding any criticism of those
alternatives and lastly, the members agree on the best one, proposed by any member of
the group.
It is a group process for generating possible solutions to a problem developed by Alex F.
Osborne to increase individual capabilities.
Advantages
A large number of ideas can be generated in a short period of time
Simple -no special expertise or knowledge required from the facilitator
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Disadvantages
Credit for another persons ideas may impede participation
Works best when participants represent a wide range of disciplines

2) Delphi Group: A form of group decision making in which a group is used to achieve a
consensus of expert opinion without face-to-face meeting of experts. It is a group process
which helps aggregates viewpoints in settings where subjective information has to be relied on
the production of numerical estimates and forecasts on selected statements and depends on
written feedback (instead of bringing people together)

Characteristics

Panel of experts
Facilitator who leads the process (manager)
Anonymous participation
Makes it easier to change opinion
Iterative processing of the responses in several rounds
Interaction through questionnaires
Same arguments are not repeated
Estimates and associated arguments are generated by and presented to the panel
Statistical interpretation of the forecasts

3) Nominal Group: It is an organized group meeting for problem identification, problem

solving, and program planning etc. which is used to eliminate the problems
encountered in small group meetings. Individual members meet face-to-face and
present the idea in a meeting. After the complete discussion and evaluation, they rank
the ideas and highest rank will be the final decision. It is a structured technique used to
generate creative and innovative alternatives or ideas.
Group Activity

Individual Activity

Team members
receive description
of problem

Individuals take turns

describing solutions
to each other;
Group then discusses
and evaluates ideas

Individuals silently
write down
possible solutions.

Advantages
Best for small group meetings
Fact finding and Idea generation
Search of problem or solution
Disadvantages
Not suitable for routine business and Bargaining
Problems with predetermined outcomes

4. Computer assisted decision making

50

Individual Activity

Individuals silently
rank or vote on each
solution presented.

S.Aryal

For the decision making a large number software packages available for the decision makers for their
decision analysis. Those software packages can be use for group decision making, voting or other
analysis and prediction of values. Web based applications can also be used of offline software like o
Excel, Access may also be used for decisional purpose.
Advantages
Graphical support for problem structuring, value and probability elicitation
Facilitate changes to models relatively easily
Sensitivity analyses can be easily conducted
Analysis of complex value and probability structures
Possibility to carry out analysis in distributed mode

Unit 7

Leadership
Concept and Nature
Leader is a person who can influence the behaviour of others without having to rely on force, who is
a person accepted by others as a leader.
"Leadership is the ability to influence a group toward the achievement of goals." - Robbins
"Leadership is a process, the use of noncoercieve influence to shape the group's or
organization' goals, motivate behaviour toward the achievement of those goals, and help
define group or organization culture; as a property, the set of characteristics attributed to
individuals who are perceived to be leaders." - Griffin
So that the leadership can be defined as a process that takes place in groups in which one member
influences and controls the behaviour of the other members toward some common goal."

Distinction between Management and Leadership

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Activity
Creating an agenda

Developing a human
network for achieving the
agenda
Executing plans

Management
Planning & Budgeting
- Establishing detailed steps,
allocating resources
Organizing and staffing
- Structure, Staffing,
Delegating authority,
monitor and implement
Controlling and Problem
Solving
- Monitoring results vs plan,
- Solving problem

Leadership
Establishing direction
- Developing vision
Aligning people
- Communication
- Influencing
- Creating teams
Motivating and Inspiring
- Energizing people to overcome major
political, bureaucratic and resource
barriers

Functions of Leadership
a) Establishing direction : Giving the proper direction to the followers where determining the
destination
b) Aligning people: Keeping the followers within the control of leader

c) Motivating and inspiring: Motivate them and try to be inspired by the leader
d) Change management: Manage any type of organizational change convincing the followers,
creating trust to the management

e) Coordination: Coordinate where necessary

f) Determining goal: Determine both long and short-term goals and objectives to be achieved
g) Representing organization: Manager represents on behalf of the organization.
h) Making quick and rational decision: Leaders should be able to make immediate and rational
decisions

i) Environmental adaptation: Make the change according to the environmental change to adopt
to it

j) Communication: Effective communication to its stakeholders

Traits of a Good Leader (Those popular traits illustrated by different writers)

Honesty - Display sincerity, integrity, and candor in all your actions. Deceptive behavior
will not inspire trust.

Competent - Your actions should be based on reason and moral principles. Do not make
decisions based on childlike emotional desires or feelings.

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Forward-looking Set goals and have a vision of the future. The vision must be owned
throughout the organization. Effective leaders envision what they want and how to get it.
They habitually pick priorities stemming from their basic values.

Inspiring - Display confidence in all that you do. By showing endurance in mental,
physical, and spiritual stamina, you will inspire others to reach for new heights. Take
charge when necessary.

Intelligent - Read, study, and seek challenging assignments.

Fair-minded - Show fair treatment to all people. Prejudice is the enemy of justice. Display
empathy by being sensitive to the feelings, values, interests, and well-being of others.

Broad-minded - Seek out diversity.

Courageous - Have the perseverance to accomplish a goal, regardless of the seemingly

insurmountable obstacles. Display a confident calmness when under stress.

Straightforward - Use sound judgment to make good decisions at the right time.

Imaginative - Make timely and appropriate changes in your thinking, plans, and methods.
Show creativity by thinking of new and better goals, ideas, and solutions to problems. Be
innovative.

Leadership Theories
1) Trait Theory of Leadership
Trait theory assumes that some basic trait (character) or set of traits existed that differentiated
leaders from non leaders. Those traits include intelligence, assertiveness, good looking, good
vocabulary, attractiveness, self-confidence, ability, commitment etc. It emphasizes on 'leaders
by born'
It assumes that people inherit certain qualities and traits that make them better suited to
leadership. Trait theories often identify particular personality or behavioral characteristics
shared by leaders. But if particular traits are key features of leadership, 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.
Decenzo and Robbins have mentioned six traits which differentiated leaders from nonleaders.
Drive: High effort, high energy and persistent to achieve goal
Desire to lead: Strong desire to influence and lead others
Honesty : Trust by followers, honest in their words
Self-confidence: can do approach for doing right things
Intelligence: Intelligence skill to gather, interpret, analyze the information for
appropriate decision and to create vision, solving problems.
f) Job relevant knowledge: The leader should exceed the job knowledge in technical as
well as non-technical matters

a)
b)
c)
d)
e)

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a) Great Man Theory of Leadership

Early research on leadership was based on the study of people who were already great
leaders. These people were often from the upper classes, as few from lower classes had the
opportunity to lead. This contributed to the idea that leadership had something to do with
extraordinary things.
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 intended
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. This was easy to verify, by pointing to people such as Jesus and Buddha.
It concludes that leader is born and we can not make them since they need to act and behave
highly differently than non-leaders; they are the very great man in organization and very
difficult to find leaders everywhere

2) Behavioural Theory of Leadership (People can be trained to be leader)

Opposing the views of Trait Theory, behavioural perspectives of leadership argues that
leadership depends upon the individuals how they behave others. It claims that leadership is
highly behavioural which can be trained/educated to the individuals. It tries to identify what
leaders should do rather than what leaders do.
The followings are the theories under Behavioural Perspectives:

i)

Managerial Grid/Leadership Grid Style

Industrial psychologists Blake and Mouton developed such styles consisting two
dimensions: i) Concern for people: human aspect and ii) Concern for production: task
aspects. They developed 81 possible combinations for leading purpose. Here is the five
combinations as an example.

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Concern for people

High

1.9

9.9
5.5

1.1

9.1

Low Concern for production

High

1.1 - Impoverished style: Little concern for production as well as people. They try to
use of minimum effort to get wok done to be popular.
1.9 - Country club style: The leader focuses on people like, friendship at work,
motivation and no priority is given for production.
9.1 - Task manager style: The autocratic style of leading in which the concern of
managers will be on high production rather than people's needs and satisfaction.
9.9 - Team builder style: The most effective leadership in which manager focuses on
high production through employee participation, motivation and commitment.
5.5 - Middle of roader style: The very safe style of leadership in which manager tries
to balance the concern for production as well as people, the individual is
compromiser.

ii)

Michigan Studies
The researchers of University of Michigan which was led by Rensis Likert in 1940,
concluded that there are two types of behaviours of the managers in the organization.
a) Job-centered leader behaviour
The behaviour of leader who pay close attention to the job and work procedures
involved with that job.
b) Employee-centered leader behaviour
The behaviour of leaders who develop cohesive (unified) work group and ensuring
employees' satisfaction, freedom and provide necessary assistance to their
subordinates.

iii)

Ohio State Studies

In late 1940's, Ohio State University of USA conducted the series of researches to seek the
dimensions of leader behaviour. Finally they concluded the two behaviours described by
their employees:
a) Initiating Structure: It is the leadership behaviours to define and structure the role of
leader to organize the work, maintaining working relationships and goal achievement.
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They focus on planning and controlling, standards and rules-regulations especially:

assigning the task to particular members, maintaining definite standards of
performance and emphasizing to meet the deadline.
b) Consideration:
On the other hand, the consideration behaviour focuses on job
relationships, mutual trust at work, respect for subordinate's ideas and always
considers the feeling of followers. They show concern about the comfort, well-being,
status and satisfaction of followers.
The conclusion of Ohio State Studies is : High Initiation Structure and High Consideration
(High-High Style) generally results positive outcomes but situational factors needed to be
integrated to this theory.

3) Contingency Theory
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. Success depends upon a
number of variables, including the leadership style, qualities of the followers, and aspects of
the situation.

Fiedler's Model of Leadership

It is the first comprehensive contingency model of leadership developed by Fred Fiedler
which proposes effective group performance depends on a proper match between a leader's
style of interacting with subordinates and the degree to which the situation gives control to
the leader.
Identifying Leadership Style
According him, we need to identify the leadership style of the individual whether he/she
focus on task or relationship. For this purpose, he developed a least preferred co-worker
(LPC) questionnaire.
Defining the Situation
After the identification of leadership style, we need to understand the situation or
contingency dimensions which can be:
a) Leader-member relations : confidence, trust, and respect to leader
b) Task Structure: Job is structured or unstructured
c) Position Power: Power of leader to influence like hiring, firing, discipline, promotion
and salary increases

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Matching Leader and Situations

Fiedler developed the model as a finding of those two: LPC and three different situational
variables and presented it as follows:
Task Oriented

Performance

Relationship Oriented
Good

Favorable

Poor

Unfavorable

Category

II

III

IV

VI

VII

VIII

Leader-member relations
Task structure
Position power

Good
High
Strong

Good
High
Weak

Good
Low
Strong

Good
Low
Weak

Poor
High
Strong

Poor
High
Weak

Poor
Low
Strong

Poor
Low
Weak

Since his assumption is the fix of leadership style in individual, we have only two ways to
improve the effectiveness in leadership; those are i) change the leader and ii) change the
situation (relation, task structure and position power)

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Unit 8

Communication
Concept
Communication is a process that allows people to exchange information by one of several methods.
There are auditory means, such as speaking or singing, and nonverbal, physical means, such as body
language, sign language, paralanguage, touch or eye contact.
"Communication is the process of transmitting information from one person to another."
"Effective communication is the process of sending message in such a away that the message
received is as close in meaning as possible to the message intended." - Griffin

Communication Structure
a)
b)
c)
d)
e)
f)
g)

Sender and receiver

Two way process
Flow
Channel
Encoding and decoding
Feedback
Noise

The Communication Process

Message

Sender

Encoding

Channels
Noise

Feedback

Types of communication
1. Formal and Informal Communication
Formal communication

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Decoding

Receiver

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Communication through organization structure in which the message is being communicated

through formal authorities. It can be vertical, horizontal, two-way, diagonal, upward,
downward etc.

Informal communication
Informal communication may or may not follow official reporting relationships. It can be the
followings :
a) Grapevine
An informal communication network suitable for large scale organization.
i.
Gossip chain : One person tells many
ii.
Cluster chain : One person passes information to the selected few individuals
b) Management by wandering around
Some managers keep in touch with what's going on by wandering around and talking
with people

2. Interpersonal and Non-verbal communication

a) Interpersonal communication
Process of transferring information between group members and among each others.
Oral communication
- Speeches
- Formal one -on-one and group discussions
- Grapevine
Written communication
- memos
- Letters
- Fax
- Email/instant messages
- Notices, Journals, Bulletin etc
b) Non-verbal communication
Communication without using words
- Facial expressions
- Body movements, Physical contact, body language
- Tone
- Image
- Settings

Barriers to Communication
Nothing is so simple that it cannot be misunderstood. - Freeman Teague, Jr.

Anything that prevents understanding of the message is a barrier to communication. Many

physical and psychological barriers exist:

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o
o

Culture, background and bias - We allow our past experiences to change the
meaning of the message. Our culture, background, and bias can be good as they
allow us use our past experiences to understand something new, it is when they
change the meaning of the message then they interfere with the communication
process.
Noise - Equipment or environmental noise impede clear communication. The
sender and the receiver must both be able to concentrate on the messages being
sent to each other.
Ourselves - Focusing on ourselves, rather than the other person can lead to
confusion and conflict. The "Me Generation" is out when it comes to effective
communication. Some of the factors that cause this are defensiveness (we feel
someone is attacking us), superiority (we feel we know more that the other), and
ego (we feel we are the center of the activity).
Perception - If we feel the person is talking too fast, not fluently, does not articulate
clearly, etc., we may dismiss the person. Also our preconceived attitudes affect our
ability to listen. We listen uncritically to persons of high status and dismiss those of
low status.
Message - Distractions happen when we focus on the facts rather than the idea.
Our educational institutions reinforce this with tests and questions. Semantic
distractions occur when a word is used differently than you prefer. For example,
the word chairman instead of chairperson may cause you to focus on the word and
not the message.
Environmental - Bright lights, an attractive person, unusual sights, or any other
stimulus provides a potential distraction.
Smothering - We take it for granted that the impulse to send useful information is
automatic. Not true! Too often we believe that certain information has no value to
others or they are already aware of the facts.
Stress - People do not see things the same way when under stress. What we see
and believe at a given moment is influenced by our psychological frames of
references - our beliefs, values, knowledge, experiences, and goals.

These barriers can be thought of as filters, that is, the message leaves the sender, goes
through the above filters, and is then heard by the receiver. These filters muffle the message.
And the way to overcome filters is through active listening and feedback.

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The following are the important points:

1)
2)
3)
4)
5)
6)
7)
8)
9)

Filtering (manipulation of information)

Selective perception of receivers
Information overload
Language
Reluctance to communication
Emotions
Cultural barriers
Politically correct communication
Less Listening power

Improving communication effectiveness (Overcoming barriers)

Individual skills
-

Develop good listening skills

Encourage two-way communication
Be aware of language and meaning
Maintain credibility
Be sensitive to receiver's perspective
Be sensible to sender's perspective

Organizational skills
-

Follow up
Regulate information flows
Understand the richness of media

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Unit 9

Conflict Management
Concept
Conflict is a situation of disagreement to others view, idea, principle or other matter. It is the
opposition in the decision or approach given by other employees. It may be misunderstanding or
miscommunication or real but inevitable element of interpersonal relationships in organizations.
"Conflict is a disagreement between two or more individual, group or organizations." - Griffin
"Conflict is a process that begins when one party perceives that another party has negatively
affected, or is about to negatively affect, something that the first party cares about." - S.P.
Robbins
Conflict may be job-related or personal, simple or strong, short-lived or for months or even years.
Traditionally, it viewed as a problem, but in modern days, it is viewed that some conflicts are
beneficial to the organizations. All the conflicts are not harmful.

Thoughts of Conflict
High
Traditional view: The belief that all conflict is harmful and must be avoided
Performance

Human relations view: The belief that conflict is a natural and inevitable outcome in any group.
Interactionist view: The belief that conflict is not only a positive force in a group but it is absolutely
Optimal
necessary for a group to perform effective
ly. level of conflict

Conflict and organizational performance

Low
Low

High

Conflict

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If there is absolutely no conflict in the group or organization, its members may become lazy with no
competition in organization. As a result, group or organizational performance and innovation may
subsequently begin to suffer. A moderate level of conflict among group or organizational members,
on the other hand, can spark motivation, creativity, innovation and initiative and raise performance.
Too much conflict though can produce undesirable results such as hostility and lack of cooperation,
which lower performance.

The Conflict Process

There are the five stages of conflict which is explained in the following figure.

Stage I: Potential Opposition or Incompatibility:

This is an opportunity for creating conflict. In this stage, the individual seeks for sources of conflict
that can be of communication, structure or personal variables.
Communication: Distorted communication, misunderstanding, noise in communication channels,
inadequate information are the source of conflict related to communication.
Structure: Size of the organization, degree of specialization, role and responsibilities, diverse goals,
style of leadership, reward system, interdependence creates conflict.
Personal Variables: The personality of individual may dislike by others and it creates differences.
Prejudice, disagreements, authoritarian arises conflict.
Stage I

Stage II

Stage III

Stage IV

Stage V

Potential opposition
or incompatibility

Cognition and
personalization

Intentions

Behaviour

Outcomes

Antecedent
conditions
Communication
Structure
Personal variables

Perceived
Conflict

Felt
Conflict

Conflict-handling
intentions
Competing
Collaborating
Compromising
Avoiding
Accommodating

63

Over conflict
Party's
behaviour
Other's
reaction

Increased
group
performance
Decreased
group
performance

S.Aryal

Stage II: Cognition and Personalization

From the stage I, if the individual negatively affected, it may perceived or felt as conflict and it is
personalized. This is the very important stage in which the individuals understand what the conflict
is and emotions play a major role for reducing or increasing conflict.
Perceived Conflict: Awareness by one or more parties of the existence of conditions that create
opportunities for conflict to arise
Felt Conflict: Emotional involvement in a conflict creating anxiety, tenseness, frustration or hostility

Stage III: Intentions

It is the decision to act in the given situation. Person may act in different ways like:
- Competing : A desire to satisfy one's interests, ignoring the impact on the other party to the
conflict
- Collaborating: Intention of the parties to solve the problem by clarifying differences,
cooperation and mutually beneficial outcome for all conflicting parties.
- Avoiding: Avoiding the conflicting parties/people , withdrawing or ignoring
- Accommodating: Sacrificing your goal so that others can achieve their goal (to maintain
relationship)
- Compromising: Each party in a conflict give up something and solve problem.

Stage IV: Behaviour

It is the visibility of conflict in which conflicting parties show the reactions and actions. In this stage,
the conflicting parties show certain behaviour and other react for this.

Stage V: Outcome
As a consequence of actions and reaction as behaviour of conflict, it mat increase or decrease the
organizational performance.
Functional Outcomes: Conflict can be highly constructible t when it improves the quality of
decisions, stimulates creativity and innovation, encourages interest and curiosity among group
member, provides the medium through which problems can be raised and releasing tension and
foster the environment for self-evaluation and change. It focuses on majority decision and avoids the
rubber-stamp of decision or group think.
Dysfunctional Outcomes: It is the destructive consequence of conflict that can be destruction of
group, reduction in group cohesiveness, fighting between group members, halt of functioning
threaten for group survival etc.

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Sources of Conflict
1) Interpersonal conflict
- Great variety in goals, perception, attitudes
- Personality clash, distrust each other's motives, dislike one another
- Gender problem
2) Inter group conflict
- Conflict between two or more organizational groups that may arise from organizational
causes than interpersonal causes
- Different department often have different goals, different targets
3) Conflict between organization and environment
- Conflict between the organizations because of competition
- Conflict between organization and its particular stakeholders

Interdepartmental Conflict
One of the major causes of organizational conflict is structural, also known as interdepartmental.
Organizations are designed around product lines, regions or technical specialties. These activities are
assigned to departments that often have mutually exclusive structured interests and goals among the
departmental employees and they interact within a framework of scarce resources and task
dependency. When resources are relatively fixed and when one department's gain is at the expense of
another, conflict should be expected. For example, employee selection is the gain HR Department but
the cost involved in the selection is expense for finance department.
If two sub-units in an organizational system have differentiated goals and are functionally
interdependent, conditions exist for conflict. Interdependence produces the need for team work,
mutual cooperation and understanding but it also creates conflict.
Major causes of departmental conflict:
o
o
o
o
o

Different attitudes between line and staff units

Organizational size (directly related to level of conflict) and standardization (inversely related
to conflict)
physical or communicational barriers between departments
unequal access to authority, rewards or organizational resources and
ambiguity or uncertainty in assigning tasks or rewards to different departments are

Approaches to Conflict Management

Conflict management is the technique of resolving or stimulating conflict so that desired level of
conflict can be achieved.

Interpersonal Conflict Management Approach:

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1. Competing
It is a desire to satisfy one's interests, ignoring the impact on the other party to the conflict.
This strategy results from a high concern for self-group's own interests with less concern for
others. The outcome is "win/lose." This strategy includes most attempts at bargaining. It is
generally used when basic rights are at stake or to set a precedent. However, it can cause the
conflict to escalate and losers may try to retaliate.
2. Collaborating
It is the intention of the parties to solve the problem by clarifying differences, cooperation and
mutually beneficial outcome for all conflicting parties. This results from a high concern for
your group's own interests, matched with a high concern for the interests of other partners.
The outcome is "win/win." This strategy is generally used when concerns for others are
important. It is also generally the best strategy when society's interest is at stake. This
approach helps build commitment and reduce bad feelings. The drawbacks are that it takes
time and energy. In addition, some partners may take advantage of the others' trust and
openness. Generally regarded as the best approach for managing conflict, the objective of
collaboration is to reach consensus.
3. Avoiding
It is avoiding the conflicting parties/people, withdrawing or ignoring. These results from a
low concern for self-group's own interests coupled with a low concern for the interests of
others. The outcome is "lose/lose." This strategy is generally used when other issues are more
pressing. It is also used when confrontation has a high potential for damage or more
information is needed. The drawbacks are that important decisions may be made by default.
4. Accommodating
Sacrificing your goal so that others can achieve their goal (to maintain relationship). his
results from a low concern for your group's own interests combined with a high concern for
the interests of other partners. The outcome is "lose/win." This strategy is generally used
when the issue is more important to others than to you.
5. Compromising
Each party in a conflict give up something and solve problem. his strategy results from a high
concern for your group's own interests along with a moderate concern for the interests of
other partners. The outcome is "win some/lose some." This strategy is generally used to
achieve temporary solutions, to avoid destructive power struggles or when time pressures
exist.

Structural Conflict Management Approach

Approach

Description

When to use

Problem Solving

The problem-solving approach involves supporting This approach should be employed in

the individuals involved in the conflict to help
situations where there is not a clear concise
them consider all the options and find the best
agreed to solution, and there is time to allow
solution. Sometimes referred to as the
the parties to collaborate and innovate. For
Confrontation approach.
this approach to work, it is also important that
the conflicting parties both bring ideas and
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Approach

Description

When to use
creativity to the problem.

Comprise

Comprise involves working out a middle ground

that satisfies all parties to some degree. The
compromising approach requires each of the
conflicting members to accede in order to achieve a
resolution.

Smoothing

Smoothing de-emphasizes the differences between This approach is particularly useful for minor
points of view and focuses on commonalities. The or unimportant issues, or issues that are not
smoothing approach involves minimizing the
critical to project success.
importance of the problem at the heart of the
conflict in an effort to make the conflict seem
pointless.

Forcing

The forcing approach requires others to yield to the This approach should be used when time is a
point of view of one side or another. It is also called critical factor. It is imperative that the project
the win-lose approach and can increase conflict.
manager provides the desired resolution to
The forcing approach involves you, as project
the conflict. This approach doesn't solve the
manager, using your influence and powers within conflict, but it does ensure that things get
the project team to simply resolve the issue
done.
yourself, making a decision about the way to move
forward.

This approach should be employed in

situations when both parties have a valid but
different approach to resolve the problem or
complete the task hand, or when there is not a
best practice to be followed. By assuring
everyone's perspective is considered and
represented, this approach will allow a winwin situation to occur.

Because this approach involves avoiding the

Withdrawal Withdrawal involves avoiding or retreating from
the conflict or potential conflict and allowing the problem, it should not be used very often. It
involved parties to work out the conflict on their
can be a temporary solution to deal with
own. The withdrawing approach involves giving in heated and emotional conflicts, or it can be
to the conflict by simply refusing to acknowledge used if the issue isn't relevant to the work of
that there is a problem and declining to discuss it. the project team.

Tips to Manage Structural Conflict

1. Regularly review job descriptions. Get your employee's input to them. Write down and date job
descriptions. Ensure:
a. Job roles don't conflict.
b. No tasks "fall in a crack".
2. Intentionally build relationships with all subordinates.
a. Meet at least once a month alone with them in office.
b. Ask about accomplishments, challenges and issues.
3. Get regular, written status reports and include:
a. Accomplishments.
b. Currents issues and needs from management.
c. Plans for the upcoming period.
4. Conduct basic training about:
a. Interpersonal communications.
b. Conflict management.
c. Delegation.
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5. Develop procedures for routine tasks and include the employees' input.
a. Have employees write procedures when possible and appropriate.
b. Get employees' review of the procedures.
c. Distribute the procedures.
d. Train employees about the procedures.
6. Regularly hold management meetings, for example, every month, to communicate new initiatives
and status of current programs.
7. Consider an anonymous suggestion box in which employees can provide suggestions.

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Managing Conflict
A Guide for Watershed Partnerships
Understanding conflict.
What is conflict?
Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or
needs. It can also originate from past rivalries and personality differences. Other causes of conflict include
trying to negotiate before the timing is right or before needed information is available.
The ingredients of conflict.
Needs - Needs are things that are essential to our well-being. Conflicts arise when we ignore others' needs,
our own needs or the group's needs. Be careful not to confuse needs with desires (things we would like, but
are not essential).
Perceptions - People interpret reality differently. They perceive differences in the severity, causes and
consequences of problems. Misperceptions or differing perceptions may come from: self-perceptions, others'
perceptions, differing perceptions of situations and perceptions of threat.
Power - How people define and use power is an important influence on the number and types of conflicts that
occur. This also influences how conflict is managed. Conflicts can arise when people try to make others change
their actions or to gain an unfair advantage.
Values - Values are beliefs or principles we consider to be very important. Serious conflicts arise when people
hold incompatible values or when values are not clear. Conflicts also arise when one party refuses to accept
the fact that the other party holds something as a value rather than a preference.
Feelings and emotions - Many people let their feelings and emotions become a major influence over how
they deal with conflict. Conflicts can also occur because people ignore their own or others' feelings and
emotions. Other conflicts occur when feelings and emotions differ over a particular issue.
Conflict is not always negative. In fact, it can be healthy when effectively managed. Healthy conflict can lead
to...
Growth and innovation
New ways of thinking
Additional management options
If the conflict is understood, it can be effectively managed by reaching a consensus that meets both the
individual's and society's needs. This results in mutual benefits and strengthens the relationship. The goal is for
all to "win" by having at least some of their needs met.
How public and private conflicts differ.
Most of us have experience with conflict management and negotiation in private disputes (with a salesman,
among family members or with your employer).
Public conflicts, like those that can occur during watershed management efforts and other environmental issues
often are rooted in trying to balance environmental protection and economic growth and jobs. Keep in mind,
however, that effective watershed management can result in both economic and environmental benefits. Some
complicating factors include:
Distribution of costs and benefits. Those who benefit may not be the same as those who pay the costs.
Perceptions of problems. People tend to blame others for causing the problem.
Speed of clean-up or other actions. Some will want changes to take place more quickly than others.
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Managing Conflict
There are five steps to managing conflict. These steps are:
Analyze the conflict
Determine management strategy
Pre-negotiation
Negotiation
Post-negotiation
Step 1: Analyze the conflict.
The first step in managing conflict is to analyze the nature and type of conflict. To do this, you'll find it helpful to
ask questions.
Answers may come from your own experience, your partners or local media coverage. You may want to
actually interview some of the groups involved. Additional information regarding analyzing conflicts can be
found in the Guide to Information and Resources.
Step 2: Determine management strategy.
Once you have a general understanding of the conflict, the groups involved will need to analyze and select the
most appropriate strategy. In some cases it may be necessary to have a neutral facilitator to help move the
groups toward consensus.
Conflict Management Strategies
Collaboration
Compromise
Competition
Accommodation
Avoidance
Collaboration - This results from a high concern for your group's own interests, matched with a high concern
for the interests of other partners. The outcome is "win/win." This strategy is generally used when concerns for
others are important. It is also generally the best strategy when society's interest is at stake. This approach
helps build commitment and reduce bad feelings. The drawbacks are that it takes time and energy. In addition,
some partners may take advantage of the others' trust and openness. Generally regarded as the best approach
for managing conflict, the objective of collaboration is to reach consensus. (See the Building Local Partnerships
guide for more information about consensus.)
Compromise - This strategy results from a high concern for your group's own interests along with a moderate
concern for the interests of other partners. The outcome is "win some/lose some." This strategy is generally
used to achieve temporary solutions, to avoid destructive power struggles or when time pressures exist. One
drawback is that partners can lose sight of important values and long-term objectives. This approach can also
distract the partners from the merits of an issue and create a cynical climate.
Competition - This strategy results from a high concern for your group's own interests with less concern for
others. The outcome is "win/lose." This strategy includes most attempts at bargaining. It is generally used when
basic rights are at stake or to set a precedent. However, it can cause the conflict to escalate and losers may try
to retaliate.
Accommodation - This results from a low concern for your group's own interests combined with a high
concern for the interests of other partners. The outcome is "lose/win." This strategy is generally used when the
issue is more important to others than to you. It is a "goodwill gesture." It is also appropriate when you
recognize that you are wrong.The drawbacks are that your own ideas and concerns don't get attention. You
may also lose credibility and future influence.
Avoidance -This results from a low concern for your group's own interests coupled with a low concern for the
interests of others. The outcome is "lose/lose." This strategy is generally used when the issue is trivial or other
issues are more pressing. It is also used when confrontation has a high potential for damage or more
information is needed. The drawbacks are that important decisions may be made by default.

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Conflict Analysis Exercise:

Think of a controversial issue to analyze. On a separate sheet of paper, answer these questions.
Groups involved
Who are the groups involved?
Who do they represent?
How are they organized?
What is their power base?
Are the groups capable of working together?
What are the historical relationships among the groups?
Substance
How did the conflict arise?
How are the main and secondary issues described?
Can negative issues be reframed positively?
Are the issues negotiable?
Have positions been taken and, if so, are there common
interests?
What information is available and what other information is
needed?
What values or interests are challenged?
Possible strategies
Would consensus serve all interests?
Are there external constraints or other influences that must
be accommodated?
What are the past experiences (if any) of the groups working
together?
What is the timeline for a decision?
How will the public and the media be involved and informed?
Will an outside negotiator be needed?
Step 3: Pre-negotiation.
To set the stage for effective negotiation, the groundwork must be laid. The following should occur prior to
negotiation.
Initiation - One partner raises the possibility of negotiation and begins the process. If no one is willing to
approach the others to encourage them to reach an agreement, a trusted outsider could be brought in as a
facilitator.
Assessment - Conditions must be right for negotiation to be successful. Key players must be identified and
invited. Each side must be willing to collaborate with the others. Reasonable deadlines and sufficient resources
to support the effort must exist. Spokespersons for each group must be identified and involved. Parties need to
determine which issues are negotiable and which are not.
Ground rules and agenda - The groups must agree on ground rules for communication, negotiation and
decision making. They should agree on the objectives of the negotiation process. An agenda of issues to be
covered needs to be developed.
Organization - Meeting logistics must be established, including agreed upon times and places. People must
be contacted and encouraged to attend. Minutes must be taken so that information can be distributed before
and after meetings.
Joint fact-finding - The groups must agree on what information is relevant to the conflict. This should include
what is known and not known about social and technical issues. Agreement is also needed on methods for
generating answers to questions.

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Step 4: Negotiation.
Interests - When negotiating be sure to openly discuss interests, rather than stated positions. Interests include
the reasons, needs, concerns and motivations underlying positions. Satisfaction of interests should be the
common goal.
Options - To resolve conflicts, concentrate on inventing options for satisfying interests. Do not judge ideas or
favor any of the options suggested. Encourage creativity, not commitment.
Evaluation - Only after the partners have finished listing options, should the options be discussed. Determine
together which ideas are best for satisfying various interests.
Written agreement - Document areas of agreement and disagreement to ensure common understanding. This
helps ensure that agreements can be remembered and communicated clearly.
Commitment - Every partner must be confident that the others will carry out their parts of the agreement.
Discuss and agree upon methods to ensure partners understand and honor their commitments.
When evaluating options...
Use objective criteria for ranking ideas
Make trade-offs among different issues
Combine different options to form acceptable agreements
Step 5: Post-negotiation.
Once negotiation is complete, the group will need to implement the decisions made. Some key steps include:
Ratification - The partners must get support for the agreement from organizations that have a role to play in
the agreement. These organizations should be partners and should have been involved in the previous steps.
Each organization will need to follow its own procedures to review and adopt the agreement.
Implementation - You and your partners' jobs are not done when you've reached agreement. Communication
and collaboration should continue as the agreement is carried out. The partnership will need to have a plan to
monitor progress, document success, resolve problems, renegotiate terms and celebrate success.
Negotiation skills.
Negotiation is an important skill for coming to an agreement when conflicts develop at home, at work and when
dealing with issues like those related to watershed management. When negotiating...
Separate people from the problem.
When negotiating, remember you're dealing with people who have their own unique needs, emotions and
perceptions.
Some conflicts are based on differences in thinking and perceptions. These conflicts may exist mainly in
peoples' minds. It helps for each party to put themselves into the other's shoes so they can understand each
other's point of view.
Identify and openly discuss differences in perceptions, being careful not to place blame. In addition, recognize
and understand the other side's emotions as well as your own.
Interest vs. Position
People often confuse interests with positions. An interest may be reducing litter in roadside ditches. There are
many possible ways of addressing this interest. One might be the position of mandatory recycling. Another
position might be a deposit on bottles and cans. Still another could be organizing a clean-up day.
Focus on interests, not positions.
Focusing on interests, rather than positions, makes it possible to come up with better agreements. Even when
people stand on opposite positions, they usually have a few shared interests.

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It takes time and effort to identify interests. Groups may not even be clear about their own interests. It helps to
write down each group's interests as they are discovered. It helps to ask why others take the positions or make
the decisions they do. Partners will have multiple interests. Interests involving important human needs (such as
security, economic well-being, a sense of belonging, recognition and control over one's life) are difficult to
negotiate.
Develop optional solutions.
When developing optional solutions that meet the interests of all sides, try to meet as many of each side's
interests as possible. Start by inviting all sides to brainstorm ideas (before reaching a decision). Brainstorming
is discussed in the Leading & Communicating guide.
Some obstacles to developing innovative options are:
Judging and rejecting prematurely
Searching for a single best answer
Putting limits on scope or vision
Considering only your own interests
To overcome these obstacles, view the situation through the eyes of different partners. Focus on shared
interests to make the process smoother for all involved. Look for meaningful opportunities, not simple solutions.
Developing objective criteria.
When developing criteria for selecting or combining possible alternatives, revisit the conflicting interests. These
can't be ignored or "wished" away. Instead discuss them as you begin developing criteria for judging
alternatives. Also keep in mind principles such as fairness, efficiency and scientific merit.
Strive for criteria that are legitimate, practical and unbiased. You may also find it helps to explore the criteria
used in making past decisions and discuss criteria with your partners or outside experts.

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Basics of Conflict Management

Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008.
Adapted from the Field Guide to Leadership and Supervision.

Clarifying Confusion About Conflict

Conflict is when two or more values, perspectives and opinions are contradictory in nature and haven't
been aligned or agreed about yet, including:
1. Within yourself when you're not living according to your values;
2. When your values and perspectives are threatened; or
3. Discomfort from fear of the unknown or from lack of fulfillment.
Conflict is inevitable and often good, for example, good teams always go through a "form, storm,
norm and perform" period. Getting the most out of diversity means often-contradictory values,
perspectives and opinions.
Conflict is often needed. It:
1. Helps to raise and address problems.
2. Energizes work to be on the most appropriate issues.
3. Helps people "be real", for example, it motivates them to participate.
4. Helps people learn how to recognize and benefit from their differences.
Conflict is not the same as discomfort. The conflict isn't the problem - it is when conflict is poorly
managed that is the problem.
Conflict is a problem when it:
1. Hampers productivity.
2. Lowers morale.
3. Causes more and continued conflicts.
4. Causes inappropriate behaviors.

Types of Managerial Actions that Cause Workplace Conflicts

1. Poor communications
a. Employees experience continuing surprises, they aren't informed of new
decisions, programs, etc.
b. Employees don't understand reasons for decisions, they aren't involved in
decision-making.
c. As a result, employees trust the "rumor mill" more than management.
2. The alignment or the amount of resources is insufficient. There is:
a. Disagreement about "who does what".
b. Stress from working with inadequate resources.
3. "Personal chemistry", including conflicting values or actions among managers and employees, for
example:
a. Strong personal natures don't match.
b. We often don't like in others what we don't like in ourselves.
4. Leadership problems, including inconsistent, missing, too-strong or uninformed leadership (at any
level in the organization), evidenced by:
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a. Avoiding conflict, "passing the buck" with little follow-through on decisions.

b. Employees see the same continued issues in the workplace.
c. Supervisors don't understand the jobs of their subordinates.

Key Managerial Actions / Structures to Minimize Conflicts

1. Regularly review job descriptions. Get your employee's input to them. Write down and date job
descriptions. Ensure:
a. Job roles don't conflict.
b. No tasks "fall in a crack".
2. Intentionally build relationships with all subordinates.
a. Meet at least once a month alone with them in office.
b. Ask about accomplishments, challenges and issues.
3. Get regular, written status reports and include:
a. Accomplishments.
b. Currents issues and needs from management.
c. Plans for the upcoming period.
4. Conduct basic training about:
a. Interpersonal communications.
b. Conflict management.
c. Delegation.
5. Develop procedures for routine tasks and include the employees' input.
a. Have employees write procedures when possible and appropriate.
b. Get employees' review of the procedures.
c. Distribute the procedures.
d. Train employees about the procedures.
6. Regularly hold management meetings, for example, every month, to communicate new initiatives
and status of current programs.
7. Consider an anonymous suggestion box in which employees can provide suggestions.

Ways People Deal With Conflict

There is no one best way to deal with conflict. It depends on the current situation. Here are the major
ways that people use to deal with conflict.
1. Avoid it. Pretend it is not there or ignore it.
a. Use it when it simply is not worth the effort to argue. Usually this approach tends
to worsen the conflict over time.
2. Accommodate it. Give in to others, sometimes to the extent that you compromise yourself.
a. Use this approach very sparingly and infrequently, for example, in situations
when you know that you will have another more useful approach in the very
near future. Usually this approach tends to worsen the conflict over time, and
causes conflicts within yourself.

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3. Competing. Work to get your way, rather than clarifying and addressing the issue. Competitors love
accommodators.
a. Use when you have a very strong conviction about your position.
4. Compromising. Mutual give-and-take.
a. Use when the goal is to get past the issue and move on.
5. Collaborating. Focus on working together.
a. Use when the goal is to meet as many current needs as possible by using mutual
resources. This approach sometimes raises new mutual needs.
b. Use when the goal is to cultivate ownership and commitment.

To Manage a Conflict Within Yourself - "Core Process"

It's often in the trying that we find solace, not in getting the best solution. The following steps will
help you in this regard.
1. Name the conflict, or identify the issue, including what you want that you aren't getting. Consider:
a. Writing your thoughts down to come to a conclusion.
b. Talk to someone, including asking them to help you summarize the conflict in 5
sentences or less.
2. Get perspective by discussing the issue with your friend or by putting it down in writing. Consider:
a. How important is this issue?
b. Does the issue seem worse because you're tired, angry at something else, etc.?
c. What's your role in this issue?
3. Pick at least one thing you can do about the conflict.
a. Identify at least three courses of action.
b. For each course, write at least three pros and cons.
c. Select an action - if there is no clear course of action, pick the alternative that
will not hurt, or be least hurtful, to yourself and others.
d. Briefly discuss that course of action with a friend.
4. Then do something.
a. Wait at least a day before you do anything about the conflict. This gives you
a cooling off period.
b. Then take an action.
c. Have in your own mind, a date when you will act again if you see no clear
improvement.

To Manage a Conflict With Another - "Core Process"

1. Know what you don't like about yourself, early on in your career. We often don't like in others what
we don't want to see in ourselves.
a. Write down 5 traits that really bug you when see them in others.
b. Be aware that these traits are your "hot buttons".
2. Manage yourself. If you and/or the other person are getting heated up, then manage yourself to stay
calm by
a. Speaking to the person as if the other person is not heated up - this can be very
effective!
b. Avoid use of the word "you" - this avoids blaming.
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c. Nod your head to assure them you heard them.

d. Maintain eye contact with them.
3. Move the discussion to a private area, if possible.
4. Give the other person time to vent.
a. Don't interrupt them or judge what they are saying.
5. Verify that you're accurately hearing each other. When they are done speaking:}
a. Ask the other person to let you rephrase (uninterrupted) what you are hearing from
them to ensure you are hearing them.
b. To understand them more, ask open-ended questions. Avoid "why" questions those questions often make people feel defensive.
6. Repeat the above step, this time for them to verify that they are hearing you. When you present
your position
a. Use "I", not "you".
b. Talk in terms of the present as much as possible.
c. Mention your feelings.
7. Acknowledge where you disagree and where you agree.
8. Work the issue, not the person. When they are convinced that you understand them:
a. Ask "What can we do fix the problem?" They will likely begin to complain again.
Then ask the same question. Focus on actions they can do, too.
9. If possible, identify at least one action that can be done by one or both of you.
a. Ask the other person if they will support the action.
b. If they will not, then ask for a "cooling off period".
10. Thank the person for working with you.
11. If the situation remains a conflict, then:
a. Conclude if the other person's behavior conflicts with policies and procedures in
the workplace and if so, present the issue to your supervisor.
b. Consider whether to agree to disagree.
c. Consider seeking a third party to mediate.

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Unit 10

Organizational Change and Development

Concept of Change
Change means making things different. Those change can be either planned (intentional) or
sometimes unplanned (unintentional). Typically, the concept of organizational change is in regard to
organization-wide change, as opposed to smaller changes such as adding a new person, modifying a
program, etc. Examples of organization-wide change might include a change in mission,
restructuring operations (e.g., restructuring to self-managed teams, ), new technologies, mergers,
major collaborations, "rightsizing", new programs such as Total Quality Management, reengineering, etc.
Organizational change is important to usher in long-term success in an organization. A change
entails realignment of organizational systems and processes. Managing change involves
institutionalizing the philosophy of change in the organization. Effective change management
entails creating a definitive vision and managing the transition to the desired future state.
Change Management is a structured approach to transitioning individuals, teams, and organizations
from a current state to a desired future state. The current definition of Change Management includes
both organizational change management processes and individual change management models,
which together are used to manage the people side of change.

Forces for Change

Change and change is the basic feature of the organizations in today's dynamic world. Unwillingly,
we need to change to cope to the new and changing environment. There are the followings factors
which enforce change:
1. Dynamic business environment
2. Globalization
3. Workforce diversity
4. Fast changing technology
5. High Competition
6. Social change
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7. Internal environment of the business

(Explain yourself)

Force

Examples

Nature of the workforce

More cultural diversity

Increasing number of women
Many new entrants with knowledge and skills

Technology

Faster, cheaper and more mobile computers

Online music sharing
Deciphering of the human genetic code

Economic shocks

Rise and fall of dot-com stocks

Stock market all time high
Record GDP

Competition

Global competitors
Mergers and consolidations
Growth of e-commerce

Social trends

Internet chat rooms

Adaptation to other cultures
Rise in discount and retailers

World politics

Iraq-U.S. war and U.S. relationship with other

countries
Opening of makers in China
War on terrorism following 9/11/01
Source: S.P. Robbins and Seema Sanghi, 2005 p.p. 525

Resistance to Change
Organizational change is an enviable phenomenon in every enterprise. However, research has shown
that people of the organization resists change. Such resistance may severely interrupt the change
process. The followings are the major forces for resistance to change.

Individual sources (Individual resistance)

Habit: To cope with life's complexities, we rely on habits or programmed responses. But when
confronted with change, this tendency to respond in our accustomed ways becomes a
source of resistance
Security: People with a high need for security are likely to resist change because it threatens their
feelings of safety.
Economic factors: Changes in job tasks or established work routine can arouse economic fears if
people are concerned that they won't be able to perform the new tasks or routine to their
previous standards, especially when pay is closely tied to productivity
Fear of the unknown: Change substitutes ambiguity and uncertainty for the known
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Selective information processing: Individuals are guilty of selectively processing information in

order to keep their perceptions intact. They hear what they want to hear and they ignore
information that challenges the world they have created.

Organizational sources (Organizational resistance)

Structural inertia: Organizations have built-in mechanisms like their section processes ad formalized
regulations- to produce stability. When organization is confronted with change, this
structural inertia acts as a counterbalance to sustain stability
Limited focus of change: Organizations are made up of a number of interdependent subsystems.
One can't be changed without affecting the others, So, limited changes in subsystems tend
to be nullified by the larger system.
Group inertia: Even if individuals want to change their behavior, group norms may act as a
constraints,
Threat to expertise: Changes in organizational patterns may threaten the expertise if specialized
groups
Threat to established power relationships: Any redistribution of decision-making authority can
threaten long-established power relationships within the organization
Threat to established resource allocation: Groups in the organization that control sizable resources
often see change as a threat. They tend to be content with the way things are.

Overcoming Barriers to Change

The followings arte the six tactics of overcoming the resistance to change
1. Education and Communication: Before implementing change, organization can provide
necessary trainings and education about the new change. Effective communication about
logics of change, understanding and providing accurate information can help managing
change. Discussion, meetings, presentations can be done for communication.
2. Participation: If we are involved in change decisions, it is very less likely to resist the change.
Management should participate the individuals who may resist the change, increase their
commitment and contribution to change process
3. Facilitation and Support: Organization needs to provide different facilities to the individuals
who resist change. They can appoint a change agent and his or she facilitate the change
through supporting the individuals
4. Negotiation: Negotiation can be taken place between the potential resisters and the
organization if the resistance is from powerful individuals. Different reward packages can be
offered to those powerful individuals
5. Manipulation and Cooptation: Manipulation is a way of misinterpretation of the fact
providing false information to the potential resisters so that they may appear soft and support
the change. Twisting and distorting the reality and providing false information to get
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employees accept change can be done. Cooptation is another process which uses the
manipulation and participation providing the key role in decision making to the leader of
potential resistance group. The purpose is not to consider their advice but get the
endorsement.
6. Coercion: It is the process of using force and threats on the resisters is coercion. It is the last
step and if the step five (manipulation and cooptation) doesn't work, management is
compelled to coerce the employees for change.

Formula for Change

A Formula for Change was developed by Richard Beckhard and David Gleicher and is
sometimes referred to as Gleicher's Formula. The Formula illustrates that the combination of
organisational dissatisfaction, vision for the future and the possibility of immediate, tactical
action must be stronger than the resistance within the organisation in order for meaningful
changes to occur.
ADKAR
The ADKAR model for individual change management was developed by Prosci with input
from more than 1000 organizations from 59 countries. This model describes five required
building blocks for change to be realized successfully on an individual level. The building
blocks of the ADKAR Model include:

1.
2.
3.
4.
5.

Awareness of why the change is needed

Desire to support and participate in the change
Knowledge of how to change
Ability to implement new skills and behaviors
Reinforcement to sustain the change

Organizational Development Concept

Organization development is the process through which an organization develops the internal
capacity to most efficiently and effectively provide its mission work and to sustain itself over the long
term. This definition highlights the explicit connection between organizational development work
and the achievement of organizational vision-mission.
According S.P. Robbins, organizational development (OD) is a collection of planned-change
intervntions, built on humanistic-democratric values, that seeks to improve organizational
effectiveness and employe well-being.
According to Richard Beckhard, OD is defined as: a planned effort, organization-wide, managed
from the top, to increase organization effectiveness and health, through planned interventions in the
organization's 'processes', using behavioural science knowledge.

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According to Warren Bennis, organization development (OD) is a complex strategy intended to

change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to
new technologies, markets, and challenges.
The follwoign are the facotors to be valued for oeganizational development efforts (Values of OD
efforts)

1. Respect for people: Individuals are perceived as being responsible, conscientious and caring,
they should be treated with dignity and respect
2. Trust and support: The effective and healthy organization is characterized by trust,
authenticity, openness and a supportive climate

3. Power equalization: Effective organizations deemphasize hierarchical authority and control

4. Confrontation: Problems should not be swept under rug, they should be openly cont\fronted
5. Participation: The more that people who will be affected by a change are involved in the
decisions surrounding that change, the more they will be committed to implementing those
decisions. (Source: S.P. Robbins, 2005, 532)

Process and Prerequisites for Organizational Development

Process for Organizational Development
The followings are the processes for organizational development
1. Initial Diagnosis: It is the process of identifying problems that requires to be solved with
consultation of experts and also finds whether problems can be solved with OD intervention.
2. Data Collection: It is the process of collecting necessary information about organizational climate
and problems to identify performance gaps using interviews and questionnaire.
Initial Diagnosis

Data Collection
Evaluation

Feedback and
Confrontation
Action Planning

Interventions
Sensitivity Training
Survey Feedback
Process Consultation
Team Building 82
Inter-group development
Appreciative Inquiry

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3. Feedback and confrontation: After the initial diagnosis and identifying solutions, a summary of
collected data is provided to employees for their feedback. Confrontation takes place with
disagreement. The OD team is responsible to address those disagreements and defines the areas of
priority for change.
4. Action Planning: It is the specific plan with appropriate resource allocation. With the consultation
of experts, appropriate actions with alternatives are developed with potential consequences.
5. Interventions: It is the process of implementing the change towards the development.
Interventions are the techniques of OD for bringing the change. Such techniques are:
Sensitivity Training: It is a method of changing through unstructured group interaction.
Members brought together in a free and open environment in which participants discuss
themselves and their interactive processes, loosely directed by a professional behavioral
scientist. It is a process of laboratory training in which participants learn by observing rather
than saying which helps in dealing interpersonal problems.
Survey Feedback: It is the process of using questionnaires to identify differences among
members' perceptions. The result of survey is discussed I groups to develop remedies.
Training and development activities can also be initiated to solve the major problems.
Process Consultation: It is a process of consultation in which external consultant assists a
client to understand process events with which he or she must deal and identify processes
that need improvement. The consultant helps the client solving his or her own problems with
best processes.
Team building: Work teams are formed to implement change process which will have highinteraction in group activities to increase trust and openness among team members. It can be
applied within groups at which activities arte interdependent
Inter-group development: It is the process of changing the attitude, stereotypes and
perception of the group in each other. Understanding and coordination will be developed
among different group and make harmonious working environment.
Appreciative Inquiry: Seeks to identify the unique qualities and special strengths of an
organization, which can then be built n to improve performance.
Others:
Organizational restructuring: Process of overall change in organizational structure
Technological changes: Modification of work methods, redesigning jobs, application and
installment of modern technologies

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6. Follow-up an Evaluation: Regular monitoring or change process is an important function to

ensure the achievement of results. According to the results achieved and learning from past, further
problems will be identified and considered as valuable feedback.
In OD, practitioners might work in a manner similar to "organizational physicians" intending to
improve the effectiveness of people and organizations by:
1) Establishing relationships with key personnel in the organization (often called "entering" and
"contracting" with the organization);
2) Researching and evaluating systems in the organization to understand dysfunctions and/or
goals of the systems in the organization ("diagnosing" the systems in the organization);
3) Identifying approaches (or "interventions") to improve effectiveness of the organization and
its people;
4) Applying approaches to improve effectiveness (methods of "planned change" in the
organization),
5) Evaluating the ongoing effectiveness of the approaches and their results.

Prerequisites for Organizational Development

1. Commitment from Top Management: Strong emphasis and commitment of implementing
change process.
2. Presence of change agent as a facilitator
3. Successful past experience in OD
4. Participation of competent and skillful external consultants/experts/
5. Built-in reward systems (Reward for contributions to change management)
(Describe yourself)

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85